17 August 2006

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[Federal Register: August 17, 2006 (Volume 71, Number 159)]

[Notices]               

[Page 47538-47540]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr17au06-88]                         



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MILLENNIUM CHALLENGE CORPORATION



[MCC FR 06-12]



 

Report on Countries That Are Candidates for Millennium Challenge 

Account Eligibility in Fiscal Year 2007 and Countries That Would Be 

Candidates but for Legal Prohibitions



AGENCY: Millennium Challenge Corporation.



ACTION: Notice.



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SUMMARY: Section 608(d) of 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 2007. The report is set forth in 

full below.



Report on Countries That Are Candidates for Millennium Challenge 

Account Eligibility for Fiscal Year 2007 and Countries That Would Be 

Candidates but for Legal Prohibitions



    This report to Congress is provided in accordance with Section 

608(a) of the Millennium Challenge Act of 2003, 22 U.S.C. 7701, 7707 

(a) (``Act'').

    The Act authorizes the provision of Millennium Challenge Account 

(``MCA'') assistance to countries that enter into Compacts with the 

United States to support policies and programs that advance the 

progress of such countries achieving lasting economic growth and 

poverty reduction. The Act requires Millennium Challenge Corporation 

(``MCC'') to take a number of steps in determining the countries that, 

based on their demonstrated commitment to just and democratic



[[Page 47539]]



governance, economic freedom and investing in their people and the 

opportunity to reduce poverty and generate economic growth in the 

country, will be eligible for MCA assistance for Fiscal Year (FY) 2007. 

These steps include the submission of reports to the congressional 

committees specified in the Act and the publication of notices in the 

Federal Register that identify:

    1. The countries that are ``candidate countries'' for MCA 

assistance for FY 2007 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);

    2. 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 select ``MCA eligible countries'' from among the ``candidate 

countries'' (Section 608(b) of the Act); and

    3. The list of countries determined by the Board to be ``MCA 

eligible countries'' for FY 2007, with a justification for such 

eligibility determination and selection for Compact negotiation, 

including which of the MCA eligible countries the Board will seek to 

enter into MCA Compacts (Section 608(d) of the Act).

    This report is the first of three required reports listed above.



Candidate Countries for FY 2007



    The Act requires the identification of all countries that are 

candidates for MCA assistance for FY 2007 and the identification of all 

countries that would be candidate countries but for specified legal 

prohibitions on assistance. Sections 606(a) and (b) of the Act provide 

that for FY 2007 a country shall be a candidate for the MCA if it:

     Meets one of the following two income level tests:

    [cir] Has a per capita income equal to or less than the historical 

ceiling of the International Development Association eligibility for 

the fiscal year involved (or $1,675 gross national income (GNI) per 

capita for FY 2007) (the ``low income category''); or

    [cir] Is classified as a lower middle income country in the then 

most recent edition of the World Development Report for Reconstruction 

and Development published by the International Bank for Reconstruction 

and Development and has an income greater than the historical ceiling 

for International Development Association eligibility for the fiscal 

year involved (or $1,676 to $3,465 GNI per capita for FY 2007) (the 

``lower middle income category''); and

     Is not ineligible to receive U.S. economic assistance 

under Part I of the Foreign Assistance Act of 1961, as amended, 

(``Foreign Assistance Act''), by reason of the application of the 

Foreign Assistance Act or any other provision of law.

    Pursuant to Section 606(c) of the Act, the Board has identified the 

following countries as candidate countries under the Act for FY 2007. 

In so doing, the Board has anticipated that prohibitions against 

assistance as applied to countries in the Foreign Operations, Export 

Financing, and Related Programs Appropriations Act, 2006 (Pub. L. 109-

102) (FY 2006 FOAA) will again apply for FY 2007, even though the 

Foreign Operations, Export Financing and Related Programs 

Appropriations Act for FY 2007 has not yet been enacted and certain 

findings under other statutes have not yet been made. As noted below, 

MCC will provide any required updates on subsequent changes in 

applicable legislation or other circumstances that affects the status 

of any country as a candidate country for FY 2007.



