Solomon Islands is the newest country to participate in the Millennium Challenge Corporation’s threshold program, which is designed to spur economic growth and reduce poverty, and strengthens the ties with the United States forged during WWII and beyond.
Solomon Islands Prime Minister Rick Houenipwela, in welcoming the announcement, emphasised that the visit by the delegation from the United States led by Randall G. Schriver, Assistant Secretary of Defense for Asian and Pacific Security Affairs, was focused on shared values and priorities and discussions on the realignment of US priorities to Solomon Islands.
“Solomon Islands has been trying to get access to the MCC program over the years without success. In our Pacific region, only Vanuatu had ever received an MCC funded program,” said Mr Houenipwela.
The selection of Solomon Islands recognizes the country’s commitment to shared democratic values and continuing the fight against corruption.
This new partnership also demonstrates the United States’ commitment to a free and open Indo-Pacific, by enhancing prosperity and private investment in the region.
Threshold programs assist recipient countries by jointly identifying constraints to economic growth and supporting the country’s efforts to develop and implement policy and institutional reforms aimed at alleviating those constraints.
The funding package of the threshold program ranges from USD $6 million to US$55 million usually over 4 years.
Through the threshold program, Solomon Islands will have the opportunity to demonstrate its continued commitment to democratic governance, economic freedom, and investment in its people, and to work towards eligibility for a millennium challenge compact – MCC’s larger, flagship grant programs over the medium term where allocations can range between US$56 million to US$690 million.
MCC takes a business-like approach to its grant funding, with bedrock commitments to data, accountability, and evidence-based decisions.
Mr Houenipwela also highlighted the country’s efforts to fight corruption with a slight improvement in the corruption perception index (CPI), published by Transparency International from 39 to 44 points out of 100.
MCC was created in 2004 as a new and different model of development assistance – one focused on reducing poverty through economic growth.
Built on the lessons of decades of development experience, MCC provides time-limited grants to developing countries that meet rigorous standards for good governance, from fighting corruption to respecting democratic rights, as evaluated on MCC’s scorecard.
MCC takes a business-like approach, with bedrock commitments to data, accountability, and evidence-based decisions. MCC’s investments are improving the lives of millions of people around the world.
Source : https://postcourier.com.pg/solomons-welcomes-threshold-program/