Excerpts of Remarks by Millennium Challenge Corporation CEO Yohannes, January 13, 2011Footnote 1
CEO Daniel Yohannes delivered these remarks at the American Enterprise Institute
CEO Yohannes. The President's new policy calls on the United States to invest in sustainable economic growth in a select number of well-governed countries and to partner with these countries on tackling the tough policy reforms necessary to create an environment in which the private sector can thrive; citizens can hold their governments accountable; and U.S. taxpayers can see they are getting a good return on their investment. As many of you know, the MCC model embodies many of these principles, and I am delighted to bring the lessons of our model to bear on our nation's evolving global development policy.
My own background is in banking. I bring a banker's perspective to my role as CEO of MCC. I have a client—the U.S. taxpayer. I have a partner—the countries receiving MCC assistance and the citizens they represent. And, I have a goal—to get the best return on America's investment.
Let me offer my views on what I believe matters most in the MCC model in terms of accountable and effective aid:
First, we focus on selectivity. The ability to say no is a critical component of effective aid. MCC's focused mandate and transparent selection process allow us to say no to those countries that are not accountable to their people and not pursuing policies that promote free markets and economic growth.
MCC's guidelines for economic returns on our investments allow us to say no to projects that might be popular with our partner governments, but are not sound investments and, therefore, will not give Americans a return on their investment. MCC's eligibility standards allow us to say no to countries that experience significant reversals in policy performance, something we have not shied away from.
That leaves us saying yes to partnering with a smaller set of poor but well-governed countries and investing scarce U.S. development dollars in programs that show an economic return by raising beneficiary incomes—the only way to reduce poverty.
Second, we focus on accountability. Being accountable means telling the whole results story. Most people think of results as what comes at the end of the story—the happy ending. In part, we think about it that way too. But, the result we are most interested in seeing is increased incomes.
Achieving these real results takes time and requires planning from the very beginning. MCC's rigorous approach requires that we only invest in those proposals with the strongest potential to reduce poverty and increase incomes. This enables us to answer the fundamental question of aid effectiveness: Do the expected results from our investment justify the use of scarce aid dollars?
Ultimately, accountability is built on transparency—transparency about how we select partners and how we assess results. We look forward to sharing the results of our independent, third-party impact evaluations, which will objectively measure how our investments are improving the incomes of the poor.
Third, we are embracing partnerships. To further advance our partnerships with developing countries, we need to work more with our U.S. Government partners, other donors, and the private sector—both in the U.S. and in our partner countries.
Ultimately, however, it is the countries themselves and the private sector that will drive real economic growth. Governments—and government-funded programs—are never the whole solution. MCC investments look to remove constraints to growth so that the private sector will invest and flourish.
We are doing more to engage the private sector. We are funding more public-private approaches that can leverage our effort and bring in the private sector from the beginning. We are focusing on policy reform conducive to greater private sector engagement. We are providing direct support to small businesses in our partner countries.
By laying the foundation for economic growth in countries worldwide through effective partnerships with the private sector and others outside of government, MCC generates sustainable impact in the fight against global poverty. This creates viable economic partners for the United States and benefits our own prosperity here at home.
Fourth, we are investing in development that benefits both men and women. Gender inequality can be a significant constraint to economic growth and poverty reduction. Since 2006, MCC has had a widely-acclaimed Policy on Gender to ensure that gender is considered from the selection of eligible countries, through the development and implementation of MCC-funded projects, to the evaluation of program impacts.
Because I believe strongly that it is the right way to do development, I have made gender integration an even higher priority for MCC.
MCC, like other US government agencies, is operating in a budget-constrained environment. We challenge ourselves to make tough choices as good stewards of American taxpayer dollars. We employ a business-like approach to development investments, evaluating economic rates of return to decide which investments will deliver the greatest poverty reduction impact from every taxpayer dollar.
We do this because investing in the fight against global poverty returns dividends for the world's most disadvantaged and for America's own economic recovery and national security.
At my swearing-in, I spoke about the promise of opportunity and how global poverty robs that promise from millions worldwide. I recognize MCC's great potential to change that dynamic and broaden opportunities for the world's poor.
We have made noteworthy strides during my first year at MCC:
Nearly a billion dollars in new Compacts and Threshold Programs have been launched. These programs will benefit the people of Moldova, the Philippines, Jordan, Liberia, and Timor-Leste.
We have successfully concluded two Compacts—in Honduras and Cape Verde—and are on track to see five more countries conclude their Compacts this year.
I have met with farmers and entrepreneurs in partners countries, who have personally shared with me how MCC's investments are making a difference in their lives, increasing their incomes so they can invest in their businesses, improve their homes, and keep their children in school.
There is an emerging bipartisan consensus on aid effectiveness. President Obama noted in New York this Fall that the Administration's new development policy is based, in part, on the lessons learned from MCC over the last seven years. We are building on the best ideas of Democratic and Republican administrations, and Democrats and Republicans in Congress. We are looking for ways to break new ground, to innovate, and to continue to improve our results, particularly during these tough budgetary times, when we all must do more with less.
Our goal is to create brighter futures for the world's poor—one person, one family, one community, one country at a time. And, this will serve U.S. interests too. MCC's commitment to global poverty reduction through economic growth is more than the right thing to do; it is how we expand opportunities and support security, stability, prosperity, and progress to benefit us all.
Thank you very much.
Press Release from the U.S. Agency for International Development, January 28, 2011Footnote 2
At the annual World Economic Forum (WEF) in Davos, Switzerland USAID Administrator Dr. Rajiv Shah gathered with the CEOs of Unilever and Monsanto to support the launch of WEF's global framework titled “Realizing a New Vision for Agriculture.” The show of support emphasizes USAID's leadership in creating synergies between the public and private sectors to meet the global food security challenge.
