The Millennium Challenge Corp., now in its 4th year of operations, is to provide aid to developing countries that have demonstrated a commitment to ruling justly, encouraging economic freedom, and investing in people. MCC provides assistance to eligible countries through multiyear compact agreements to fund specific programs targeted at reducing poverty and stimulating economic growth. As of Aug. 2008, MCC had signed compacts with 18 countries totaling approx. $6.3 billion; of the 18 signed compacts, 11 compacts had entered into force, obligating a total of approx. $3 billion. This report includes fact sheets for the 11 MCC compacts that had entered force as of Aug. 2008. Illustrations.

Established in January 2004 with a mission to reduce poverty through economic growth, the Millennium Challenge Corporation (MCC) has committed $6.9 billion for compacts with 19 developing countries. MCC vests compact management with accountable entities in recipient countries, called Millennium Challenge Accounts (MCA). MCAs, with guidance from MCC, allocate resources, oversee and implement a financial plan, approve expenditures and procurements, and implement compact projects. This report, directed by the fiscal year 2008 Consolidated Appropriations Act, assesses MCC and MCA (1) financial controls; (2) procurement practices; and (3) development, implementation, and oversight of contracts and projects. GAO focused on financial and procurement transactions and projects at MCAs in Honduras, Georgia, and Cape Verde, countries with high disbursement totals as of the end of fiscal year 2008.

In Jan. 2004, Congress established the Millennium Challenge Corp. (MCC) for foreign assistance. Eligible countries submit compact proposals for MCC funding for projects aimed at reducing poverty through economic growth. MCC performs economic analyses estimating the compacts¿ economic rate of return (ERR) and effects on income and poverty as well as the number of compact beneficiaries. MCC uses these analyses to inform its decisions to fund proposed compacts and to inform Congress and the public about its progress in achieving its mission. This report examines MCC¿s projections of: (1) ERR; and (2) compacts¿ impact on income and poverty as well as numbers of beneficiaries. Includes recommendations. Illus.