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MC Co. Should Hold Countries to Higher Standards of Democratic Gov.

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  • MC Co. Should Hold Countries to Higher Standards of Democratic Gov.

    Freedom House (press release), DC
    Nov 3 2006


    PRESS RELEASE
    Contact: Amanda Abrams

    Millennium Challenge Corporation Should Hold Countries to Higher
    Standards of Democratic Governance


    Washington, D.C.,November 2, 2006

    The American government should withhold foreign assistance under the
    Millennium Challenge Account from countries which fail to meet
    reasonable standards of political rights and civil liberties, Freedom
    House said today.

    On November 8, the MCC Board of Directors will select governments
    eligible to apply for assistance in fiscal year 2007. Freedom House
    urges the MCC to bypass those countries with low scores on political
    rights and civil liberties that otherwise meet the eligibility
    criteria - namely Armenia, Bhutan, Egypt, Jordan, Maldives, Tunisia
    and Vietnam - during this year's selection process.

    Additionally, Freedom House urges the MCC to rigorously follow up
    with those countries, like Armenia, that have been awarded compacts
    but have not met promised benchmarks in the area of democratic
    governance. Armenia is an important test case of MCC policy, as it
    signed a compact with the MCC earlier this year but has been
    backsliding on promised reforms since the agreement was signed.

    "Freedom House strongly supports the MCC's efforts to reduce poverty
    by rewarding sound policies," said Jennifer Windsor, Executive
    Director of Freedom House. "However, because democratic governance
    plays such a key role in enabling broader social and economic
    development, it is vital--if the fund is to be truly effective--that
    only those governments that have demonstrated commitment to democracy
    and human rights be eligible to receive MCC funds," she added.

    Currently, countries qualify for MCC funding based on their
    performance on three baskets of indicators that measure "ruling
    justly," "investing in people," and "economic freedom." At a minimum,
    a country needs to perform above average in half of the indicators in
    each of these three categories to qualify for the funds. However,
    because the agency views corruption as such a serious obstacle to
    development, a score below average in corruption automatically
    eliminates a country from consideration for the pool of eligible
    countries.

    Freedom House encourages the MCC to consider officially amending the
    eligibility process to automatically disqualify any country that
    falls below the equivalent of a 4 (out of a worst possible 7) on
    Freedom House's index of civil liberties and political rights, which
    is used by the MCC to determine a country's level of democratic
    governance.

    "Democratic governance is fundamental to development and can have an
    enormous effect on a country's future growth. Like anti-corruption
    efforts, therefore, it should be treated as a priority among
    priorities by the MCC," said Christopher Walker, Director of Studies
    at Freedom House. "On occasion, the MCC Board has exercised
    discretion to eliminate from consideration some of the worst
    democratic underachievers, and Freedom House would like to see this
    prioritization formalized as an official standard," he added.

    Based on the published MCC scorecards for 2007, Armenia, Bhutan,
    Egypt, Jordan, Maldives, Tunisia and Vietnam officially pass the MCC
    criteria even though they fall below the equivalent of a 4 on Freedom
    House's index of political rights and civil liberties.


    Armenia
    Armenia has failed in its pledge made to the MCC to improve its
    institutional commitment to democracy and tolerance of opposition.
    Allegations of fraud in the November 2005 constitutional referendum
    have not been investigated, as called for by Ambassador Danilovich,
    Chief Executive Officer of the MCC. Implementation of the
    referendum's tepid reforms stalled in 2006, and the opposition
    expects upcoming parliamentary elections to once again be marred by
    fraud. Multiple anti-democratic methods are used to maintain a hold
    on power, including the following:

    Election fraud characterized both the presidential and parliamentary
    elections of 2003 and the constitutional referendum of 2005.
    Harassment of opposition supporters, ballot box stuffing, and
    inflated turnout figures were among the methods used, and the
    elections were denounced by European observers.
    The judicial branch remains subject to political pressure from the
    executive branch and suffers from considerable corruption, while
    proposed reforms have not been implemented.
    While new legislation to improve media independence was passed, the
    Armenian media climate has not improved and violent attacks on
    journalists continue.

    Freedom in the World 2006: Armenia
    http://www.freedomhouse.org/template.cfm?p age=22&year06&country=6912

    Countries at the Crossroads 2006: Armenia
    http://www.freedomhouse.org/template.cfm?p age=140&edition=7&ccrpage=31&ccrcountr y=109

    For other countries, click on the link
    http://www.freedomhouse.org/template.cfm?page =70&release=435
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