80_FR_82119 80 FR 81868 - Report on the Selection of Eligible Countries for Fiscal Year 2016

80 FR 81868 - Report on the Selection of Eligible Countries for Fiscal Year 2016

MILLENNIUM CHALLENGE CORPORATION

Federal Register Volume 80, Issue 251 (December 31, 2015)

Page Range81868-81870
FR Document2015-32353

This report is provided in accordance with section 608(d)(1) of the Millennium Challenge Act of 2003, Pub. L. 108-199, Division D, (the ``Act''), 22 U.S.C. 7708(d)(1).

Federal Register, Volume 80 Issue 251 (Thursday, December 31, 2015)
[Federal Register Volume 80, Number 251 (Thursday, December 31, 2015)]
[Notices]
[Pages 81868-81870]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32353]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 15-06]


Report on the Selection of Eligible Countries for Fiscal Year 
2016

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

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SUMMARY: This report is provided in accordance with section 608(d)(1) 
of the Millennium Challenge Act of 2003, Pub. L. 108-199, Division D, 
(the ``Act''), 22 U.S.C. 7708(d)(1).

    Dated: December 18, 2015.
Maame Ewusi-Mensah Frimpong,
Vice President and General Counsel, Millennium Challenge Corporation.

Report on the Selection of Eligible Countries for Fiscal Year 2016

Summary

    This report is provided in accordance with section 608(d)(1) of the 
Millennium Challenge Act of 2003, as amended, Public Law 108-199, 
Division D, (the ``Act'') (22 U.S.C. 7707(d)(1)).
    The Act authorizes the provision of Millennium Challenge Account

[[Page 81869]]

(``MCA'') assistance under section 605 of the Act (22 U.S.C. 7704) to 
countries that enter into compacts with the United States to support 
policies and programs that advance the progress of such countries in 
achieving lasting economic growth and poverty reduction, and are in 
furtherance of the Act. The Act requires the Millennium Challenge 
Corporation (``MCC'') to determine the countries that will be eligible 
to receive MCA assistance for the fiscal year, based on their 
demonstrated commitment to just and democratic governance, economic 
freedom, and investing in their people, as well as on the opportunity 
to reduce poverty and generate economic growth in the country. The Act 
also requires the submission of reports to appropriate congressional 
committees and the publication of notices in the Federal Register that 
identify, among other things:
    1. The countries that are ``candidate countries'' for assistance 
for fiscal year (``FY'') 2016 based on their per-capita income levels 
and their eligibility to receive assistance under U.S. law, and 
countries that would be candidate countries but for specified legal 
prohibitions on assistance (section 608(a) of the Act (22 U.S.C. 
7707(a)));
    2. The criteria and methodology that the Board of Directors of MCC 
(the ``Board'') will use to measure and evaluate the policy performance 
of the ``candidate countries'' consistent with the requirements of 
section 607 of the Act in order to select ``eligible countries'' from 
among the ``candidate countries'' (section 608(b) of the Act (22 U.S.C. 
7707(b))); and
    3. The list of countries determined by the Board to be ``eligible 
countries'' for FY 2016, with justification for eligibility 
determination and selection for compact negotiation, including with 
which of the eligible countries the Board will seek to enter into 
compacts (section 608(d) of the Act (22 U.S.C. 7707(d))).
    This is the third of the above-described reports by MCC for FY 
2016. It identifies countries determined by the Board to be eligible 
under section 607 of the Act (22 U.S.C. 7706) for FY 2016 and countries 
with which the MCC will seek to enter into compacts under section 609 
of the Act (22 U.S.C. 7708), as well as the justification for such 
decisions. The report also identifies countries determined by the Board 
to be eligible for MCC's Threshold Program under section 616 of the Act 
(22 U.S.C. 7715).

Eligible Countries

    The Board met on December 16, 2015, to select countries that will 
be eligible for assistance under section 607 of the Act (22 U.S.C. 
7706) for FY 2016. The Board selected the following countries as 
eligible for such assistance for FY 2016: Cote d'Ivoire, Kosovo, and 
Senegal. The Board also reselected the following countries as eligible 
for FY 2016 compact assistance: Niger, Nepal, and the Philippines. The 
Board did not vote on the re-selection of Tanzania and Lesotho. The 
Board also reaffirmed its support for Mongolia's continued effort to 
develop its compact proposal that will access funds appropriated to MCC 
when Mongolia was a candidate country.

