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Realizing the Millennium Development Goals through socially inclusive macroeconomic policies

Background:

The outcomes of global United Nations conferences and summits, especially the Millennium Declaration, the Monterrey Consensus and the Johannesburg Plan of Implementation, have raised the expectations of citizens of Member States regarding inclusive economic and social policies. In view of the mixed social-development outcomes of economic globalization and liberalization, the importance of having a unified economic and social policy framework that addresses economic weaknesses and social problems simultaneously has been increasingly recognized. This has been confirmed by recent research on the relationship between economic growth, poverty reduction and social indicators, which highlighted the important interaction between economic and social policies.

The project will assist national policymakers and policy shapers to develop the knowledge and skills to integrate macroeconomic and social goals in policy formulation and better utilize available national policy space to pursue development goals in the face of external shocks. The project will also help Governments to build capacity for realizing the Millennium Development Goals through socially inclusive and egalitarian macroeconomic policies, relying on the identification of appropriate macroeconomic models and frameworks, which will account for the social impacts of policies as well as for structural changes and interactions with the rest of the world.

The project will be implemented by the Department of Economic and Social Affairs, in collaboration with ESCAP, ECLAC and ECA.

Objective:

To strengthen the capacity of policymakers to formulate and evaluate economic and social development policies, including those emanating from the Millennium Development Goals, and to design a framework and instruments for macroeconomic modelling approaches with positive social impacts.

Expected accomplishments:

  • Development of socially inclusive macroeconomic policy frameworks in support of achieving the Millennium Development Goals, supplemented, where possible, by macroeconomic models
  • Better incorporation of regional linkages into macroeconomic policies
  • Increased awareness of effective policymaking space available for use in the current international economic environment

Implementation status:

The overall objective of the peoject, to strengthen the capacity of policy makers to formulate and evaluate socially-inclusive macroeconomic policies aimed at facilitating the achievement of the MDGs through adaptation of the integrated modelling framework to country-specific conditions, was fully achieved in nine countriesl of a total of twelve

The project permitted the teams of national experts to enhance their technical capacities in applying the integrated modelling framework, assessing financing needs to achieve the MDGs and their macro-economic trade-offs, and elaborating recommendations for policy makers. The acquired knowledge of the analytical framework and its application is reflected in the country studies, discussion papers and policy notes produced by each or the participating teams at the end of the project. This development of capacities was possible by developing a toolkit consisting of technical notes, discussion papers, manuals and computer codes, all of which were also used to conduct training in workshops under the leadership of DPAD.

[n addition, by conducting training workshops, expert meetings and final presentations, the project has facilitated MDG-related policy dialogue between the expert teams and policy makers aimed at increasing the awareness of the latter of the policy space to achieve the MDGs without compromlsmg effective macroeconomic policies.