Championed by 17 global companies and supported by key public and civil-society leaders, the New Vision framework outlines priorities and examples to illustrate the role businesses can play in meeting global food and nutrition needs through accelerated, sustainable agriculture-led growth. Through the U.S. Government's Feed the Future initiative, the New Vision for Agriculture will aim to leverage private-sector investment to scale up agricultural growth in food-insecure countries. The 17 global companies that champion the initiative are: Archer Daniels Midland, BASF, Bunge, Cargill, The Coca-Cola Company, DuPont, General Mills, Kraft Foods, Metro, Monsanto Company, Nestlé, PepsiCo, SABMiller, Syngenta, Unilever, Wal-Mart Stores and Yara International.
“We are witnessing an unparalleled opportunity right now for innovative, large-scale private sector partnerships to achieve significant impact on global hunger and nutrition,” USAID Administrator Rajiv Shah said. “USAID is committed to creating new public-private partnerships in Feed the Future focus countries to advance their national investment plans.”
To demonstrate that commitment, Shah announced alongside President Kikwete of Tanzania that USAID is investing $2 million to Tanzania's catalytic fund this year. The fund is devoted to delivering rapid and sustainable agricultural growth in Tanzania—with major benefits for small-scale farmers and rural communities. Results from this public-private blueprint will potentially triple Tanzania's agricultural output, generate half a million jobs and lift two million people out of poverty, becoming a “breadbasket” for the region. USAID will join multinational companies like Yara, General Mills, Monsanto, Syngenta and others in support of the investment blueprint for years to come, and hopes to expand the blueprint in the future to at least five additional African countries.
USAID also signed a memorandum of understanding at Davos with DSM, the world's largest manufacturer of micronutrients and vitamins, to increase the dietary quality in the developing world, starting with rice fortification in countries such as Bangladesh, Cambodia, Ghana, Mali Senegal and Tanzania.
Feed the Future is working to improve agricultural productivity, promote market development, facilitate trade expansion, invest in global innovation and research, promote equitable rural economic growth, and address child malnutrition in 20 food-insecure countries.
Press Release from the U.S. Agency for International Development, February 7, 2011Footnote 3
USAID through PEPFAR has joined forces through a public-private partnership between Bristol-Myers Squibb Foundation, Baylor College of Medicine International Pediatrics AIDS Initiative (BIPAI), and the Government of Tanzania to help fight the HIV/AIDS epidemic with the opening of a new pediatric facility “Center of Excellence.” The center will serve children and families in Mwanza, Tanzania and its surrounding regions; providing much needed access for a population of almost 9 million people.
According to U.S. Ambassador Alfonso Lenhardt, “This Pediatric Center of Excellence represents an investment in sustainable development and another critical step in fulfilling the vision of the U.S. and Tanzanian Partnership Framework for a coordinated HIV/AIDS response; providing health services today while building enduring health systems for tomorrow.”
The new center will be opened on the grounds of the Bugando Medical Centre, the region's 900-bed tertiary referral hospital. With the newly expanded facility, healthcare workers will be able to care for an increased amount of children and their families, and train current and future HIV/AIDS care providers. Additionally, the center is expected to care for at least 5,000 HIV-infected and affected children and their families by 2013.
Press Release from the U.S. Agency for International Development, February 8, 2011Footnote 4
In response to a request from the South African Government, USAID through the South Africa mission will provide emergency relief services to flood-impacted South Africans in the Free State province. USAID will provide $50,000 in assistance to Rescue South Africa (RSA) to assist disaster managers in setting up working groups to evaluate the damage, help formulate a repair and recovery strategy, estimate the cost of repairs and materials, and make repairs and disbursement the funds.
“The South African government seeks support from the private sector and community organizations, and we are pleased that USAID is able to fund one of our local partners, Rescue South Africa, to answer this call,” explained USAID's Office of U.S. Foreign Disaster Assistance (USAID/OFDA) Southern Africa Advisor Harlan Hale. “RSA has proven capability to provide immediate relief aid and, importantly, to partner with municipal and provincial disaster management authorities, as well as other agencies, who are leading flood relief and recovery efforts countrywide.”
Rescue South Africa's 100-plus experts are highly trained and experienced emergency services specialists. During the last six years, USAID has supported RSA to gain international search and rescue training and the ability to train others in life-saving procedures following crises such as earthquakes, floods, trench rescue, swift water rescue, aircraft accident body recovery and numerous other skills.
“Every time Rescue South Africa gets involved in a major incident, USAID is one of the first organizations to support our relief efforts,” said Ian Scher, Rescue South Africa CEO. “There is no doubt in my mind that had it not been for their generosity over the last six years, we would not be the rescue organisation that we are.”
Press Release from the U.S. Agency for International Development, February 10, 2011Footnote 5
USAID Deputy Assistant Administrator Mark Lopes and Minister Marco Farani of the Brazilian Agency for Cooperation (ABC) today signed a Memorandum of Understanding to create a professional staff exchange program between their agencies. Beginning in April, each agency will host a staff member in their offices to share expertise and collaborate on joint programs to facilitate peer-to-peer learning on donor best practices around the world.
The MOU is the latest in a series of innovative trilateral initiatives between the U.S. and Brazil to tap into each country's development and research expertise and develop joint solutions to common development challenges in the hemisphere and around the world.
“For the United States, the more we can partner with other countries in addressing the world's most intractable problems, the more we advance our national interests by providing paths out of poverty around the world,” Lopes said. “With this MOU, we continue to put into practice President Obama's commitment to an equal partnership with the countries of this hemisphere, based on mutual respect, common interests and shared values.”