Criteria

    In accordance with the Act and with the ``Report on the Criteria 
and Methodology for Determining the Eligibility of Candidate Countries 
for Millennium Challenge Account Assistance in Fiscal Year 2016'' 
formally submitted to Congress on September 22, 2015, selection was 
based primarily on a country's overall performance in three broad 
policy categories: Ruling Justly, Encouraging Economic Freedom, and 
Investing in People. The Board relied, to the maximum extent possible, 
upon transparent and independent indicators to assess countries' policy 
performance and demonstrated commitment in these three broad policy 
areas. The Board compared countries' performance on the indicators 
relative to their income-level peers, evaluating them in comparison to 
either the group of low income countries (``LIC'') or the group of 
lower middle income countries (``LMIC'').
    The criteria and methodology used to assess countries on the annual 
scorecards are outlined in the ``Report on the Criteria and Methodology 
for Determining the Eligibility of Candidate Countries for Millennium 
Challenge Account Assistance in Fiscal Year 2016.'' \1\ Scorecards 
reflecting each country's performance on the indicators are available 
on MCC's Web site at www.mcc.gov/scorecards.
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    \1\ Available at https://www.mcc.gov/resources/doc/report-selection-criteria-and-methodology-fy16.
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    The Board also considered whether any adjustments should be made 
for data gaps, data lags, or recent events since the indicators were 
published, as well as strengths or weaknesses in particular indicators. 
Where appropriate, the Board took into account additional quantitative 
and qualitative information, such as evidence of a country's commitment 
to fighting corruption, investments in human development outcomes, or 
poverty rates. For example, for additional information in the area of 
corruption, the Board considered how a country is evaluated by 
supplemental sources like Transparency International's Corruption 
Perceptions Index, the Global Integrity Report, Open Government 
Partnership status, and the Extractive Industry Transparency 
Initiative, among others, as well as on the defined indicator. The 
Board may also take into account the margin of error around an 
indicator, when applicable. In keeping with legislative directives, the 
Board also considered the opportunity to reduce poverty and promote 
economic growth in a country, in light of the overall information 
available, as well as the availability of appropriated funds.
    This was the sixth year the Board considered the eligibility of 
countries for subsequent compacts, as permitted under section 609(k) of 
the Act (22 U.S.C. 7708(k)). The Board also considered the eligibility 
of countries for initial compacts. The Board sees the selection 
decision as an annual opportunity to determine where MCC funds can be 
most effectively invested to support poverty reduction through economic 
growth in relatively well-governed, poor countries. The Board carefully 
considers the appropriate nature of each country partnership--on a case 
by case basis--based on factors related to economic growth and poverty 
reduction, the sustainability of MCC's investments, and the country's 
ability to attract and leverage public and private resources in support 
of development.
    MCC's engagement with partner countries is not open-ended, and the 
Board is very deliberate when determining eligibility for follow-on 
partnerships. In determining subsequent compact eligibility, the Board 
considered--in addition to the criteria outlined above--the country's 
performance implementing its first compact, including the nature of the 
country's partnership with MCC, the degree to which the country has 
demonstrated a commitment and capacity to achieve program results, and 
the degree to which the country has implemented the compact in 
accordance with MCC's core policies and standards. To the greatest 
extent possible, this was assessed using pre-existing monitoring and 
evaluation targets and regular quarterly reporting. This information 
was supplemented with direct surveys and consultation with MCC staff 
responsible for compact implementation, monitoring, and evaluation. MCC 
published a Guide to

[[Page 81870]]

the Supplemental Information Sheet \2\ and a Guide to the Compact 
Survey Summary \3\ in order to increase transparency about the type of 
supplemental information the Board uses to assess a country's policy 
performance and compact implementation performance. The Board also 
considered a country's commitment to further sector reform, as well as 
evidence of improved scorecard policy performance.
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    \2\ Available at https://www.mcc.gov/resources/doc/guide-to-supplemental-information-fy16.
    \3\ Available at https://www.mcc.gov/resources/doc/guide-to-the-compact-survey-summary-fy15.
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    As with previous years, a number of countries that performed well 
on the quantitative elements of the selection criteria (i.e., on the 
policy indicators) were not chosen as eligible countries for FY 2016. 
FY 2016 was a particularly competitive year: Several countries were 
already working to develop compacts, multiple countries passed the 
scorecard (some for the first time), and funding was limited due to 
budget constraints. As a result, only three countries that passed the 
scorecard were newly selected for MCC compact eligibility, and two 
others for the threshold program.

