Some politicians and civil society groups have linked the gcc pact to other more open security agreements, such as the U.S. Agreement on the Status of the Armed Forces, which sets the framework for the U.S. military`s entry into Sri Lanka, which critics have seen as an attempt to create a U.S. military base, or even a possible base in the country. U.S. officials called the claim “blatant misinformation.” The MCC`s project portfolio covers many areas of development, including health care. The MCC recognizes that health is important to its mission to fight poverty and has supported a number of health projects in a number of countries19, including in areas such as HIV/AIDS, family planning and reproductive health, food and other public health, water and sanitation efforts. Together, health and/or water and sanitation were included in 12 pacts and five threshold agreements in 16 countries. With the exception of one of these pacts and threshold agreements, all have been concluded (the growth programme in Sierra Leone remains active). From gJ 2004 to GJ 2018, MCC has committed nearly $1.5 billion for 17 different projects on health and/or water and sanitation (below thresholds and compacts), representing nearly 11% of the total appropriations committed by the CCC.
Of this total, some $310 million was spent on health-related projects, while $1.182 billion was spent. 20 See Table 2. MCC, headquartered in the executive branch, is an independent U.S. foreign aid agency, particularly a U.S. government corporation created in January 2004 by the Millennium Challenge Act of 2003.1,2 Its goal is to reduce poverty by encouraging economic growth in low- and low-income countries through the development of country-specific aid agreements. 3 In recent months, China has made significant and visible efforts to support Sri Lanka – and the response of many other countries – to the COVID 19 pandemic, including a $500 million credit contract signed in March. The pacts are quinquennal agreements between the CCC and an eligible country to finance specific poverty reduction and economic growth-boosting programmes. MCC`s unique model for the development of compact programs reflects the principles that characterized the creation of the Agency in 2004. These include the principle of country responsibility, the belief that aid is most effective when it is based on a partnership (or pact) in which recipient countries assume greater responsibility for their own economic development.
The thresholds are smaller, targeted and short-term subsidies to help countries become compactly eligible.