Should the MCC Provide Financing Through Recipient Country's Budgets? An Issues and Options Paper

Publication Date: August 2006

Publisher: Center for Global Development; Center for Global Development

Author(s): Sheila Herrling; Steve Radelet; Sheila Herrling; Steve Radelet

Research Area: International relations

Type:

Abstract:

When the MCA was first introduced, many assumed it would deliver some of its funding through general budget support. But so far it has continued funding via traditional project finance. In this paper, Herrling and Radelet review trends in development assistance toward general budget support and propose an option for the MCC to phase in the disbursement of compact funds through increasing levels of budget support to select countries that prove their capacity to manage and monitor them.