Countries Newly Selected for Compact Eligibility

    Using the criteria described above, Cote d'Ivoire, Kosovo, and 
Senegal are the only candidate countries under section 606(a) of the 
Act (22 U.S.C. 7705(a)) that were newly selected as eligible for 
assistance under section 607 of the Act (22 U.S.C. 7706).
    Cote d'Ivoire: After years of working with MCC and MCC indicator 
institutions in order to strengthen their scorecard performance, Cote 
D'Ivoire went from passing 5 to 13 indicators over the last four years, 
due to updating data and pursuing policy reforms linked to the 
scorecard. In FY 2015, Cote D'Ivoire met the minimum scorecard criteria 
for the first time, passing 10 indicators, including both hard hurdles. 
Given the continued improvement from FY 2015 to FY 2016, selection for 
a compact program allows MCC to continue strengthen its relationship 
with Cote d'Ivoire while rewarding continued policy improvement.
    Kosovo: After years of working to improve data collection and 
quality, as well as improve policy outcomes, Kosovo passed the MCC 
scorecard for the first time in FY16, passing 13 of 20 indicators 
including both hard hurdles and passing Control of Corruption. The 
country remains one of the poorest in Europe with close to 30% of the 
population living on less than $2/day, and an economy highly dependent 
on remittances. A compact investment will serve as an opportunity to 
reduce poverty through sustainable economic development while also 
building on the positive relationship built over the past few years.
    Senegal: Senegal has consistently passed the scorecard criteria for 
eight consecutive years and scored above the 90th percentile in Control 
of Corruption for three consecutive years. Through its first compact, 
Senegal has proven to be a strong partner, successfully completing the 
compact ($540 million) in September 2015. In working on a second 
compact, MCC is able to continue to partner with the Government of 
Senegal to reduce poverty and support strong economic investments in 
the country.

Countries Reselected To Continue Compact Development

    Three of the countries selected as eligible for compact assistance 
for FY 2016 were previously selected as eligible in FY 2015. These 
countries are Niger, Nepal and the Philippines. The Board reselected 
these countries based on their continued or improved policy performance 
since their prior selection. The Board also expressed its support for 
continued development of a compact with Mongolia using funds 
appropriated in FY 2015 and prior years, as the country moved in FY 
2016 to the upper middle income category before its proposal was 
finalized. The Board deferred a vote on the selection of Tanzania and 
Lesotho and emphasized the seriousness with which it takes a country's 
commitment to MCC's eligibility criteria.
    Tanzania: The Board deferred a vote on Tanzania's reselection. The 
Board discussed the fact that due to ongoing concerns about the 
Zanzibar elections, as well as the use of Tanzania's Cyber Crimes 
legislation in the context of the national elections, a vote on 
reselection would be premature at this time. The Board may revisit its 
decision over the course of 2016 as more information becomes available.
    Lesotho: The Board deferred a vote on Lesotho's reselection. The 
Board discussed the fact that due to ongoing concerns over the rule of 
law and accountability in the country, and an expected report from the 
Southern Africa Development Community on these same issues, a vote on 
reselection would be premature at this time. The Board may revisit its 
decision over the course of 2016 as more information becomes available.

Countries Selected as Eligible To Receive Threshold Program Assistance

    The Board selected Sri Lanka and Togo as eligible to receive 
threshold program assistance.
    Sri Lanka: Sri Lanka consistently passed the scorecard from FY 2011 
through FY 2015. Though Sri Lanka failed the scorecard in FY 2016 due 
to failing the democratic rights indicators, this was largely due to 
the indicators reflecting events in 2014, and likely not yet capturing 
the democratic rights improvements following the 2015 elections. A 
threshold program investment is an opportunity to build on this 
positive momentum, and allows Sri Lanka the opportunity to further 
strengthen its scorecard performance. It also allows MCC the 
opportunity to work with the government on the country's ongoing 
efforts in policy reform.
    Togo: Togo has shown consistent improvements on the MCC scorecard 
over the past three years. A government committee has been strongly 
engaged with MCC to strategize and prioritize policy improvements, 
including reforming the family code to ensure gender equality and 
improving control of corruption. As a result, Togo moved from passing 5 
of 20 indicators in FY 2014 to 10 of 20 indicators in FY 2016. Togo's 
eligibility for threshold program assistance will allow MCC to engage 
with Togo on continued policy reform, as well as offer Togo an 
opportunity to further strengthen its scorecard performance.

