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Institutionalizing IE in the MCC

Institutionalizing IE in the MCC. Franck Wiebe Chief Economist, MCC wiebef@mcc.gov April 2, 2009. MCC Background Information. MCC was created 5 years ago and modeled on generally accepted “best practices” in aid Growth matters for poverty alleviation Policies matter …

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Institutionalizing IE in the MCC

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  1. Institutionalizing IE in the MCC Franck Wiebe Chief Economist, MCC wiebef@mcc.gov April 2, 2009

  2. MCC Background Information • MCC was created 5 years ago and modeled on generally accepted “best practices” in aid • Growth matters for poverty alleviation • Policies matter … • Country ownership matters … • Results matter … • MCC has a public-private Board of Directors: • Chaired by Secretary of State • Includes four from private/nonprofit sector • Staff of 250-300 • MCC has signed 18 country programs (more than $6 billion) and about 20 Threshold Programs

  3. MCC’s Framework for Results(available online at www.mcc.gov) • Cost-Benefit Analysis • Pre-decision estimate of expected impact • Monetary benefits makes possible comparison across sectors • 90% of funded activities in first 16 have formal quantitative model • Monitoring and Evaluation • Baseline surveys • Implementation performance against expectations, during and after • Independent completion review of every program, every activity • Rigorous Impact Evaluations (with formal counterfactual) • Strategy based on feasibility, need, and learning potential • Designed and contracted before implementation begins • International IE expertise, local collaboration → capacity building • 47% of activities, 58% of funds under independent IE

  4. Critical Institutional Elements • IE decisions structured to be made early • Always before implementation • Sometimes even as part of the funding decision • IE managed separate from implementation • Central budget allows for priority setting • Annual budget line item provides flexibility • Public commitment to full transparency • Explanation of decisions • Documentation of plans, progress • Full disclosure of results, data

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