US Development Aid and the Millennium Challenge Account: Emerging Trends in Appropriations

Publication Date: October 2006

Publisher: Center for Global Development; Center for Global Development

Author(s): Kaysie Brown; Bilal Siddiqi; Myra Sessions; Kaysie Brown; Bilal Siddiqi; Myra Sessions

Research Area: International relations

Type:

Abstract:

The Millennium Challenge Account (MCA) was intended to complement-not replace-existing aid structures. But there are concerns that increases in MCA funding are diverting funding away from USAID. In this study, the authors find that core development aid targeted specifically at poverty reduction and economic growth has remained stagnant for several years, but that this downturn may be part of a more general trend. They recommend that the Director of Foreign Assistance establish a centralized and comprehensive database to help spur more effective decision making and oversight by the U.S. government and key aid constituencies.