Ongoing Review of Partner Countries' Policy Performance

    Once MCC has signed a compact with a country, MCC does not consider 
the country for reselection on an annual basis during the term of its 
compact. However, the Board emphasized the need for all partner 
countries to maintain or improve their policy performance. If it is 
determined during compact implementation that a country has 
demonstrated a significant policy reversal, MCC can hold it accountable 
by applying MCC's Suspension and Termination Policy.\4\
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    \4\ Available at https://www.mcc.gov/resources/doc/policy-on-suspension-and-termination.
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[FR Doc. 2015-32353 Filed 12-30-15; 8:45 am]
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                                              81868                     Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Notices

                                              numbered subject for which a response                      15. Please describe, and assess the                Remedies
                                              is submitted.                                           effectiveness or ineffectiveness of,                     26. Is section 512(g)(2)(C), which
                                                                                                      voluntary measures and best practices—                requires a copyright owner to bring a
                                              General Effectiveness of Safe Harbors
                                                                                                      including financial measures, content                 federal lawsuit within ten business days
                                                 1. Are the section 512 safe harbors                  ‘‘filtering’’ and takedown procedures—                to keep allegedly infringing content
                                              working as Congress intended?                           that have been undertaken by interested
                                                 2. Have courts properly construed the                                                                      offline—and a counter-notifying party to
                                                                                                      parties to supplement or improve the                  defend any such lawsuit—a reasonable
                                              entities and activities covered by the                  efficacy of section 512’s notice-and-
                                              section 512 safe harbors?                                                                                     and effective provision? If not, how
                                                                                                      takedown process.                                     might it be improved?
                                                 3. How have section 512’s limitations
                                              on liability for online service providers               Counter Notifications                                    27. Is the limited injunctive relief
                                              impacted the growth and development                                                                           available under section 512(j) a
                                                                                                        16. How effective is the counter-                   sufficient and effective remedy to
                                              of online services?                                     notification process for addressing false
                                                 4. How have section 512’s limitations                                                                      address the posting of infringing
                                                                                                      and mistaken assertions of                            material?
                                              on liability for online service providers               infringement?
                                              impacted the protection and value of                                                                             28. Are the remedies for
                                                                                                        17. How efficient or burdensome is                  misrepresentation set forth in section
                                              copyrighted works, including licensing                  the counter-notification process for
                                              markets for such works?                                                                                       512(f) sufficient to deter and address
                                                                                                      users and service providers? Is it a                  fraudulent or abusive notices and
                                                 5. Do the section 512 safe harbors                   workable solution over the long run?
                                              strike the correct balance between                                                                            counter notifications?
                                                                                                        18. In what ways does the process
                                              copyright owners and online service                     work differently for individuals, small-              Other Issues
                                              providers?                                              scale entities, and/or large-scale entities             29. Please provide any statistical or
                                              Notice-and-Takedown Process                             that are sending and/or receiving                     economic reports or studies that
                                                 6. How effective is section 512’s                    counter notifications?                                demonstrate the effectiveness,
                                              notice-and-takedown process for                                                                               ineffectiveness, and/or impact of section
                                                                                                      Legal Standards
                                              addressing online infringement?                                                                               512’s safe harbors.
                                                 7. How efficient or burdensome is                       19. Assess courts’ interpretations of                30. Please identify and describe any
                                              section 512’s notice-and-takedown                       the ‘‘actual’’ and ‘‘red flag’’ knowledge             pertinent issues not referenced above
                                              process for addressing online                           standards under the section 512 safe                  that the Copyright Office should
                                              infringement? Is it a workable solution                 harbors, including the role of ‘‘willful              consider in conducting its study.
                                              over the long run?                                      blindness’’ and section 512(m)(1)                       Dated: December 28, 2015.
                                                 8. In what ways does the process work                (limiting the duty of a service provider              Maria A. Pallante,
                                              differently for individuals, small-scale                to monitor for infringing activity) in
                                                                                                                                                            Register of Copyrights, U.S. Copyright Office.
                                              entities, and/or large-scale entities that              such analyses. How are judicial
                                                                                                                                                            [FR Doc. 2015–32973 Filed 12–30–15; 8:45 am]
                                              are sending and/or receiving takedown                   interpretations impacting the
                                                                                                                                                            BILLING CODE 1410–30–P
                                              notices?                                                effectiveness of section 512?
                                                 9. Please address the role of both                      20. Assess courts’ interpretations of
                                              ‘‘human’’ and automated notice-and-                     the ‘‘financial benefit’’ and ‘‘right and
                                              takedown processes under section 512,                   ability to control’’ standards under the              MILLENNIUM CHALLENGE
                                              including their respective feasibility,                 section 512 safe harbors. How are                     CORPORATION
                                              benefits, and limitations.                              judicial interpretations impacting the                [MCC FR 15–06]
                                                 10. Does the notice-and-takedown                     effectiveness of section 512?
                                              process sufficiently address the                           21. Describe any other judicial                    Report on the Selection of Eligible
                                              reappearance of infringing material                     interpretations of section 512 that                   Countries for Fiscal Year 2016
                                              previously removed by a service                         impact its effectiveness, and why.
                                                                                                                                                            AGENCY: Millennium Challenge
                                              provider in response to a notice? If not,               Repeat Infringers                                     Corporation.
                                              what should be done to address this
                                                                                                         22. Describe and address the                       ACTION: Notice.
                                              concern?
                                                 11. Are there technologies or                        effectiveness of repeat infringer policies            SUMMARY:  This report is provided in
                                              processes that would improve the                        as referenced in section 512(i)(A).                   accordance with section 608(d)(1) of the
                                              efficiency and/or effectiveness of the                     23. Is there sufficient clarity in the             Millennium Challenge Act of 2003, Pub.
                                              notice-and-takedown process?                            law as to what constitutes a repeat                   L. 108–199, Division D, (the ‘‘Act’’), 22
                                                 12. Does the notice-and-takedown                     infringer policy for purposes of section              U.S.C. 7708(d)(1).
                                              process sufficiently protect against                    512’s safe harbors? If not, what should
                                              fraudulent, abusive or unfounded                        be done to address this concern?                        Dated: December 18, 2015.
                                              notices? If not, what should be done to                                                                       Maame Ewusi-Mensah Frimpong,
                                                                                                      Standard Technical Measures                           Vice President and General Counsel,
                                              address this concern?
                                                 13. Has section 512(d), which                           24. Does section 512(i) concerning                 Millennium Challenge Corporation.
                                              addresses ‘‘information location tools,’’               service providers’ accommodation of                   Report on the Selection of Eligible
                                              been a useful mechanism to address                      ‘‘standard technical measures’’                       Countries for Fiscal Year 2016
                                              infringement that occurs as a result of a               (including the definition of such
                                              service provider’s referring or linking to              measures set forth in section 512(i)(2))              Summary
tkelley on DSK3SPTVN1PROD with NOTICES




