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Ms. Dora Benedek, Mr. Edward R Gemayel, Mr. Abdelhak S Senhadji, and Alexander F. Tieman
The COVID-19 pandemic hit countries’ development agendas hard. The ensuing recession has pushed millions into extreme poverty and has shrunk government resources available for spending on achieving the United Nations Sustainable Development Goals (SDGs). This Staff Discussion Note assesses the current state of play on funding SDGs in five key development areas: education, health, roads, electricity, and water and sanitation, using a newly developed dynamic macroeconomic framework.
Ms. Dora Benedek, Mr. Edward R Gemayel, Abdelhak S Senhadji, and Alexander F. Tieman

larger role in development, including through investments in SDG-related projects. Governments can facilitate this by ensuring macroeconomic stability and improving governance and the business climate. Reforms to enhance spending efficiency are critical in an environment of scare resources. In particular, there is significant scope to increase the impact of investment on growth by enhancing public investment management. We estimate that such domestic reforms can generate enough resources to fill up to half of our case study countriesSDG spending needs. But even with