The memorandum was signed during the US-Brazil Economic Partnership Dialogue, where the delegations discussed trilateral development cooperation, Haiti earthquake recovery issues, trade and investment related to upcoming World Cup and Olympic Games, science & technology, biotechnology, among other shared interests.
Press Release from the Millennium Challenge Corporation, February 15, 2011Footnote 6
U.S. President Barack Obama today delivered his Fiscal Year 2012 budget proposal to Congress, including $1.125 billion for the Millennium Challenge Corporation (MCC) to continue its mission to reduce poverty through economic growth.
Since it was established with strong bipartisan support in 2004, MCC has partnered with 22 countries on large-scale poverty reduction programs, helping to put them on the road to self-sufficiency, while prioritizing the fight against corruption and holding countries accountable for results.
“In these difficult budgetary times, it is more important than ever to ensure that American taxpayer dollars are being used efficiently,” stated MCC CEO Daniel Yohannes. “Our goal is not only to help poor countries rise out of poverty, but also to create stable trading and investment partners for the United States, which will strengthen the American economy and keep our nation more secure. MCC is committed to ensuring that American taxpayers are getting a strong return on their development investments, and this budget request shows the importance of that to this Administration.”
In addition to continuing its work with partner nations around the globe, MCC anticipates partnering with six eligible countries in fiscal years 2011 and 2012: Indonesia, Malawi, Zambia, Cape Verde, Ghana, and Georgia. Together these countries account for over four percent of the world's population and over six percent of those living under $2 a day. These nations have been selected as MCC partners because their sound policies provide a solid foundation for growth and measurable development results, and they present real opportunities to bolster American interests by providing tangible assistance for poverty reduction through economic growth in Africa and Asia.
MCC continues to make significant contributions to President Obama's foreign policy priorities, including promoting global stability through development and supporting new aid initiatives such as food security and fiscal transparency. Lessons learned from MCC over the last seven years made important contributions to the 2010 Presidential Policy Directive (PPD) on Global Development Policy, and MCC will be an integral part of implementing the PPD's focus on economic growth, selectivity, country-led planning, transparency, and accountability for results.
Press Release from the U.S. Agency for International Development, February 22, 2011Footnote 7
In response to the earthquake in New Zealand and upon request from the New Zealand government, the United States is deploying a U.S. Agency for International Development (USAID) Disaster Assistance Response Team (DART). The Response Team will include the Los Angeles County (California) Fire Department Urban Search and Rescue team (USAR) to assist with the search and rescue efforts.
The USAR component of the DART will be what is called a “heavy team,” bringing more than seventy specialized personnel and all necessary equipment to make live rescues in even the most precarious situations.
“On behalf of the American people, I wish to convey our sympathy, thoughts and prayers to the people of New Zealand who have been affected by this devastating earthquake,” said USAID Administrator Rajiv Shah. “We stand ready to assist the government of New Zealand in any way we can.”
USAID will continue to provide additional support as needed.
Excerpt of Press Release from the Millennium Challenge Corporation, February 24, 2011Footnote 8
The U.S. Government's Millennium Challenge Corporation (MCC) Chief Executive Officer Daniel W. Yohannes delivered remarks on Tuesday, February 22 at an MCC- sponsored conference entitled, Lessons Learned from MCC's First Compacts, which focused on partner country results.
Seven years after the creation of MCC, the agency's first five-year investments are reaching completion. MCC completed compacts with Honduras and Cape Verde at the end of last year and is on track to complete five more this year in Armenia, Benin, Nicaragua, Georgia, and Vanuatu. In this context, the agency is taking stock of preliminary results, looking ahead to the results to come, and examining the ways that its development model has worked and areas where it can be improved.
Press Release from the U.S. Agency for International Development, February 24, 2011Footnote 9
Zanzibar celebrated the handover of the highly successful Zanzibar Teacher Upgrading by Radio Project (ZTUR) to the Ministry of Education and Vocational Training on February 23rd, 2011 at the National Teacher Resource Center. The handover ceremony was jointly presided by the U.S. Deputy Chief of Mission Robert Scott and Zanzibar's Minister of Education and Vocational Training Ramadhan Abdulla Shabaan. ZTUR is a Distance and Open Learning Program that benefits Zanzibar's youngest students by enabling preschool teachers to enhance their skills and work towards full professional accreditation. This partnership between Zanzibar's Ministry of Education and Vocational Training (MoEVT), the United States Agency for International Development (USAID), and Education Development Center (EDC) is helping Zanzibar educate tomorrow's leaders today.
With support from the American people, ZTUR staff developed an in-service certification program for Zanzibar's preschool teachers called the Early Childhood Certification Program (ECCP). This program increases the number of trained pre-primary teachers in Zanzibar in order to achieve the goals of the 2006 Zanzibar Education Policy of compulsory pre-primary education for all. ECCP builds on teachers’ experience in the classroom and complements short-term, intensive trainings with on-going support. Participating teachers master the skills necessary to advance their careers while giving Zanzibar's children the world-class education they deserve.
The ZTUR partnership created Chezesha Ufundishe, a comprehensive radio training series for teachers, as well as Ukuzi wa Watoto, an interactive video training program that covers child development and builds the teacher training capacity of the Ministry. ZTUR also created over 6,000 print materials tailored to the needs of Zanzibar's teachers and students and distributed solar-powered audio players/radios with pre-loaded programs for children and teachers to every preschool and primary school in Zanzibar. In addition to receiving print materials and radios, Teacher Centers were provided with solar-powered video technology for teacher training.
