Pro-poor Policies After MDGs in Sub-Saharan Africa


Published on

Presentation by Louis Kasakande (African Development Bank) during the High Level Policy Forum - After 2015: Promoting Pro-poor Policy after the MDGs - Brussels, 23 June 2009 -

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Pro-poor Policies After MDGs in Sub-Saharan Africa

  1. 1. Pro-poor Policies After MDGs in Sub-Saharan Africa Louis Kasakande Chief Economist African Development Bank
  2. 2. Outline of the presentation 1. Highlights of Africa’s progress towards MDGs 2. Pro-poor policies after MDGs: challenges 3. Rethinking Pro-poor policies after MDGs in Africa 4. Concluding remarks
  3. 3. 1. Highlights of Africa’s progress towards MDGs  On average SSA is the region with the slowest pace of progress towards reaching targets set in the MDGs.  However, there are significant disparities across countries in the progress towards MDGs  Some countries have registered rapid progress towards achieving some targets, while others recorded much slower progress. (see Figure below)
  4. 4. Figure 1: Progress towards universal education in selected African countries
  5. 5. 1. Highlights of Africa’s progress towards MDGs (contd)  Tracking progress is undermined by lack of timely and reliable data on targets.  Despite efforts in generating MDGs-related data in most African countries, poor quality of data is still a significant challenge for monitoring progress in real time.
  6. 6. 2. Pro-poor policies after MDGs: challenges (contd..)  Little effort has been made to recognize that most of the targets are means to accelerate economic prosperity; but often they are considered as ends in their own right.  As a result, there is a weak mapping from targets to policy instruments or vice versa.  Identifying robust & potent policy instruments to achieve a set of targets is complicated by multiplicity of targets
  7. 7. 2. Pro-poor policies after MDGs: challenges (contd)  MDGs also often lack coherence & coordination partly because of multiplicity of players.  Governments, development agencies (UNDP, bilateral aid agencies, etc..), NGOs, civil society organizations have rallied themselves around MDGs often resulting in duplication of efforts.  The multiplicity of players naturally results in sub-optimal of resources.
  8. 8. 3. Rethinking pro-poor policies after MDGs  MDGs will continue to be relevant beyond 2015 for a number of reasons:  As shared vision, they can rally public support for increased ODA in donor countries;  They provide a platform for better development partnership  The goals are popular and easily understandable; this important for building public support behind the goals.  But, they need rethinking in the following areas for effective implementation
  9. 9. 3. Rethinking Pro-poor policies beyond 2015  Recent events have shown fragility in growth performance and the threat to attaining the MDGs;  Income inequality and the associated social tensions (Kenya)  Vulnerability to External shocks ( Food crisis and Financial crisis)  The reversal of gains in just six months in case of the Financial crisis
  10. 10. 3. Rethinking pro-poor policies after MDGs (contd..)  Refocusing targets: the focus should be on the following two encompassing goals.  Focused Goal 1: Promoting growth  wealth creation is a perquisite for redistribution, investment, acceleration of the increase in living standards  growth targets should show progress in areas beyond education, and health to include infrastructure, etc..  But, focusing on growth allows optimal use of resources.
  11. 11. 3. Rethinking pro-poor policies after MDGs (contd..)  Focused goal 2: Reducing inequality  rising inequality is a major constraint to wealth creation and poverty reduction  Reduction in inequality increases the gains from growth across cross-section of society and regions  Lower inequality promotes social justice and stability
  12. 12. Rethinking Pro-poor policies beyond 2015  Focus on Fragile States  Threat to MDGs is the existence of fragile states  Agree that aid is more effective in good policy environment BUT we need to rethink approach to fragile states.  Cost is enormous once they fall into fragility(Somalia,DRC,Zimbabwe). Should we rethink PBA?  Action may be needed beyond regional effort
  13. 13. 3. Rethinking Pro-poor policies beyond 2015…  Broaden Goal 7: Sustainable Growth  Climate change remains a threat to sustainable development  Recognise the external shocks that pose a big threat to sustainable development  Rebalance growth strategy between social and infrastructure
  14. 14. 3. Rethinking pro-poor policies after MDGs (contd..)  Better definition of policy instruments  So far there is no clear mapping from policy instruments to targets  no information on the sensitivity of targets to instruments  no defined intermediate targets  as a principle, the fewer the targets, the easier the implementation & monitoring  Another major problem in the current setting is lack of adequate control over the policy instruments:  Poor policy alignment  Weak harmonization of aid policies
  15. 15. 4. Concluding remarks  Experience from SSA suggests that the popular policy action to reach the MDGs is to scale up government expenditure/ODA in the delivery of basic social services.  Little attention has been paid to economy- wide effects of interventions and interactions across interventions.
  16. 16. 4. Concluding remarks (contd)  Some progress in MDGs can be traced back to involvement of large donor resources. However, aid-driven progress towards the MDGs raises concerns of sustainability of targets (risk of deterioration of targets after aid).
  17. 17. 4. Concluding remarks (contd)  As we look forward beyond 2015, it is imperative to rethink pro-poor policies in terms of:  Instrument-target alignment,  Prioritization of targets,  Sequencing,  Greater coherence of financing with overall development strategy of each country.