Front Matter

Front Matter

International Monetary Fund
Published Date:
April 2007
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    © 2007 The International Bank for Reconstruction and Development / The World Bank

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    This volume is a product of the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent.

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    ISBN-10: 0-8213-6975-X

    ISBN-13: 978-0-8213-6975-3

    eISBN-10: 0-8213-6976-8

    eISBN-13: 978-0-8213-6976-0

    DOI: 10.1596/978-0-8213-6975-3

    Cover art: “Three Faces,” 2004, acrylic on paper, 4 1/8″ × 11 5/8 ″, by Eria Solomon Nsubuga, Uganda; World Bank Art Program PN: 646517. Courtesy of the artist and the World Bank Art Program.

    Cover design: Quantum Think, Philadelphia, Pennsylvania, United States

    Typesetting: Precision Graphics, Champaign, Illinois, United States



    The 2007 Global Monitoring Report takes stock of progress toward achieving the Millennium Development Goals and assesses the contributions of developing countries, donor nations, and the international financial institutions as they work toward meeting commitments under the 2002 Monterrey consensus. This fourth annual GMR finds both areas of progress and gaps where far greater effort is required. This year’s special topics—achieving gender equality and addressing the problems of fragile states—highlight two particular areas where serious challenges confront the international community.

    The GMR presents striking evidence of real progress on the MDG agenda in several areas. Globally, rapid growth is translating into falling levels of extreme poverty: in the five years between 1999 and 2004 global poverty fell by nearly 4 percentage points, lifting an estimated 135 million people out of destitution. Sub-Saharan Africa’s performance has also been encouraging over this period; the share of extreme poor fell by nearly 5 percentage points, although the absolute number of poor has not fallen: Sub-Saharan Africa remains the poorest developing region in the world with about two-fifths of its people living on less than US$1 a day.

    Significant gains are occurring in human development: globally the primary school completion rate has increased from 78 percent in 2000 to 83 percent in 2005 and the pace of increase has accelerated in all regions (except Latin America and the Caribbean, where levels were already high).

    Aid quality and effectiveness are improving: signatories to the 2005 Paris Declaration on aid effectiveness are monitoring progress on harmonization, alignment, and managing for development results. Still, many challenges remain in accelerating the implementation of the Paris Agenda.

    Strengthening future performance will require greater attention in two important areas. The first relates to gender equality and the empowerment of women. Second is the condition of fragile states, where nearly 500 million people, or nearly one-fifth of all people in low-income countries, reside.

    Gender equality and the empowerment of women are important for basic reasons—fairness, equality of opportunity, and economic well-being. Increasing efficiency and achieving the full potential of men and women alike is a precursor to prosperity. Gender equality is also vital to advancing the other millennium goals—halving poverty, achieving primary education for all, and lowering the under-five mortality rate. Achieving equal opportunity for women will require greater accountability among donors, developing countries, and international institutions such as our own. It will entail moving beyond a general institutional call for attention, toward a concrete strengthening of programs and project implementation. This would in turn allow a focus on outcomes as well as on a longer-term agenda. Such a shift requires improving monitoring systems for tracking progress in gender equality, and evaluating the impact of interventions aimed at attaining equality of opportunity.

    Fragile states, with their limited capacity to secure a better life for their citizens, merit special attention because of the enormity of the problems they face. These countries by definition have weak governments and are hard put to deliver basic services to their people. Over one-fourth of extremely poor people in developing countries live in fragile states. These nations face enormous challenges, regarding both how to take action to meet human development needs, and how to stave off a potential downward spiral of conflict, human abuse, and refugee flight. New instruments should be considered to help countries that have turned the corner to quickly stabilize, restore both security and basic services, and bring greater accountability into public service. This will require better coordination and more effective intervention by the international community.

    To move both of these crucial agendas forward and to secure faster progress toward meeting the MDGs, international efforts to scale up aid for deserving country programs are vital. We have not made sufficient progress in delivering on the promises of the Monterrey Summit in 2002, or the 2005 Gleneagles commitments to scale up aid to Africa. Current examples of countries that have received significantly scaled-up aid to help finance sound programs to meet the MDGs are few and far between. This is not for lack of opportunity, which abounds at the project-, sector-, and country-levels. Rather, the dearth of successful scaling-up efforts points to the need for the greater “mutual accountability” called for under the Monterrey consensus. First, we need to identify and fund existing opportunities for scaling up based on current knowledge and capacity, such as in the country and sector areas that the World Bank and the UN have identified. Second, we must work together to develop a dynamic strategy for country-based opportunities to sequentially scale up, including with sufficient technical assistance from our two organizations, working together with other development partners. This will require that donor countries fulfill their pledges to strengthen their development strategies and that they put real resources to work to enact these programs.

    Deadlines to deliver on promises in 2010, 2015, and 2030 are looming large and, collectively, we need to speed up investments in projects and reform programs that will save lives, create jobs, and promote growth. The responsibility for this lies with donors, our own and other institutions, and recipients alike.

