A Millennium Challenge official told me the corporation’s goal is to “reduce poverty in countries that are relatively well governed,” relative, that is, to their peers. Yet El Salvador today is poorer, more violent and more heavily indebted than when the MCC began disbursing aid under the compact in 2007. Under center-right Arena President Tony Saca (2004-09) and current left-wing FMLN President Mauricio Funes, the rule of law has been trampled and the climate for business has become openly hostile. Deficit spending and corruption have exploded.
It gets worse.