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International Monetary Fund
This paper focuses on Uganda’s Fifth Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility (PRGF), Request for Waiver of Performance Criterion, and Extension of Arrangement. Performance relative to the program performance criteria and benchmarks has generally been satisfactory. All quantitative performance criteria for December 2004, with the exception of that on the accumulation of domestic arrears, were observed. The structural performance criterion and two of the four benchmarks through March 2005 were also met.
International Monetary Fund
This paper discusses Uganda’s Poverty Eradication Action Plan (PEAP) 2004/05–2007/08. The PEAP provides an overarching framework to guide public action to eradicate poverty. It has been prepared through a consultative process involving central and local government, parliament, donors, and civil society. The PEAP aims at contributing toward transforming Uganda into a middle-income country. The government's strategy in the short term is aimed at strengthening both agriculture and manufacturing. For agriculture, critical interventions include infrastructure, information and support to farmers’ marketing. For manufacturing, the government will strengthen infrastructure, improve governance, and boost the education of the workforce.
International Monetary Fund
This paper examines Uganda’s 2004 Article IV Consultation, Fourth Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility (PRGF), and a Request for Waiver of Performance Criteria. The performance under the program supported by the PRGF was mixed. Four quantitative performance criteria for end-June 2004 were missed. Although two structural performance criteria for June and September were met, eight out of ten benchmarks were missed. The authorities are requesting waivers for nonobservance of the four performance criteria based on corrective actions, including eight prior actions.
International Monetary Fund
The Fourth Review Under the Poverty Reduction and Growth Facility and Requests for Waiver of Nonobservance of Performance Criteria for Rwanda are analyzed. The implementation of policies improved considerably in 2004, although economic performance has been adversely affected by exogenous shocks. Strong activity in construction, transport, and communication raised growth to 4 percent, despite major electricity shortages. Macroeconomic and structural policies will aim at enhancing private sector development and accelerating productivity-enhancing strategies. Fiscal policies will focus on supporting macroeconomic stability and improving the quality of spending through a sizable reallocation to priority areas.
International Monetary Fund

Abstract

The year 2005 marks an important juncture for development as the international community takes stock of implementation of the Millennium Declaration—signed by 189 countries in 2000—and discusses how progress toward the Millennium Development Goals (MDGs) can be accelerated. The MDGs set clear targets for reducing poverty and other human deprivations and for promoting sustainable development. What progress has been made toward these goals, and what should be done to accelerate it? What are the responsibilities of developing countries, developed countries, and international financial institutions? Global Monitoring Report 2005 addresses these questions. This report, the second in an annual series assessing progress on the MDGs and related development outcomes, has a special focus on Sub-Saharan Africa—the region that is farthest from the development goals and faces the toughest challenges in accelerating progress. The report finds that without rapid action to accelerate progress, the MDGs will be seriously jeopardized—especially in Sub-Saharan Africa, which is falling short on all the goals. It calls on the international community to seize the opportunities presented by the increased global attention to development to build momentum for the MDGs. The report presents in-depth analysis of the agenda and priorities for action. It discusses improvements in policies and governance that developing countries need to make to achieve stronger economic growth and scale up human development and relevant key services. It examines actions that developed countries need to take to provide more and better development aid and to reform their trade policies to improve market access for developing country exports. And it evaluates how international financial institutions can strengthen and sharpen their support for this agenda. Global Monitoring Report 2005 is essential reading for development practitioners and those interested in international affairs.

Ms. Mwanza Nkusu
and
Selin Sayek
With official development assistance (ODA) set to rise as countries strive to meet the Millennium Development Goals (MDGs), aid effectiveness remains an important area of development policy. An increasing number of studies support the notion that ODA can contribute to growth in a nonlinear relationship. In this paper, we investigate a new hypothesis regarding this relationship: that deeper financial markets in aid-recipient countries facilitate the management of aid flows, thereby enhancing aid effectiveness. An empirical analysis, using a panel data set, finds robust support for the hypothesis.
International Monetary Fund

Abstract

The past century has been marked by rapid advances in human welfare. People in most parts of the world are healthier and are living longer. While this trend is likely to continue, hopes are fading in some regions where progress slowed or stopped in the1990s, primarily as a result of the AIDS epidemic. This compilation of articles published over the past five years in the pages of F&D looks at the important links between health and economic progress. Articles range over a variety of topics, from the Millennium Development Goals and their health-related targets for 2015 to the economics of tobacco control. Several articles examine the impact of AIDS and the global reaction, while others look at debt and the intellectual property aspects of health care.

Mr. Markus Haacker

Abstract

This paper analyzes the macroeconomics of HIV/AIDS. The paper highlights that the mortality and morbidity associated with AIDS make it unlike most other types of sickness and disease. The paper describes the most common approaches used in accounting for growth in the context of an HIV/AIDS epidemic. The impact of HIV/AIDS on education and the accumulation of human capital is discussed. The paper also discusses the impact of HIV/AIDS on the public sector, and elaborates certain demographic events specific to the HIV/AIDS pandemic.

Benedict J. Clements
,
Sanjeev Gupta
, and
Gabriela Inchauste

Abstract

Fiscal policy can foster growth and human development through a number of different channels. These include the macroeconomic (for example, through the influence of the budget deficit on growth) as well as the microeconomic (through its influence on the efficiency of resource use). But how precisely do these channels work in developing countries? What kinds of tax and expenditure policies should developing countries implement to help them meet the Millennium Development Goals? And how can international aid be made more effective? Drawing on both theory and country experience, this book brings together IMF research on the various ways fiscal policy can be used to help spur economic development.

International Monetary Fund
This paper assesses Uganda’s Third Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility (PRGF) and Request for Waiver of Performance Criteria. The fiscal program was broadly on track in 2003/04. Performance under the PRGF-supported program was mixed. Despite some slippages, most quantitative performance criteria were observed for December 2003, and there has been progress in the implementation of structural measures. The authorities are requesting waivers for nonobservance of four performance criteria based on corrective actions taken.