Publication

This publication discusses the US government’s proposed US$5 billion Millennium Challenge Account (MCA), which could provide upwards of US$250-$300 million or more per year per country in new development assistance to a small number of poor countries judged to have relatively “good” policies and institutions. The author examines if this assistance could be too much of a good thing and strain the absorptive capacity of recipient countries to use the funds effectively. The publication argues that the sheer quantity of MCA money is unlikely to overwhelm the ability of recipients to use it well if the funds are delivered effectively.