ࡱ> TvUs0( / 0DTimes New Roman0Wo 0DComic Sans MSn0Wo 0B DBatangans MSn0Wo 00DBookman Old Style0Wo 0@DArialn Old Style0Wo 0"PDCourier NewStyle0Wo 01`DAdobe Garamondle0Wo 0 a.  @n?" dd@  @@`` HA       0@8uʚ;2Nʚ;g4MdMd0ppp@ <4!d!d 0L<4dddd 0L rj___PPT9LD^nTۂP<{PNG  IHDRW?sRGBgAMA7 cHRMz&u0`:pQ<PLTEֵνƭccc!!!BBB999RRR)))sskBB9!!sc{{{{sRRJƭƽƭ!99111)ƽ!!)1)191BJBJZRcJBZJBRkZkR{{kƥJJJZZZkkkccZRBZJ9RƭRJRB9B!!%&tRNSKF cmPPJCmp07123IDAT(m0 PaA7tTR 'H)Z :GNI>""Iz#n?Xݏl8[&JF2F|}{3d sJ:+0wƴl V#~^~r6Id=b)h'a13; kayz> h44ap:Xñ  şR"IENDB` WnME)%S.ISjPNG  IHDR asRGBgAMA7 cHRMz&u0`:pQ<EPLTEJB)ބJތRޔZkss{sss991BB)B9!RJ)ތJkkc筄ZR9ƥ0tRNS@f cmPPJCmp07128kDIDAT1 @@yLc6 uYWnql wo@T2PU `3a buIENDB`? %$Moving Out of Aid Dependency]Michael Atingi-Ego 2nd Committee Panel Discussion 51Թ, New York 16 November 2007.2^ G.   K.Why Do Developing Countries Need External Aid?//"Low domestic savings Savings-Investment Gaps Typically financing social sectors such as Poverty Reduction in the context of MDG s Labour productivity, H/h incomes Infrastructure Development  raising productivity and lowering cost of doing business.}x4Need External Aid to Trade themselves out of Poverty65""""Through lower cost of doing business, increased factor productivity, LDC s products should become competitive in the international markets. Able to trade themselves out of poverty But this should be supplemented by Most importantly Market Access-(Regional and International) Pursuance of prudent macroeconomic policiesFZ%ZhZ"6=  A 0Experience With Investment in Social Expenditure11"Most of the external aid is in the form of Government budget support (BS) Increased BS in the face of non-tradable supply bottlenecks could increase appreciation pressures if the net imports do not rise fast enough to offset the increase in domestic absorption. Increasing prices of NT could be a symptom of absorption capacity issues (value for money), high income elasticity in the demand for NT that is not compensated for by an elastic price supply or demand. dZJ""#(  5Experience With Investment in Social Expenditure-cont 61""Productivity gains from social expenditure take long to materialize In the meantime, the private sector is being crowded through the upward pressures on exchange and interest rates Some argue that the increased BS should be absorbed through the deterioration of the CAB meaning that developing countries should import more goods and services. Would depend on the type of imports-Machinery and equipment preferred to consumer goods. Unfortunately basis for expansion in government expenditure and CAB is on MDG related aspects.JZC"pb#Z"<C q Y 5Experience of countries that have graduated from aid 86 ")&"'" * gThese countries have traded themselves out of poverty Raised domestic savings to avoid reliance on foreign savings through Increasing incomes of the households through investments in infrastructure, improving technologies, marketing and processing Trade reforms such as lowering and unifying tariffs and dismantling of quotas and other non tariff barriers. |6'DFfbBB(z   5Experience of countries that have graduated from aid 86 ")&"'" * Macroeconomic reforms: Pursued prudent fiscal and sound monetary policies. Reforms in the financial sector- regulation and supervision, increased competition to spur better financial intermediation and reforms in the pension system. Institutional reforms to ensure: Effective and efficient property ownership (property rights) and contracts enforcements, honest and corrupt free public administration. ZZ!ZZZ# #"( 6G  =Experience of countries that have graduated from aid -SummaryH> ")&"'"&" 2  Government expenditures specifically targeted at raising total factor productivity Mobilizing domestic resources for development, specifically