ZTUR reflects USAID's commitment to helping Tanzanians help themselves by developing the local capacity to improve the quality of education for all. The Ministry of Education staff have been an integral part of the ZTUR team from the very beginning. Their dedication and hard work have provided a solid foundation to sustain the gains already accomplished, while producing new and innovative early childhood and distance-learning materials that will foster a strong and vibrant education system.
Press Release from the U.S. Agency for International Development, February 24, 2011Footnote 10
Mark Lopes, USAID Deputy Administrator for Latin America and the Caribbean and Maria Cristina Lazo, Executive Director of the International Cooperation Agency of Chile (AgCI), signed a Memorandum of Understanding to pursue joint development cooperation in third countries. The two nations have also signed a trilateral agreement to help the Government of Paraguay strengthen its capacity in customs administration, export promotion and support to farmers.
Going forward, USAID and AgCI will collaborate to reduce poverty, strengthen institutions, improve economic development and expand economic and social inclusion across the Western Hemisphere.
“This Agreement is yet another step in advancing the Obama Administration's commitment to engage Latin American and Caribbean governments as equal partners in the region's sustainable development,” Lopes said. “Chile has made remarkable strides in building an open, inclusive and prosperous society and we want to help promote the Chilean experience to help solve other challenges in the Hemisphere.”
USAID and AgCI are partners for development. This agreement is being signed today, but the joint collaboration between Chile, the United States and Paraguay to identify specific areas of work has already begun” Lazo said. “We believe this is just the first step of many joint efforts in the future.”
Press Release from the U.S. Agency for International Development, February 24, 2011Footnote 11
Officials from the U.S. Government and the Government of Southern Sudan joined Western Equatoria State authorities and members of the Maridi community to inaugurate the town's first power generation and electricity distribution system. The Maridi community participated during the construction phase of the project by taking part in stakeholder meetings to decide on the type of utility to be built, providing most of the local labor force for construction activities, and utilizing local materials from Maridi.
With a generation capacity of 880 kilowatts, the Maridi plant can serve about 900 customers and already has materials available to initially install 725 service connections. Approximately 21 km of primary and secondary lines have been completed to provide a backbone for future expansion. Potential major consumers of the power include Maridi's local business community and residents, nongovernmental organizations (NGOs), small-scale businesses, and traders who operate along the town's main streets and within the market. Other potential customers include schools, medical facilities, and government offices. Electricity in Maridi will enhance security through street lighting, promote economic activity through more flexible hours of trade, and provide convenience to households.
The U.S. Consul General in Juba, Ambassador R. Barrie Walkley, Chief Guest Hon. Anthony Lino Makana, representing H.E Gen. Salva Kiir Mayardit, the President of Government of Southern Sudan, Governor of Western Equatoria State H.E. Col. Bangasi Bakosoro, and the Government of Southern Sudan Minister for Energy and Mining H.E. Garang Diing Akuong all took part in yesterday's inauguration event.
The Maridi project is implemented by USAID partner, the Louis Berger Group, in partnership with the National Rural Electric Cooperative Association (NRECA). The project comprises construction of power generation and distribution facilities, customer connections, the establishment of a utility, and the training of utility staff. Training provided in Maridi covered commercial and technical aspects such as meter reading and billing, accounting, linemen skills, and human resource and customer relations, among others.
This is the third electrification project in southern Sudan funded by the American people. The first project, in Yei, was completed in 2008. USAID inaugurated the second electrification project in Kapoeta town in Eastern Equatoria State on February 4, 2011.
USAID funding for the Maridi project, including training and project oversight by USAID implementing partners, will be approximately $3.9 million at completion in September 2011. USAID funding to southern Sudan's energy sector overall since 2005 totals approximately $20 million. The United States is the single largest donor to Sudan, contributing nearly $10 billion in assistance to Sudan and eastern Chad since the signing of the Comprehensive Peace Agreement in 2005.
Remarks by Millennium Challenge Corporation CEO Yohannes, February 25, 2011Footnote 12
CEO Daniel Yohannes delivered these remarks in Washington, DC
Introductory Remarks Omitted
CEO Yohannes. These are exciting times for MCC.
Last year, we successfully concluded two Compacts—in Honduras and Cape Verde—and we signed three new Compacts with Moldova, Philippines and Jordan. We are on track to see five more countries conclude their Compacts this year—Armenia, Benin, Nicaragua, Georgia, and Vanuatu. And we hope to add three new countries to the MCC family this year.
Let me start off with a summary of what we have accomplished and how we can bring the lessons of our model to bear on our nation's evolving global development policy.
First, let me explain MCC's philosophy. Our approach to development is like a business. We have a client—the U.S. taxpayer. We have a partner—the countries we work with. Our mission is to reduce poverty through economic growth, and we approach it with two goals in mind.
The first is to get the best investment return for the American taxpayer.
The second goal is to put our partner countries on a path to attract more private sector investment, and to reduce aid dependency by increasing their incomes.
As CEO, I keep a close eye on our MCC portfolio. With the new Compacts and Threshold Programs we have added in the last year, our portfolio has grown to more than 8 billion dollars in development investments worldwide.
Our compact disbursements doubled in the last year to a cumulative total of 2 billion dollars, and contracts for MCC-funded investments worldwide are worth nearly 4 billion dollars.
We invest in projects that partner countries prioritize and projects that are expected to have a good economic rate of return. MCC's portfolio focuses on a number of key sectors: 2.7 billion dollars for transportation projects; 1.6 billion dollars for agriculture investments; Half a billion dollars for water and sanitation; and Three-quarters of a billion dollars for health, education, and community services projects.
