2020-20250. Report on Countries That Are Candidates for Millennium Challenge Account Eligibility in Fiscal Year 2021 and Countries That Would Be Candidates But for Legal Prohibitions  

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    AGENCY:

    Millennium Challenge Corporation.

    ACTION:

    Notice.

    SUMMARY:

    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 2021. The report is set forth in full below.

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    Authority: Section 608(a) of the Millennium Challenge Act of 2003, as amended, 22 U.S.C. 7701, 7707(a) (the Act).

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    Dated: September 9, 2020.

    Jeanne M. Hauch,

    VP/General Counsel and Corporate Secretary.

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    Report on Countries That Are Candidates for Millennium Challenge Compact Eligibility for Fiscal Year 2021 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) 2021 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 to the congressional committees specified in the Act and publication in the Federal Register of reports on the following:Start Printed Page 57254

    • The countries that are “candidate countries” for FY 2021 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 2021, identification of such countries with which the Board will seek to enter into compacts, and a justification for such eligibility 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 2021

    The Act requires the identification of all countries that are candidate countries for FY 2021 and the identification of all countries that would be candidate countries but for specified legal prohibitions on assistance. Under sections 606(a) and (b) of the Act, candidate countries must qualify as low income or lower middle income countries as defined in the Act.

    Specifically, a country will be a candidate country in the low income category for FY 2021 if it

    • has a per capita income that is not greater than the World Bank's lower middle income country threshold for such fiscal year ($4,045 gross national income per capita for FY 2021);
    • is among the 75 countries identified by the World Bank as having the lowest per capita income; and
    • is not ineligible to receive United States 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.

    A country will be a candidate country in the lower middle income category for FY 2021 if it

    • has a per capita income that is not greater than the World Bank's lower middle income country threshold for such fiscal year ($4,045 gross national income per capita for FY 2021);
    • is not among the 75 countries identified by the World Bank as having the lowest per capita income; and
    • is not ineligible to receive United States economic assistance under part I of the Foreign Assistance Act by reason of the application of the Foreign Assistance Act or any other provision of law.

    Under section 606(c) of the Act as applied for FY 2021, a country with per capita income changes from FY 2020 to FY 2021 such that the country would be reclassified from the low income category to the lower middle income category or vice versa will retain its income status in its former category for FY 2021 and two subsequent fiscal years (FY 2022 and FY 2023). A country that has transitioned to the upper middle income category does not qualify as a candidate country.

    Pursuant to section 606(d) of the Act, the Board identified the following countries as candidate countries under the Act for FY 2021. In so doing, the Board referred to the prohibitions on assistance to countries for FY 2020 under the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2020 (Div. J., Pub. L. 116-94) (FY 2020 SFOAA).

    Candidate Countries: Low Income Category

    1. Angola

    2. Bangladesh

    3. Benin

    4. Bhutan

    5. Bolivia

    6. Burkina Faso

    7. Cabo Verde

    8. Cameroon

    9. Central African Republic

    10. Chad

    11. Côte d'Ivoire

    12. Democratic Republic of the Congo

    13. Djibouti

    14. Egypt

    15. Eswatini

    16. Ethiopia

    17. Gambia, The

    18. Ghana

    19. Guinea

    20. Guinea-Bissau

    21. Haiti

    22. Honduras

    23. India

    24. Kenya

    25. Kiribati

    26. Kyrgyz Republic

    27. Laos

    28. Liberia

    29. Madagascar

    30. Malawi

    31. Mali

    32. Mauritania

    33. Micronesia, Federated States of

    34. Moldova

    35. Mongolia

    36. Morocco

    37. Mozambique

    38. Nepal

    39. Niger

    40. Nigeria

    41. Pakistan

    42. Philippines

    43. Republic of the Congo

    44. Rwanda

    45. São Tomé and Principe

    46. Senegal

    47. Sierra Leone

    48. Solomon Islands

    49. Somalia

    50. Tajikistan

    51. Tanzania

    52. Timor-Leste

    53. Togo

    54. Uganda

    55. Ukraine

    56. Uzbekistan

    57. Vanuatu

    58. Vietnam

    59. Yemen

    60. Zambia

    Candidate Countries: Lower Middle Income Category

    1. El Salvador

    2. Sri Lanka [1]

    3. Tunisia

    Countries That Would Be Candidate Countries But for Legal Provisions That Prohibit Assistance

    Countries that would be considered candidate countries for FY 2021 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 provision of law are listed below. This list is based on legal prohibitions against economic assistance that apply as of July 19, 2020.

    Prohibited Countries: Low Income Category

    Afghanistan is ineligible to receive foreign assistance due to its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).

    Burma is ineligible to receive foreign assistance, including due to concerns relative to its record on human rights.

    Burundi is ineligible to receive foreign assistance due to its status as a Start Printed Page 57255Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).

    Cambodia is ineligible to receive foreign assistance pursuant to section 7043(b)(2)(A) of the FY 2020 SFOAA, which restricts assistance to the Government of Cambodia unless the Secretary of State certifies that the Government of Cambodia is taking effective steps to strengthen regional security and stability and respect the rights and responsibilities enshrined in the Constitution of the Kingdom of Cambodia.

    Comoros is ineligible to receive foreign assistance due to its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).

    Eritrea is ineligible to receive foreign assistance, including due to its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).

    Lesotho is ineligible to receive foreign assistance due to its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).

    Nicaragua is ineligible to receive foreign assistance due to its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).

    North Korea is ineligible to receive foreign assistance, including pursuant to section 7007 of the FY 2020 SFOAA, which prohibits direct assistance to the government of North Korea.

    Papua New Guinea is ineligible to receive foreign assistance due to its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).

    South Sudan is ineligible to receive foreign assistance, including pursuant to section 7042(h) of the FY 2020 SFOAA, which prohibits (with limited exceptions) assistance to the central government of South Sudan.

    Sudan is ineligible to receive foreign assistance, including pursuant to section 7042(i) of the FY 2020 SFOAA, which prohibits (with limited exceptions) assistance to the government of Sudan.

    Syria is ineligible to receive foreign assistance, including pursuant to section 7007 of the FY 2020 SFOAA, which prohibits direct assistance to the government of Syria.

    Zimbabwe is ineligible to receive foreign assistance, including pursuant to section 7042(j)(2) of the FY 2020 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.

    Prohibited Countries: Lower Middle Income Category

    Algeria is ineligible to receive foreign assistance due to its status as a Tier 3 country under the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.).

    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 2021.

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    Footnotes

    1.  Section 7044(e) of the FY 2020 SFOAA provides that, subject to exceptions for certain categories of assistance, funds appropriated by the SFOAA for assistance for the central Government of Sri Lanka may be made available only if the Secretary of State makes certain certifications regarding actions taken by the Government of Sri Lanka and reports to the Committees on Appropriations. If this certification is not issued, Sri Lanka will not be a candidate country for FY 2021.

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    [FR Doc. 2020-20250 Filed 9-14-20; 8:45 am]

    BILLING CODE 9211-03-P

Document Information

Published:
09/15/2020
Department:
Millennium Challenge Corporation
Entry Type:
Notice
Action:
Notice.
Document Number:
2020-20250
Pages:
57253-57255 (3 pages)
Docket Numbers:
MCC FR 20-06
PDF File:
2020-20250.Pdf