long term savings Promoting international trade Promoting the role of private sector through institutional development; simplifying business regulations, strengthening property rights, easing tax burdens, increased access to credit and reducing the cost of doing business pZZ'&&   Enhancing aid effectiveness  Domestic will for reform. Developing countries to design comprehensive development framework that raise economic growth and poverty reduction in a sustainable manner. Reducing conditionality Aid to finance human and physical Infrastructure: to ease infrastructure and other structural bottlenecks. Aid should largely be given to countries pursuing good macro-economic policies In other cases should take the form of TA, Relief and post conflict support. hF B1F BF B< 1    9Criteria for Allocating Aid to Enhance its effectiveness :8"9 >Predictability of aid flows over time Constraint allocation to absorption capacity of the recipient economy. Be allocated with a fundamental objective of increasing the recipient's productivity and reducing the costs of production through investment in human and physical infrastructure, and financial market deepening. Be allocated for supporting diversification of exports and reducing domestic supply side constraints, as well as the ability to comply with trade standards, raising productivity of the export sector itself and adopting the correct marketing strategies R&ZGZZ&F""(l    In ConclusionFor Recipient Countries Developing countries still need aid to trade themselves out of poverty However, simultaneous reforms to wean themselves out should be implemented e.g. promotion of international trade, financial market development to mobilize savings, rationalization of government expenditures in favour of increasing productivity and lower costs of doing business Institutional development to increase the absorption capacity via increased value for money.$ZZv\   In ConclusionDonor Countries Donor emphasis on MDGs without addressing physical infrastructure and other supply side constraints could leave developing countries aid dependant. Donor aid could focus on the integration of developing countries in international trade. Consider financing to reduce exports supply side constraints, as well as the ability to comply with trade standards, raising productivity of the export sector itself and adopting the correct marketing strategies RZZZ""."  In ConclusionDonor Countries Increased access to international markets remains key. Increase on predictability of aid flows over time Less aid conditionality Increased aid to countries pursing good macroeconomic policies.  G  END_ ` -[̛e ` -[̛+` 333333www___>?" dd@+?" dd@   P " @ d` < n?" dd@   @@``PR    @ ` `p>> p h  8 (  8 8  BClDEFV55 ` Q`$+29CIPUY]Zacdc[c b _9 ^f ]J ^a ^x_abcgfpenl] m  r :EQ J   (,@                 `"W 8  0e0e  ?BsCDElF5%8c8c     ?1d0u0@Ty2 NP'p<'pA)BCD|E||[[V Y S` O K <@=DcegCZ+OqD," Z1-B[{%%%6c ;%<Sc+A$. L|QVHrB2<%,3c k@ o s HB B < PJuDAq4p.{T&p #3~@M S V @D@                              `S"`}@  8 # BnCJDE4F> \Q3jJXnJQ;V3Q\ @`", 8 <P "YFm0  X Click to edit Master title style!! ( 8 0 "0  RClick to edit Master text styles Second level Third level Fourth level Fifth level!    S  8 6 "P  b*c  8 6` "   \*c    8 6 "  \*c  B 8 s *޽h ? -[̛e 4,___PPT9RpRR GestureO  @<(  <T  < "L <  BC DE0FrLL[t]Y8 $" E  ' 2Zaw6wi3`$` '&K}`-u > 3 ( b Y P2 1    -  !     { _ :- - ' !0 Y c[ m rD cT, s%.7U4 =FB[68@                         `"p b  / <# "` ` \ Is  < " / < BqCDEFR44 ;Y w*GMS!8_/& 1T &>gV{Bs#3y=\G?O=+q7u4y Ph41Gg&(@                 `"s P < B% CIDE<FvOOZ uH uI+NvY<7421uMJAG0B% Wg}G#4EOo   % "$ R# u"    % # ! / E GI9)Z=Mw1c(\<8<@                          `"In\ 8 < BCDEHFR 3+xC$Z:pR:Bv&(@`"Gd   < 3 J0e0e  ?BCQDEF@5%8c8c     ?1d0u0@Ty2 NP'p<'pA)BCD|E||ZQZ @`S"  S   < 3 0e0e  ?B(CDEHFR@5%8c8c     ?1d0u0@Ty2 NP'p<'pA)BCD|E||nin2p3C` Jm@R!