                                              infringing content? If not, what should                 encourage or discourage the use of                      This report is provided in accordance
                                              be done to address this concern?                        technologies to address online                        with section 608(d)(1) of the
                                                 14. Have courts properly interpreted                 infringement?                                         Millennium Challenge Act of 2003, as
                                              the meaning of ‘‘representative list’’                     25. Are there any existing or emerging             amended, Public Law 108–199, Division
                                              under section 512(c)(3)(A)(ii)? If not,                 ‘‘standard technical measures’’ that                  D, (the ‘‘Act’’) (22 U.S.C. 7707(d)(1)).
                                              what should be done to address this                     could or should apply to obtain the                     The Act authorizes the provision of
                                              concern?                                                benefits of section 512’s safe harbors?               Millennium Challenge Account


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                                                                        Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Notices                                          81869

                                              (‘‘MCA’’) assistance under section 605                  for assistance under section 607 of the               in the area of corruption, the Board
                                              of the Act (22 U.S.C. 7704) to countries                Act (22 U.S.C. 7706) for FY 2016. The                 considered how a country is evaluated
                                              that enter into compacts with the United                Board selected the following countries                by supplemental sources like
                                              States to support policies and programs                 as eligible for such assistance for FY                Transparency International’s Corruption
                                              that advance the progress of such                       2016: Cote d’Ivoire, Kosovo, and                      Perceptions Index, the Global Integrity
                                              countries in achieving lasting economic                 Senegal. The Board also reselected the                Report, Open Government Partnership
                                              growth and poverty reduction, and are                   following countries as eligible for FY                status, and the Extractive Industry
                                              in furtherance of the Act. The Act                      2016 compact assistance: Niger, Nepal,                Transparency Initiative, among others,
                                              requires the Millennium Challenge                       and the Philippines. The Board did not                as well as on the defined indicator. The
                                              Corporation (‘‘MCC’’) to determine the                  vote on the re-selection of Tanzania and
                                                                                                                                                            Board may also take into account the
                                              countries that will be eligible to receive              Lesotho. The Board also reaffirmed its
                                                                                                                                                            margin of error around an indicator,
                                              MCA assistance for the fiscal year, based               support for Mongolia’s continued effort
                                              on their demonstrated commitment to                     to develop its compact proposal that                  when applicable. In keeping with
                                              just and democratic governance,                         will access funds appropriated to MCC                 legislative directives, the Board also
                                              economic freedom, and investing in                      when Mongolia was a candidate                         considered the opportunity to reduce
                                              their people, as well as on the                         country.                                              poverty and promote economic growth
                                              opportunity to reduce poverty and                                                                             in a country, in light of the overall
                                                                                                      Criteria                                              information available, as well as the
                                              generate economic growth in the
                                              country. The Act also requires the                         In accordance with the Act and with                availability of appropriated funds.
                                              submission of reports to appropriate                    the ‘‘Report on the Criteria and                         This was the sixth year the Board
                                              congressional committees and the                        Methodology for Determining the                       considered the eligibility of countries
                                              publication of notices in the Federal                   Eligibility of Candidate Countries for
                                                                                                                                                            for subsequent compacts, as permitted
                                              Register that identify, among other                     Millennium Challenge Account
                                                                                                                                                            under section 609(k) of the Act (22
                                              things:                                                 Assistance in Fiscal Year 2016’’
                                                                                                      formally submitted to Congress on                     U.S.C. 7708(k)). The Board also
                                                 1. The countries that are ‘‘candidate
