MDGbased National Strategies: What do they Look Like

1
MDG-based National Strategies What do they Look
Like?

• Workshop
• FSM
• 26-29 June 2007
• degol.hailu_at_undp.org

2
The Concept

• Linking strategies to the MDGs is linking where
  we want to be with how we want to get there

3
What does an MDG-Based Strategy Look Like?

• Poverty profile, diagnosis and analysis
• Analysis of growth and poverty linkages
• Country driven consultative and partnership
  based
• National and MDG goals and targets aligned
• Polices and strategies (sectoral and macro)
• Capacity building and governance
• Needs assessment and financing the strategy and
• Monitoring and evaluation systems.

4
Contribution to Poverty Analysis

• The strategy process is an effective mechanism
  for transferring analytical and empirical
  information about poverty reduction across
  sectors
• The process supports data collection, including
  technical advice, which substantially contribute
  to the quality of poverty diagnosis and
  identification of gaps in poverty related data
• Opportunity to work out determinants of poverty
  at the household and national levels

5
Growth and Poverty Linkages

• Economic growth is the principal, but not the
  only means to reduce poverty
• What are the sources of economic growth and what
  is the potential for growth in the future?
• What are the mechanisms and conditions by which
  economic growth translates into poverty
  reduction?
• How do initial poverty and inequality affect the
  prospect for sustained and rapid economic growth?
  
• What are the links among economic growth, income
  distribution and poverty in the short and long
  term?

6
Interactive Participation

• Consultation and participation change the
  relationship between government and donors and
  lenders, and between governments and civil
  society
• Start down-stream and move up-stream
• NGOs independent task force to contribute and
  monitor the consultative process
• Worst practice is consultations mostly to provide
  reactions to governments existing policies and
  programs

7
Develop an MDG Matrix
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Developing Proxies

• Filling Gaps Primary school completion rates and
  transition rates to secondary school are often
  used as proximate indicators of dropout and
  persistence rates
• Dealing with data discordance apparently high
  levels of access to health services coupled with
  low health outcome indicators. Use proximate
  information to substitute for the flawed data.
• Regional Initiatives Harmonisation of
  definitions and methodology when collecting
  environmental statistics, for instance

9
Introduce Ambitious Policies and
StrategiesMacro and Sectoral

• Develop pro-poor growth strategies to
  redistribute the growth increment for successful
  poverty reduction (for example, Ethiopia and
  Vietnam)
• Fiscal and monetary policies must have a pro-poor
  macroeconomic framework, where the priorities are
  real targeting as opposed to monetary targeting
• From inflation 7.5 and OB -1.7 of GDP b/n
  2002-2005 to employment and MDG targets.
• Education, Health (HIV/AIDS), Gender policies

10
Capacity Building

• Strengthening government capacity in creating
  conducive environment for domestic entrepreneurs
• Building the capacity of local and regional
  administration in execution of development
  programs
• Enhance the government's capacity to minimize
  adverse impacts of market failure
• Strengthening the capacity of democratic/political
  institutions to insure the rule of law at all
  levels of the administration system
• Strengthen the government's capacity for
  efficient and effective service delivery, and
  accountability

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Carry out a needs assessment

• Identify infrastructure, human, and financial
  resources that correspond to budgetary outlays or
  expenditures, laying the ground for aligning
  public medium-term expenditure frameworks with
  national MDG strategies
• The UN Millennium Project, in cooperation with
  local partners, has carried out preliminary MDG
  needs assessments in Bangladesh, Cambodia, Ghana,
  Tanzania, and Uganda. The results show that these
  countries total MDG investment needs are 7080
  per capita in 2006, rising to 120160 in 2015.

12
Financing strategy

• Link to the national budget set out clear
  benchmarks for monitoring and reporting on
  progress
• Develop an MDG financing strategy map out
  government expenditures, specifies contributions
  from households and the private sector, and
  identifies the MDG financing gap to be covered
  through increased aid and debt relief
• Prepare an MDG-consistent macroeconomic
  framework A macroeconomic framework identifies
  how public expenditures and revenues relate to
  key macroeconomic variables, such as GDP growth,
  national savings rates, private investment,
  inflation, and current account balances.

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Establish Poverty Monitoring Systems

• Track changes in key poverty indicators to
  evaluate whether the changes are due to
  deliberate policies instituted to reduce
  poverty.
• Process monitoring is crucial as opposed to
  outcome monitoring. Once the relevant indicators
  are identified tracking progress becomes easier,
  mainly because indicators can be divided into
  two final and intermediate
• It is possible to work out whether a country is
  moving towards the direction of poverty
  reduction and
• If a country is not on course for poverty
  reduction, then corrective measures can be taken
  early No Surprise

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Process Monitoring
15
Strong MDG-based Strategies

• Emphasis on poverty reduction
• Sound poverty diagnostics and analysis
• Broad and multidimensional look at poverty
• Expenditure outlays linked to poverty reduction
  strategy
• Guided by a pro-poor macroeconomic framework
• Poverty and MDG monitoring systems in place
• Strategy is the result of interactive
  participation

16
Weak MDG-based Strategies

• Poverty not the focus of the strategy
• Too broad objectives
• Lack of poverty diagnostics and analysis
• Objectives not linked to the budget process
• Sources of growth not adequately identified
• Poor linkages between growth and poverty
  reduction
• Monitoring systems are not clearly set out
• No meaningful participation

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Checklist on the strategy

• Is the strategy based on poverty analyses?
• Are the links between growth and poverty
  reduction identified?
• Is the process nationally owned and country
  driven, which are essential to commitment to
  implementation?
• Are the national goals and targets aligned with
  MDGs
• Are the sectoral and macro policies in place?
• Is the strategy costed and linked to fiscal
  instruments?
• Is the strategy consistent with and does it
  improve national capacity to implement programmes
  and monitor outcomes?
• Is a monitoring system in place?

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Case Country Surinam

• Absence of poverty diagnostic and analysis
• The links between growth poverty unidentified
• Commitment to the participation of all actors in
  the implementation of the national plan, but
  little consultation during its preparation
• The goals are aligned with MDGs
• Sectoral policies are in place, but not macro
  policies
• Adequate costing of the plan with source of
  finance (PlanBudget)
• No capacity development plan is in place
• Monitoring systems use the process concept

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Case Country Ethiopia

• Complete poverty diagnostic and analysis
• The links between growth poverty articulated
  agriculture identified as source of growth and
  poverty reduction with labour productivity and
  capital inputs, fertilizer etc.
• Top-down approach to consultation and
  participation
• The goals are aligned with MDGs
• Sectoral policies are in place, with macro
  policies
• Adequate costing of the plan with source of
  finance - by sector and sources of revenue using
  the MEEF
• Capacity development plan is in place
• Monitoring systems use the process concept

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Guide for Discussion

• (a)What do the case studies reveal in terms of
  difficulties, solutions, and how it can apply to
  your country situation?
• (b) How does your planning process need to change
  to ensure an MDG-based approach?

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Group Work

• What is the state of poverty diagnostics and
  analysis in your country? If inadequate, what are
  your suggestions to improve them?
• Discuss the linkages between growth and poverty
  in your country
• How would you design a consultative and
  participatory process for an MDG-based strategy?
• What ambitious pro-poor policies do you suggest
  for achieving MDG-related targets?
• How would you design a capacity development
  programme and identify the target groups?
• What are the major sources of financing MDG-based
  strategies?
• What methodology would you use for setting up
  poverty and MDG monitoring systems?
• Construct a short MDG Matrix for 4-5 of the MDG
  goals

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END

• Thank You
• degol.hailu_at_undp.org