Asset Accumulation: An Alternative Approach to Achieving the Millennium Development Goals

The United Nations Millennium Development Goals (MDGs) are unlikely to be achieved by 2015, owing to conceptual flaws in their design as well as the structural and political constraints faced during implementation at the country level. While criticism of the MDGs is widespread, innovative ideas on addressing these operational challenges are still scanty. By reviewing a number of experiences, including those of the Foundation for the Promotion of Local Development (PRODEL) in Nicaragua and the Ministry of Cities in Brazil, this article highlights the importance of incorporating an asset‐accumulation perspective into MDG‐related policies and programmes as a way of generating an enabling environment that opens up new opportunities for poverty reduction in the cities of low‐ and middle‐low‐income countries.     

The MDG Conundrum: Meeting the Targets Without Missing the Point

The MDGs are being misappropriated to gain support for a specific development strategy, agenda or argument, mostly being used as a call for more aid or as a Trojan horse for a particular policy framework. As relative benchmarks, they are extremely difficult to meet in countries with low human development. Their misinterpretation as one‐size‐fits‐all targets is leading to excessive Afro‐pessimism, begging the question whether Africa is missing the targets or whether the world is missing the point. The global MDG canon is dominated by a money‐metric and donor‐centric view of development, and is not ready to accept that growing disparities within countries are the main reason why the 2015 targets will be missed.     

Linking Social Development with the Capacity to Carry Debt: Towards an MDG‐Consistent Debt‐Sustainability Concept

Owing to concerns among low‐income countries that the new debt sustainability framework of the Bretton Woods institutions may lock them into a so‐called ‘low debt‐low growth’ scenario, the United Nations has called for a more MDG‐consistent debt‐sustainability concept. This article shows that there is a robust relationship between achieving the Millennium Development Goals and having a higher capacity to carry debt. It then discusses options for modifying the current debt‐sustainability framework, and suggests that including progress made in achieving the MDGs in determining borrowing limits would be a first step towards adopting such a concept.     

Reproducing Inequalities through Development: The MDGs and the Politics of Method

Abstract

This article is a critical inquiry into particular methodological means underlying analyses of development, inequalities, and poverty in the context of the Millennium Development Goals (MDGs) discourse. A populist approach to poverty reduction, the MDG initiative has gained much exposure at the expense of a closer scrutiny of the specific methodological premises (and their implications) underlining the development frameworks through which the goals were to be realized. A critical examination of premises of this kind demonstrates the way in which the application of specific methods in analyses of development and poverty is carefully crafted to serve discernible ideological ends. In order to explicate this by way of an example, I draw on MDG1 (and target 2 with reference to hunger), which I discuss in relation to its integration with the overarching development objective of realizing economic growth. My aim is to demonstrate how dominant explanations and understandings of poverty and hunger, social struggles for fundamental entitlements, and ultimately ‘development’, are construed in ways that are premised on abstractions from actual social and political relations; they are framed as ‘independent variables’ external to the very policies and strategies of international development. The critical engagement offered in my analysis is timely, given the extent to which the MDG initiative and the post-2015 Sustainable Development Goals agenda have been presented without any attempt to answer to decades (and more) of critical arguments that offer more rigorous and sustained understandings of inequalities, including deprivations of basic life sustaining needs and fundamental entitlements.     

International Economic Assistance and Migration: The Case of Sub‐Saharan Countries

Development aid is commonly advocated as one of the most effective instruments to reduce international migration. Nevertheless, empirical evidence shows that push factors do not automatically result in massive migrations and that aid policies systematically fail to meet their stated objectives. Recently, several contributions have argued that an increase in sending countries’ wealth may lead to a rise in migration, rather than to a reduction, because it enables people to assume the costs and risks of migrating. However, despite the growing number of studies on this phenomenon, the role played by Official Development Assistance (ODA) has not received attention yet. This paper aims at providing empirical evidence on this specific issue. In particular, we investigate the relation between ODA and international migration rates of sub‐Saharan countries. We argue that ODA may have a positive effect on migration decisions for two reasons. First, ODA improves workers’ ability to cover the costs of migration, by providing new job opportunities and in turn increasing incomes in the recipient country. Second, ODA, which is often associated with development programs in education, communication services, and business opportunities, may also stimulate mobility aspirations of potential migrants. We develop an econometric analysis in order to investigate this hypothesis. Specifically, we perform a three‐stage least square estimation on a sample of 48 sub‐Saharan countries. We build a two‐equation model, so as to allow for endogeneity of ODA, and find that ODA has a positive and statistically significant effect on migration outflows. Thus, as our main contribution, we argue that development aids are not substitute for migration and that the traditional aid policies (such as those of the European Union), aimed at curbing migration by providing international financial aids, might need to be reconsidered.     

