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Latin America and the Caribbean’s Challenge to Reach the MDGs: Financing Options and Trade-offs

Author

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  • Rob Vos
  • Marco V. Sánchez
  • Cornelia Kaldewei

Abstract

The present study analyzes the determinants of improving outcomes in education, health and basic sanitation and the macroeconomic trade-offs caused by scaling up public spending for the Millennium Development Goals (MDGs), using an integrated modelling approach. At variance with other assessments, the analysis shows that most countries in Latin America and the Caribbean are “off track” towards many of the goals. The study shows that while achieving the goals is affordable for most countries in the region, governments will need to put greater emphasis on tax reforms to mobilize resources for increased social spending while avoiding undesirable macroeconomic trade-offs.

Suggested Citation

  • Rob Vos & Marco V. Sánchez & Cornelia Kaldewei, 2008. "Latin America and the Caribbean’s Challenge to Reach the MDGs: Financing Options and Trade-offs," Working Papers 68, United Nations, Department of Economics and Social Affairs.
  • Handle: RePEc:une:wpaper:68
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    1. Graciela L. Kaminsky & Carmen M. Reinhart & Carlos A. Végh, 2005. "When It Rains, It Pours: Procyclical Capital Flows and Macroeconomic Policies," NBER Chapters, in: NBER Macroeconomics Annual 2004, Volume 19, pages 11-82, National Bureau of Economic Research, Inc.
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    6. -, 2005. "The millennium development goals: a Latin American and Caribbean perspective," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 2798 edited by Eclac, September.
    7. Escaith, Hubert & Inoue, Keiji, 2001. "Small economies' tariff and subsidy policies in the face of trade liberalization of the Americas," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 34828, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    8. Vos, Rob & Inoue, Keiji & Sánchez, Marco V., 2007. "Constraints to achieving the MDGs through domestic resource mobilization," Conference papers 331653, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. François Bourguignon & Mark Sundberg, 2006. "Constraints to Achieving the MDGs with Scaled-Up Aid," Working Papers 15, United Nations, Department of Economics and Social Affairs.
    10. Al-Batuly, Abdulmajeed & Al-Hawri, Mohamed & Cicowiez, Martin & Lofgren, Hans & Pournik, Mohammad, 2012. "Achieving the MDGs in Yemen : an assessment," Policy Research Working Paper Series 6013, The World Bank.
    11. Hans Lofgren & Carolina Díaz-Bonilla, 2010. "MAMS: an economy-wide model for analysis of MDG country strategies— an application to Latin America and the Caribbean," Palgrave Macmillan Books, in: Marco V. Sánchez & Rob Vos & Enrique Ganuza & Hans Lofgren & Carolina Díaz-Bonilla (ed.), Public Policies for Human Development, chapter 3, pages 71-126, Palgrave Macmillan.
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    Cited by:

    1. Evans, David & van der Geest, Willem, 2009. "EU-China: Win-Win Trade Liberalization and Stimulus Scenarios?," Conference papers 331837, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. -, 2008. "Millennium development goals: progress towards the right to health in Latin america and the Caribbean," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 2919 edited by Eclac, September.

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    More about this item

    Keywords

    Computable General Equilibrium Models; Distribution; Welfare and Poverty; Foreign Aid; Macroeconomic Analyses of Economic Development;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D3 - Microeconomics - - Distribution
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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