The government of US President Donald Trump will keep to a minimum the activities of the MCC agency, which is responsible for financing infrastructure projects in African and other developing countries. This was reported today by AFP and Reuters. They point out that China has been very active in infrastructure investment in developing countries in recent years.
US agency MCC as a tool to counter Chinese influence in developing countries
The agency, the Millennium Challenge Corporation (MCC), was set up by Republican President George W. Bush in 2004 and the agency can count on widespread support among Democrats and Republicans. The MCC funds, for example, the building of transport infrastructure in countries that honour democratic values. It has invested $17 billion since its founding.
“We don’t engage in humanitarian aid,” an unnamed MCC employee told AFP. She said the US agency creates favourable conditions for private foreign investment in the countries where it operates. She said the MCC was a tool to counter the spread of Chinese influence in Africa and other developing countries that Beijing was trying to reach through investment.
US cuts foreign aid, MCC and USAID face cuts
AFP reports that the US administration will announce the suspension of most projects by the end of the week. Only a few countries and projects, such as those close to completion, will get an exception and a longer deadline.
Kyeh Kim, an MCC official, said foreign aid is not a priority for the current administration. Donald Trump’s administration is also trying to significantly curtail the activities of the international aid agency USAID. However, it has a budget many times larger than the MCC, which receives about $900 million for its operations and projects, Reuters reported.
Source: Reuters