Remittances and Other Financial Flows to Developing Countries

Official estimates of migrants’ remittances are around US$100 billion annually, with some 60 per cent going to developing countries. Any policy making use of migrants as a development resource must understand the size and allocation of remittances, and the roles played by migrants and their communities in the remittance process. This paper examines the flows of remittances in relation to other financial flows to developing countries. The examination is based on data available from official statistics. As discussed in the paper, remittances by unofficial channels are significant by all accounts so the remittance amounts reported here are quite conservative. The paper shows that annual remittances to developing countries have more than doubled between 1988 and 1999. Viewed over the last decade, remittances have been a much larger source of income for developing countries than official development assistance (ODA). The gap is increasing, since ODA has been falling while remittances have increased. Furthermore, remittances appear to be a much more stable source of income than private flows, both direct and portfolio, which tend to be more volatile and flow into a limited set of countries. Remittances to developing countries go first and foremost to lower middleincome and low–income countries. Lower middle–income countries receive the largest amounts, but remittances constitute a much higher share of total international flows to low–income countries. Of the ten countries receiving most remittances, two are low–income (India and Pakistan); six are lower middle–income (Philippines, Turkey, Egypt, Morocco, Thailand, and Jordan); and two are upper middle–income (Mexico and Brazil). Sub–Saharan Africa received some 8 per cent of remittances in 1980, but only some 4 per cent in 1999. South Asia’s share also declined from what was already a relatively high 34 to 24 per cent. Those who gained most were Eastern Europe and Central Asia, South and Central America, and the Caribbean, which increased their share of global remittances.     

Children,Poverty and the Sustainable Development Goals

The Sustainable Development Goals (SDGs) came into force in January 2016, taking over from the Millennium Development Goals (MDGs). Significant human development progress has occurred in recent decades. Nevertheless, the MDGs have been criticised not least for failing to prioritise inequality and gains for the poorest people. The SDGs create a much more comprehensive agenda and support many key child rights concerns. While SDGs reflect an important global consensus, their delivery depends upon national action.     

The measurement of success in achieving the Millennium Development Goals

A new class of multidimensional indices is axiomatically characterized to assess countries’ overall success in achieving the Millennium Development Goals (MDGs). For that purpose we distinguish between the notions of progress and success functions. While the former basically measure changes between two points in time, the later essentially check whether these changes have been large enough to reach a prespecified target. These indices overcome some of the shortcomings of other conceptually related measures that have been proposed in the literature. Using data from the UN Statistical Office for the new indices, our results suggest that: i) On average, countries have only bridged about 23 % of the gap towards complete achievement of the MDGs, and ii) The best performing countries have only bridged around 40 % of that gap. The observed evolution has been relatively small and highly uneven across countries and dimensions, therefore posing an important challenge for international development agencies and national governments who aim to promote progress in the different MDGs.     

The Millennium Development Goals: Key Current Issues and Challenges

The current global financial and economic crisis has severely impaired social and economic progress throughout the world. Does this mean the end of the Millennium Development Goals (MDGs)? This article addresses this question, considering selected theoretical and strategic issues, including new and incremental approaches, the role of governmental leadership and operational integrity and the underlying question of appropriate development paradigms. It concludes that scaling‐up of current MDG efforts is imperative, as is the adoption of new and incremental approaches.     

Economic Incorporation,Civil Inclusion,and Social Ties: Plans to Return Home Among Central Asian Migrant Women in Moscow,Russia

This study uses data from a survey of female labor migrants from three Central Asian countries – Kyrgyzstan, Tajikistan, and Uzbekistan – in Moscow, Russia, to examine factors that influence these women's plans to return to their home countries. The conceptual framework considers three types of factors of migrants' attachment to the host society – economic incorporation, civil inclusion, and social connectedness – while also accounting for migrants' ties to their homelands. The results of multivariate analyses point to the importance of sector and type of employment, income, legal status, experience of ethnically motivated harassment, and social ties to adults relatives and friends in the host society in shaping return plans. In contrast, connections in the home country do not appear to influence the likelihood of having plans to return. These findings are contextualized within the political, socioeconomic, and ethnocultural reality of the post‐Soviet world and related to the cross‐national scholarship on return migration.     

