Publication: Efficiency in Reaching the Millennium Development Goals
Loading...
Date
2003-06
ISSN
Published
2003-06
Author(s)
Jayasuriya, Ruwan
Editor(s)
Abstract
To improve the likelihood of reaching the Millennium Development Goals (MDGs), or more generally to improve their social indicators, countries (or states and provinces within countries) basically have two options: increasing the inputs used to "produce" the outcomes measured by the MDGs, or increasing the efficiency with which they use their existing inputs. The four papers presented in this study look at whether improvements in efficiency could bring gains in outcomes. The first two papers use world panel data in order to analyze country level efficiency in improving education, health, and GDP indicators (GDP is related to the MDGs because a higher level of income leads to a reduction in poverty). The other two papers use province and state level data to analyze within-country efficiency in Argentina and Mexico for "producing" good education and health outcomes. Together, the four papers suggest that apart from increasing inputs, it will be necessary to improve efficiency in order to reach the MDGs. While this conclusion is hardly surprising, the analysis helps to quantify how much progress could be achieved through better efficiency, and to some extent, how efficiency itself could be improved.
Link to Data Set
Citation
“Jayasuriya, Ruwan; Wodon, Quentin. 2003. Efficiency in Reaching the Millennium Development Goals. World Bank Working Paper;No. 9. © World Bank. http://hdl.handle.net/10986/13884 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Publication Environmental Implications of a Central Bank Digital Currency (CBDC)(Washington, DC : World Bank, 2022-07)Two-thirds of central banks in the East Asia and Pacific (EAP) region have started researching or testing the implementation of a Central Bank Digital Currency (CBDC). At the same time, the region accounts for one-third of world CO2 emissions and is vulnerable to climate risks. As the Group of 7 (G7), European Central Bank (ECB), and Bank of England (BoE) have stated in their public statements, it is increasingly important to consider environmental impact when designing CBDC. However, only a few brief studies have been done on this subject, which will be crucial for the region. This Note explores the environmental implications of CBDC by comparing technical mechanisms and energy consumption within its distributed structure. It also illustrates differences in ecological footprint between CBDC and other payment methods (cryptocurrency, cash, and card networks). As the legitimacy of CBDC is backed by the trust of central banks, CBDC does not need to prove its legitimacy through its technological structure. Therefore, CBDC does not require the energy-intensive consensus or mining mechanisms used by a cryptocurrency, so its energy consumption is lower (comparable to that of a credit card system). CBDC can be designed to use various systems, such as Real Time Gross Settlement (RTGS), Distributed Ledger Technology (DLT), or a mixture of both. Careful deliberation to meet the objectives and implications will be important as CBDC can be a catalyst for financial innovation.Publication Assessing Incentives to Increase Digital Payment Acceptance and Usage(World Bank, Washington, DC, 2022-01-18)An important step to achieve greater financial inclusion is to increase the acceptance and usage of digital payments. Although consumer adoption of digital payments has improved dramatically globally, the acceptance and usage of digital payments for micro, small, and medium-sized retailers (MSMRs) remain challenging. Using random forest estimation, The authors identify 14 key predictors out of 190 variables with the largest predictive power for MSMR adoption and usage of digital payments. Using conditional inference trees, they study the importance of sequencing and interactions of various factors such as public policy initiatives, technological advancements, and private sector incentives. The authors find that in countries with low point of sale (POS) terminal adoption, killer applications such as mobile phone payment apps increase the likelihood of P2B digital transactions. They also find the likelihood of digital P2B payments at MSMRs increases when MSMRs pay their employees and suppliers digitally. The level of ownership of basic financial accounts by consumers and the size of the shadow economy are also important predictors of greater adoption and usage of digital payments. Using causal forest estimation, they find a positive and economically significant marginal effect for merchant and consumer fiscal incentives on POS terminal adoption on average. When countries implement financial inclusion initiatives, POS terminal adoption increases significantly and MSMRs’ share of person-to-business (P2B) digital payments also increases. Merchant and consumer fiscal incentives also increase MSMRs’ share of P2B electronic payments.Publication A Novel Tobacco Market Diversification(World Bank, Washington, DC, 2022-04-27)In this