Aid to Madagascar: A Comparison of the World Bank and the Millennium Challenge Corporation
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The aim of this paper is to analyze the difference between the World Bank and the Millennium Challenge Corporation (MCC), using their programs in Madagascar as a case study. To begin, I have outlined the recent political and economic history of Madagascar and the World Bank. I describe as much of the history of the MCC as possible, seeing as it is a new organization created in 2003. Then I outline three recent active programs of the World Bank in Madagascar that are similar to three programs of the MCC. It is necessary to use these three programs because the MCC is still a very new program and does not have as extensive a number of projects as the World Bank. This is an important topic because the usefulness of international development aid has been repeatedly called into question. The Bush Administration's answer to these questions was to create the MCC, which is supposed to have an innovative methodology for awarding development aid. The World Bank's response to these queries and doubts has been to make changes in its operations, while not changing the main ideas of the World Bank. One of the main questions in this paper is if the World Bank can still be effective without more than just the minor facelift it has already undergone, and how functional it has been in Madagascar. The other main question is how the MCC's changes to the usual development aid model have actually changed the results of its programs. The first section of this paper describes the history, politics and economics of Madagascar. The second section describes the history of the World Bank, and its programs in Madagascar. The third section describes the Millennium Challenge Corporation, and its programs in Madagascar. The last section is an analysis and comparison of the two organizations, their programs, and my conclusions.