                                                                                                      September 22, 2015, selection was based               considered the eligibility of countries
                                              countries’’ for assistance for fiscal year
                                              (‘‘FY’’) 2016 based on their per-capita                 primarily on a country’s overall                      for initial compacts. The Board sees the
                                              income levels and their eligibility to                  performance in three broad policy                     selection decision as an annual
                                              receive assistance under U.S. law, and                  categories: Ruling Justly, Encouraging                opportunity to determine where MCC
                                              countries that would be candidate                       Economic Freedom, and Investing in                    funds can be most effectively invested
                                              countries but for specified legal                       People. The Board relied, to the                      to support poverty reduction through
                                              prohibitions on assistance (section                     maximum extent possible, upon                         economic growth in relatively well-
                                              608(a) of the Act (22 U.S.C. 7707(a)));                 transparent and independent indicators                governed, poor countries. The Board
                                                 2. The criteria and methodology that                 to assess countries’ policy performance               carefully considers the appropriate
                                              the Board of Directors of MCC (the                      and demonstrated commitment in these                  nature of each country partnership—on
                                              ‘‘Board’’) will use to measure and                      three broad policy areas. The Board                   a case by case basis—based on factors
                                              evaluate the policy performance of the                  compared countries’ performance on the                related to economic growth and poverty
                                              ‘‘candidate countries’’ consistent with                 indicators relative to their income-level             reduction, the sustainability of MCC’s
                                              the requirements of section 607 of the                  peers, evaluating them in comparison to               investments, and the country’s ability to
                                              Act in order to select ‘‘eligible                       either the group of low income                        attract and leverage public and private
                                              countries’’ from among the ‘‘candidate                  countries (‘‘LIC’’) or the group of lower             resources in support of development.
                                              countries’’ (section 608(b) of the Act (22              middle income countries (‘‘LMIC’’).
                                              U.S.C. 7707(b))); and                                      The criteria and methodology used to                  MCC’s engagement with partner
                                                 3. The list of countries determined by               assess countries on the annual                        countries is not open-ended, and the
                                              the Board to be ‘‘eligible countries’’ for              scorecards are outlined in the ‘‘Report               Board is very deliberate when
                                              FY 2016, with justification for eligibility             on the Criteria and Methodology for                   determining eligibility for follow-on
                                              determination and selection for compact                 Determining the Eligibility of Candidate              partnerships. In determining subsequent
                                              negotiation, including with which of the                Countries for Millennium Challenge                    compact eligibility, the Board
                                              eligible countries the Board will seek to               Account Assistance in Fiscal Year                     considered—in addition to the criteria
                                              enter into compacts (section 608(d) of                  2016.’’ 1 Scorecards reflecting each                  outlined above—the country’s
                                              the Act (22 U.S.C. 7707(d))).                           country’s performance on the indicators               performance implementing its first
                                                 This is the third of the above-                      are available on MCC’s Web site at                    compact, including the nature of the
                                              described reports by MCC for FY 2016.                   www.mcc.gov/scorecards.                               country’s partnership with MCC, the
                                              It identifies countries determined by the                  The Board also considered whether                  degree to which the country has
                                              Board to be eligible under section 607                  any adjustments should be made for                    demonstrated a commitment and
                                              of the Act (22 U.S.C. 7706) for FY 2016                 data gaps, data lags, or recent events                capacity to achieve program results, and
                                              and countries with which the MCC will                   since the indicators were published, as               the degree to which the country has
                                              seek to enter into compacts under                       well as strengths or weaknesses in                    implemented the compact in accordance
                                              section 609 of the Act (22 U.S.C. 7708),                particular indicators. Where                          with MCC’s core policies and standards.
                                              as well as the justification for such                   appropriate, the Board took into account              To the greatest extent possible, this was
                                              decisions. The report also identifies                   additional quantitative and qualitative               assessed using pre-existing monitoring
                                              countries determined by the Board to be                 information, such as evidence of a                    and evaluation targets and regular
tkelley on DSK3SPTVN1PROD with NOTICES




