Macroeconomic policies should support the achievement of the MDGs
By: Weeks J & McKinely T
Published by: UNDP International Poverty Centre, 2007
Via: Eldis
An alternative macroeconomic framework oriented towards achieving the Millennium Development Goals (MDGs) in Sub-Saharan Africa is known and feasible. Currently, the effects of neoliberal reforms have been counter-productive with non-intervention leading to increased volatility of nominal exchange rates. A large proportion of foreign exchange flows consist of Official Development Assistant and remittances which tend not to be responsive to exchange-rate movements while IMF conditionalities targeting inflation make exchange-rate management extremely difficult when the price of primary products like petrol go up. In fact, inflation-targeting is particularly detrimental to expanding investment which helps accelerate growth and human development. Another major obstacle to effectively implementing MDG-based macroeconomic policies is the underdevelopment of financial institutions.
(http://www.undp-povertycentre.org/pub/IPCPolicyResearchBrief4.pdf)
Wednesday, October 24, 2007
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