Financing the Poverty Millennium Development Goals in Ethiopia

Course ID
Ethiopian Economics Association (EEA)
Teferi Mequaninte Tensay

In the past aid was considered as charity flowing from developed to developing countries. In recent years, however, that belief was proved wrong. The March 2002 world leaders meeting in the International Conference on Financing for Development in Monterrey, Mexico, for instance, makes it clear that aid should be considered as an instrument for world peace and development. Accordingly, by enabling poor people and poor countries to overcome their health, education and economic problems, aid can serve as a bridge for “global partnership”. It can also reduce poverty and inequality that increasingly threaten the collective security of the international community (Ibid). Following this consensus, the problems related to aid quantity and quality were discussed. For instance, between 2002 and 2004 official development assistance increased by $ 12 billion. The Paris declaration on aid quality also emphasized on harmonization, coordination and country ownership. In addition to these the Group of Eight (G-8) summit in 2005 pledged for more development assistance in the form of additional aid and debt relief. Despite all these efforts however, the flow of aid to Ethiopia is small compared to the promises. After signing the Millennium Declaration, from which the MDGs emerged, donor governments have failed to provide the necessary aid required for achieving the MDGs targets. This is reflected in a large and growing financing gap (Human development report 2005). The objective of this research proposal is therefore to estimate the external financing required to achieve the international target of halving extreme poverty by 2015 in Ethiopia over the periods 2007-2010 (base scenario) and 2007-2015 (poverty reduction target scenario). To generate simulations under these two scenarios, the research will employ saving-gap model developed by Lensink and Van Bergeijk (1991)

Corporate Author: Getnet Alemu (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Publisher: Ethiopian Economic Association (EEA)
ISBN/ISSN: 978-99944-54-10-5
Primary Descriptors: Poverty Allivation

Secondary Descriptor: MGD

Geographic Descriptors: Ethiopia
Cataloge Date: 02/27/2013
Broad Subject heading: Millennium Development Goals
Call Number: 330.963 PRO 2009
Serial Key Title: Proceedings of the Sixth International Conference on the Ethiopian Economy
Publication catagory: International Conference
Content type: EEA Publication
Volume: I
Publication date: 2013-05-27 23:09:00
Forum or Discussion date: 2013-02-27 15:02:18
Place of publication: Addis Ababa, Ethiopia
Type of material: Book
Current frequency: Annualy
Author: Teferi Mequaninte Tensay

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