Freedom House (press release), DC
Nov 3 2006
PRESS RELEASE
Contact: Amanda Abrams
Millennium Challenge Corporation Should Hold Countries to Higher
Standards of Democratic Governance
Washington, D.C.,November 2, 2006
The American government should withhold foreign assistance under the
Millennium Challenge Account from countries which fail to meet
reasonable standards of political rights and civil liberties, Freedom
House said today.
On November 8, the MCC Board of Directors will select governments
eligible to apply for assistance in fiscal year 2007. Freedom House
urges the MCC to bypass those countries with low scores on political
rights and civil liberties that otherwise meet the eligibility
criteria – namely Armenia, Bhutan, Egypt, Jordan, Maldives, Tunisia
and Vietnam – during this year’s selection process.
Additionally, Freedom House urges the MCC to rigorously follow up
with those countries, like Armenia, that have been awarded compacts
but have not met promised benchmarks in the area of democratic
governance. Armenia is an important test case of MCC policy, as it
signed a compact with the MCC earlier this year but has been
backsliding on promised reforms since the agreement was signed.
"Freedom House strongly supports the MCC’s efforts to reduce poverty
by rewarding sound policies," said Jennifer Windsor, Executive
Director of Freedom House. "However, because democratic governance
plays such a key role in enabling broader social and economic
development, it is vital–if the fund is to be truly effective–that
only those governments that have demonstrated commitment to democracy
and human rights be eligible to receive MCC funds," she added.
Currently, countries qualify for MCC funding based on their
performance on three baskets of indicators that measure "ruling
justly," "investing in people," and "economic freedom." At a minimum,
a country needs to perform above average in half of the indicators in
each of these three categories to qualify for the funds. However,
because the agency views corruption as such a serious obstacle to
development, a score below average in corruption automatically
eliminates a country from consideration for the pool of eligible
countries.
Freedom House encourages the MCC to consider officially amending the
eligibility process to automatically disqualify any country that
falls below the equivalent of a 4 (out of a worst possible 7) on
Freedom House’s index of civil liberties and political rights, which
is used by the MCC to determine a country’s level of democratic
governance.
"Democratic governance is fundamental to development and can have an
enormous effect on a country’s future growth. Like anti-corruption
efforts, therefore, it should be treated as a priority among
priorities by the MCC," said Christopher Walker, Director of Studies
at Freedom House. "On occasion, the MCC Board has exercised
discretion to eliminate from consideration some of the worst
democratic underachievers, and Freedom House would like to see this
prioritization formalized as an official standard," he added.
Based on the published MCC scorecards for 2007, Armenia, Bhutan,
Egypt, Jordan, Maldives, Tunisia and Vietnam officially pass the MCC
criteria even though they fall below the equivalent of a 4 on Freedom
House’s index of political rights and civil liberties.
Armenia
Armenia has failed in its pledge made to the MCC to improve its
institutional commitment to democracy and tolerance of opposition.
Allegations of fraud in the November 2005 constitutional referendum
have not been investigated, as called for by Ambassador Danilovich,
Chief Executive Officer of the MCC. Implementation of the
referendum’s tepid reforms stalled in 2006, and the opposition
expects upcoming parliamentary elections to once again be marred by
fraud. Multiple anti-democratic methods are used to maintain a hold
on power, including the following:
Election fraud characterized both the presidential and parliamentary
elections of 2003 and the constitutional referendum of 2005.
Harassment of opposition supporters, ballot box stuffing, and
inflated turnout figures were among the methods used, and the
elections were denounced by European observers.
The judicial branch remains subject to political pressure from the
executive branch and suffers from considerable corruption, while
proposed reforms have not been implemented.
While new legislation to improve media independence was passed, the
Armenian media climate has not improved and violent attacks on
journalists continue.
Freedom in the World 2006: Armenia
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Countries at the Crossroads 2006: Armenia
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For other countries, click on the link
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