These investments have allowed our country partners to train over 150,000 farmers in more efficient agriculture techniques that will help increase their incomes by producing higher-quality crops. We have a total of 82,510 hectares of land under production. We have provided $66 million in agricultural loans, and have assisted over 3,800 enterprises.
I'd like to give you a very successful story in Ghana. In Ghana alone, we trained over 45,000 farmers. Last year, the World Food Program purchased 1,000 metric tons of maize from mostly MCC-trained Ghanaian farmers, earning them over $350,000 in income.
In Honduras, I met Azucena Urquia. Azucena told me she never imagined she would be a farmer, know how to plow a field, or how to sell her goods to big grocery stores. But she received MCC training that taught her how to grow herbs. She was so proud of the sustainable livelihood she had created for herself, and so thankful to the MCC and the United States for the assistance she received.
Another of my favorite stories comes from Georgia. I toured a dairy plant owned by a woman named Nino Zambakhidze. Nino received a $124,550 grant through MCC, and then matched it with $158,000 in local funds. She used the grant to establish the dairy plant, and now you can buy her cheese in any major supermarket in Georgia. Nino told me that her dairy plant employs 25 people, not counting the 300 local farmers who supply raw milk. Nino said she pays many of her milk suppliers with improved feed, so they get healthier livestock and she gets higher-quality inputs. These are exactly the kinds of relationships we want to create with MCC investments.
We have supported construction of more than 890 kilometers of roads that link markets and encourage trade, and have another 2,400 kilometers under construction.
And we have constructed, rehabilitated, or equipped more than 200 educational facilities because we know that investing in human capital is one of the most effective ways to lift people out of poverty. Nearly 60,000 students have participated in our educational programs, and over 800 instructors have been trained or certified.
Then there are MCC policy reforms. Remember—one of MCC's core principles is: “policies matter.” We work only with poor but well-governed countries. We constantly search for ways to use our assistance as incentive to encourage policy reform in our partner countries.
It would be impossible to list them all, but in Cape Verde and Honduras alone, we can point to 7 policy reforms that strengthened governing practices and expanded economic opportunities.
To give you a few examples:
In Honduras, we worked with the government to set aside some road maintenance fees so that the roads we're building are sustainable for a very long time.
Both in Cape Verde and El Salvador, they cut the number of days required to start a business significantly, creating the best environment for businesses to flourish.
This is some of what we have accomplished, together with our county partners. The next step is to gather what Paul Harvey would call “the rest of the story.” Did our work result in higher incomes for the citizens of our partner countries?
To answer that question we will get the assessment of independent evaluators in the coming months. We build rigorous third-party evaluation approaches into our compact programs, so we can isolate the impact of our work on the lives of our targeted beneficiaries. We eagerly await the results of their work.
In the meantime, we are encouraged by the preliminary data that is coming out of Honduras and Cape Verde.
The most basic measuring stick of MCC's work is whether we have an impact on incomes.
In Honduras, we have preliminary data from our agriculture program showing that farmers who received help from MCC saw their annual net income rise 88%, from 1,880 dollars per hectare to 3,550 dollars per hectare.
In Cape Verde, we also have preliminary data from our agriculture program. Last year, farmers in Cape Verde suffered through a season of very bad rains.
We would expect that farmers that received credit and training in soil and water management through MCC would be better prepared to weather these tough conditions. As it turns out, they were.
On the island of Santo Antão, farmers who did not receive MCC assistance saw income decrease by 88%, while those who did receive assistance held their losses to just 18%.
I want to stress that this is preliminary data, and we will know much more when the work of our independent evaluators is completed. But it fits with the personal stories I have heard directly from farmers and entrepreneurs with whom I have visited in our partner countries.
These are results the American people can be proud of. But I would be the first to say we can do even better.
The President reminded us last month that the state of the world today requires us all to “step up our game.”
When I came to MCC 15 months ago, I outlined five key priorities that I would like to achieve in partnership with you—the most important of them being our focus on results.
If we are to stay relevant, we must continuously show results to our constituency.
As I told you earlier, we at MCC operate as a business. I have shared a lot of results with you today because I see this as a shareholder meeting.
I look around this room and see a lot of American taxpayers, and some of our friends from our partner countries. I know you all have a stake in what we are trying to accomplish.
For all the big numbers we discussed today, it is also important to remember that when we talk about the return on your investment, we are talking about changing people's lives for the better. That's what is important to us.
We expect the MCC investments you've made to benefit more than 171 million people in the poorest countries around the world—and we expect incomes to rise by $12.3 billion over the life of our current investments.
I have traveled in many poor countries around the world. I have seen firsthand the hopelessness of severe poverty. I also have seen what can be done when you offer someone the chance to pursue a better life for themselves and their families.
The stories of Azucena's farm in Honduras and Nino's dairy plant in Georgia are being multiplied millions and millions of times around the world.
Giving hope to people like them is the strongest incentive I can imagine to keep focused on our principles and do everything we can to make MCC the most effective agency it can be.
Thank you very much. My senior staff and I would be happy to take your questions.
Press Release from the U.S. Trade and Development Agency, March 1, 2011Footnote 13
Today, USTDA continued its support of opening China's market for U.S. clean energy technologies through funding a feasibility study and pilot project on the implementation of a smart grid demand response management system. The $660,000 grant to the China State Grid Electric Power Research Institute (SGEPRI) supports the U.S.-China Energy Cooperation Program's efforts to open China's market to U.S.-manufactured technologies as China continues to develop its energy infrastructure.