    Paul Wolfowitz


    World Bank

    Rodrigo de Rato

    Managing Director

    International Monetary Fund


    This report has been prepared jointly by the staff of the World Bank and the International Monetary Fund. There was also consultation and collaboration with other partner institutions including the Organisation for Economic Co-operation and Development and its Development Assistance Committee, several United Nations agencies, the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank, and the Islamic Development Bank. The cooperation and support of staff of these institutions are gratefully acknowledged.

    Mark Sundberg was the lead author and manager of the report. The work was carried out under the general guidance of François Bourguignon, Senior Vice-President, and the overall supervision of Alan Gelb, Director, World Bank.

    The core team for the report included Peter Fallon (chapter 1); Barbara Bruns (chapter 2); Mayra Buvinic, Elizabeth King, Andrew Morrison, and Nistha Sinha (chapter 3); Punam Chuhan (chapter 4); and Stefano Curto (chapter 5). The Bank core team also included Brendan Fitzpatrick, Julien Gourdon, and Sachin Shahria, who provided research, written inputs, and coordination to the overall report. Other significant contributions were made by Amar Bhattacharya, Carlos Primo Braga, Kirk Hamilton, Julia Nielson, Bernard Hoekman, Sarah Cliffe, Sima Kanaan, Adam Ross, Giovanni Ruta, and Juan Carlos Guzman.

    Many others have made valuable contributions, including the following from the World Bank:

    Aban Daruwala, Ajay Chhibber, Akihiko Nishio, Alessandro Nicita, Amie Batson, Ana Cristina Torres, Anand Rajaram, Arthur Karlin, Arunima Dhar, Bee Ean Gooi, Bonaventure Mbida-Essama, Brian Levy, Brice Quesnel, Christopher Hall, Claudia Paz Sepulveda, Desmond Bermingham, Dhushyanth Raju, Dianne Garama, Dorte Domeland-Narvaez, Doug Hostland, Eduard Bos, Elizabeth White, Emi Suzuki, Eric Swanson, Robert Francis Rowe, Gauresh Rajadhyaksha, Gary Milante, Gilles Bauche, Gisela Garcia, Hiau Looi Kee, Jessica Lynn Ebbeler, Joseph Naimoli, Joy De Beyer, Kavita Watsa, Louise Cord, Luc-Charles Gacougnolle, Lucia Fort, Martin Ravillion, Mary Hallward-Driemeier, Maureen Lewis, Meera Shekhar, Michael Koch, Monica Das Gupta, Nevin Fahmy, Nina Todorova Budina, Olusoji Adeyi, Pablo Gottret, Patrick Grasso, Prem Sangrula, Rekha Mehra, Rene Bonnel, Reynaldo Martorell, Rifat Hasan, Robert Watson, Robin Horn, Roula Yazigi, Shahrokh Fardoust, Shaohua Chen, Shunalini Sarkar, Soe Lin, Sulekha Patel, Susan Stout, and Waafas Ofosu-Amaah.

    Contributors from the International Monetary Fund included:

    Alun Thomas, Ben Umansky, Carlo Sdralevich, Emmanuel Hife, Marie-Helen Le Manchec, Mark Plant, and Scott Brown.

    Contributors from other institutions included:

    Kazu Sakai, Christopher MacCormac, Manju Senapaty, Patrick Safran (ADB), Philibert Afrika, Ferdinand Bakoup, Maurice Mubila, Penthesilea Lartey (AfDB), Ernesto Castagnino, Marco Ferroni, Max Pulgar-Vidal, Afredo Garcia (IADB), Samuel Fankhauser, James Earwicker (EBRD), Brian Hammond, Patricia O’Neill (OECD-DAC), and Chandrika Bahadur (UNDP).

    Guidance received from the Executive Directors of the World Bank and their staff, and the International Monetary Fund during discussions of the draft report is gratefully acknowledged. The report has also benefited from many useful comments and suggestions received from the World Bank and International Monetary Fund management and staff in the course of the preparation and review of the report.

    The World Bank’s Office of the Publisher managed the editorial services, design, production, and printing of the book—in particular Susan Graham, Denise Bergeron, Aziz Gökdemir, Nancy Lammers, Stephen McGroarty, Randi Park, Santiago Pombo-Bejarano, and Janice Tuten, along with Kirsten Dennison and associates at Precision Graphics, Candace Roberts and associates at Quantum Think, Gerry Quinn, Bruce Ross-Larson, and Michael Treadway, provided excellent help with publishing this book on a very tight schedule.

    Finally, acknowledgments are due to Matthew Burke and Maria Del Carmen Cosu of the World Bank Art Program, who helped us find the artwork for the cover.



