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Constraints to achieving the MDGs through domestic resource mobilization

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  • Vos, Rob
  • Inoue, Keiji
  • Sánchez, Marco V.

Abstract

The present paper focuses on the role of domestic resource mobilization for financing poverty reduction strategies. Policy makers should be aware of important macroeconomic trade-offs associated with MDG strategies financed from tax increases or domestic borrowing. The tradeoffs are largely intertemporal: can poor and middle-income countries absorb the initial financing costs in order to achieve expected gains in productivity and human development over time? This calls for a dynamic economy-wide framework to identify the importance of such trade-offs. The paper presents such a framework and illustrates its usefulness in applications for Costa Rica and Ecuador.

Suggested Citation

  • Vos, Rob & Inoue, Keiji & Sánchez, Marco V., 2007. "Constraints to achieving the MDGs through domestic resource mobilization," Conference papers 331653, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331653
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    Cited by:

    1. Kunal Sen, "undated". "Towards Inclusive Financial Development for Achieving the MDGs in Asia and the Pacific," MPDD Working Paper Series WP/10/07, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    2. Rob Vos & Marco V. Sánchez & Cornelia Kaldewei, 2010. "Latin America and the Caribbean’s challenge to reach the MDGs: financing options and trade-offs," Palgrave Macmillan Books, in: Marco V. Sánchez & Rob Vos & Enrique Ganuza & Hans Lofgren & Carolina Díaz-Bonilla (ed.), Public Policies for Human Development, chapter 2, pages 17-69, Palgrave Macmillan.
    3. Nwachukwu, Jacinta, 2011. "Halving poverty in HIPC countries by 2015: How costly if achievable?," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 213-225, March.

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    More about this item

    Keywords

    Food Security and Poverty; Agricultural and Food Policy;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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