The development of a smart grid demand response system would increase energy efficiency and effective resource management, providing economic and environmental benefits to communities and households throughout China. The project will further generate opportunities for U.S. manufacturers to gain a foothold in the China smart grid market, estimated to be worth $10 billion annually.
The project will entail installation of Honeywell International and AECOM demand response management technologies in selected commercial and industrial pilot sites to demonstrate the feasibility of adopting U.S. smart grid solutions to China's grid infrastructure. Both companies are also supporting the project. The study's outcomes will include a review of regulatory issues, the development of demand response benchmarks, and analysis of financing mechanisms that will assist SGEPRI in designing a national smart grid implementation strategy.
“U.S. companies are leaders in smart grid technology. Exporting these clean energy solutions provides an opportunity to create green jobs here in the U.S.,” said USTDA Director Lee Zak.
“This grant also supports the Administration's goals of increasing cooperation with China in areas of clean energy technology.”
The grant was conferred during a grant signing ceremony held at the State Grid Electric Power Research Institute in Nanjing, China.
Press Release from the U.S. Agency for International Development, March 4, 2011Footnote 14
At approximately 5:00pm and 6:00pm local time, two C-130 military transport planes will be landing in Djerba, Tunisia delivering humanitarian supplies from the U.S. Agency for International Development.
Each aircraft will be carrying three pallets of aid supplies, which will include 2,000 blankets, 40 rolls of plastic sheeting, and 9,600 10-liter water containers.
The humanitarian relief supplies, sufficient for up to 2000 beneficiaries, will be given to the Tunisia Red Crescent for distribution.
USAID's Office of U.S. Foreign Disaster Assistance keeps emergency relief commodities warehoused in Pisa, Italy, Dubai, and Miami in order to quickly respond to humanitarian needs.
Press Release from the U.S. Agency for International Development, March 9, 2011Footnote 15
Saving Lives at Birth: A Grand Challenge for Development, was launched today to seek innovative prevention and treatment approaches for pregnant women and new-borns in rural, low-resource settings. This partnership leverages the collective resources of the U.S. Agency for International Development (USAID), the Government of Norway, the Bill & Melinda Gates Foundation, Grand Challenges Canada, and The World Bank. Partners expect to provide nearly $14 million for this grant program's first round of funding. Over 5 years, the partners aim to invest at least $50 million in groundbreaking and sustainable projects with the potential to have a transformative effect on the lives of pregnant women and their babies in the hardest to reach corners of the world.
At an event in Washington, D.C., Secretary of State Hillary Clinton, USAID Administrator Rajiv Shah, Special advisor to the Prime Minister of Norway on global health, Dr. Tore Godal, co-chair of the Bill & Melinda Gates Foundation, Melinda Gates, CEO of Grand Challenges Canada, Dr. Peter A. Singer, The World Bank Vice President for Human Development, Tamar Manuelyan Atinc, and White House Director of the Office of Science and Technology Policy, Dr. John P. Holdren, addressed the critical need for innovations that go beyond conventional approaches and have the potential to save the lives of millions of women and babies in the hardest to reach communities of the world.
“To make advances in maternal and newborn health, our real opportunity lies in harnessing the power of innovation-scientific, technological, and behavioral-to build a continuum of invention from bench to bush,” said USAID Administrator Shah. “Innovations in products and the platforms we use to deliver them will allow us to expand our reach to women who will likely never set foot inside a hospital.”
“The day of birth is still the most dangerous day for the mother and the newborn. This is the most brutal expression of discrimination against women,” said Jonas Store, The Foreign Minister of Norway. “Capturing new opportunities in innovation can make a big contribution to a safe birth and women's health.” “Healthy mothers and newborns are the foundation of healthy and prosperous societies,” said Melinda Gates, co-chair of the Bill & Melinda Gates Foundation. “We must partner to develop new technologies and seek new ways of delivering solutions to women and children who need them most. This initiative will speed up progress we're already making-and will lead to new kinds of progress that we have yet to conceive.”
“This new initiative is a great opportunity to bring more innovation to our shared goal of saving more mothers and babies in the poorest countries,” said Tamar Manuelyan Atinc, World Bank Vice President for Human Development. “Our aim will be to leverage these pilots and take promising innovations to scale in order to make a real difference in poor people's lives. This requires working in close partnership with governments and national stakeholders.”
This Challenge addresses the period when women and their newborns are most vulnerable. “Shockingly, each year, in the brief window of time between the onset of labor and 48 hours after birth, 150,000 women and 1.6 million children die,” said Dr. Peter A. Singer, CEO of Grand Challenges Canada. “Today, we are starting to slam shut this window, and to save these lives, using innovation
Currently, a pregnant African woman is 135 times more likely to die during childbirth than some of her Western counterparts. The goal of Saving Lives at Birth: A Grand Challenge for Development is to change the tide on this staggering statistic in Africa and across all regions.
Strong proposals will include bold ideas that look beyond conventional approaches in three main areas: (1) developing new technologies; (2) creating more reliable and efficient ways to deliver health services; and (3) engaging communities in novel ways and furthering understanding of the benefits to both mother and child when they receive health care at the time of birth. In order to be eligible for selection, applications must be submitted by April 29, 2011.
Excerpts of Remarks by Secretary of State Clinton, March 22, 2011Footnote 16
Secretary Hillary Clinton delivered these remarks in Washington, DC
Secretary Clinton. Thank you. Good afternoon in this absolutely glorious fora with so many people who do the work every day that makes the World Bank such a respected institution. It is my pleasure to commemorate World Water Day with you.
