Armenia Gets $235 Million

12.27.2005

The Millennium Challenge Corporation (MCC) decided to give Armenia more than $230 million over the next 5 years. But the money comes with a set of conditions.

Addressing reports of irregularities in the referendum on reforms to the Armenian constitution held in November, Ambassador Danilovich continued, “MCC is concerned about the government’s lack of transparency and commitment to open and fair elections in the recent referendum. I have expressed those concerns to President Kocharyan and look forward to working with the government to protect Armenians’ ability to participate fully in the electoral process. MCC was designed to reward and work with nations that take the hard steps necessary to create a policy framework to spur economic growth and reduce poverty. Consequently, Armenia’s continued participation in the Millennium Challenge Program depends on its good performance in ruling justly, investing in people, and encouraging economic freedom. MCC will continue to monitor Armenia’s policy performance in these three categories throughout the life of the Compact.”

Where is the money going? You can see here. The emphasis is on the agricultural sector, which constitutes nearly 23% of the country’s economy. It is also uplifting to see that the country is attempting to involve civil society in the monitoring of the distribution of funds.

MCC is essentially an “incentives-led” aid organization, providing money to countries which show committment to reform and not just anyone in need.