The Millennium Challenge Corporation (MCC) has highlighted its work in Fiji and the wider Pacific as part of a broader U.S strategy to strengthen economic growth, secure critical supply chains and provide what it describes as a transparent alternative to China’s Belt and Road Initiative.
Testifying before the U.S. House Foreign Affairs Committee, MCC Chief of Staff Dan Petrie said the agency has spent more than two decades delivering time-limited development programmes that promote economic growth, reduce poverty and create opportunities for American businesses while supporting U.S national security interests.
Petrie said MCC works only with countries that meet strict eligibility requirements and align with the economic and national security interests of the United States.
He said MCC’s programmes are designed to build infrastructure, support policy reforms and attract private sector investment while reducing countries’ long-term dependence on foreign assistance.
According to Petrie, the agency’’ work advances U.S priorities by creating opportunities for American businesses, strengthening exports and securing critical supply chains.
He said MCC is expanding opportunities for U.S companies by engaging businesses earlier, addressing barriers to investment and improving market conditions. The agency is also supporting access to critical minerals and promoting infrastructure and policy reforms that strengthen U.S. economic and national security interests.
Petrie outlined several recent milestones, including the completion of a US$462 million water security compact in Mongolia, approval of a US$60 million energy security threshold programme for the Philippines and continued implementation of the Senegal Energy Compact.
He said more than US$1.3 billion of MCC’s current portfolio directly and indirectly supports U.S critical minerals objectives through investments in energy, transport, land and port infrastructure, combined with policy reforms.
Citing Mozambique and Zambia as examples, Petrie said MCC investments are helping improve transport links, strengthen mining governance and support critical mineral supply chains linked to U.S manufacturing.
Turning to the Pacific, Petrie said MCC is working with seven country partners across the Asia-Pacific.
“MCC is currently working with seven country partners in the Asia-Pacific region, including a compact program with Fiji and threshold programs with the Philippines, Solomon Islands, Tonga, and Kiribati.”
He said the partnerships are particularly important as geopolitical competition intensifies in the region.
“Amid growing Chinese interest in the Pacific islands, MCC’s partnerships strengthen relations with these island nations and represent a substantial U.S. government presence in these countries.”
Petrie said MCC offers countries an alternative development model.
“MCC provides a transparent alternative to China’s Belt and Road Initiative, which often leaves countries burdened with unsustainable debt and low-quality infrastructure.”
He said the agency’s grant funding enables partner countries to strengthen their economies without becoming dependent on rival powers.
“In an era of intensifying competition, MCC programmes are strategic assets that diminish the leverage of U.S adversaries by providing transparent, sustainable grant funding that allows partner countries to strengthen their economies without becoming dependent on rivals.”
Petrie said that MCC’s 22-year record demonstrates its ability to deliver infrastructure and policy reforms in strategically important countries while promoting self-reliance and private-sector-led economic growth.
