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Money isn't Everything

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  • Todd D. Mattina
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    Abstract

    This paper outlines the challenge of developing an operational macroeconomic framework in Ethiopia consistent with the large envisaged scaling up of aid to achieve the Millennium Development Goals (MDGs). This paper describes an MDG scenario that addresses both microeconomic and macroeconomic constraints, such as the need to boost sustainable growth, limit Dutch disease, formulate an exit strategy from aid dependency, enhance public financial management (PFM), and expand the supply of skilled labor. The paper will argue that a carefully sequenced MDG strategy is essential so that the scaled-up aid and public spending will remain in line with Ethiopia''s absorptive capacity.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/192.

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    Length: 34
    Date of creation: 01 Aug 2006
    Date of revision:
    Handle: RePEc:imf:imfwpa:06/192

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    Related research

    Keywords: Millennium Development Goals; Absorptive capacity; Investment; Taxation; public spending; expenditure; fiscal framework; public expenditure; medium-term fiscal framework; public debt; fiscal policy; expenditure management; public expenditure management; fiscal operations; expenditure composition; capital expenditure; total expenditure; fiscal impact; fiscal accounts; expenditures; public financial management; budget support; tax revenue; expenditure growth; expenditure framework; fiscal policies; fiscal transparency; fiscal deficit; recurrent expenditure; public sector wage bill; fiscal activities; fiscal reporting; poverty-reducing expenditure; tax policy; defense spending; public expenditure review; fiscal space; fiscal risks; fiscal strategy; structural fiscal reforms; fiscally sustainable; fiscal reports; tax administration; tax base; fiscal reforms; budget balance; fiscal management; medium-term expenditure; fiscal balance; taxpayer office; fiscal costs; medium-term expenditure framework; fiscal accounting data; fiscal affairs; fiscal accounting; fiscal projections; fiscal outturn; expenditure commitments; quasi-fiscal activities; domestic expenditure; structural fiscal; debt-service; fiscal affairs department; fiscal frameworks; medium-term projections;

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    1. Peter S. Heller, 2005. "Understanding Fiscal Space," IMF Policy Discussion Papers 05/4, International Monetary Fund.
    2. Yongzheng Yang & Robert Powell & Sanjeev Gupta, 2005. "The Macroeconomic Challenges of Scaling Up Aid to Africa," IMF Working Papers 05/179, International Monetary Fund.
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