The Millennium Challenge Account

Economist.com Economics focus column:

"THE island republic of Madagascar, off the east coast of Africa, boasts exotic flora, endangered fauna and a rare distinction: it is the only country so far to get any money out of America's much-heralded Millennium Challenge Corporation.......

"The MCA offers a fresh approach to American giving. It takes its inspiration from a group of World Bank economists, principally Craig Burnside and David Dollar, who argued that aid only works in countries pursuing sound economic policies: their research concluded that if a poor country has high trade barriers, a misaligned exchange rate, unstable prices and weak public finances, it is infertile soil for aid......

"On April 26th, the Senate is due to begin hearings on the MCA. The initial goodwill the idea enjoyed is giving way to some scepticism. By the normal standards of aid money, cash has been awfully slow to flow out of the MCA."