MCC Vice President John Hewko Visits Malawi to Launch Discussions on Developing MCC Compact

Lilongwe: The Vice President for Compact Development for the Millennium Challenge Corporation (MCC), John Hewko, visited Malawi (January 13-January 17) to meet with a range of senior government officials, civil society leaders and other members of the community to discuss next steps in developing a large scale poverty reduction program (called a Compact) with Malawi. 

Hewko commented to the media in Blantyre on Tuesday that Malawi’s selection represented a unique opportunity for its people and another important phase in very strong relations that Malawi has with the United States.  He said the MCC’s singular mission was that of reducing poverty through the vehicle of sustainable economic growth.  “We are focusing on the poor people of Malawi and creating the conditions for economic growth so that the poor people can have a better life in your country,” said Hewko.

In its December meeting, MCC’s Board of Directors selected Malawi to participate in this innovative U.S. Government foreign aid program that emphasizes partnership with the recipient country, local leadership of the process, and measurable results.  In making its decision for selection, the Board considers policy performance of candidate countries using 17 indicators in three areas—“ruling justly,” “investing in people,” and “encouraging economic freedom.”  These indicators measure countries’ demonstrated commitment to policies that promote, among other things, political and economic freedom, investments in education and health care, control of corruption, and respect for civil liberties and the rule of law.  MCC publishes the criteria by which it selects countries, like Malawi, to participate on its website at www.mcc.gov and the public is encouraged to become acquainted with MCC’s unique model of assistance and selection process.

Malawi was first selected as eligible for economic assistance under MCC’s “Threshold Program” in November 2004.  This program is designed to assist countries that are committed to undertaking the reforms necessary to improve policy performance and eventually qualify for MCA Compact assistance.  Malawi’s $20.95 million Threshold Program is in its second year of implementation and is focused on helping Malawi fight corruption and improve fiscal policy in the country. 

In 2004, the United States established the Millennium Challenge Account, an innovative new foreign assistance program designed to reduce poverty by promoting sustainable economic growth.  MCC is a U.S. government corporation that was established to administer these funds.