Candidate Countries: Low Income Category



1. Afghanistan

2. Angola

3. Armenia

4. Azerbaijan

5. Bangladesh

6. Benin

7. Bhutan

8. Bolivia

9. Burkina Faso

10. Burundi

11. Cameroon

12. Central African Republic

13. Chad

14. Comoros

15. Congo, Democratic Republic of the

16. Congo, Republic of the

17. Djibouti

18. East Timor

19. Egypt

20. Eritrea

21. Ethiopia

22. Gambia, The

23. Georgia

24. Ghana

25. Guinea

26. Guinea-Bissau

27. Guyana

28. Haiti

29. Honduras

30. India

31. Indonesia

32. Iraq

33. Kenya

34. Kiribati

35. Kyrgyzstan

36. Laos

37. Lesotho

38. Liberia

39. Madagascar

40. Malawi

41. Mali

42. Mauritania

43. Moldova

44. Mongolia

45. Mozambique

46. Nepal

47. Nicaragua

48. Niger

49. Nigeria

50. Pakistan

51. Papua New Guinea

52. Paraguay

53. Philippines

54. Rwanda

55. Sao Tome and Principe

56. Senegal

57. Sierra Leone

58. Solomon Islands

59. Sri Lanka

60. Tajikistan

61. Tanzania

62. Togo

63. Turkmenistan

64. Uganda

65. Ukraine

66. Vanuatu

67. Vietnam

68. Yemen

69. Zambia



Candidate Countries: Lower Middle Income Category



1. Albania

2. Algeria

3. Belarus

4. Brazil

5. Bulgaria

6. Cape Verde

7. Colombia

8. Dominican Republic

9. Ecuador

10. El Salvador

11. Fiji Islands

12. Guatemala

13. Jamaica

14. Jordan

15. Kazakhstan

16. Macedonia

17. Maldives

18. Marshall Islands

19. Micronesia, Federated States of

20. Montenegro

21. Morocco

22. Namibia

23. Peru

24. Samoa

25. Suriname

26. Swaziland

27. Thailand

28. Tonga

29. Tunisia

30. Tuvalu



[[Page 47540]]



Countries That Would Be Candidate Countries but for Legal Prohibitions 

That Prohibit Assistance



    Countries that would be considered candidate countries for FY 2007, 

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. As noted above, this list is based on legal 

prohibitions against economic assistance that apply for FY 2006 and 

that are anticipated to apply again for FY 2007.



Prohibited Countries: Low Income Category



    1. Burma is subject to numerous restrictions, including but not 

limited to Section 570 of the FY 1997 Foreign Operations, Export 

Financing, and Related Programs Appropriations Act (Pub. L. 104-208) 

which prohibits assistance to the government of Burma until it makes 

progress on improving human rights and implementing democratic 

government, and due to its status as a major drug-transit or major 

illicit drug producing country for 2005 (Presidential Determination No. 

2005-36 (9/15/2005)) and a Tier III country under the Trafficking 

Victims Protection Act (Presidential Determination No. 2005-37 (9/21/

2005)).

    2. Cambodia's central government is subject to Section 554 of the 

FY 2006 FOAA.

    3. The Cote d'Ivoire is subject to Section 508 of the FY 2006 FOAA 

which prohibits assistance to the government of a country whose duly 

elected head of government is deposed by decree or military coup.

    4. Cuba is subject to numerous restrictions, including but not 

limited to Section 620A of the Foreign Assistance Act which prohibits 

assistance to governments supporting international terrorism, 

provisions of the Cuban Liberty and Democratic Solidarity Act of 1996 

(PL 104-114), and Section 507 of the FY 2006 FOAA.

    5. North Korea is subject to numerous restrictions, including but 

not limited to section 620A of the Foreign Assistance Act which 

prohibits assistance to governments supporting international terrorism 

and Section 507 of the FY 2006 FOAA.

