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Development Account Projects

Supporting developing countries in their transition from Millennium Development Goals-based development strategies to broader sustainable development strategies through modelling-based policy analyses

Background:

Governments of developing countries have received considerable support from the international community in assessing strategies to achieve the Millennium Development Goals by 2015 and in formulating policies to mitigate external shocks to human development. While recognizing the value of this support, these Governments have shown some concern with respect to their possibilities of achieving the Goals by 2015 and the development agenda that they will pursue after 2015, suggesting a desire to be better informed about their options when they embark on the process of defining their next national development strategy.

Evidence from the modelling of analyses of macroeconomic and social policies suggests that rapid progress on any set of country-specific human development goals by 2015 (including the Millennium Development Goals) will involve the significant stepping-up of public spending and require more rapid and sustained economic growth. Given existing financing constraints and the depressed world economy, accelerated human development investments would overstretch countries’ public finances, with the possibility of jeopardizing badly needed economic growth. Governments therefore seem convinced that they need a deeper understanding of the medium-to-long-run payoffs of past Millennium Development Goal investments in order to determine their degree of resilience in enduring short-term macroeconomic hardships.

Governments are also aware of the transition from development strategies based on the Millennium Development Goals and have supported the idea of broader sustainable development strategies within the framework of the United Nations Conference on Sustainable Development. Yet this post-2015 context poses challenges. Reaching sustainable development goals will require up-front investments on an unprecedented scale. Government experts will require additional support in their careful and rigorous assessment of alternative paths in moving towards sustainable development within a coherent policy framework.

The project will focus on six countries that have expressed interest in working on policy modelling for the achievement of the Millennium Development Goals and a smooth transition towards sustainable development strategies beyond 2015, and that use policy modelling tools for scenario analyses as a result of previous or ongoing capacity development projects.

Objective:

To support government experts and policymakers in selected developing countries in assessing policy options and priorities through economy-wide and micromodelling tools in order to define a smooth transition from Millennium Development Goals-based national development strategies to a broader sustainable development strategy

Expected accomplishments:

  • Enhanced capacity of government experts to use and adopt economy-wide and micromodelling tools for analysing coherent macroeconomic, social and environmental policies
  • Enhanced capacities of decision makers in six target countries to carry out assessments of coherent policy options and priorities based on modelling scenarios that help design strategies to accelerate progress towards national sustainable development strategies

Implementation status:

In progress.