working paper, an exploration of available data and information is conducted and findings presented, to support the view that the dichotomous business model and related harm reduction narrative promoted nowadays by the tobacco industry, merits scrutiny by the international community. The promotion of e-cigarettes as welfare enhancing in rich countries, particularly because they are posited to help adult smokers quit, tends to obfuscate a dire reality. The same tobacco industry that promotes (e-cigarettes as harm reduction in rich countries, derives the bulk of its profits by selling cigarettes in lower income countries.Publication Structured Lesson Plans for Literacy Instruction(World Bank, Washington, DC, 2022-03-31)Literacy is the cornerstone of education, and a driver of human economic, social, and civic wellbeing. Despite its importance, far too many children fail to become literate. The World Bank uses a measure called learning poverty to indicate when a child cannot read and understand an age-appropriate text by age ten. The best available data showed that more than two-thirds of children in low- and middle-income countries suffer learning poverty. The World Bank is committed to helping countries achieve the learning target: to cut learning poverty by at least half by 2030. Achieving better outcomes in literacy requires a comprehensive effort in many domains. One of the most important is ensuring that students and teachers have and use high-quality instructional materials, especially textbooks, for reading instruction. As countries and systems review their literacy teaching and learning materials, they will want to compare them to the materials from other countries and systems. The purpose of the compendium is to allow such reviews and comparisons by grouping a critical mass of structured pedagogy lesson plans and related materials in one place.Publication WBG COVID-19 Crisis Response Operational Update(Washington, DC, 2022-03-31)This note provides an update on the WBG’s COVID-19 Crisis Response, outlined in June 2020 to help developing countries address the impacts of the pandemic while maintaining a line of sight to long-term development goals. It comprises five short sections: (I) the impacts of COVID-19 and compounding crises on developing countries, (II) an update on the WBG’s operational crisis response and priorities moving forward, (III) the critical role of international coordination, (IV) WBG financing framework for GRID, and (V) concluding remarks.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Guatemala - Poverty assessment : good performance at low levels(World Bank, 2009-03-18)This report is organized into three sections with seven chapters. The first section assesses poverty levels and changes over time within Guatemala and compares both the levels and changes to those of other countries. It summarizes the overall conditions and changes in Guatemala (chapter one); presents the country's poverty profile and analyzes the evolution of poverty over time and space using monetary and non-monetary indicators, population changes and inequality (chapter two); and benchmarks Guatemala's social progress against other countries in the region and the world (chapter three). The second section analyzes social programs and considers how existing policies and programs could improve their impact on poverty. It highlights some of the key features of social programs in education, health, and social assistance (chapter four); and estimates the potential impact of an expansion of a conditional cash transfer program on poverty (chapter five). The third section focuses on the sources of income of the poor. It documents the evolution of the sources of income examines regional specific characteristics that promote or hinder households potentials (chapter six); and carries out a preliminary analysis of shocks and vulnerability influencing household wellbeing covering the impact of hurricane Stan, a potential reduction in remittances, food price increases, and crime and violence (chapter seven).Publication Yemen - Development Policy Review(Washington, DC, 2008-04)Yemen is the second poorest country in the Middle East and North Africa region, with 42 percent of its population counted as poor in 1998. GDP has stagnated at around US$530 per capita in real terms since 2002. Unemployment, estimated at 11.5 percent in 1999, is expected to have worsened as the population has climbed at 3 percent a year and the labor force has burgeoned. Extreme gender inequalities persist. Malnutrition is so severe that Yemeni children suffer the world's second worst stunting in growth. And natural resources are increasingly constrained. Two-thirds of Yemen's known oil reserves were depleted by 2003, and production has already begun to decline and will plummet by 2012 if no new reserves are discovered. Freshwater is also increasingly scarce: per capita availability in Yemen is about 2 percent of the world average and projected to diminish by a third in the next 20 years because of the expected increase in population. Compounding these