THE COMMONWEALTH OF INDEPENDENT STATES ON THE MILLENNIUM CHALLENGE ACCOUNT SELECTION INDICATORS: GOVERNANCE IS THE MAIN CHALLENGE
Maks Kobonbaev, a consultant at the World Bank in Washington D.C.; is pursuing his doctoral degree in political science & policy and holds master’s degree in public policy administration from the University of Missouri (St. Louis, U.S.)
Promise of the Millennium Challenge Account
In March 2002, in Monterrey, Mexico, President Bush announced the creation of a bilateral development fund, the MCA, as the U.S. contribution to the United Nations Conference on Financing for Development. According to the plan, Bush pledged US$1.7 billion for FY 2004, US$3.3 billion for FY 2005 and US$5 billion for FY 2006, representing a 50 percent increase in the amount of aid focused strictly on development assistance. This marshaled the largest U.S. foreign aid increase in decades. Steve Radelet wrote in Foreign Affairs, “This move was one of the greatest surprises of George W. Bush’s presidency so far.” Indeed, the MCA could bring about the most fundamental changes to U.S. foreign assistance policy since the Kennedy administration.
Historically, the bulk of U.S. foreign assistance did not have economic development as its primary purpose. Instead, it was based on foreign policy goals. Brainard et al. note that though development assistance was originally intended to address development needs, decisions on aid allocation were based on……………