Professor Jeffrey Sachs, Millennium Project
Presentation to CSD-12
Professor Jeffrey D. Sachs
Director of the Millennium Project
April 28, 2004
There is still time to achieve the MDGs ? barely
Even in the poorest countries there is still time to achieve the MDGs, but the window of
opportunity is closing rapidly because of inadequate progress to date. Serious country-level
planning during the coming year, undertaken by committed governments in conjunction with
development partners, needs to focus on (1) the 2015 time horizon; (2) the MDGs as (minimum)
targets; and (3) adequate official development assistance (ODA) to achieve the MDGs.
An MDG-based Poverty Reduction Strategy
The Millennium Project proposes that every low-income country, and especially countries far off
track to achieve one or more of the MDGs, should prepare an MDG-based Poverty Reduction
Strategy (MDG-based PRS). In cases where PRSPs already exist, these should be strengthened to
ensure compatibility with the MDGs. The MDG-based PRSs should be completed by the time of
the 5-year review of the Millennium Declaration in fall 2005 and they should include:
1. An ?MDG needs assessment? of how much scaling up of investments in core
infrastructure, human resources and service delivery is needed through to 2015.
2. A policy framework through 2015 that outlines how the country?s policies and
programs, backed by international development partners, will meet the country?s MDGs.
3. A financing plan (within the PRS where those exist), with three years of detailed
commitments by the government and development partners, and ten years of financing
objectives.
4. A strategy for independent monitoring and evaluation of the PRS implementation.
The Components of an MDG-based PRS
The MDG-based PRS should outline the investments and policy priorities across all key sectors,
including infrastructure (roads, power, ports, water and sanitation), social sectors (health,
education, nutrition), women?s empowerment, rural productivity (soil health, water management)
and urban productivity (slum upgrading, urban planning, urban transport, urban wastewater
treatment). The MDG-based PRSs should recognize that the Goals are interdependent and that
achieving each one of them requires public investments in a broad range of infrastructure and
social sectors. For example, meeting the Water and Sanitation Goal is critical for making water
available for productive use, achieving gender equity, reducing child mortality and improving
other health outcomes. Conversely, in order to meet the Water and Sanitation Goal, countries
need to strengthen hygiene education and community awareness programs, accelerate slum
upgrading, improve access to energy services, strengthen their management of critical freshwater
ecosystems, and contain water pollution. Therefore, only a bold and comprehensive publicinvestment
strategy will prove successful.
Next Steps at the Country Level
The Millennium Project recommends that the MDG-based PRSs should be prepared by a multistakeholder
process led by the national government. Participants in this process should include
the national government, sub-national (e.g. district and local authority) government
representatives, civil society representatives, international development partners, and experts
from the UN specialized agencies and the Bretton Woods institutions.
Next Steps at the International Level
The international system ? including donors, UN specialized agencies, and civil society
organizations ? will need to give additional support to low-income countries to pursue this MDGbased
Poverty Reduction Strategy process. This includes providing technical advice wherever
possible, removing trade barriers, advancing debt cancellation dramatically, and providing major
increases in official development assistance where necessary.
The following specific steps will be important:
? A major increase in financing under IDA-14, to support roughly a tripling of IDA annual
flows to a level of around $25 billion per year. IDA flows to the poorest countries should
be in the form of grants rather than loans.
? A strengthening of the HIPC initiative. ?Debt sustainability? should be defined as the
ability to service debts while achieving the MDGs. According to this MDG-based debtsustainability
standard, many of the world?s poorest countries will need 100-percent
cancellation of their outstanding debts.
? Support for the International Financing Facility as proposed by the United Kingdom, or a
similar mechanism, to enable a doubling or more of official development assistance
during the period 2005 to 2015.
? Reforms of official development assistance processes to ensure their compatibility with
the MDGs. This will require: increased donor harmonization, increased emphasis on
budget support, medium-term commitments of donor flows, reliance on grants rather than
loans, and support for country-led MDG-based PRSs.
? Rapid action on international trade policies to ensure full market access to the least
developed countries in all of their export sectors, including agriculture, apparel, and other
labor-intensive manufactures and services.
? Commitments by leading international companies, especially those participating in the
Global Compact, to support the MDGs.
? Commitments by leading scientific and technological bodies, including national and
international academies of sciences and academic institutions to support the MDGs.
? Monitoring of the progress of MDG-based Poverty Reduction Strategies in future
sessions of the Commission on Sustainable Development.