From Poverty Reduction to Mutual Interests? The Debate on Differentiation in EU Development Policy

Aid to middle‐income countries has become one of the most discussed issues among development researchers and in the current modernisation of the development policy of the European Union. This article argues that the question needs to be dealt with in the context of two interlinked challenges: (i) the need to reconceptualise dominant approaches to global poverty reduction beyond national income, and (ii) the growing range of global challenges and the strategically important role of middle‐income countries. For EU development policy, the implications are twofold: (i) a better‐co‐ordinated cross‐country division of labour, and (ii) a diversification of objectives towards a global rationale of development policy involving closer co‐ordination with other EU external policies.     

The impact of rapid population growth,expanding urbanisation,and other factors on development in sub-Saharan Africa: the contrasting responses of Tanzania and Kenya

This article analyzes the impact of the twin factors of rapid population growth and expanding urbanization on social and economic development in sub-Saharan Africa and compares policies that have been developed in Tanzania and Kenya in response to these factors. The principal consequences of overpopulation and overurbanization have been economic stagnation and physical and cultural malaise in urban population centers. Between 1960-80, per capita incomes in 19 countries of sub-Saharan Africa grew by less than 1%/year and 15 countries recorded a negative rate of growth in per capita income during the 1970s. Urban populations have increased at at overall rate of 6%/year as sub-Saharan Africans have migrated to cities in search of employment. Few national governments in the region have formulated longterm strategies to deal effectively with this double-faceted development constraint or have integrated new urban populations into the national economy. tanzania's development strategy is focused on the goals of socialism, rural development, and self-reliance. Urban development has remained a residual item in Tanzania's national development process, despite the fact that the urban population increased from 5.7% of the total population in 1967 to 12.7% in 1978 and is projected to comprise 24.7% by the year 2000. In contrast, Kenya, whose proportion of urban population increased from 9% to 15% between 1962 and 1979, has pursued an urban-focused development strategy. The strong urban-rural linkages of the economy have focused migration to the secondary towns. The national development plan includes urban spatial, employment, and investment policies. Although this plan constitutes a good basis for future planning, the magnitude of the urban problem is beyond the capabilities of the central government and requires the development of local capabilities.     

Financial Planning Strategies of High School Seniors: Removing Barriers to Career Success

This study explored the postsecondary financial planning of graduating 12th graders as a barrier to educational and career decision making and success. Seniors planning on pursuing postsecondary education (N = 744) from 16 high schools completed an online survey measuring their plans for financing their postsecondary education. They also provided information regarding their academic achievement, motivation, certainty, and postsecondary goals and plans. Students clustered into 4 distinct financial planning strategy groups. These financial planning clusters were evident across a diverse sample of high schools. Almost half of all graduating 12th graders had limited financial planning strategies. Groupings and strategies employed by students were significantly related to career development theory and research. The critical role for career development services in promoting student success is discussed.     

Amplifying accountability by benchmarking results at district and national levels

This multi‐level ethnography of the Zambian health system illustrates the importance of top‐down accountability, and how it has emerged in a historically neglected sector. Maternal healthcare indicators are prioritized when they are benchmarked, at district and national levels. The realization that Zambia was lagging behind African countries in making progress towards Millennium Development Goal (MDG) 5 (to reduce the maternal mortality ratio by three quarters) appears to have evoked reputational concerns and revealed inspirational possibilities. Growing prioritization also stems from a change in incentives, with some partner funding being conditional on the proportion of deliveries attended by skilled health personnel.     

The PRSP Approach and the Illusion of Improved Aid Effectiveness: Lessons from Bolivia,Honduras and Nicaragua

Since 1999, poor countries that want to qualify for concessionary IMF loans and debt relief must elaborate and implement Poverty Reduction Strategy Papers. Donors claim that the PRSP approach will increase aid effectiveness since PRSPs will enhance broad country ownership and lead to better ‘partnership’ with donors, implying more donor co‐ordination under government leadership. By examining the experiences of Bolivia, Honduras and Nicaragua, this article finds that the results are disappointing. The article also shows that, by emphasising rational planning and ignoring politics, the PRSP approach has unintended and sometimes harmful consequences. This leads to recommendations for changes of the approach.     

