UNDP RBA Workshop on
MDG-Based
National Development Strategies
Module 1:
MDG-Based Planning
UN Millennium Project
February 27-March 3, 2006
Agenda
1.
The MDGs can be met in Africa
2.
What is needed to achieve the Goals
3.
Integrating the MDGs into national
development strategies
2
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
3
… 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
4
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
5
The Economic Consequences of
Africa’s Special Needs

Poverty traps result from combination of three
factors:
1. High minimum capital threshold
2. Low savings rates
3. High population growth (“capital widening”)
Poverty Trap
Above the Threshold
k
k
k’
k’ (capital
per
person)
time
time
time
6
Achieving the MDGs is Possible
Countries can end poverty trap through combination of:
1. Broad-based public investments at scale in health, education,
agriculture, infrastructure, and environmental management
2.
Sound policies and governance including good economic
management
3.
Improved access to international trade

There is no “magic bullet” – each input is necessary
7
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
8
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
9
Agenda
1.
The MDGs can be met in Africa
2.
What is needed to achieve the Goals
3.
Integrating the MDGs into national
development strategies
10
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
11
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:
1.
2.
3.
4.
5.
6.
7.
8.
Rural development
Urban development
Health systems, including HIV/AIDS
Education
Gender equality
Environment
Science, technology and innovation
Cross-national infrastructure
12
MDG Investments Can Build
Absorptive Capacity

Capacity development comprises long-term investment
strategies in
1. Human resources
– Pre-service training
– In-service training
– Review of salaries and benefits
2. Infrastructure
– Capital costs
– Operating expenditures
3. Public management systems
– Civil service reform
– Equipment
– IT services
13
Agenda
1.
The MDGs can be met in Africa
2.
What is needed to achieve the Goals
3.
Integrating the MDGs into national
development strategies
14
Principles of Development Strategies
that are MDG-based
Typical strategy today
MDG-based development strategy
MDG
target
Level of
MDG
progress
?
1990
MDG
Base Year
2005
YEAR
2008
2015
MDG
Target Deadline
15
1990
MDG
Base Year
2005 2008
YEAR
2015
MDG
Target Deadline
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
16
Aligning National Strategies with a Goalsbased 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?
17
Five Core Features of
an MDG-based Strategy
1.
Ambition: National targets are at least as ambitious
as MDG targets for 2015
2.
Scope: The range of sectors identified is broad enough
to achieve all the MDGs
3.
Rigor: For each sector, the strategy is based on a
detailed, bottom-up needs assessment
4.
Timeline: The medium term strategy is nested in a
10-year MDG framework
5.
Financing: Financing strategy is determined in line
with each country’s needs
18
Five Key Messages for This Workshop
1.
Countries in sub-Saharan Africa are caught in poverty trap
2.
The MDGs provide an operational framework for ending the
poverty trap & empower African countries to ask the new
question
3.
In the short term countries need more & better aid to end
aid dependency
4.
Achieving the MDGs & ending the poverty trap requires
detailed quantitative analysis
5.
The UN system is uniquely placed to support countries
technically, but needs to build up the required technical
expertise
19