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Constraints to achieving the MDGs through domestic resource mobilization

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  • Rob Vos
  • Marco V Sanchez
  • Keiji Inoue
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    Abstract

    The present paper focuses on the role of domestic resource mobilization for financing poverty reduction strategies. Policy makers should be aware of important macroeconomic trade-offs associated with MDG strategies financed from tax increases or domestic borrowing. The trade-offs are largely intertemporal: can poor and middle-income countries absorb the initial financing costs in order to achieve expected gains in productivity and human development over time? This calls for a dynamic economy-wide framework to identify the importance of such trade-offs. The paper presents such a framework and illustrates its usefulness in applications for Costa Rica and Ecuador.

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    File URL: http://www.un.org/esa/desa/papers/2007/wp36_2007.pdf
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    Bibliographic Info

    Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 36.

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    Length: 32 pages
    Date of creation: May 2007
    Date of revision:
    Handle: RePEc:une:wpaper:36

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    Web page: http://www.un.org/en/development/desa/working-papers.html
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    Related research

    Keywords: computable general equilibrium models; distribution; welfare and poverty; foreign aid; macroeconomic analyses of economic development.;

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    1. Sherman, Robinson & Robilliard, Anne-Sophie & Bourguignon, François, 2005. "Representative versus real households in the macro-economic modelling of inequality," Economics Papers from University Paris Dauphine 123456789/4535, Paris Dauphine University.
    2. Paul Glewwe, 2002. "Schools and Skills in Developing Countries: Education Policies and Socioeconomic Outcomes," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 436-482, June.
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    Cited by:
    1. Nwachukwu, Jacinta, 2011. "Halving poverty in HIPC countries by 2015: How costly if achievable?," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 213-225, March.

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