                                              eligible for MCC’s Threshold Program                    country’s commitment to fighting                      quarterly reporting. This information
                                              under section 616 of the Act (22 U.S.C.                 corruption, investments in human                      was supplemented with direct surveys
                                              7715).                                                  development outcomes, or poverty rates.
                                                                                                                                                            and consultation with MCC staff
                                              Eligible Countries                                      For example, for additional information
                                                                                                                                                            responsible for compact
                                                The Board met on December 16, 2015,                     1 Available at https://www.mcc.gov/resources/       implementation, monitoring, and
                                              to select countries that will be eligible               doc/report-selection-criteria-and-methodology-fy16.   evaluation. MCC published a Guide to


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                                              81870                     Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Notices

                                              the Supplemental Information Sheet 2                    population living on less than $2/day,                Countries Selected as Eligible To
                                              and a Guide to the Compact Survey                       and an economy highly dependent on                    Receive Threshold Program Assistance
                                              Summary 3 in order to increase                          remittances. A compact investment will
                                              transparency about the type of                          serve as an opportunity to reduce                        The Board selected Sri Lanka and
                                              supplemental information the Board                      poverty through sustainable economic                  Togo as eligible to receive threshold
                                              uses to assess a country’s policy                       development while also building on the                program assistance.
                                              performance and compact                                 positive relationship built over the past                Sri Lanka: Sri Lanka consistently
                                              implementation performance. The                         few years.                                            passed the scorecard from FY 2011
                                              Board also considered a country’s                          Senegal: Senegal has consistently                  through FY 2015. Though Sri Lanka
                                              commitment to further sector reform, as                 passed the scorecard criteria for eight               failed the scorecard in FY 2016 due to
                                              well as evidence of improved scorecard                  consecutive years and scored above the                failing the democratic rights indicators,
                                              policy performance.                                     90th percentile in Control of Corruption              this was largely due to the indicators
                                                 As with previous years, a number of                  for three consecutive years. Through its              reflecting events in 2014, and likely not
                                              countries that performed well on the                    first compact, Senegal has proven to be               yet capturing the democratic rights
                                              quantitative elements of the selection                  a strong partner, successfully                        improvements following the 2015
                                              criteria (i.e., on the policy indicators)               completing the compact ($540 million)
                                              were not chosen as eligible countries for                                                                     elections. A threshold program
                                                                                                      in September 2015. In working on a
                                              FY 2016. FY 2016 was a particularly                                                                           investment is an opportunity to build on
                                                                                                      second compact, MCC is able to
                                              competitive year: Several countries were                                                                      this positive momentum, and allows Sri
                                                                                                      continue to partner with the
                                              already working to develop compacts,                    Government of Senegal to reduce                       Lanka the opportunity to further
                                              multiple countries passed the scorecard                 poverty and support strong economic                   strengthen its scorecard performance. It
                                              (some for the first time), and funding                  investments in the country.                           also allows MCC the opportunity to
                                              was limited due to budget constraints.                                                                        work with the government on the
                                              As a result, only three countries that                  Countries Reselected To Continue                      country’s ongoing efforts in policy
                                              passed the scorecard were newly                         Compact Development                                   reform.
                                              selected for MCC compact eligibility,                      Three of the countries selected as                    Togo: Togo has shown consistent
                                              and two others for the threshold                        eligible for compact assistance for FY                improvements on the MCC scorecard
                                              program.                                                2016 were previously selected as                      over the past three years. A government
                                              Countries Newly Selected for Compact                    eligible in FY 2015. These countries are              committee has been strongly engaged
                                              Eligibility                                             Niger, Nepal and the Philippines. The                 with MCC to strategize and prioritize
                                                                                                      Board reselected these countries based                policy improvements, including
                                                 Using the criteria described above,                  on their continued or improved policy
                                              Cote d’Ivoire, Kosovo, and Senegal are                                                                        reforming the family code to ensure
                                                                                                      performance since their prior selection.              gender equality and improving control
