Assessing the Millennium Challenge Corporation as a Model for Foreign Assistance Reform

Abstract

This study assesses the effectiveness of different administrative models of US foreign assistance, with a unique focus on one that hypothetically channels more DFA-administered funds through the Millennium Challenge Corporation (MCC). The study finds several limitations with this model, and so discounts the assumption that because the MCC is a fairly effective instrument of foreign assistance simply expanding it as is would spread its benefits on a larger scale. With some additions to its framework, however, the model may be quite effective and both politically and economically feasible.Millennium Challenge Account; Millennium Challenge Corporation; MCA; MCC; international economics; USAID; DFA; foreign aid; foreign assistance; international development; Prud'homme; Dan Prud'homme; Dan Prudhomme