And to all of you who are here because you know that this is such a critical issue that cuts across every single part of development that one can imagine, I thank you for helping to raise the visibility of water as one of the most important issues. Why? Because the water crisis is a health crisis, it's a farming crisis, it's an economic crisis, it's a climate crisis, and increasingly, it is a political crisis. And therefore, we must have an equally comprehensive response.
Now our experts in the United States Government are working on water issues at nearly two dozen agencies—of course, from State and USAID, but also the Millennium Challenge Corporation, NASA, NOAA, EPA, Treasury, and so much else. And many of our agencies are already working with the World Bank Group, but we want to enhance that collaboration, and that will be created by the memorandum of understanding that we sign today.
Now, the MOU is a good step forward, but we have so much further to go together. As you've already heard Bob say in his recitation of some of the statistics that should be driving all of us to greater efforts, more than 5,000 people die each day from causes linked to unsafe water, sanitation, and hygiene, and most of them are children. Millions of women and girls walk for hours every day to collect water for their households, and some of them put their very lives and physical safety at risk. And by 2025, we believe that it could be as much as two-thirds of the world's population, including in more areas within developed countries where people will be living under water stress. And that will, in turn, both undermine and impede socioeconomic development.
Now over this past year, we have made some targeted commitments. A few examples: In Indonesia, USAID has begun a five-year, $34 million water, sanitation, and hygiene project to reach more than 2 million of Indonesia's urban poor. USAID also launched a project in Haiti to teach women about sanitation and hygiene so they could better take care of their households. And we are also supporting another project in India to provide slum dwellers in eight states with municipal water and sanitation systems.
The Millennium Challenge Corporation signed a $275 million compact in October with Jordan, one of the five most water-deprived countries in the world, to improve water supply and waste water treatment. In terms of our diplomatic outreach, we are elevating water as a priority in our relationships not only with nations, but also regional and global institutions.
During the Millennium Development Goals Summit in New York in September, we co-hosted an event on water that brought together heads of state, ministers from donor and developing countries, to encourage us all to make water—especially sanitation—a higher priority. And just a few weeks ago, USAID and the Qatar National Food Security Program convened representatives from 17 water centers in 10 countries across the Middle East and North Africa to create a regional network to share technical knowledge to solve the complex water challenges they face.
To mobilize financial support, we are investigating innovative ways to pay for water and sanitation projects to make it financially feasible for governments and private companies to invest in water and sanitation systems in poor communities.
In Kenya, USAID is working with local water utilities, a local cell phone company, and a local microfinance institution to create new ways for poor people to pay for water. They receive a microloan to cover the initial cost of connecting their homes with water systems, then repay those loans using micro-banking services on their cell phones.
Now in the Philippines, Japan and the United States have worked together to establish a water revolving fund to leverage private investment to improve water and sanitation for more than 100,000 people in 36 villages. And last year, the first USAID guaranteed loan for $2.5 million was granted.
To promote science and technology, we are supporting innovation in many places. To give just a few examples: USAID is working with NASA to use satellite images to monitor and forecast ecological changes in the Himalayas, including the monitoring of glacial melt. And it has worked with the private sector to open a ceramic water filter factory in Cambodia. With ceramic filters, people no longer need to boil water to make it safe to drink, so they don't need to burn as much wood or charcoal, which in turn reduces greenhouse gases. And the plant has even applied to receive carbon credits for future sales.
Now, none of this work can be done by one country alone. It must be done in partnership, which is what brings me here to the World Bank today. We commend the World Bank for the leadership it has already shown over years on water. And with this Memorandum of Understanding, we are paving the way for closer collaboration between the World Bank and the United States Government. We want to combine our expertise to drive high-impact change in people's lives. We think this is an important step. We're excited about what it can produce for the people who need our help to get the water they desperately require, and we want to see what this kind of collaboration can actually foster.
Press Release from the U.S. Trade and Development Agency, March 25, 2011Footnote 17
USTDA provided a grant to the Ghana Grid Company Limited (GridCo) today to support the development of a new power transmission line in eastern Ghana. The USTDA grant will fund the costs of a feasibility study on the technical and economic viability of expanding and strengthening Ghana's electricity transmission network with a new 62 mile power transmission line between Asiekpe and Kpandu, and a new 143 mile transmission line between Kadjebi and Yendi.
U.S. Ambassador Donald Teitelbaum signed the $645,000 Grant Agreement with Mr. Charles Darku, Chief Executive Officer of GridCo, at the U.S. Embassy in Accra yesterday morning.
“The USTDA-funded feasibility study will assist GridCo in its efforts to provide redundancy to Ghana's power transmission network and bring access to electricity to currently underserved areas,” said Ambassador Teitelbaum after signing the Grant Agreement on behalf of the United States.
GridCo owns and operates Ghana's national power transmission grid, and has prioritized the development of new transmission facilities on the east side of Lake Volta. The new power transmission line will not only improve the reliability of power in northern and eastern Ghana, but is also expected to improve the economic viability of two important renewable energy projects near the new line's path, including the potential wind power site at Kadjebi and the potential hydropower site at Juale.
Many U.S. companies are taking an active part in the growth of Ghana's energy sector, and the USTDA grant is expected to create substantial business opportunities for U.S. companies in engineering, substation components, software and control systems, and transmission lines. Ambassador Teitelbaum commented, “Through their partnership on this important feasibility study, USTDA and GridCo are working towards an outcome which will be mutually beneficial to Ghana and the United States.”
Press Release from the U.S. Agency for International Development, March 29, 2011Footnote 18
U.S. and Kenyan officials today congratulated 262 graduates of AFRICA LEAD, a continent-wide program that is training agriculture leaders to implement regional and country agriculture investment plans.
