What is the Millennium Challenge Account (MCA)?
In March 2002 in Monterrey, Mexico, President Bush called for a “new compact for global development” wherein donors would provide more aid to those developing nations that demonstrated increased responsibility for advancing the development of their own countries and peoples by implementing needed reforms. The President announced the establishment of the MCA to reward those countries that ruled justly, advanced economic freedom, and invested in their own people. The proposal was supported by both parties in Congress and so the Millennium Challenge Corporation (MCC) was created to administer the MCA and $1 billion was provided in initial funding for fiscal year 2004. President Bush pledged to increase funding for the MCA to $5 billion a year starting in FY 2006, an approximately 50% increase over then current U.S. core development assistance.