economic, social, and resource problems are Yemen's policy and institutional failings, which have prompted donors to cut aid. Yemen received a meager US$13 in development assistance per capita in 2004. In 2005, the Development Assistance Committee cut International Development Association (IDA) 14 (2006-08) allocations to Yemen by nearly a third, and the U.S. government's Millennium Challenge Corporation suspended Yemen's eligibility for assistance because of its worsening corruption, regulatory quality, and fiscal policies. The main challenges to Yemen's growth are the impending rapid decline in oil revenues, the weak capacity of governance institutions, the pressures of high population growth, and the worsening scarcity of freshwater. The country has yet to come to grips with the imminent oil decline and its consequences. The Government is concerned about governance problems and is recently attempting to speed up reforms. The last two challenges-high population growth and water crisis- are long recognized by the government, but reforms have been slow.Publication To the MDGs and Beyond : Accountability and Institutional Innovation in Bangladesh(Washington, DC, 2006-07)In recent years Bangladesh has made impressive gains across a range of social indicators and has enjoyed strong economic growth, which together convincingly refute its reputation as an 'international basket case'. As a result, Bangladesh has achieved one of its Millennium Development Goals (MDGs) already, and will probably reach several more by 2015 a result few expected when the MDGs were originally agreed. But detailed analysis shows that most of the MDGs are unlikely to be met on the basis of continued economic growth alone, even at moderately higher levels. In order to meet the MDGs and achieve the sort of social progress of which it is capable Bangladesh needs to generate structural breaks in the trend lines of its principal social indicators. That is, it needs to shift to fundamentally higher rates of progress in the main social problems that it faces. If economic growth is not enough to achieve this, it is necessary to examine the institutions and delivery models responsible for the services that are meant to combat hunger, disease, mortality, ignorance and discrimination, to name a few. This report analyzes the specific policy and institutional reforms required for Bangladesh to increase its rate of progress towards the MDGs. Rather than examining each MDG in turn, with the attendant risk of producing a grocery list of piecemeal recommendations, we prefer to operationalize our task by focusing on the deep institutional and social determinants of two MDGs: maternal mortality and child mortality. In doing so, we hope to reach an analytically informed and coherent view of why performance varies drastically amongst Bangladesh's regions and models of service provision. The reasons for choosing these particular indicators are both obvious and subtle. Maternal and child mortality are, of course, important goals in and of themselves. They are also amongst the most complex of the MDGs in terms of the policy mix required for their attainment, with implications for hunger, education, nutrition, environmental, water and sanitation policy, and so on. Efforts to improve them must necessarily span multiple sectors in rural and urban areas in order to find the most appropriate package of policies and interventions. Bangladesh has made strong progress towards reducing income poverty, placing it roughly on track to meet the target of halving the share of the population living on less than US $1 per day by 2015. Rising and stable economic growth, underpinned by good economic and social policies, has been a key factor in making this possible. In addition, pioneering social entrepreneurship, often with creative partnerships under innovative institutional arrangements, has also contributed immensely to the successes attained. These successes have compensated somewhat for Bangladesh's critical and persistent weaknesses in governance.Publication Niger - Accelerating Growth and Achieving the Millennium Development Goals : Diagnosis and the Policy Agenda(Washington, DC, 2007-09)This report has the following objectives: (i) identify the underlying constraints to strong and sustained growth, in particular, the dynamic circles that lock Niger in a low-growth/high poverty equilibrium; (ii) understand the key determinants of growth and poverty traps and the role increased foreign aid could play to promote growth and help achieve the MillenniumDevelopment Goals (MDGs); and (iii) help the Government of Niger design a strategy to accelerating growth and human development: Strategy Paper for Human Development (SPAHD). This report is organized as follows: Chapter 1 describes the main features of Niger's economy from a Social Accounting Matrix perspective. It aims to analyze the potential linkages between sectors and the impact a policy shock of an increased public investment could have on Niger's economy. Chapter 2 reviews Niger's growth performance over the past three decades. It draws some