The thresholds are smaller, targeted and short-term subsidies to help countries become compactly eligible. A candidate country that does not meet the criteria of a pact, but which demonstrates its commitment to improving its performance, may be eligible for threshold funding. The MCC has signed 29 threshold agreements with 27 countries (some countries have signed a second threshold agreement after the end), for amounts between $6.7 million and $55 million.15 Nine countries have successfully moved from threshold financing to later signing a compact.16 Pacts are major agreements that can cover several sectors and typically take five years. In order to receive compact financing, a candidate country must be more median compared to other countries in its income category (for example. B other income countries) with regard to at least 10 of the eligibility indicators, including two necessary indicators: water and wastewater projects were included in nine pacts and a threshold agreement with ten countries. As a percentage of total country funding, support for these projects ranged from 2% of Ghana`s compact funding to 100% of Zambia`s compact funding (see Table 2). Here are some examples of water and wastewater projects supported by the MCC: in recent months, China has made significant and visible efforts to support Sri Lanka – and the response of many other countries – to the COVID 19 pandemic, including a $500 million concession contract signed in March. Health projects (other than water and sanitation) were included in four pacts and four threshold agreements with seven countries. Funding for these projects represented a different share of the overall funding of each agreement, ranging from 0.4% of Namibia`s compact funding to 36% of Indonesian threshold funding (see Table 2).22 Some examples of health projects, Since its inception in 2004, MCC has supported development programmes in 43 low- and middle-income countries.11 MCC aid is provided by two types of agreements. 12 Until August 2019, MCC has signed 36 pacts with 29 countries (some countries have signed a second pact after the end), for amounts between $66 million and $698 million.13 An amendment to the law passed in April 2018 now allows MCC to pursue regional investment agreements (i.e. with neighbouring countries) in addition to its basic bilateral agreements; No regional investment has been authorized to date.14 Since 2004, MCC has provided more than $14 billion in assistance under its compact and threshold agreements.

Most MCC credits were obtained by compacts (96%) 18 The MCC`s approach is considered unique among U.S. development agencies for a number of reasons, including the use of quantitative benchmarks to determine eligibility, a focus on planning and implementation of country-specific aid agreements, and a reliance on robust and transparent monitoring and evaluation of progress and the impact of their aid. 5.6 Some politicians and civil society groups have linked the proposed GCC pact to other more open security agreements, such as the United States.

Sumit ThakurThe thresholds are smaller, targeted and short-term subsidies to help countries become compactly eligible. A candidate country that does not meet the criteria of a pact, but which demonstrates its commitment to improving its performance, may be eligible for threshold funding. The MCC has signed 29 threshold agreements with...Seminar Topics