Abstract

The first Millennium Development Goal (MDG) calls for the development community to reduce the global rate of extreme income poverty—measured by the share of the population living on less than $1 per day—by half between 1990 and 2015. Current trends suggest that if the developing world can maintain the growth momentum of the past 15 years, it will meet this MDG. Numerically, the reduction in the global poverty rate owes the most to impressive advances in China and India, but it has also been helped by acceleration in income growth elsewhere in the developing world in recent years. The past year has seen strong growth and poverty reduction in much of the developing world as a result of improved developing-country policies and a global environment conducive to growth.

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Strengthening Mutual Accountability: Aid, Trade, and Governance
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    FIGURE 1.1

    Progress toward the Poverty MDG Target, 1990–2002, and a forecast for 2015

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    FIGURE 1.2

    Evolution of investment climate indicators in Europe and Central Asia, 2002 and 2005

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    FIGURE 1.3

    Doing Business reform intensity in 2004 by region

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    FIGURE 1.4

    The informal sector and the ease of doing business in 2004

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    FIGURE 1.5

    Progress in household access to infrastructure, 1995–2004

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    FIGURE 1.6

    Access to water, by water source

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    FIGURE 1.7

    Primary deficit and public infrastructure investment, Latin America, 1980–2000

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    FIGURE 1.8

    Access to various forms of sanitation

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    FIGURE 2.1

    Development assistance for education and health

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    FIGURE 2.2

    Developing-country spending on education and health

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    FIGURE 2.3

    Share of total government spending for education and health, by region

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    FIGURE 2.4

    Education unit costs in best-performing developing countries, 1999–2002

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    FIGURE 2.5

    Share of bilateral education ODA commitments reported as at least half technical assistance

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    FIGURE 2.6

    ODA disbursements for education and health

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    FIGURE 2.7

    Annual reductions in child mortality (number of child deaths per 1,000 live births)

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    FIGURE 2.8

    Delivery of immunizations

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    FIGURE 2.9

    Share of 15–19-year-olds who have completed primary school

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    FIGURE 3.1

    DAC members’ net ODA, 1990–2005, and prospects for 2006 and 2010

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    FIGURE 3.2

    ODA increases concentrated in a few countries

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    FIGURE 3.3

    Acceleration in ODA needed to meet commitments

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    FIGURE 3.4

    Indicators of progress: gaps between baselines (preliminary) and targets

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    FIGURE 3.5

    Satisfaction improving with donor practices, 2003–5

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    FIGURE 3.6

    Strengthening trend in donors’ poverty and policy focus

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    FIGURE 3.7

    Lower debt service, higher poverty-reducing expenditures, 1999–2006

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    FIGURE 3.8

    Impact of MDRI on debt ratios in HIPC

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    Post-MDRI debt relief: HIPC versus selected lower-middle-income countries

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    FIGURE 3.9

    High-income countries’ OTRI, overall and toward low-income countries, 2005

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    ANNEX FIGURE 3.1

    OECD restrictiveness remains high for low-income countries, 2005

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    ANNEX FIGURE 3.2

    Changes in OECD OTRI between 2002 and 2005: as tariffs fall, non-tariff policies become more important

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    FIGURE 4.1

    Gross disbursements by MDBs, 1999–2005

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    FIGURE 4.2

    Trends in IDA investment and development policy lending, 1998–2005

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    FIGURE 4.3

    Policy and poverty selectivity in 2003 and 2004

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    FIGURE 4.4

    Evaluation and the results chain

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