Physical planning within the framework of National Development Planning in Nigeria

Nigeria has had experience with 5 Development Plans. In each of these successive national and state development plans, mention is made of physical planning problems — especially the urbanisation problem in Nigeria — a problem compounded by the ever-increasing rate of rural to urban migration. In this paper, an attempt will be made to review the priority given to physical planning in each of the successive National Development Plans, to examine the constraints on effective physical planning in Nigeria, and to propose strategies that will ensure proper integration of physical planning with national development planning.     

Gendered Leadership: The Effects of Female Development Agency Leaders on Foreign Aid Spending

This article examines the effects of gender on the leadership of bilateral development aid agencies, particularly their official development assistance (ODA) allocations toward gender‐related programming. Drawing on earlier research on gendered leadership, the article tests the hypothesis that female director generals (DGs) and ministers responsible for aid agencies will allocate more ODA than their male counterparts toward gender programming. This existing literature on gendered leadership is divided: some scholars argue that women and men have distinct leadership styles on account of their gender, while others argue that the only distinguishing factor is the institutional context in which they lead. Drawing on data collected on aid flows and agency leadership within the major Western aid donors of the Organisation for Economic Co‐operation and Development (OECD) Development Assistance Committee (DAC) over the period from 1995 through 2009, we use pooled time series analysis to examine the effects of gendered leadership on aid allocation. Our analysis reveals a tendency for female DGs and ministers to focus ODA on gender‐mainstreaming programs, while male DGs focus ODA on gender‐focused programs. We argue that these divergent priorities reflect the women's desire to reform gendered power structures within their respective aid agencies, and the men's desire to maintain existing gender power structures from which they benefit.     

Middle Class Identity in the Modern World: How Politics and Economics Matter

It is widely accepted that people tend to identify with the middle classes regardless of their social class position. Nevertheless, this “middle class identity bias” is not equally prominent in all western democracies. The goal of this article is to assess the role of political and economic conditions in shaping this phenomenon. By exploring the relationship between class identity and national context in 15 modern societies, I address two main questions: (1) how individual‐level income affects where people place themselves in the class system, and (2) how national political and economic context affects this relationship. In doing so, I offer several important findings. First, although there is a positive relationship between income and class identification in all 15 societies, middle class identification is weakest when income inequality is high. Consistent with previous findings, the results suggest that economic development has a positive impact on class identity. The results also uncover a role for political ideology by suggesting a lingering affect of Communist rule. Even after controlling for economic development and income inequality, respondents in former Communist countries are more likely than others to identify as belonging to a low social class.     

No Country Left Behind? Performance Standards and Accountability in US Foreign Assistance

The accountability movement in public policy hails a new programme for US foreign assistance – the Millennium Challenge Account established in 2004 with the aim of ‘picking winners’ for grants among developing countries based on their demonstrated quality of governance. This article uses the MCA's own rating system to dispute its claim to know in advance which countries are best positioned to meet major development goals. High governance scores alone bear little or no relationship to growth in national income or decline in poverty. Attempting to measure public‐policy performance limits the range of choice available to policy‐makers, and may inadvertently limit true performance.     

The ongoing growth of defined contribution and individual account plans: issues and implications

This Issue Brief discusses the implications of the growth of defined contribution (DC) retirement plans and individual account plans and the subsequent impact on employers, employees, and retirement planning. It also presents a look at data regarding contributions to retirement plans, employer trends regarding retirement plans, and the potential impact of changes to the federal Social Security retirement system. The findings and data in this article are drawn from material presented at a policy forum sponsored by the Employee Benefit Research Institute Education and Research Fund (EBRI-ERF) Dec. 7, 2001, in Washington, DC. Today, prospective retirees need to be able to generate about 75 percent of their current income to maintain their standard of living in retirement, up from 63 percent of their income in 1997, according to the Replacement Ratio Study, by Aon Corporation and Georgia State University. However, the most recent data show a decline in the percentage of income that average employees are saving. While it is too early to quantify, it does not appear that the retirement provisions in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) are strongly influencing the movement to DC plans. However, employers appear very interested in the provisions of the new law with regard to both defined benefit (DB) retirement plans and DC plans. The number of large employers offering DB plans continues to decline, from 85 percent in 1990 to 73 percent in 2000, according to the Hewitt study. Although employers may have little influence over some factors that affect participation rates in voluntary retirement plans, they have various options to increase participation rates, such as "matching" employee contributions, offering loan features, and providing education to employees about the plans.