Publication: Challenges to MDG Achievement in Low Income Countries : Lessons from Ghana and Honduras
Date
2007-11
ISSN
Published
2007-11
Author(s)
Abstract
This paper summarizes the policy lessons
from applications of the Maquette for MDG Simulations (MAMS)
model to two low income countries: Ghana and Honduras.
Results show that costs of MDGs achievement could reach
10-13 percent of GDP by 2015, although, given the observed
low productivity in the provision of social services,
significant savings may be realized by improving efficiency.
Sources of financing also matter: foreign aid inflows can
reduce international competitiveness through real exchange
appreciation, while domestic financing can crowd out the
private sector and slow poverty reduction. Spending a large
share of a fixed budget on growth-enhancing infrastructure
may mean sacrificing some human development, even if higher
growth is usually associated with lower costs of social
services. The pursuit of MDGs increases demand for skills:
while this encourages higher educational attainments, in the
short term this could lead to increased income inequality
and a lower poverty elasticity of growth.
Citation
“Bussolo, Maurizio; Medvedev, Denis. 2007. Challenges to MDG Achievement in Low Income Countries : Lessons from Ghana and Honduras. Policy Research Working Paper; No. 4383. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/05610299-18f6-5f10-8c28-d9faae699beb License: CC BY 3.0 IGO.”
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