7 September 2008
(Page 2 of 3)
Accelerated progress requires explicit actions, which would include the following:
Donors should increase aid flows by $18 billion (at July 2008 exchange rates) per year between 2008 and 2010 to support core development programmes in order to meet the agreed targets by 2010.
In 2007 total ODA fell short by over $10 billion compared to that needed to ensure a smooth path towards the agreed target;
In order to provide a manageable path to reaching the committed increase in the annual flow of net ODA to Africa by 2010, donors should allocate an additional $6.4 billion a year at constant 2005 prices to the region (or $7.3 billion per year at July 2008 exchange rates);
Even if the commitments regarding increased net ODA to Africa are fulfilled, donors should increase further their ODA to LDCs (many of which are in Africa). The total annual flow to LDCs would have to increase on average by $8.8 billion (at July 2008 exchange rates) between 2008 and 2010 in order to reach the target of between 0.15 and 0.20 per cent of each donor's GNI;
Donors, including emerging donors and recipient countries, should accelerate progress towards the alignment of aid, harmonization, management for results and mutual accountability of aid resources as well as improve dialogue with non-DAC donors to adhere to these principles.
Market access (trade)
Only slow progress has been made in meeting the MDG target of developing further an open, rule-based, predictable, nondiscriminatory trading and financial system and providing tariffand quota-free access for the least developed countries' exports.
One of the objectives of the Doha Round of trade negotiations initiated in 2001 was to address the needs of developing countries according to a "development agenda". Seven years on, the failure to conclude a development round constitutes the largest implementation gap in the area of trade, and arguably within the realm of MDG 8.
International efforts must be redirected to complete the Round in accordance with its original intention of being developmentfocused, and thus of special benefit to the lowest-income
countries. This would entail prioritizing market access for developing countries, especially the LDCs, and maintaining the flexibility of developing countries for supporting economic diversification, employment generation and food security. ...
The emergence of significant new challenges resulting from high food prices and their impact on poverty and hunger has given additional impetus to recognizing past policy failures in ensuring national and global food security. This has underscored the need for increased investment in agricultural development in developing countries while at the same time removing market distortions in the agricultural markets of developed economies.
To improve market access for developing countries, the international community will need to take the following action:
Redouble efforts to conclude the Doha Round of trade negotiations, and refocus on the elements that would make it a "development" round;
Ensure that prospective bilateral and regional economic partnerships provide genuine market access and entry for exports of developing countries, and that they act as "stepping stones" towards rather than substitutes for multilateral agreements;
Prioritize trade and its links to development and poverty reduction in national development strategies;
Reduce substantially the tariffs and tariff escalation imposed by developed countries on agricultural products, textiles and clothing from developing countries;
Accelerate the reduction of domestic and export subsidies on agricultural production in developed countries;
Urgently assess the regional and country needs for Aid for Trade, and ensure that total available resources and allocations meet those needs;
Step up efforts to make the Enhanced Integrated Framework fully operational.
Debt sustainability
Important progress has been made in meeting the MDG target of dealing comprehensively with the debt problems of developing countries, but additional efforts are needed to make progress sustainable. Actions are also needed to reduce the debt burden of countries that have not yet benefited from current debt-relief initiatives.
As of June 2008, 23 of the 41 heavily indebted poor countries (HIPCs) had reached their completion point under the enhanced HIPC Initiative. There are still 10 countries between decision point and completion point; 8 others are potentially eligible and may wish to avail themselves of the enhanced Initiative. Post completion point countries become eligible for further debt relief under the Multilateral Debt Relief Initiative (MDRI).
Debt cancellation for the HIPCs, together with high commodity prices and strong global growth, helped to decrease the ratio of debt-service payments to exports to 6.6 per cent in 2006 for all developing countries. The ratio is expected to have fallen to 3 per cent in 2007, thus creating an environment for investment and recovery. However, less dynamic growth of the world economy in the near future could reverse this trend. In recent years, a significant number of countries that benefited from debt relief have seen their debt vulnerability indicators deteriorate, in part because they still face significant development financing challenges. Of the HIPCs, 21 (including 14 at post-completion point) are considered to be at moderate-to-high risk of falling back into debt distress; 10 HIPCs (mostly those at pre-completion point) are currently considered to be in debt distress. ...
Despite HIPC and MDRI debt relief and corresponding increases in social expenditures, a large number of developing countries still spend more on debt servicing than on public education or health. In 2006, 10 developing countries spent more on debt service than on public education, and in 52 countries debt servicing amounted to more than the public health budget. Additional concessionary resources should be made available to vulnerable countries, and new efforts made to relieve the debt burdens of countries that are not part of the HIPC Initiative, including the establishment of a sovereign debt arbitration mechanism for countries under severe debt distress.
The framework for assessing debt sustainability should be kept under review. Even low levels of debt may not be sustainable if debt servicing crowds out public spending for the MDGs. Continued technical assistance and greater coordination is needed to support countries in strengthening their debt-management capacity.
Specific actions to improve the external debt sustainability of countries include:
The MDG target that aims, in cooperation with pharmaceutical companies, [to] provide access to affordable essential drugs in developing countries has served to mobilize resources and improve coordination aimed at increasing access to essential drugs and treatments to fight HIV/AIDS, malaria and tuberculosis in many countries. Access to essential medicines in developing countries, however, is far from adequate.
Part of the difficulty in assessing progress towards this commitment is the lack of a defined quantitative target. Efforts in defining such a target will improve the accountability of global actions to expand sustainable access to essential drugs.
Information available in a number of countries suggests the existence of large gaps in the availability of medicines in both the public and private sectors as well as a wide variation in prices much higher than the international reference prices (IRPs) which render essential medicines unaffordable to poor people. New World Health Organization (WHO) estimates show that public sector availability of essential medicines covers only one third of needs, while private sector availability covers about two thirds. The prices people pay for lowest-priced generic medicines vary from 2.5 to 6.5 times the IRPs in the public and private sectors, respectively. The fact that some developing countries have better availability and lower prices shows that access to quality, assured, affordable essential medicines can be improved through stronger partnership among governments, pharmaceutical companies and civil society, including consumers.
Be the first to Write a Comment!
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