For Further Information
Please contact the Millennium Project
John McArthur
Manager
Tel: +1 212 906 5783
Fax: +1 212 906 6349
Email: john.mcarthur@unmillenniumproject.org
Website: www.unmillenniumproject.org
Professor Jeffrey D. Sachs
Director of the Millennium Project
April 28, 2004
There is still time to achieve the MDGs ? barely
Even in the poorest countries there is still time to achieve the MDGs, but the window of
opportunity is closing rapidly because of inadequate progress to date. Serious country-level
planning during the coming year, undertaken by committed governments in conjunction with
development partners, needs to focus on (1) the 2015 time horizon; (2) the MDGs as (minimum)
targets; and (3) adequate official development assistance (ODA) to achieve the MDGs.
An MDG-based Poverty Reduction Strategy
The Millennium Project proposes that every low-income country, and especially countries far off
track to achieve one or more of the MDGs, should prepare an MDG-based Poverty Reduction
Strategy (MDG-based PRS). In cases where PRSPs already exist, these should be strengthened to
ensure compatibility with the MDGs. The MDG-based PRSs should be completed by the time of
the 5-year review of the Millennium Declaration in fall 2005 and they should include:
1. An ?MDG needs assessment? of how much scaling up of investments in core
infrastructure, human resources and service delivery is needed through to 2015.
2. A policy framework through 2015 that outlines how the country?s policies and
programs, backed by international development partners, will meet the country?s MDGs.
3. A financing plan (within the PRS where those exist), with three years of detailed
commitments by the government and development partners, and ten years of financing
objectives.
4. A strategy for independent monitoring and evaluation of the PRS implementation.
The Components of an MDG-based PRS
The MDG-based PRS should outline the investments and policy priorities across all key sectors,
including infrastructure (roads, power, ports, water and sanitation), social sectors (health,
education, nutrition), women?s empowerment, rural productivity (soil health, water management)
and urban productivity (slum upgrading, urban planning, urban transport, urban wastewater
treatment). The MDG-based PRSs should recognize that the Goals are interdependent and that
achieving each one of them requires public investments in a broad range of infrastructure and
social sectors. For example, meeting the Water and Sanitation Goal is critical for making water
available for productive use, achieving gender equity, reducing child mortality and improving
other health outcomes. Conversely, in order to meet the Water and Sanitation Goal, countries
need to strengthen hygiene education and community awareness programs, accelerate slum
upgrading, improve access to energy services, strengthen their management of critical freshwater
ecosystems, and contain water pollution. Therefore, only a bold and comprehensive publicinvestment
strategy will prove successful.
Next Steps at the Country Level
The Millennium Project recommends that the MDG-based PRSs should be prepared by a multistakeholder
process led by the national government. Participants in this process should include
the national government, sub-national (e.g. district and local authority) government
representatives, civil society representatives, international development partners, and experts
from the UN specialized agencies and the Bretton Woods institutions.
Next Steps at the International Level
The international system ? including donors, UN specialized agencies, and civil society
organizations ? will need to give additional support to low-income countries to pursue this MDGbased
Poverty Reduction Strategy process. This includes providing technical advice wherever
possible, removing trade barriers, advancing debt cancellation dramatically, and providing major
increases in official development assistance where necessary.
The following specific steps will be important:
? A major increase in financing under IDA-14, to support roughly a tripling of IDA annual
flows to a level of around $25 billion per year. IDA flows to the poorest countries should
be in the form of grants rather than loans.
? A strengthening of the HIPC initiative. ?Debt sustainability? should be defined as the
ability to service debts while achieving the MDGs. According to this MDG-based debtsustainability
standard, many of the world?s poorest countries will need 100-percent
cancellation of their outstanding debts.
? Support for the International Financing Facility as proposed by the United Kingdom, or a
similar mechanism, to enable a doubling or more of official development assistance
during the period 2005 to 2015.
? Reforms of official development assistance processes to ensure their compatibility with
the MDGs. This will require: increased donor harmonization, increased emphasis on
budget support, medium-term commitments of donor flows, reliance on grants rather than
loans, and support for country-led MDG-based PRSs.
? Rapid action on international trade policies to ensure full market access to the least
developed countries in all of their export sectors, including agriculture, apparel, and other
labor-intensive manufactures and services.
? Commitments by leading international companies, especially those participating in the
Global Compact, to support the MDGs.
? Commitments by leading scientific and technological bodies, including national and
international academies of sciences and academic institutions to support the MDGs.
? Monitoring of the progress of MDG-based Poverty Reduction Strategies in future
sessions of the Commission on Sustainable Development.
For Further Information
Please contact the Millennium Project
John McArthur
Manager
Tel: +1 212 906 5783
Fax: +1 212 906 6349
Email: john.mcarthur@unmillenniumproject.org
Website: www.unmillenniumproject.org