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UNDP RBA Workshop on MDG-Based National Development Strategies Module 1: MDG-Based Planning UN Millennium Project Febru

UNDP RBA Workshop on MDG-Based National Development Strategies Module 1: MDG-Based Planning UN Millennium Project February 27-March 3, 2006. Agenda. The MDGs can be met in Africa What is needed to achieve the Goals Integrating the MDGs into national development strategies.

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UNDP RBA Workshop on MDG-Based National Development Strategies Module 1: MDG-Based Planning UN Millennium Project Febru

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  1. UNDP RBA Workshop on MDG-Based National Development Strategies Module 1: MDG-Based Planning UN Millennium Project February 27-March 3, 2006

  2. Agenda • The MDGs can be met in Africa • What is needed to achieve the Goals • Integrating the MDGs into national development strategies

  3. The MDGs are Shared Goals… • International agreements (such as Monterrey) provide the right framework for the MDGs • Low income countries need increased ODA to meet Goals • Countries are responsible for good governance • Private flows important but only partial substitute • Market access critical for long-term economic growth • All countries reaffirmed their commitment to the MDGs at the World Summit 2005 • The MDGs can be met within existing commitments by rich and poor countries

  4. … That Remain to be Operationalized • Currently the MDGs are aspirations, not operational targets: • Countries do not plan systematically to achieve the MDGs • Aid is not provided based on countries’ needs • The international development system is not goal oriented

  5. Africa’s Special Needs: Look Beyond the Standard Diagnosis of Poor Governance Africa faces unique structural constraints, e.g.: • High disease burden • Dependence on low-productivity rain-fed agriculture • Poor transport infrastructure • Few navigable rivers • Small internal market size • Low population density • Population living far from the coast • Governance alone does not explain low growth in Africa • Each of these constraints can be overcome through targeted public investments • Trade plays a complementary role for long-term economic development

  6. Poverty Trap Above the Threshold k k k’ k’(capital per person) time time The Economic Consequences of Africa’s Special Needs • Poverty traps result from combination of three factors: • High minimum capital threshold • Low savings rates • High population growth (“capital widening”) time

  7. Achieving the MDGs is Possible Countries can end poverty trap through combination of: • Broad-based public investments at scale in health, education, agriculture, infrastructure, and environmental management • Sound policies and governance including good economic management • Improved access to international trade • There is no “magic bullet” – each input is necessary

  8. The MDGs are Affordable • Typical low-income country needs: $110 p.c. per year through to 2015 • To meet the MDGs, low income countries will need more aid and debt relief, despite increased domestic resource mobilization • Macroeconomic stability can be maintained if aid is predictable, grants-based and targeted to investments • At the global level MDGs are affordable within existing commitment of 0.7% target

  9. Existing Commitments are Sufficient and Must Now be Implemented • Unprecedented technical consensus on what is needed to achieve MDGs (HDR 2005, GMR 2005, Africa Commission, Millennium Project) • 24 May 2005 agreement of EU-15 to reach 0.7 by 2015 • G8 decisions to double aid to Africa, cancel debt, support AIDS treatment • World Summit call for MDG based development strategies by 2006 Implementation: • Integrate MDGs into national development strategies • Map out the practical investments needed to achieve the Goals

  10. Agenda • The MDGs can be met in Africa • What is needed to achieve the Goals • Integrating the MDGs into national development strategies

  11. Meeting the MDGs Requires Growth and Investment • Growth is necessary, but not sufficient for MDGs • Some MDGs require direct investments regardless of economic growth (e.g. maternal mortality, environmental sustainability) • Reaching the poor & reducing inequality requires direct investments in people, infrastructure & environment • Public investments in MDGs are critical for growth • Private sector led growth requires minimum standards in health, education, infrastructure, etc. • Direct investments must complement good economic policies

  12. Integrated Investment Strategies to Meet the MDGs • All necessary inputs need to be covered • Investment strategies need to be integrated and outcome-focused • The UN Millennium Project proposes 7 investment clusters for the MDGs: • Rural development • Urban development • Health systems, including HIV/AIDS • Education • Gender equality • Environment • Science, technology and innovation • Cross-national infrastructure

  13. MDG Investments Can Build Absorptive Capacity • Capacity development comprises long-term investment strategies in • Human resources • Pre-service training • In-service training • Review of salaries and benefits • Infrastructure • Capital costs • Operating expenditures • Public management systems • Civil service reform • Equipment • IT services

  14. Agenda • The MDGs can be met in Africa • What is needed to achieve the Goals • Integrating the MDGs into national development strategies

  15. Principles of Development Strategies that are MDG-based Typical strategy today MDG-based development strategy MDG target Level of MDG progress ? 1990 2005 2008 2015 MDG MDG Base Year Target Deadline 1990 2005 2008 2015 MDG MDG Base Year Target Deadline YEAR YEAR

  16. The Operational Framework for Achieving the MDGs • Countries align national development strategies with the MDGs, including integrated investment strategies across sectors • The international community supports these strategies with adequate development assistance • As requested by governments, UN system provides technical support in strategy design and implementation

  17. Aligning National Strategies with a Goals-based Approach • How can the MDGs be translated into operational targets? • How can sector strategies based on the MDGs be integrated into the PRSP/national development strategy? • How would the MTEF and annual budgeting processes need to change to reflect the country’s commitment to the MDGs? • How can the UN Country Team align its technical work with supporting governments in preparing and implementing MDG strategies?

  18. Five Core Features of an MDG-based Strategy • Ambition: National targets are at least as ambitious as MDG targets for 2015 • Scope: The range of sectors identified is broad enough to achieve all the MDGs • Rigor: For each sector, the strategy is based on a detailed, bottom-up needs assessment • Timeline: The medium term strategy is nested in a 10-year MDG framework • Financing: Financing strategy is determined in line with each country’s needs

  19. Five Key Messages for This Workshop • Countries in sub-Saharan Africa are caught in poverty trap • The MDGs provide an operational framework for ending the poverty trap & empower African countries to ask the new question • In the short term countries need more & better aid to end aid dependency • Achieving the MDGs & ending the poverty trap requires detailed quantitative analysis • The UN system is uniquely placed to support countries technically, but needs to build up the required technical expertise

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