Can we still Achieve the Millennium Development Goals?

From Costs to Policies

image of Can we still Achieve the Millennium Development Goals?

This study contributes to the current debate on achieving the Millennium Development Goals (MDGs), their relevance and what can be done after 2015, by looking at estimates of the cost of reaching the goals in 2015. In particular, it sizes the additional resources needed in developing countries to attain the goals.

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The cost of measures to fight poverty and to improve health and education

OECD Development Centre

The bottom-up estimate of the global cost of targeted transfers to lift half of the world’s poor out of extreme poverty (MDG 1) is nearly USD 5 billion. To achieve universal primary education (UPE - MDG 2-3), slightly less than USD 9 billion would have to be spent. On average, countries that still need to achieve UPE would need to increase spending on education by slightly more than 7%. The most challenging rate of increase in baseline expenditure is in sub- Saharan Africa, above 20%. However, it is middle-income countries that have the largest absolute expenditure shortfall, almost USD 8 billion in total. The highest costs are associated with health (MDGs 4-6) in low- and lower-middle income countries, at around USD 60 billion. In terms of regions, South Asia, and sub-Saharan Africa require the most, USD 35 billion, and USD 20 billion, respectively. The cost estimate for the promotion of gender equality and the empowerment of women (MDG 3) is partially covered by UPE (MDG 2). This study is not able to provide a cost for ensuring environmental sustainability (MDG 7). It is assumed that the global partnership for development (MDG 8) is the quintessential tool for addressing the estimated cost and not an additional cost per se.

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