policy lessons critical to the design of a growth strategy for Niger. Chapter 3 provides a snapshot of where Niger stands in achieving the MDGs with less than a decade remaining. It examines the reasons why Niger is falling short of the goals, describes the recent progress, and highlights the challenges ahead. Chapter 4 analyzes the constraints to strong and sustained growth with particular focus on poverty traps. Chapter 5 discusses the macro and micro foundations for strong growth and achieving the MDGs. It examines the post stabilization macroeconomic policy required to enhance the macroeconomic foundations of growth. It also identifies the engines of growth and highlights the cross-cutting issues for improving the business environment. In addition, the chapter discusses the role the private sector can play in Niger's quest to achieve the MDGs. Chapter 6 analyzes the potential impact that increased foreign aid would have on growth, poverty, and other MDGs using Niger's macroeconomic model. It focuses mainly on the links between foreign aid, the level and composition of public investment - which is disaggregated into education, infrastructure, and health -- the supply-side effects of public capital, growth, poverty, and other MDGs. Furthermore, it discusses the impact of three policy experiments on growth and the MDGs, including an increase in foreign aid (namely grants), debt relief, and a combined increase in foreign aid and tax reforms. Finally, it highlights the importance of improving governance to maximize the impact of domestic reforms and increased foreign aid on growth and the MDGs. Chapter 7 concludes the report and draws up policy recommendations, highlighting the policy priorities needed to accelerate growth and achieve the MDGs.Publication Aggregate Economic Shocks, Child Schooling and Child Health(World Bank, Washington, DC, 2008-08)Do aggregate economic shocks, such as those caused by macroeconomic crises or droughts, reduce child human capital? The answer to this question has important implications for public policy. If shocks reduce investments in children, they may transmit poverty from one generation to the next. This paper uses a simple framework to analyze the effects of aggregate economic shocks on child schooling and health. It shows that the expected effects are ambiguous, because of a tension between income and substitution effects. The paper then reviews the recent empirical literature on the subject. In richer countries, like the United States, child health and education outcomes are counter-cyclical: they improve during recessions. In poorer countries, mostly in Africa and low-income Asia, the outcomes are pro-cyclical: infant mortality rises, and school enrollment and nutrition fall during recessions. In the middle-income countries of Latin America, the picture is more nuanced: health outcomes are generally pro-cyclical, and education outcomes counter-cyclical. Each of these findings is consistent with the simple conceptual framework. The paper discusses possible implications for expenditure allocation.
Users also downloaded
Showing related downloaded files
Publication Empowerment in Practice : From Analysis to Implementation(Washington, DC: World Bank, 2006)This book represents an effort to present an easily accessible framework to readers, especially those for whom empowerment remains a puzzling development concern, conceptually and in application. The book is divided into two parts. Part 1 explains how the empowerment framework can be used for understanding, measuring, monitoring, and operationalizing empowerment policy and practice. Part 2 presents summaries of each of the five country studies, using them to discuss how the empowerment framework can be applied in very different country and sector contexts and what lessons can be learned from these test cases. While this book can offer only a limited empirical basis for the positive association between empowerment and development outcomes, it does add to the body of work supporting the existence of such a relationship. Perhaps more importantly, it also provides a framework for future research to test the association and to prioritize practical interventions seeking to empower individuals and groups.Publication The Road to Results : Designing and Conducting Effective Development Evaluations(World Bank, 2009-12-01)The analytical, conceptual, and political framework of development is changing dramatically. The new development agenda calls for broader understandings of sectors, countries, development strategies, and policies. It emphasizes learning and continuous feedback at all phases of the development cycle. As the development agenda grows in scope and complexity, development evaluation follows suit. Development evaluator are moving away from traditional implementation and output-focused evaluation models toward results-based evaluation models, as the development community calls for results and embraces the millennium development goals. As the development community shifts its focus away from projects in order to comprehensively address