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International Monetary Fund

Abstract

La politique budgétaire influe sur le développement durable par les effets qu'elle exerce sur la croissance économique, sur l'environnement et sur la mise en valeur des ressources. Quelles sont les relations entre la politique budgétaire et le développement durable, et comment le FMI s'efforce-t-il de promouvoir le développement durable dans ses recommandations ? Quel est le bilan de l'expérience acquise à ce jour, et par quels moyens les pouvoirs publics, la communauté internationale et les institutions financières internationales peuvent-ils promouvoir plus efficacement le développement durable ?

International Monetary Fund

Abstract

La política fiscal influye en el desarrollo sostenible a través de sus efectos en el crecimiento, el medio ambiente y el desarrollo de los recursos naturales. ¿Qué relaciones existen entre la política fiscal y el desarrollo sostenible y de qué manera el FMI procura promover el desarrollo sostenible a través de su asesoramiento sobre políticas? ¿Qué lecciones se han extraído hasta ahora y de qué manera los gobiernos, la comunidad internacional y las instituciones financieras internacionales pueden respaldar mejor el desarrollo sostenible?

International Monetary Fund

Abstract

Fiscal policy affects sustainable development through its effects on growth, the environment, and resource development. What are the relationships between fiscal policy and sustainable development, and how does the IMF seek to promote sustainable development in its policy advice? What lessons have been learned so far, and how can governments, the international community, and international financial institutions more fully support sustainable development?

International Monetary Fund

Abstract

Economic growth is essential for sustainable development and improving social outcomes.4 Growth usually—but not always—benefits the poor; in about 90 percent of the cases in which countries have experienced per capita GDP growth of at least 2 percent per year over a five-year period, the poor also experienced rising real incomes. While, in general, there is no pro-rich bias in growth,5 appropriate development of the poor’s income-earning potential can help ensure that they also share in the fruits of an expanding economy (see the section on “Fiscal Policy, Human Development, and the MDGs”). Not surprisingly, there is also a strong link between economic growth and improvements in non-income dimensions of poverty. For example, a 10 percent increase in GDP per capita typically results in a 3–5 percent decrease in infant and child mortality rates.6 Similarly, disparities between male and female literacy rates fall markedly as GDP increases.7 In this light, fiscal policy can play a pivotal role in achieving the MDGs by fostering robust economic growth.

International Monetary Fund

Abstract

In both developed and developing countries, fiscal policy has an important role to play in assuring sustainable use of natural resources and safeguarding the environment. This applies to both the tax and spending sides of the government’s budget. On the former,

International Monetary Fund

Abstract

Government expenditure policy will have a key role in determining whether countries meet the MDGs. In many countries, the government will have a central role in ensuring that its citizens, especially the poor, have access to education and health services by either providing these services itself or financing private sector provision. As such, it is critical to understand the link between government spending on these programs and performance on indicators that measure the health and education status of the population. Of special interest is how government spending affects the achievement of the 48 social and human development indicators that have been selected to monitor progress toward the achievement of the MDGs.

International Monetary Fund

Abstract

Poor governance poses a number of obstacles to human development.52 Corruption results in the allocation of budgetary resources for unproductive programs and inefficiencies in public spending, which reduces the effectiveness of outlays on social and poverty-reducing programs in fostering social development. Poor governance results in budgetary allocations tilted in favor of less-productive investment projects and defense-related spending and against nonwage operations and maintenance expenditures, which reduces the quality and productivity of existing infrastructure. Corruption also reduces revenue and therefore the ability of the government to mobilize the resources needed to finance critical poverty-reducing programs. Corruption results in the poor capturing a smaller share of the benefits from public spending and, more generally, in higher poverty and income inequality.

International Monetary Fund

Abstract

One of the challenges facing the international community is to achieve sustainable development. Sustainable development has three pillars— economic development, social development, and environmental protection.1 It entails “…balancing the economic, social, and environmental objectives of society…integrating them wherever possible through mutually supportive policies and practices and making trade-offs where (this) is not possible. This includes, in particular, taking into account the impact of present decisions on the options of future generations.”2 In September 2000, the member states of the United Nations underscored the importance of sustainable development by re-affirming the Millennium Development Goals (MDGs), a set of time-bound targets for improving human development along several important dimensions.3

International Monetary Fund

Abstract

There are many economic, social, and environmental challenges along the path to sustainable development, and there is no panacea to address them all. Rather, accelerated development will require progress in multiple policy areas, with the right policy mix and focus varying from country to country. Countries may also need to make difficult choices regarding trade-offs between competing policy objectives. Achieving more sustainable development will thus require a concerted effort from developing countries, the international community, and the international financial institutions.