Long-standing challenges
Millennium development goals, where we are?
Progress towards the achievement of the Millennium Development Goals (MDGs) has been uneven by countries, regions and goals. Poverty alleviation and gender educational attainment have seen significant progress. By contrast, maternal and child mortality, access to sanitation and water, and hunger eradication have been less promising. Most countries in sub-Saharan Africa have lagged significantly behind other developing regions. The local difficulties in Africa and the more general difficulties encountered in various regions in achieving some MDGs bring into question the policies pursued in order to attain the Goals by 2015.
Poverty and food crisis
Food insecurity and undernourishment have increased after the global economic crisis, owing to higher and more volatile prices of food and agricultural commodities. Change in demand and supply are responsible for recent price hikes and rising hunger has resulted. On the demand side, financial speculation and fundamental changes associated with economic and population growth are major contributing factors. On the supply side, several shocks, partly related to climate change, aggravated resource scarcities, and in some circumstances, sparked the diversion of resources towards biofuel production. Developing countries suffer the most with food shortages. Moreover, temporary shocks can have permanent effects if they trap people in conditions of extreme poverty. Investment in agricultural productivity and more widespread safety nets are necessary to reduce the impact of undernourishment in the developing world.
Official development assistance and debt relief
Debt relief and official development assistance (ODA) are key for the achievement of the MDGsMillennium Development Goals. ODA flows have increased steadily since the late 1990s, even if the global economic crisis has had a negative effect on absolute levels of ODA in the last few years. The international community has played an important role in pushing for more steady and increasing commitments from donor countries and improved governance and administration of funds in recipient countries. Flows as a share of donor country income, however, have remained constant, and a push to reach the target of 0.7 per cent is still needed. Debt relief is an important instrument for creating additional fiscal space in developing countries.
Climate change and the need for environmentally friendly development
Global warming and a growing population will put a severe strain on non-renewable and agricultural resources, potentially leading to higher prices of food and energy and making it more difficult for developing countries to achieve the MDGsMillennium Development Goals. Strict government regulations on greenhouse gas (GHG) emissions and deforestation are required. Meanwhile, large investment in new green technologies are essential for a more environmentally friendly growth process.
Policy recommendations
A broader perspective on the policy tools for achieving the Millennium Development Goals (MDGs) is fundamental. Macroeconomic policies should be geared to promoting full employment and a reduction of income inequality, instead of concentrating solely on price stability. Incomes policy to raise wages in line with the expansion of productivity is also a necessary complement to pro-growth macroeconomic policies. Further, official development assistance (ODA) flows should increase in a balanced way that takes into consideration the synergy between the various MDGs. Debt relief should become a more central element of the policy tool box to achieve the MDGs. Finally, reduction of greenhouse gas (GHG) emissions and the development of new renewable energy technologies should be a high priority.