The Millennium Challenge Corps, or MCC, recently announced that the Philippines is eligible to receive another five-year extension on funding. The MCC is funded by the U.S. Congress and is meant to be an incentive for countries who actively reform policies to improve government functions.

This new five-year plan is intended to continue funding poverty alleviation projects within the Philippines. Washington recently announced the Philippines’ eligibility to continue the program.

“The selection of the Philippines for a second compact is a recognition of President Aquino’s commitment to good governance. I believe a smooth transition to a second compact will help the Philippines in further institutionalizing good governance policies and reforms,” said Ambassador Jose Cuisia, Jr.

The compact will aid the country in further deterrence of corruption. The Philippines’ government has operated under these regulations and is looking forward to reaping the benefits of continued funding.

The Millennium Challenge Corporation was founded in January 2004 by U.S. Congress. The MCC is an independent agency is committed to intelligently funding U.S. aid to countries in need of support. A part of its mission focuses on country-lead solutions that enable the countries to prioritize the areas of concern they find to be the most pertinent.

In addition, the chosen countries set up local MCC headquarters in order to monitor progress and work closely with the people and programs they are implementing. The MCC works in the world’s most severely impoverished countries in order to strengthen infrastructure to help lift people out of poverty.

The MCC operates on three main principles that are prerequisites for countries to be considered as eligible to receive funds: good governance, economic freedom and investments in their citizens. Although these requirements are loosely worded and give room to numerous interpretations, the MCC goes through a strict identification process to identify candidates for the long-term funds.

This will be the Philippines second compact. The first compact, awarded in 2010, comprised of $214.4 million to repair infrastructure and roads and another $120 million for poverty alleviation projects and community affairs.

In addition to the Philippines, Nepal and Mongolia were also selected by the Board of Directors to be eligible for funding and investment.

For the MCC to continue funding a country the country must show gradual improvement. One of methods of measurement the board uses to evaluate is per capita income level. The countries who receive compacts from the MCC have to show an increase from a Low Income Category to Low Middle Income Category.

Overall, the MCC was founded on principles that support international development through direct funding to areas the countries they decide to be the most pertinent to overcoming poverty. The MCC allows the countries to choose how they believe their country should best spend the money it has been given.

– Maxine Gordon

Sources: Yahoo News, MCC
Photo: Wall Street Journal