What is the Millennium Challenge Corporation (MCC)?

Millennium Challenge Corporation is an independent U.S. foreign assistance agency.

What is the Millennium Challenge Corporation (MCC)?

About Millennium Challenge Corporation

  • MCC is an independent U.S. foreign assistance agency that has the goal of reducing poverty in developing countries.
  • It was created by the U.S. Congress in 2004 to promote economic growth, open markets, and increased living standards in select countries.
  • How does it work?
    • MCC forms partnerships with countries that are committed to good governance, economic freedom and investing in their citizens. 
    • MCC provides selected countries with large-scale grants to fund projects for reducing poverty through sustainable economic growth. 
    • These projects include building infrastructure, reforming institutions, and promoting access to healthcare and education.
    • MCC grants may complement other U.S. and international development programs.
  • MCC utilizes two primary types of grantscompacts and threshold programs.
    • Compacts are large, 5-year grants for countries that pass MCC’s eligibility criteria.
    • Threshold Programs are smaller grants awarded to countries that come close to passing these criteria and are committed to improving their policy performance.
  • Governing Body: The US Secretary of State, the Secretary of the Treasury, the U.S. Trade Representative, and the USAID Administrator serve on the MCC board along with four private sector representatives.

 


Q1) What is the difference between a Grant and a Loan?

A loan requires you to repay the money you borrow, whereas a grant does not. Grants are, essentially, a gift. In other words, they’re non-repayable. Grants may be awarded by government departments, trusts, or corporations and given to individuals, businesses, educational institutions, or non-profits.

Source: Formal implementation of multi-million US Dollar MCC pact begins in Nepal

Latest UPSC Exam 2025 Updates

Last updated on July, 2025

UPSC Notification 2025 was released on 22nd January 2025.

UPSC Prelims Result 2025 is out now for the CSE held on 25 May 2025.

UPSC Prelims Question Paper 2025 and Unofficial Prelims Answer Key 2025  are available now.

UPSC Calendar 2026 is released on 15th May, 2025.

→ The UPSC Vacancy 2025 were released 1129, out of which 979 were for UPSC CSE and remaining 150 are for UPSC IFoS.

UPSC Mains 2025 will be conducted on 22nd August 2025.

UPSC Prelims 2026 will be conducted on 24th May, 2026 & UPSC Mains 2026 will be conducted on 21st August 2026.

→ The UPSC Selection Process is of 3 stages-Prelims, Mains and Interview.

UPSC Result 2024 is released with latest UPSC Marksheet 2024. Check Now!

UPSC Toppers List 2024 is released now. Shakti Dubey is UPSC AIR 1 2024 Topper.

→ Also check Best IAS Coaching in Delhi

Vajiram Editor
Vajiram Editor
UPSC GS Course 2026
UPSC GS Course 2026
₹1,75,000
Enroll Now
GS Foundation Course 2 Yrs
GS Foundation Course 2 Yrs
₹2,45,000
Enroll Now
Prelims PowerupTest Series
Prelims PowerupTest Series
₹13000
Enroll Now
UPSC Mains Test Series
UPSC Mains Test Series
₹16000
Enroll Now
UPSC Mentorship Program
UPSC Mentorship Program
₹85000
Enroll Now
Enquire Now