1. National Development Strategies
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. 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”)
Poverty Trap k k’
time k
k’ (capital per person)
time
Above the Threshold
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 ?
MDG MDG Base Year Target Deadline
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