[Federal Register Volume 80, Number 164 (Tuesday, August 25, 2015)]
[Notices]
[Pages 51609-51611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20878]
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 15-01]
Report on Countries That Are Candidates for Millennium Challenge
Account Eligibility in Fiscal Year 2016 and Countries That Would Be
Candidates But For Legal Prohibitions
AGENCY: Millennium Challenge Corporation.
ACTION: Notice.
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SUMMARY: Section 608(a) of the Millennium Challenge Act of 2003
requires the Millennium Challenge Corporation to publish a report that
identifies countries that are ``candidate countries'' for Millennium
Challenge Account assistance during FY 2016. The report is set forth in
full below.
Dated: August 18, 2015.
Maame Ewusi-Mensah Frimpong,
VP/General Counsel and Corporate Secretary, Millennium Challenge
Corporation.
Report on Countries That Are Candidates for Millennium Challenge
Compact Eligibility for Fiscal Year 2016 and Countries That Would Be
Candidates But for Legal Prohibitions
Summary
This report to Congress is provided in accordance with section
608(a) of the Millennium Challenge Act of 2003, as amended, 22 U.S.C.
7701, 7707(a) (the Act).
The Act authorizes the provision of assistance for global
development through the Millennium Challenge Corporation (MCC) for
countries that enter into a Millennium Challenge Compact with the
United States to support policies and programs that advance the
progress of such countries to achieve lasting economic growth and
poverty reduction. The Act requires MCC to take a number of steps in
selecting countries with which MCC will seek to enter into a compact,
including determining the countries that will be eligible countries for
fiscal year (FY) 2016 based on (a) a country's demonstrated commitment
to (i) just and democratic governance, (ii) economic freedom, and (iii)
investments in its people; and (b) the opportunity to reduce poverty
and generate economic growth in the country, and (c) the availability
of funds to MCC. These steps include the submission of reports to the
congressional committees specified in the Act and the publication of
notices in the Federal Register that identify:
The countries that are ``candidate countries'' for FY 2016 based on
their per capita income levels and their eligibility to receive
assistance under U.S. law and countries that would be candidate
countries but for specified legal prohibitions on assistance (section
608(a) of the Act);
The criteria and methodology that the MCC Board of Directors
(Board) will use to measure and evaluate the relative policy
performance of the ``candidate countries'' consistent with the
requirements of subsections (a) and (b) of section 607 of the Act in
order to determine ``eligible countries'' from among the ``candidate
countries'' (section 608(b) of the Act); and
The list of countries determined by the Board to be ``eligible
countries'' for FY 2016, identification of such countries with which
the Board will seek to enter into compacts, and a justification for
such eligibility
[[Page 51610]]
determination and selection for compact negotiation (section 608(d) of
the Act).
This report is the first of three required reports listed above.
Candidate Countries for FY 2016
The Act requires the identification of all countries that are
candidate countries for FY 2016 and the identification of all countries
that would be candidate countries but for specified legal prohibitions
on assistance. Under the terms of the Act, sections 606(a) and (b) set
forth the two income tests countries must satisfy to be candidate
countries.\1\ However for FY 2015, those categories are defined by
MCC's FY 2015 appropriations act, the Department of State, Foreign
Operations, and Related Programs Appropriations Act, 2015, Pub L. 113-
235, Div. J (the FY 2015 SFOAA). Specifically, the FY 2015 SFOAA used
the same definitions that have been used since the FY 2012
appropriations act and defines low income candidate countries as the 75
poorest countries as identified by the World Bank and provided that a
country that changes during the fiscal year from low income to lower
middle income (or vice versa) will retain its candidacy status in its
former income category for the fiscal year and two subsequent fiscal
years. Assuming these definitions will be used again in FY 2016, MCC is
using them for purposes of this report.\2\
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\1\ Sections 606(a) and (b) of the Act provide that a country
will be a candidate country for purposes of eligibility if it (1)
has a per capita income equal to or less than the historical ceiling
of the International Development Association eligibility for the
fiscal year involved (the ``low income category'') or (2) is
classified as a lower middle income country in the then most recent
edition of the World Development Report for Reconstruction and
Development published by the International Bank for Reconstruction
and Development and has an income greater than the historical
ceiling for International Development Association eligibility for
the fiscal year involved (the ``lower middle income category''); and
is not ineligible to receive U.S. economic assistance under part I
of the Foreign Assistance Act of 1961, as amended (the Foreign
Assistance Act), by reason of the application of the Foreign
Assistance Act or any other provision of law.
\2\ If the language relating to the definition of low income
candidate countries is not enacted or is changed for MCC's FY 2016
appropriations act, MCC will revisit the selection process once the
FY 2016 appropriations act is enacted and will conduct the selection
process in accordance with the Act and applicable provisions for FY
2016.
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Under the redefined categories, a country will be a candidate
country for FY 2016 if it:
Meets one of the following tests:
Has a per capita income that is not greater than the World Bank's
lower middle income country threshold for such fiscal year ($4,125
gross national income per capita for FY 2016); and is among the 75
lowest per capita income countries, as identified by the World Bank; or
Has a per capita income that is not greater than the World Bank's
lower middle income country threshold for such fiscal year ($4,125
gross national income per capita for FY 2016); but is not among the 75
lowest per capita income countries as identified by the World Bank;
And
Is not ineligible to receive U.S. economic assistance under part I
of the Foreign Assistance Act of 1961, as amended (the Foreign
Assistance Act), by reason of the application of the Foreign Assistance
Act or any other provision of law.
