, , ,

Senators Cardin, Flake, Coons and Isakson Introduce Millennium Compacts for Regional Economic Integration Act

Millenium Compacts for Regional Economic Integration Act

Ranking Member of the Foreign Relations Committee, Senator Cardin (D-MD), Chairman of the Subcommittee on Africa and Global Health Policy, Senator Flake (R-AZ), and members of the Foreign Relations Committee, Senator Coons (D-Del) and Senator Isakson (R-GA), have introduced the Millennium Compacts for Regional Economic Integration Act.

This piece of legislation could potentially allow the Millennium Challenge Corporation (MCC) to partner with countries in order to address regional development challenges and encourage trans-border economic growth in the developing world, especially in Africa. The Millennium Challenge Corporation is an independent U.S. foreign aid agency established by Congress in 2004. This agency aims to combat global poverty through economic growth. The MCC partners with developing countries committed to good governance, economic freedom and investing in their citizens.

Countries have reformed in order to partner with the MCC. For example, Ghana changed its power grid in order to partner with the MCC. In addition, Lesotho allowed women to open bank accounts in order to receive MCC assistance. Given this, it is assumed that countries could improve conditions in their country in order to develop regional economic partnerships. This would yield two benefits simultaneously.

In a world of globalization, many economies are interconnected. Global economies have experienced significant and sustained growth partly because of regional infrastructure and integrated trade agreements. Through greater regional economic collaboration, countries can improve infrastructure deficiencies, unemployment and poverty reduction efforts.

The MCC’s work could be enhanced if it had the authority to encourage regional economic growth. In Central America, road infrastructure could be significantly improved if the roads connected across borders. In Africa, countries could create regional power agreements and connect countries through transportation infrastructure.

Knowing this, the Millennium Challenge Corporation could foster regional economic growth between developing countries. Today, it is important to consider globalization when assisting developing countries. Globalization could help developing countries grow faster than ever.

In conclusion, this bipartisan piece of legislation aims to improve economic interconnectedness between neighboring developing countries. The MCC could foster these relationships between countries. Globalization could exponentially help developing countries grow, given that it increases trade, infrastructure access and energy access.

Ella Cady

Sources: Senate, Open Congress, The Constituent
Photo: MCC