    Africa Action Plan


    African, Caribbean, and Pacific countries


    Asian Development Bank


    African Development Fund


    Asian Development Fund


    acquired immunodeficiency syndrome


    Advance Market Commitment


    antiretroviral treatment


    Common Performance Assessment System


    Country Policy and Institutional Assessment


    Development Assistance Committee (of the OECD)


    disability-adjusted life year


    Doing Business (surveys)


    Demographic and Health Survey


    European Bank for Reconstruction and Development


    European Commission


    Education for All-Fast Track Initiative


    Economic Partnership Agreement


    Enterprise Survey


    Food and Agriculture Organization (of the UN)


    Group of Eight


    Global Integrity Index


    Global Monitoring Report


    gross national income


    heavily indebted poor country/countries


    human immunodeficiency virus


    Inter-American Development Bank


    International Bank for Reconstruction and Development


    Investment Climate Surveys


    International Development Association (of the World Bank Group)


    International Fund for Agricultural Development


    International Finance Corporation (of the World Bank Group)


    International Finance Facility for Immunization


    international financial institution


    integrated management of childhood illness


    International Monetary Fund


    low-income country


    low-income countries under stress


    multilateral development bank


    Millennium Development Goal


    Multilateral Debt Relief Initiative


    nongovernmental organization


    nontariff measure


    official development assistance


    Organisation for Economic Co-operation and Development


    other official flow


    overall trade restrictiveness index


    Public Expenditure and Financial Accountability


    public financial management


    project implementation unit


    Poverty Reduction Strategy Paper


    results and resources


    special drawing right


    sexually transmitted disease


    sectorwide approach




    trade restrictiveness index


    United Nations Development Programme


    United Nations Education, Scientific and Cultural Organization


    United Nations Population Fund


    United Nations Children’s Fund


    United States Agency for International Development


    World Health Organization


    water supply and sanitation


    World Trade Organization

    Millennium Development Goals (MDGs)

    Goals and Targets from the Millennium Declaration
    TARGET 1Halve, between 1990 and 2015, the proportion of people whose income is less than $1 a day
    TARGET 2Halve, between 1990 and 2015, the proportion of people who suffer from hunger
    TARGET 3Ensure that by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling
    TARGET 4Eliminate gender disparity in primary and secondary education, preferably by 2005, and at all levels of education no later than 2015
    TARGET 5Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate
    TARGET 6Reduce by three-quarters, between 1990 and 2015, the maternal mortality ratio
    TARGET 7Have halted by 2015 and begun to reverse the spread of HIV/AIDS
    TARGET 8Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases
    TARGET 9Integrate the principles of sustainable development into country policies and programs and reverse the loss of environmental resources
    TARGET 10Halve by 2015 the proportion of people without sustainable access to safe drinking water and basic sanitation
    TARGET 11Have achieved a significant improvement by 2020 in the lives of at least 100 million slum dwellers
    TARGET 12Develop further an open, rule-based, predictable, nondiscriminatory trading and financial system (including a commitment to good governance, development, and poverty reduction, nationally and internationally)
    TARGET 13Address the special needs of the least developed countries (including tariff- and quota-free access for exports of the least developed countries; enhanced debt relief for heavily indebted poor countries and cancellation of official bilateral debt; and more generous official development assistance for countries committed to reducing poverty)
    TARGET 14Address the special needs of landlocked countries and small island developing states (through the Programme of Action for the Sustainable Development of Small Island Developing States and the outcome of the 22nd special session of the General Assembly)
    TARGET 15Deal comprehensively with the debt problems of developing countries through national and international measures to make debt sustainable in the long term
    TARGET 16In cooperation with developing countries, develop and implement strategies for decent and productive work for youth
    TARGET 17In cooperation with pharmaceutical companies, provide access to affordable, essential drugs in developing countries
    TARGET 18In cooperation with the private sector, make available the benefits of new technologies, especially information and communication
    Source: United Nations. 2000 (September 18). Millennium Declaration. A/RES/55/2. New York.United Nations. 2001 (September 6). Road Map towards the Implementation of the United Nations Millennium Declaration. Report of the Secretary General. New York.Note: The Millennium Development Goals and targets come from the Millennium Declaration signed by 189 countries, including 147 heads of state, in September 2000. The goals and targets are related and should be seen as a whole. They represent a partnership of countries determined, as the Declaration states, “to create an environment—at the national and global levels alike—which is conducive to development and the elimination of poverty.”
    Source: United Nations. 2000 (September 18). Millennium Declaration. A/RES/55/2. New York.United Nations. 2001 (September 6). Road Map towards the Implementation of the United Nations Millennium Declaration. Report of the Secretary General. New York.Note: The Millennium Development Goals and targets come from the Millennium Declaration signed by 189 countries, including 147 heads of state, in September 2000. The goals and targets are related and should be seen as a whole. They represent a partnership of countries determined, as the Declaration states, “to create an environment—at the national and global levels alike—which is conducive to development and the elimination of poverty.”
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