Due to the provisions requiring countries to retain their former
income classification for three fiscal years, changes from the low
income to lower middle income categories or vice versa for FY 2016 will
go into effect for FY 2019. Countries transitioning to the upper middle
income category do not retain their former income classification.\3\
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\3\ In FY 2014, the World Bank revised its estimates for Iraq's
gross domestic product per capita and more than doubled its previous
estimate. This caused Iraq to transition from a low income country
to an upper middle income country without the benefit of gradual
reclassification. There is a similar situation for FY 2016 with
Mongolia, which has now graduated to upper middle income status as
well, after having been a low income candidate country as recently
as FY 2015. The removal of Iraq and Mongolia from the low income and
lower middle income categories means that there are only 73 low
income countries for FY 2016 (eight of which are legally
prohibited).
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Pursuant to section 606(c) of the Act, the Board identified the
following countries as candidate countries under the Act for FY 2016.
In so doing, the Board referred to the prohibitions on assistance to
countries for FY 2015 under the FY 2015 SFOAA.
Candidate Countries: Low Income Category
Afghanistan
Bangladesh
Benin
Bhutan
Burkina Faso
Burundi
Cambodia
Cameroon
Central African Republic
Chad
Comoros
Congo, Democratic Republic of
Congo, Republic of the
Cote d'Ivoire
Djibouti
Egypt
Ethiopia
Gambia
Georgia
Ghana
Guatemala
Guinea
Guinea-Bissau
Guyana
Haiti
Honduras
India
Indonesia
Kenya
Kiribati
Kyrgyz Republic
Lao PDR
Lesotho
Liberia
Madagascar
Malawi
Mali
Mauritania
Micronesia
Moldova
Mozambique
Nepal
Nicaragua
Niger
Nigeria
Pakistan
Papua New Guinea
Philippines
Rwanda
Sao Tome and Principe
Senegal
Sierra Leone
Solomon Islands
Somalia
Sri Lanka
Tajikistan
Tanzania
Timor Leste
Togo
Uganda
Uzbekistan
Vanuatu
Vietnam
Yemen
Zambia
Candidate Countries: Lower Middle Income Category
Armenia
Cabo Verde
El Salvador
Kosovo
Morocco
Samoa
Swaziland
Ukraine
Countries That Would Be Candidate Countries But for Legal Provisions
That Prohibit Assistance
Countries that would be considered candidate countries for FY 2016,
but are ineligible to receive United States economic assistance under
part I of the Foreign Assistance Act by reason of the application of
any provision of the Foreign Assistance Act or any other
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provision of law are listed below. This list is based on legal
prohibitions against economic assistance that apply as of July 21,
2015.
Prohibited Countries: Low Income Category
Bolivia is subject to foreign assistance restrictions pursuant to
section 706(3) of the Foreign Relations Authorization Act, Fiscal Year
2003 (Pub. L. 107-228), regarding adherence to obligations under
international counternarcotics agreements and other counternarcotics
measures.
Burma is subject to foreign assistance restrictions, including
restrictions pursuant to section 570 of the FY 1997 Foreign Operations,
Export Financing, and Related Programs Appropriations Act (Pub. L. 104-
208) which prohibits assistance to the government of Burma until it
makes measurable and substantial progress in improving human rights
practices and implementing democratic governance.
Eritrea is subject to foreign assistance restrictions, including
restrictions due to its status as a Tier III country under the
Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).
North Korea is subject to foreign assistance restrictions,
including restrictions pursuant to section 7007 of the FY 2015 SFOAA,
which prohibits direct assistance to the government of North Korea.
South Sudan is subject to foreign assistance restrictions pursuant
to section 7042(j)(2) of the FY 2015 SFOAA, which prohibits, with
limited exceptions, assistance to the central government of South Sudan
until the Secretary of State certifies and reports to Congress that
such government is taking steps to provide access for humanitarian
organizations; end the use of child soldiers; support a cessation of
hostilities agreement; protect freedoms of expression, association, and
assembly; reduce corruption related to the extraction and sale of oil
and gas; and establish democratic institutions, including accountable
military and police forces under civilian authority.
Sudan is subject to foreign assistance restrictions, including
restrictions pursuant to section 7042(k) of the FY 2015 SFOAA, which
prohibits (with limited exceptions) assistance to the government of
Sudan.
Syria is subject to foreign assistance restrictions, including
restrictions pursuant to section 7007 of the FY 2015 SFOAA, which
prohibits direct assistance to the government of Syria.
Zimbabwe is subject to foreign assistance restrictions, including
restrictions pursuant to section 7042(m)(2) of the FY 2015 SFOAA, which
prohibits (with limited exceptions) assistance for the central
government of Zimbabwe unless the Secretary of State certifies and
reports to Congress that the rule of law has been restored, including
respect for ownership and title to property, and freedoms of
expression, association, and assembly.
Countries identified above as candidate countries, as well as
countries that would be considered candidate countries but for the
applicability of legal provisions that prohibit U.S. economic
assistance, may be the subject of future statutory restrictions or
determinations, or changed country circumstances, that affect their
legal eligibility for assistance under part I of the Foreign Assistance
Act by reason of application of the Foreign Assistance Act or any other
provision of law for FY 2016.
[FR Doc. 2015-20878 Filed 8-19-15; 4:15 pm]
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