Tackling rural poverty, together

Extract

The Millennium Project Report, Investing in Development, invites developing countries to formulate expenditure plans based on what they will need to do to reach the MDGs. Additional aid needed will be very substantial, even after allowing for re-allocation of current aid flows away from non-MDG related purposes. The report estimates that the additional requirement, over and above current net ODA of some $yt billion p.a., will rise in constant prices from $70 billion in 2006 to $120 billion in 2015.

Is this 'Big Bang' strategy realistic? This note welcomes the prospect of more aid for the world's most important project, points to some problems in getting started and to some pitfalls to avoid, and emphasises the need to sustain momentum in poverty reduction after 2015.

Table of contents:

1. Timing: many target countries; some not ready
2. Chosen instrument: public expenditure
3. Growth is a prerequisite
4. Making aid effective
5. After 2015?