It is a bilateral United States foreign aid agency established by Congress in 2004, applying a new philosophy toward foreign aid. It is an independent agency, separate from the State Department or USAID.

MCC is a prime example of smart U.S. Government assistance in action, benefiting both developing countries and U.S. taxpayers through:

Competitive selection: Before a country can become eligible to receive assistance, MCC’s Board examines its performance on independent and transparent policy indicators and selects compact- eligible countries based on policy performance.

Country-led solutions: MCC requires selected countries to identify their priorities for achieving sustainable economic growth and poverty reduction. Countries develop their MCC proposals in broad consultation within their society. MCC teams then work in close partnership to help countries refine a program.

Country-led implementation: MCC administers the Millennium Challenge Account (MCA). When a country is awarded acompact, it sets up its own local MCA accountable entity to manage and oversee all aspects of implementation. Monitoring of funds is rigorous and transparent, often through independent fiscal agents.

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