Reducing Poverty Through Sustainable Economic Growth The MCC Compact Experience by JOHN A. POLK , Resident Country Director, MCC polkja@mcc.gov
WHAT IS MCC? • Millennium Challenge Corporation (MCC) is a U.S. Government agency focused on reducing poverty through economic growth in select developing countries. Good governance Economic Investments freedom in people
MCC Partner Countries • $11.2 Billion in Compacts • Armenia* • Malawi* • Benin • Mali* • Burkina Faso • Moldova • Cape Verde • Mongolia • El Salvador • Morocco • Georgia • Mozambique • Ghana • Namibia • Honduras* • Nicaragua * • Indonesia • Niger • Jordan • Philippines • Lesotho • Senegal • Liberia • Tanzania • Madagascar* • Vanuatu • Zambia
MCC SCORECARD
MCC IN THE PHILIPPINES • Philippines MCC Resident Country Mission is comprised of two Americans and three Filipino support staff. • Complemented by technical resources from Washington DC who travel periodically to the Philippines. • Strong focus on country ownership through establishment of a Philippine partner called Millennium Challenge Account – Philippines (MCA-P).
MCA-PHILIPPINES MILLENNIUM CHALLENGE ACCOUNT – PHILIPPINES (MCA-P) organized in April 2011 as a Government-Owned and Controlled Corporation (GOCC) Run like a private corporation With an all-Filipino workforce Uplifting Lives of Filipinos through Economic Growth
$434 Million Compact REVENUE ADMINISTRATION REFORM PROJECT (RARP) – revenue administration reform and anti- corruption -- $44 Million KAPIT-BISIG LABAN SA KAHIRAPAN – COMPREHENSIVE AND INTEGRATED DELIVERY OF SOCIAL SERVICES (KALAHI-CIDSS) – a community-driven development project -- $132 Million SECONDARY NATIONAL ROADS DEVELOPMENT PROJECT (SNRDP) – rehabilitation of a 222-km road in Samar and Eastern Samar -- $222.4 Million
MCC’s Cross -Cutting Initiatives • Environmental and Social Standards • Integration of gender-responsive activities in all aspects of the Compact • Robust Monitoring and Evaluation: – Randomized Control Trials – Sex-disaggregated data • Competitive and transparent procurements • Strategic Partnerships
REGION PROVINCE RARP – NCR NATIONWIDE KALAHI-CIDSS Abra Apayao CAR Kalinga Ifugao 22 Municipalities Mountain Province Region IV- B MIMAROPA Marinduque 30 Municipalities Romblon Oriental Mindoro Occidental Mindoro Palawan Region V Bicol Catanduanes 26 Municipalities Camarines Norte Camarines Sur Region VI Western Visayas Aklan 16 Municipalities Antique Guimaras Region VII Central Visayas Negros Occidental 30 Municipalities) Negros Oriental Bohol Suquijor Region VIII Eastern Visayas Leyte 40 Municipalities) Samar Northern Samar Biliran SNRDP Eastern Samar Western Samar
REVENUE ADMINISTRATION REFORM PROJECT (RARP) • Increase tax revenues over time through a redesign and computerization of business processes and support the Department of Finance’s initiatives to detect and deter corruption within its revenue agencies. Uplifting Lives of Filipinos through Economic Growth
Revenue Administration Reform Activity • Electronic Tax Information System • Automated Auditing Tools • Public Awareness Campaign Uplifting Lives of Filipinos through Economic Growth
Revenue Integrity Protection Service • Improved case development and management • Training for RIPS personnel • Enhanced surveillance capabilities Uplifting Lives of Filipinos through Economic Growth
KAPIT-BISIG LABAN SA KAHIRAPAN – COMPREHENSIVE AND INTEGRATED DELIVERY OF SOCIAL SERVICES (KALAHI-CIDSS) Improve the responsiveness of local governments to community needs, encourage communities to engage in development activities, and deliver benefits to barangay residents through individual sub-projects, typically small-scale community infrastructure.
Basic Social Services Sub-Project Types School Building Water System Day Care Center Health Station Electrification Tribal Housing/Shelter
Rural Access Infrastructure Sub-Project Types Road Foot/Small Bridge Access Trail/Footpath
Environmental Protection Sub-Project Types Drainage River/Flood Control Sea Wall Soil Protection (Riprap) Environment Conservation (Artificial Coral reefs/marine sanctuary) Sanitation/Solid Waste Management
Secondary National Roads Development Project Rehabilitate 222-km road connecting the provinces of Samar and Eastern Samar, reducing travel times and vehicle operating costs.
• 61 Bridges • Close to 700 Drainage Structures • Employment for nearly 3,000 local residents
Second Compact • Agricultural productivity and regional competitiveness for raw and value added products is low. Contributors to the problem include: – Complex / restrictive land tenure policies; – Supply / demand coordination issues; – Inefficient production, value chain development and marketing; – Low levels of human capital development; – Inadequate / poor supply chain infrastructure.
Inputs to Second Compact Development • Assessing agricultural areas and value chains with high value potential and barriers to growth • Addressing specifics of logistics chain • Understanding private sector demand • Understanding farmer behavior • Understanding Community needs • Political economy implications of policy reforms
COMMUNICATING WITH THE PUBLIC www.mcc.gov MCA-P WEBSITE: www.mcap.ph MCA-P EMAIL ADDRESS: info@mca-p.ph Uplifting Lives of Filipinos through Economic Growth
THANK YOU!
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