More funds for MCC sought

MANILA, Philippines – The Philippines, Malawi and Timor Leste have appealed to the US Senate for an increase in funding for the Millennium Challenge Corp. (MCC) to support their programs of strengthening democratic institutions in developing countries, reinforce the rule of law and liberalize the economies of its recipient partner countries, according to the Philippine Embassy in Washington D.C.

The request for additional funding was made following a call of Sen. Patrick Leahy, chairman of the foreign operations sub-committee of the Committee of Appropriations, for a review of all current MCC Compact funding.

In a letter to Leahy, the governments of the Philippines, Malawi and Timor Leste reiterated the importance of the MCC to three countries.

The Philippine embassy said this would bolster the Philippines’ campaign to conclude a Compact Agreement with the MCC.

Jointly signed by the Ambassador of Malawi, the Charge d’Affaires of Timor Leste, and Philippine Ambassador Willy Gaa, the letter particularly asked the sub-committee chaired by Senator Leahy, to increase the funding for the MCC.

“At current proposed funding levels… it will be difficult for the MCC to enter into new Compact Agreements – thus dealing a serious blow to our efforts to further pursue our pro-poor and pro-growth initiatives,” the letter said.

The Philippines was categorized as an MCC Compact-eligible country in March 2008, while Malawi and Timor Leste were granted Compact eligibility status in December 2007 and November 2005, respectively.

In his remarks to the diplomats from East Timor and Malawi, Gaa reminded his two guests that, “Our respective overall economic reform programs, components of which are contained in each of our own development projects under our own particular Compact programs, will greatly be contingent on the funding allocated by the US Congress for MCC Compacts.”

“This letter is a first-step in a campaign that will require our continued active engagement until each of our countries’ sign our respective MCC Compact Agreements,” he said.