MILLENNIUM CHALLENGE CORPORATION

THRESHOLD COUNTRY PROGRAM SIGNING CEREMONY WITH MALAWI

SEPTEMBER 23, 2005

PARTICIPANTS:   CHARLES SETHNESS

VICE PRESIDENT FOR MONITORING AND EVALUATION

MILLENNIUM CHALLENGE CORPORATION

GOODALL GONDWE

FINANCE MINISTER

REPUBLIC OF MALAWI

AMBASSADOR JENDAYI FRAZER

ASSISTANT SECRETARY

BUREAU OF AFRICAN AFFAIRS

LLOYD PIERSON

ASSISTANT ADMINISTRATOR, BUREAU FOR AFRICA

USAID                     

SETHNESS:  It's truly an honor to be celebrating the signing of the Millennium Challenge Corporation's second threshold agreement, a two-year $20.9 million program, with the government of Malawi.

MCC will provide Malawi with threshold program assistance to attack corruption and improve fiscal management.  And I'm delighted to have all of you here as witnesses to this wonderful event.

I also want, on behalf of MCC, to congratulate the people and the government of Malawi, first for qualifying for the threshold program, and for being the first threshold country to submit a detailed plan to address the very difficult issue of corruption.

I'd like to recognize everyone who helped get us to this day, including His Excellency President Mutharika, Minister Gondwe, Ambassador Eastham and his staff in Lilongwe, Ambassador Sande and, of course, those at USAID and MCC who worked so very hard to bring us to this point.

And I'd like to extend a warm welcome to the minister, Ambassador Frazer, and Administrator Pierson, and thank you all for taking part in today's celebration.

The threshold program is designed to assist countries to improve their performance on indicators that MCC uses to select countries to be eligible for the compact process, indicators that measure policies that will lead to poverty reduction and to growth.

In the program that we're undertaking with Malawi, they have embarked on a very ambitious journey.  The program that the country has designed is integrated and comprehensive.

It attacks corruption on a systemic level, from passing needed laws, providing training and equipment to a broad range of government agencies, to strengthening the oversight role of the national assembly, the media and civil society.

The Malawian leadership has made clear that it sees the importance to the path to economic growth and foreign investment, of reducing corruption and improving fiscal management.  This program will support them in that effort.

I think none of us can expect that corruption is going to disappear in two years, but Malawi has identified a significant number of interim steps that, if they are achieved, will not only make inroads in addressing corruption, it will institutionalize the fight against it.

As Malawi moves toward implementation, we are pleased to be working with many U.S. agencies that can assist them, including experts from Treasury, Justice and, of course, the USAID, who's going to be implementing this for us.

That's why I'm honored now to give the podium to Assistant Administrator Lloyd Pierson.

PIERSON:  Thank you very much.

Mr. Minister, Assistant Secretary, to the MCC CEO and to all the staff, the members of the delegation from Malawi, this is such an important day and also, in many ways, for me such a special day to be here with MCC and USAID, for so many friends, so many colleagues who have put so much effort into the signing that we're going to do in just a few moments.

And, Mr. Minister, for your government, this is quite an achievement.  It is not one that happens very often.  It is a reflection upon the great progress that has been made in Malawi.  And we look forward to even greater progress in the future.  We compliment you on the democracy and good governance progress that has been made in Malawi.

The U.S. government recognizes the new government's renewed commitment to economic and social progress in Malawi since it took office in May of 2004.  Malawi was selected as an MCC threshold country in December 2004 as a result of its commitment to the Millennium Challenge Account principles of investing in people, ruling justly and promoting economic freedom.

The government of Malawi, led by President Mutharika, has taken a strong stand against corruption and uncontrolled government expenditures and their damaging effect on the development of the country and its people.

The $20.9 million two-year plan will further these efforts by pursuing three primary objectives, preventing corruption, enhancing oversight functions and building enforcement and deterrence capacity in the government.

USAID is pleased to support the government of Malawi in their design and implementation of its threshold country plan.  Following completion of this agreement, USAID will assist with the procurement of the plan's implementing partners, which will include the U.S. Department of Justice, Department of Treasury.

USAID will also support the government with the management, coordination, and monitoring and evaluation and implementation of the plan.

I'm also very thankful today that we have the new assistant secretary of state for Africa here.  He is formerly director of the NSC Africa Bureau, formerly United States ambassador to South Africa and now the assistant secretary of state for Africa, Ambassador Jendayi Frazer

FRAZER:  Thank you very much, Lloyd, for the introduction. 
Thank you all for being here.  And I'm quite honored to be here with you.  It's indeed a pleasure to be with you to participate in a signing ceremony of Malawi's MCC threshold country program. next