卡内基国际和平基金会-Applying-the-Compact-Model-of-Economic-Assistance-in-Fragile-States_6页_532kb

Applying the Compact Model of Economic Assistance in Fragile States

Core Content

The document discusses the application of the economic compact model, developed by the Millennium Challenge Corporation (MCC), to fragile states. It argues that while the compact model has been successful in low-income contexts, its implementation in fragile states requires careful adaptation due to the unique challenges these contexts present.

The compact model is based on five key principles:

• Selectivity
• Country Ownership
• Mutual Accountability
• Transparent Partnership
• Sustainability Planning

These principles are seen as foundational to effective economic development, but they are not universally applicable to fragile states. The document emphasizes that success in fragile states depends on understanding the specific conditions and limitations of these environments.

Main Views

1. The Allure of Selective Lessons Learned

• The U.S. has increasingly supported more effective economic assistance, but often applies selective lessons from past aid innovations without considering the practical conditions required for success.
• The MCC model is an integrated approach that has demonstrated effectiveness in low-income countries, but its replication in fragile states must be context-sensitive.
• Mismatched expectations are a common pitfall, especially when economic development projects are perceived as one-off rewards rather than long-term investments.

2. Be Extremely Selective and Set Shared Expectations

• Selection of countries for investment should be based on likelihood of success, not urgency.
• The scale and scope of investments must be clearly defined to avoid misinterpretation.
• It is important to communicate to Congress and international partners that the compact model is not a universal solution but a selective and focused approach.

3. Design the Investment with Transparent Partnership in Mind

• Transparency is crucial to align U.S. and partner country expectations.
• Shared diagnostic tools help in designing investments and ensuring country ownership.
• Political buy-in from all relevant actors is necessary to ensure continuity of implementation, especially in contexts with shifting political control.

4. Create Realistic Implementation Structures

• Country ownership requires domestic institutions to be capable and legitimate.
• Capacity building is essential, but must be balanced with speed of implementation.
• Interagency coordination is necessary to avoid bureaucratic delays, and clear leadership must be established for effective day-to-day management.

5. Define the Occasion for Exit

• Mutual accountability includes the willingness to suspend or terminate investments if conditions deteriorate.
• Red flags, not redlines, should be defined to allow for timely reassessment of the investment's viability.
• The U.S. must anticipate the consequences of halting an investment and consider public accountability.

Key Information

• The MCC model is a data-driven, selective, and transparent approach to economic development.
• Compacts are large-scale investments (from $65 million to $700 million over five years) that include both infrastructure development and policy reform.
• Country ownership and local partnership are central to the model, but may not be feasible in all fragile states due to limited domestic capacity.
• Exit strategies are critical for maintaining mutual accountability and avoiding moral hazard.
• The Fragility Study Group is a collaborative effort between the Carnegie Endowment for International Peace, the Center for a New American Security, and the United States Institute of Peace to explore how U.S. tools can be adapted to fragile states.

Recommendations

1. Be extremely selective and set shared expectations with partner countries.
2. Design investments with transparent partnership and shared diagnostic tools.
3. Create realistic implementation structures that consider capacity building and interagency coordination.
4. Define the occasion for exit with red flags and public accountability considerations.

These recommendations aim to ensure that the compact model is applied effectively and responsibly in fragile states, promoting sustainable and stabilizing economic growth.