                                              the only candidate countries under                      The Board also expressed its support for
                                              section 606(a) of the Act (22 U.S.C.                                                                          of corruption. As a result, Togo moved
                                                                                                      continued development of a compact
                                              7705(a)) that were newly selected as                                                                          from passing 5 of 20 indicators in FY
                                                                                                      with Mongolia using funds appropriated
                                              eligible for assistance under section 607                                                                     2014 to 10 of 20 indicators in FY 2016.
                                                                                                      in FY 2015 and prior years, as the
                                              of the Act (22 U.S.C. 7706).                                                                                  Togo’s eligibility for threshold program
                                                                                                      country moved in FY 2016 to the upper
                                                 Cote d’Ivoire: After years of working                middle income category before its                     assistance will allow MCC to engage
                                              with MCC and MCC indicator                              proposal was finalized. The Board                     with Togo on continued policy reform,
                                              institutions in order to strengthen their               deferred a vote on the selection of                   as well as offer Togo an opportunity to
                                              scorecard performance, Cote D’Ivoire                    Tanzania and Lesotho and emphasized                   further strengthen its scorecard
                                              went from passing 5 to 13 indicators                    the seriousness with which it takes a                 performance.
                                              over the last four years, due to updating               country’s commitment to MCC’s
                                              data and pursuing policy reforms linked                                                                       Ongoing Review of Partner Countries’
                                                                                                      eligibility criteria.                                 Policy Performance
                                              to the scorecard. In FY 2015, Cote                         Tanzania: The Board deferred a vote
                                              D’Ivoire met the minimum scorecard                      on Tanzania’s reselection. The Board                    Once MCC has signed a compact with
                                              criteria for the first time, passing 10                 discussed the fact that due to ongoing                a country, MCC does not consider the
                                              indicators, including both hard hurdles.                concerns about the Zanzibar elections,                country for reselection on an annual
                                              Given the continued improvement from                    as well as the use of Tanzania’s Cyber                basis during the term of its compact.
                                              FY 2015 to FY 2016, selection for a                     Crimes legislation in the context of the              However, the Board emphasized the
                                              compact program allows MCC to                           national elections, a vote on reselection
                                              continue strengthen its relationship                                                                          need for all partner countries to
                                                                                                      would be premature at this time. The                  maintain or improve their policy
                                              with Cote d’Ivoire while rewarding                      Board may revisit its decision over the
                                              continued policy improvement.                                                                                 performance. If it is determined during
                                                                                                      course of 2016 as more information                    compact implementation that a country
                                                 Kosovo: After years of working to                    becomes available.
                                              improve data collection and quality, as                                                                       has demonstrated a significant policy
                                                                                                         Lesotho: The Board deferred a vote on              reversal, MCC can hold it accountable
                                              well as improve policy outcomes,                        Lesotho’s reselection. The Board
                                              Kosovo passed the MCC scorecard for                                                                           by applying MCC’s Suspension and
                                                                                                      discussed the fact that due to ongoing                Termination Policy.4
                                              the first time in FY16, passing 13 of 20                concerns over the rule of law and
                                              indicators including both hard hurdles                                                                        [FR Doc. 2015–32353 Filed 12–30–15; 8:45 am]
                                                                                                      accountability in the country, and an
                                              and passing Control of Corruption. The                                                                        BILLING CODE P
tkelley on DSK3SPTVN1PROD with NOTICES




                                                                                                      expected report from the Southern
                                              country remains one of the poorest in                   Africa Development Community on
                                              Europe with close to 30% of the                         these same issues, a vote on reselection
                                                2 Available at https://www.mcc.gov/resources/
                                                                                                      would be premature at this time. The
                                              doc/guide-to-supplemental-information-fy16.             Board may revisit its decision over the
                                                3 Available at https://www.mcc.gov/resources/         course of 2016 as more information                      4 Available at https://www.mcc.gov/resources/

                                              doc/guide-to-the-compact-survey-summary-fy15.           becomes available.                                    doc/policy-on-suspension-and-termination.



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Document Created: 2015-12-31 02:15:19
Document Modified: 2015-12-31 02:15:19
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
FR Citation80 FR 81868 

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