AFRICA LEAD, which is short for the Africa Leadership Training and Capacity Building Program, is part of U.S. President Barack Obama's global hunger and food security initiative called Feed the Future. The initiative supports the Comprehensive African Agriculture Development Program (CAADP), which stipulates that governments set aside 10 percent of their national budgets for agriculture, and work to eliminate hunger and reduce poverty. To date, officials from 24 African countries have committed to CAADP.
Through this program, USAID is providing leadership training, capacity assessments, innovative short courses, internships and a database of training offered on the continent. AFRICA LEAD is open to mid-and senior-level professionals—about 40 percent of whom are women—who are committed to learning about and then providing leadership on CAADP principles and processes. All participants must complete individual action plans that expand their roles to become active and creative participants in their country's food security initiatives.
Chargé d'Affaires Lee Brudvig, of the U.S. Embassy in Kenya, highlighted the U.S. government's commitment to “work alongside these champions and support strong country and regional CAADP investment plans that will sustainably reduce poverty and hunger through inclusive agriculture sector growth and improved nutritional status, especially of women and children.”
CAADP Champions for Change hail from 19 African countries, seven of which are in East Africa. They work in both the public and private sectors in agriculture, nutrition, biotechnology, research, finance, irrigation, grain handling, dairy, market cooperatives, exports, media, and farmers’ associations, and represent over 100 organizations.
Jacqueline Mkindi, CEO of the Tanzania Horticultural Association, said of her training, “It was an enriching experience in which I personally was transformed on CAADP, food security and leadership. I am energized, charged, motivated and restructured with great new ideas on our involvement in the CAADP program.”
Many Champions, including Mkindi, are now implementing action plans and creating commodity exchanges, enriched foods, food security networks, magazines about CAADP, and generally pushing the CAADP agenda forward. The food security champions have even formed a Face-book page, the Champions for Change Network, to strengthen the network and spread messages about how to build food security throughout the region.
Kiome, challenged the 100 Kenyans who have become Champions for Change to fulfill their individual and institutional action plan goals to improve food security in the country.
Once the Champions for Change trainings end in April, AFRICA LEAD will begin institutional capacity needs assessments. With plans to link individuals and institutions to a range of short courses around the continent and in the U.S. to assist each CAADP country to implement its plan, which forms the basis for national agricultural sector development.
During today's event, African Union Commissioner Tumusiime congratulated via video those who have successfully completed the AFRICA LEAD training and encouraged others to join the efforts. “To scale up for food security in Africa, we need more people who are committed to this cause, to a purpose larger than themselves, and who are willing to put in the time and effort to become CAADP Champions for Change. We all need to share a vision of an African agriculture that is productive and profitable, and that is contributing to the economic, nutritional, and health development of Africa.”
Press Release from the U.S. Trade and Development Agency, March 31, 2011Footnote 19
In response to the Mumbai attacks in November 2008, the Government of India is greatly increasing its investment in homeland security and emergency response capabilities. In support of these efforts, USTDA is providing a grant to India's Ministry of Home Affairs to plan a pilot project for an integrated emergency communications system (IECS) in Hyderabad, Andhra Pradesh, the sixth largest city in India.
India does not currently have a nationally standardized system that can manage emergency communications and services, like “911” in the United States. India has designated the exchange “108” as the national integrated emergency number and USTDA's support will help establish a national model for implementation of IECS throughout the country. The implementation of a national system holds the potential to open India's market for over $800 million in exports of U.S. homeland security, emergency response and communication equipment and services.
The $645,944 grant was conferred during a signing ceremony held at the U.S. Embassy in New Delhi, India. Mr. Blair Hall, Minister Counselor for Economics, Environment, Science and Technology Affairs at the U.S. Mission in New Delhi signed on behalf of the U.S. Government and Mr. Suresh Kumar, Joint Secretary at India's Ministry of Home Affairs signed on behalf of the Government of India. In addition to USTDA's grant, Optimal Solutions and Technologies, Inc. (OST), a U.S. provider of management consulting, information technology, and engineering services will also contribute additional resources toward the completion of the feasibility study.
Press Release from the U.S. Trade and Development Agency, March 31, 2011Footnote 20
Today, USTDA awarded a grant to the National Fisheries Office (Office National des Pêches) (ONP) to support the development of distributed power generation and fresh water production in coastal fishing villages in Morocco. The technical assistance will develop a master plan for utilizing renewable energy resources in six pilot fishing villages and provide a model for clean electricity generation and water filtration in up to 60 fishing villages throughout the country.
The technical assistance project responds to the need for enhanced electricity generation in fishing centers in Morocco. The grant will provide an analysis of solar photovoltaic and wind energy applications which would potentially replace diesel-based generation in these remote villages. ONP considers the use of renewable energy to be a high priority.
The $551,880 technical assistance grant was conferred to H.E. Aziz Akhannouch, Minister of Agriculture and Fisheries, by U.S. Ambassador to Morocco Samuel L. Kaplan during a signing ceremony at the Hyatt Regency Casablanca as part of a luncheon hosted by the American Chamber of Commerce in Morocco. The grant signing was witnessed by Mr. Carl B. Kress, USTDA Regional Director for the Middle East, North Africa and Europe, and ONP Director General Amina Figuigui. Also in attendance was Assistant Secretary for Trade Promotion and Director General of the U.S. & Foreign Commercial Service Suresh Kumar, who is leading an18-company trade mission to Morocco.
The project also complements the Millennium Challenge Corporation's efforts in Morocco as it implements initiatives in the fishing sector. Morocco is a leading country in fish production in the Arab region. The fishing sector represents 16% of total national exports and is valued at over $830 million annually.
