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Aid, service delivery, and the millennium development goals in an economy-wide framework


  • Bourguignon, Francois
  • Diaz-Bonilla, Carolina
  • Lofgren, Hans


In many developing countries, achieving the Millennium Development Goals (MDGs) by 2015 will require significant increases in expenditures on social services and in foreign assistance. It will also require careful planning of the sector allocation and sequencing of public spending. Especially for low-income countries, the challenges of the MDGs cannot be well understood unless sector issues are seen in the context of constraints at the macro level and in labor markets. To help countries analyze policies aimed at making progress toward the goals, the World Bank has developed a new tool, the Maquette for MDG Simulations (MAMS). Its originality is to fully integrate government services and their impact on the economy within an otherwise standard economy-wide dynamic framework. In comparison with existing approaches, MAMS offers three main advantages. First, the representation of the production of government services - such as health or education - takes into account demandas well as supply factors and the efficiency of these services. It also allows for interactions across the goals, and between the goals and economic growth. Second, it shows how scaling up these services has economy-wide impacts that may change resource allocation in the non-government sector and relative prices, including the unit cost of government services. Third, it shows the tradeoffs across time, including the relative costs and benefits, of front-loading expenditures versus back-loading. The present paper describes the basic features of MAMS and provides an illustration of its applicability for Ethiopia.

Suggested Citation

  • Bourguignon, Francois & Diaz-Bonilla, Carolina & Lofgren, Hans, 2008. "Aid, service delivery, and the millennium development goals in an economy-wide framework," Policy Research Working Paper Series 4683, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4683

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    References listed on IDEAS

    1. Agénor, Pierre-Richard & Bayraktar, Nihal & El Aynaoui, Karim, 2008. "Roads out of poverty? Assessing the links between aid, public investment, growth, and poverty reduction," Journal of Development Economics, Elsevier, vol. 86(2), pages 277-295, June.
    2. Pierre-Richard Agénor & Nihal Bayraktar & Emmanuel Pinto Moreira & Karim El Aynaoui, 2006. "Achieving the Millennium Development Goals in Sub-Saharan Africa: A Macroeconomic Monitoring Framework," The World Economy, Wiley Blackwell, vol. 29(11), pages 1519-1547, November.
    3. Lavy, Victor & Strauss, John & Thomas, Duncan & de Vreyer, Philippe, 1996. "Quality of health care, survival and health outcomes in Ghana," Journal of Health Economics, Elsevier, vol. 15(3), pages 333-357, June.
    4. Christiaensen, Luc & Scott, Christopher & Wodon, Quentin, 2002. "Development Targets and Costs," MPRA Paper 12299, University Library of Munich, Germany.
    5. Sudhir Anand & Martin Ravallion, 1993. "Human Development in Poor Countries: On the Role of Private Incomes and Public Services," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 133-150, Winter.
    6. Glewwe, P. & Jacoby, H., 1993. "Delayed Primary School Enrollment and Childhood Malnutrition in Ghana, an Economic Analysis," Papers 98, World Bank - Living Standards Measurement.
    7. Anne Case & Angus Deaton, 1998. "School quality and educational outcomes in South Africa," Working Papers 993, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..
    8. Sanjeev Gupta & Catherine A Pattillo & Kevin J Carey, 2005. "Sustaining Growth Accelerations and Pro-Poor Growth in Africa," IMF Working Papers 05/195, International Monetary Fund.
    9. Clemens, Michael A. & Kenny, Charles J. & Moss, Todd J., 2007. "The Trouble with the MDGs: Confronting Expectations of Aid and Development Success," World Development, Elsevier, vol. 35(5), pages 735-751, May.
    10. Emanuele Baldacci & Larry Q Cui & Benedict J. Clements & Sanjeev Gupta, 2004. "Social Spending, Human Capital, and Growth in Developing Countries; Implications for Achieving the MDGs," IMF Working Papers 04/217, International Monetary Fund.
    11. repec:pri:crcwel:wp98-08-case is not listed on IDEAS
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    Cited by:

    1. Carolina Díaz-Bonilla & Hans Lofgren & Martin Cicowiez, 2008. "Public Policies for the MDGs: The Case of the Dominican Republic," CEDLAS, Working Papers 0072, CEDLAS, Universidad Nacional de La Plata.
    2. World Bank, 2011. "Uganda - Demography and Economic Growth in Uganda," World Bank Other Operational Studies 2811, The World Bank.
    3. Anil Markandya & Sununtar Setboonsarng & Qiao Yu Hui & Rachanee Songkranok & Adam Stefan, 2010. "The Costs of Achieving the Millennium Development Goals through Adopting Organic Agriculture," Development Economics Working Papers 23015, East Asian Bureau of Economic Research.
    4. World Bank, 2009. "Unleashing the Potential of Ethiopian Women : Trends and Options for Economic Empowerment," World Bank Other Operational Studies 18862, The World Bank.
    5. Lofgren, Hans & Nielsen, Hannah & Ezemenari, Kene, 2009. "Scaling up aid or scaling down : the global economic crisis and Rwanda's MDGs," Policy Research Working Paper Series 4958, The World Bank.

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    Economic Theory&Research; Population Policies; Health Monitoring&Evaluation; Banks&Banking Reform;

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