Donic: Which MCC programs will be retained will be determined by U.S. political objectives

Petar Donic, a fellow at the "New Third Way" think tank, told Kosovo Online that the future of the $236.7 million energy agreement between the Millennium Challenge Corporation (MCC) and Kosovo will likely depend on a thorough review of all MCC programs following Washington’s announcement that the agency may be dissolved. That review, he emphasized, will be influenced by specific political goals.

He noted that a similar approach was taken in the case of USAID, where ultimately 82% of programs were eliminated and only 18% retained.

“During the budget cuts at USAID, stakeholders involved in various programs could request exemptions and justify them. Each case was evaluated individually based on the global relevance of the program and whether it aligned with American foreign policy interests. That same principle will likely be applied here, and the decision-making criteria, of course, remain classified and based on political objectives that are not publicly disclosed,” Donic explained.

He stressed that an investment of $236.7 million is enormous for a small region like Kosovo.

“Everyone will try to fight for their own interests, but it will be very difficult for anyone to find a substitute source of funding, especially under current market conditions. In Nepal, for example, one MCC program is also under threat, and their government is petitioning to have the funding redirected from other sources. That aligns with the broader agenda of centralizing all independent agencies under the State Department. Some programs will be retained, and others will not, depending on specific political priorities for the region in which the programs are implemented,” said Donic.

He also recalled the signed agreement between Serbia and the U.S. International Development Finance Corporation (DFC) during Donald Trump’s first term, which was meant to support development projects worth $50 million across the region.

“When the U.S. administration changed, the agency didn’t continue its operations in the same form, which sets a precedent: a new administration comes in with its own agenda and intends to implement it, meaning that previous agreements can easily be reviewed or abandoned,” Donic pointed out.