MCC Compact Development

Question 1

Compact Development Process

Answer 1

1. Preliminary Analysis: Identify Constraints
2. Problem Diagnosis: Select Problems, Outline Approach
3. Project Definition: Agree Specific Projects
4. Project Development: Develop, Refine Projects
5. Negotiation: Agree Final Terms

Question 2

Preliminary Analysis: Identify Constraints

Answer 2

Compact Development Phase 1
* Analyze potential constraints to growth using diagnostic tree
* Incorporate social, environmental, gender, and private sector issues
* Initiate public consultations

Question 3

Problem Diagnosis: Select Problems, Outline Approach

Answer 3

Compact Development Phase 2
* Identify underlying causes of binding constraints
* Lay out initial logic for interventions
* Outline scope and structure for a “solution pathway”

Question 4

Project Definition: Agree Specific Projects

Answer 4

Compact Development Phase 3
* Jointly determine potential investments
* Build strong logic for projects
* Make preliminary assessments of economic, poverty impacts

Question 5

Project Development: Develop, Refine Projects

Answer 5

Compact Development Phase 4
* Launch feasibility, environmental and other studies
* Clarify beneficiary profile, economic impacts, and cost-effectiveness
* Refine project scope, as necessary

Question 6

Negotiation: Agree Final Terms

Answer 6

Compact Development Phase 5
* Confirm activities and budget based on due diligence results
* Set final targets for compact performance
* Negotiate policy reforms and other conditions (CPs)