    6. Somalia is subject to Section 620(q) of the Foreign Assistance 

Act and Section 512 of the FY 2006 FOAA, which prohibit assistance to 

countries in default in payment to the U.S. in certain circumstances.

    7. Sudan is subject to numerous restrictions, including but not 

limited to Section 620A of the Foreign Assistance Act which prohibits 

assistance to governments supporting international terrorism, Section 

512 of the FY 2006 FOAA and Section 620(q) of the Foreign Assistance 

Act which prohibit assistance to countries in default in payment to the 

U.S. in certain circumstances, Section 508 of the FY 2006 FOAA which 

prohibits assistance to a country whose duly elected head of government 

being deposed by military coup or decree, and Section 569 of the FY2006 

FOAA.

    8. Syria is subject to numerous restrictions, including but not 

limited to 620A of the Foreign Assistance Act which prohibits 

assistance to governments supporting international terrorism, Section 

507 of the FY 2006 FOAA, and Section 512 of the FY 2006 FOAA and 

Section 620(q) of the Foreign Assistance Act which prohibit assistance 

to countries in default in payment to the U.S. in certain 

circumstances.

    9. Uzbekistan's central government is subject to Section 586 of the 

FY 2006 FOAA, which requires that funds appropriated for assistance to 

the central government of Uzbekistan may be made available only if the 

Secretary of State determines and reports to the Congress that the 

government is making substantial and continuing progress in meeting its 

commitments under a framework agreement with the United States.

    10. Zimbabwe is subject to Section 620(q) of the Foreign Assistance 

Act and Section 512 of the FY 2006 FOAA which prohibit assistance to 

countries in default in payment to the United States in certain 

circumstances.



Prohibited Countries: Lower Middle Income Category



    1. Republika Srpska, which is part of the country of Bosnia and 

Herzegovina, is subject to Section 561 of the FY 2006 FOAA, which 

prohibits assistance to any country, entity, or municipality whose 

competent authorities have failed, as determined by the Secretary of 

State, to take necessary and significant steps to implement its 

international legal obligations with respect to the International 

Criminal Tribunal for the former Yugoslavia.

    2. China, according to the Department of State, is not eligible to 

receive economic assistance from the United States, absent special 

authority, because of concerns relative to China's record on human 

rights.

    3. Iran is subject to numerous restrictions, including but not 

limited to Section 620A of the Foreign Assistance Act which prohibits 

assistance to governments supporting international terrorism and 

Section 507 of the FY 2006 FOAA.

    4. Serbia is subject to Section 561 of the FY 2006 FOAA, which 

prohibits assistance to any country, entity, or municipality whose 

competent authorities have failed, as determined by the Secretary of 

State, to take necessary and significant steps to implement its 

international legal obligations with respect to the International 

Criminal Tribunal for the former Yugoslavia. In addition, Section 563 

of the FY 2006 FOAA restricts certain assistance for the central 

Government of Serbia if the Secretary does not make a certification 

regarding, among other things, cooperation with the International 

Criminal Tribunal for the former Yugoslavia.

    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 Foreign Assistance Act or any other 

provision of law for FY 2007. MCC will include any required updates on 

such statutory eligibility that affect countries' identification as 

candidate countries for FY 2007, at such time as it publishes the 

Notices required by Sections 608(b) and 608(d) of the Act or at other 

appropriate times. Any such updates with regard to the legal 

eligibility or ineligibility of particular countries identified in this 

report will not affect the date on which the Board is authorized to 

determine eligible countries from among candidate countries which, in 

accordance with Section 608(a) of the Act, shall be no sooner than 90 

days from the date of publication of this report.



    Dated: August 11, 2006.

Maura E. Griffin,

Vice President & General Counsel (Acting), Millennium Challenge 

Corporation.

 [FR Doc. E6-13545 Filed 8-16-06; 8:45 am]



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