Front Matter

Front Matter

Author(s):
Matthew Gaertner, Laure Redifer, Pedro Conceição, Rafael Portillo, Luis-Felipe Zanna, Jan Gottschalk, Andrew Berg, Ayodele Odusola, Brett House, and José Saúl Lizondo
Published Date:
March 2012
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    ©2012 International Monetary Fund

    Cataloging-in-Publication Data

    Enhancing development assistance to Africa : lessons from scaling-up scenarios / Andrew Berg … [et al.]. – Washington, D.C. : International Monetary Fund, 2012.

    p. ; cm.

    • Includes bibliographical references.

    • ISBN 978-1-61635-237-0

    • 1. Economic assistance—Africa. 2. Economic assistance—Africa—Case studies. I. Berg, Andrew. II. International Monetary Fund.

    HC800.E26 2012

    Disclaimer: The views expressed in this book are those of the authors and should not be reported as or attributed to the International Monetary Fund, its Executive Board, or the governments of any of its member countries.

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    Foreword

    Significant progress toward achievement of the Millenium Development Goals (MDGs) has been made in recent years, supported by substantial aid increases by donor countries. However, the pace of progress in many sub-Saharan African countries remains too slow to reach the targets by 2015. Despite the headwinds of the global economic crisis, gains in recent years demonstrate that important progress toward the MDGs can be made if existing international commitments for a scaling up of aid are met. Such progress would require sound national development programs matched with adequate financing and strong technical support from the international system. Recent global economic developments have made meeting international aid commitments more challenging—but no less important.

    The MDG Africa Steering Group, convened by the UN Secretary-General in September 2007, is committed to facilitating faster progress toward achieving the MDGs.1 To guide recipient countries, the steering group developed recommendations for specific interventions in agriculture and food security, education, health, infrastructure and trade facilitation, and national statistical systems. The steering group’s broad objectives are to seek more international support for Africa in these key sectors; more predictable aid commitments and disbursements to help ensure steady implementation of development strategies; and better collaboration among multilateral and financial institutions operating in Africa.

    To ensure more effective work at the country level, the MDG Steering Group members designated, in conjunction with national authorities, an initial group of 10 countries for pilot studies to look at how existing national development plans could be implemented if aid were increased in line with the 2005 Gleneagles commitment to double aid to Africa to US$50 billion.2 The exercise examined whether increased funding on the donor side could be matched by careful spending plans by recipients. It also looked at the macroeconomic impacts of higher aid flows, and how macroeconomic policies could be designed to support good outcomes.

    This joint publication of the UNDP and the IMF is a result of these 10 pilot studies. It draws overall conclusions from the pilot studies and summarizes country-specific results. The pilot studies illustrate that further important progress toward achievement of the MDGs can be made if more aid is available, if the investments in existing planning frameworks are well executed, and if other policies are supportive. This conclusion underscores the importance of meeting commitments to double development financing to Africa.

    The pilot studies were a collaboration between country governments, the UNDP, the IMF, and other international organizations. This paper, which pulls together the results of the pilots, was overseen by Andrew Berg (IMF Research Department), Saul Lizondo (IMF African Department), Pedro Conseição (UNDP Regional Bureau for Africa), and Garry Connile (UNDP Bureau for Development Policy).3

    We hope that the scenarios will provide useful background for all development partners in their efforts to accelerate achievement of the MDGs.

    Antoinette M. SayehTegegnework Gettu
    Director, African Department IMFAssistant Secretary-General and Director,
    Regional Bureau for Africa UNDP

    Abbreviations

    DAC

    Development Assistance Committee (of the OECD)

    DSGE

    dynamic stochastic general equilibrium

    G-8

    Group of Eight (Canada, France, Germany, Italy, Japan, the Russian Federation, the United Kingdom, the United States)

    GNI

    gross national income

    HDI

    Human Development Index

    HIPC

    Heavily Indebted Poor Countries

    LIC

    low-income country

    MDG

    Millennium Development Goal

    MDRI

    Multilateral Debt Relief Initiative

    MTEF

    Medium-Term Expenditure Framework

    ODA

    official development assistance

    OECD

    Organization for Economic Cooperation and Development

    SSA

    sub-Saharan Africa

    UN

    United Nations

    UNDP

    United Nations Development Programme

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