country challenges, development evaluators are seeking methods with which to assess results at the country, sector, theme, policy, and even global levels. As the development community recognizes the importance of not only a comprehensive but also a coordinated approach to developing country challenges and emphasizes partnerships, development evaluators are increasingly engaged in joint evaluations. These joint evaluations, while advantageous in many respects, add to the complexity of development evaluation (OECD 2006). Additionally, development evaluators increasingly face the measurement challenge of determining the performance of an individual development organization in this broader context and of identifying its contribution. This text is intended as a tool for use in building development evaluation capacity. It aims to help development evaluators think about and explore the new evaluation architecture and especially to design and conduct evaluations that focus on results in meeting the challenges of development.Publication World Development Report 2004(World Bank, 2003)Too often, services fail poor people in access, in quality, and in affordability. But the fact that there are striking examples where basic services such as water, sanitation, health, education, and electricity do work for poor people means that governments and citizens can do a better job of providing them. Learning from success and understanding the sources of failure, this year’s World Development Report, argues that services can be improved by putting poor people at the center of service provision. How? By enabling the poor to monitor and discipline service providers, by amplifying their voice in policymaking, and by strengthening the incentives for providers to serve the poor. Freedom from illness and freedom from illiteracy are two of the most important ways poor people can escape from poverty. To achieve these goals, economic growth and financial resources are of course necessary, but they are not enough. The World Development Report provides a practical framework for making the services that contribute to human development work for poor people. With this framework, citizens, governments, and donors can take action and accelerate progress toward the common objective of poverty reduction, as specified in the Millennium Development Goals.Publication Poverty and Shared Prosperity 2022(Washington, DC : World Bank, 2022)Poverty and Shared Prosperity 2022: Correcting Course provides the first comprehensive analysis of the pandemic’s toll on poverty in developing countries. It identifies how governments can optimize fiscal policy to help correct course. Fiscal policies offset the impact of COVID-19 on poverty in many high-income countries, but those policies offset barely one quarter of the pandemic’s impact in low-income countries and lower-middle-income countries. Improving support to households as crises continue will require reorienting protective spending away from generally regressive and inefficient subsidies and toward a direct transfer support system—a first key priority. Reorienting fiscal spending toward supporting growth is a second key priority identified by the report. Some of the highest-value public spending often pays out decades later. Amid crises, it is difficult to protect such investments, but it is essential to do so. Finally, it is not enough just to spend wisely - when additional revenue does need to be mobilized, it must be done in a way that minimizes reductions in poor people’s incomes. The report highlights how exploring underused forms of progressive taxation and increasing the efficiency of tax collection can help in this regard. Poverty and Shared Prosperity is a biennial series that reports on global trends in poverty and shared prosperity. Each report also explores a central challenge to poverty reduction and boosting shared prosperity, assessing what works well and what does not in different settings. By bringing together the latest evidence, this corporate flagship report provides a foundation for informed advocacy around ending extreme poverty and improving the lives of the poorest in every country in the world. For more information, please visit worldbank.org/poverty-and-shared-prosperity.Publication Impact Evaluation in Practice, First Edition(World Bank, 2011)The Impact Evaluation in Practice handbook is a comprehensive and accessible introduction to impact evaluation for policymakers and development practitioners. The book incorporates real-world examples to present practical guidelines for designing and implementing evaluations. Readers will gain an understanding of the uses of impact evaluation and the best ways to use evaluations to design policies and programs that are based on evidence of what works most effectively. The handbook is divided into three sections: Part One discusses what to evaluate and why; Part Two outlines the theoretical underpinnings of impact evaluation; and Part Three examines how to implement an evaluation. Case studies illustrate different methods for carrying out impact evaluations.