(X#Xn&(@`S" 8    < <t "|  X Click to edit Master title style!!   < 6 h " ` 0   [#Click to edit Master subtitle style$$   < 6 "`  b*c  < 6 "   \*c   < 6 "   \*c  B < s *޽h ? -[̛e  00(  x  c $ <|  x  c $` < `    H  0޽h ? ̙33  P 0(   x  c $8Fm   x  c $<80  H  0޽h ? ̙33  `6(  ~  s *N8Fm   x  c $N80  H  0޽h ? ̙33  p*(  r  S (n8%   x  c $n80  H  0޽h ? ̙33  0(  x  c $8%   x  c $d{8P   H  0޽h ? ̙33  0(  x  c $8%   x  c $80  H  0޽h ? ̙33   0(   x  c $ 8%   x  c $80  H  0޽h ? ̙33  (0(  (x ( c $8%   x ( c $8   H ( 0޽h ? ̙33  ,0(  ,x , c $8YFm0   x , c $880  H , 0޽h ? ̙33  0<(  0 0  08$FmA   x 0 c $8    H 0 0޽h ? ̙33  @$(  @r @ S 8YFm0   r @ S |80  H @ 0޽h ? -[̛e   D0(  Dx D c $0X8YFm0   x D c $T[80  H D 0޽h ? -[̛e   H0(  Hx H c $-8YFm0   x H c $ć80  H H 0޽h ? -[̛e j   4(  4r 4 S |8C0    H 4 0޽h ? ̙33rPpUXMZE\C^5`-b%d fh j$0Aqlmo_se0( Oh+'0 hp  4 @ LX`Moving Out of Aid DependencytmisMC:\Program Files\Microsoft Office\Templates\Presentation Designs\Gesture.pot\mis5sMicrosoft PowerPointoso@[B@Ԍ(@CA(G8g   & &&#TNPP2OMi & TNPP &&TNPP    --- !---&Hs&Xj-e- $ Y$Y?YKYWYbZkZsZz[[[[\\]^_`abbcdeefgg{gohahQh?h+hgggggggugWgIg<g#gggggghhhbhJh4hhhhgggggygpgjg^gXgRgCg5g)g$f fffee d"d%c(b)a(`&`!_^]]\#[*Z3Y?YMY]XoXXYYYYYYY4YPYlYXXXXXXX XX0X@XOX\XhYsYYYYYYY Y--&&Hs&Hs&Ts--[-h$2]aehiiiggffedeefghjkmoqp o m jg d c a ` _^]\ZXVUTTUUVVWYZ]--&&Ho-̛-$Jdfhhhgfec_[VQONLKLMMLLKJJIIHHHIJJK L M OSW[_begjlm l kifeedddddddccbbbbbbcccbcd--&&&Nh- -($g_aa_[RNTZWUSXZ]fg--&&H^- -$IT]HI--&&Ke- -($bb_RPMMPKKPTXT^adb--&&&&G&w@ ؟ww wfh- &Gy& --)yH-- @BComic Sans MS؟ww wfh- ."2 Moving Out of Aid 2.)!. .2 A Dependency)".--1-- @BComic Sans MS؟ww wfh- .2 $Michael&  . .2 Atingi   . . 2 C-. . 2 UEgoL.@BComic Sans MS؟ww wfh- . 2 32.@BComic Sans MS؟ww wfh- . 2 (nd .@BComic Sans MS؟ww wfh- ..2 3Committee Panel Discussion     . .+2 i51Թ, New York     . .!2 616 November 2007.    .--"Systemhfh !-&TNPP &0DBookman Old Style|d0|Wo 0@DArialn Old Style|d0|Wo 0"PDCourier NewStyle|d0|Wo 01`DAdobe Garamondle|d0|Wo 0 a.  @n?" dd@  @@`` PA       0@8uʚ;2Nʚ;g4MdMd0pppp@ <4!d!d 0,s<4dddd 0,s rj___PPT9LD^nTۂP<{PNG  IHDRW?sRGBgAMA7 cHRMz&u0`:pQ<PLTEֵνƭccc!!!BBB999RRR)))sskBB9!!sc{{{{sRRJƭƽƭ!99111)ƽ!!)1)191BJBJZRcJBZJBRkZkR{{kƥJJJZZZkkkccZRBZJ9RƭRJRB9B!!%&tRNSKF cmPPJCmp07123IDAT(m0 PaA7tTR 'H)Z :GNI>""Iz#n?Xݏl8[&JF2F|}{3d sJ:+0wƴl V#~^~r6Id=b)h'a13; kayz> h44ap:Xñ  şR"IENDB` WnME)%S.ISjPNG  IHDR asRGBgAMA7 cHRMz&u0`:pQ<EPLTEJB)ބJތRޔZkss{sss991BB)B9!RJ)ތJkkc筄ZR9ƥ0tRNS@f cmPPJCmp07128kDIDAT1 @@yLc6 uYWnql wo@T2PU `3a buIENDB`? %z%Moving Out of Aid Dependency]Michael Atingi-Ego 2nd Committee Panel Discussion 51Թ, New York 16 November 2007.2^ G.   K.Why Do Developing Countries Need External Aid?//"Low domestic savings Savings-Investment Gaps Typically financing social sectors such as Poverty Reduction in the context of MDG s Labour productivity, H/h incomes Infrastructure Development  raising productivity and lowering cost of doing business.}x4Need External Aid to Trade themselves out of Poverty65""""Through lower cost of doing business, increased factor productivity, LDC s products should become competitive in the international markets. Able to trade themselves out of poverty But this should be supplemented by Most importantly Market Access-(Regional and International) Pursuance of prudent macroeconomic policiesFZ%ZhZ"6=  A 0Experience With Investment in Social Expenditure11"Most of the external aid is in the form of Government budget support (BS) Increased BS in the face of non-tradable supply bottlenecks could increase appreciation pressures if the net imports do not rise fast enough to offset the increase in domestic absorption. Increasing prices of NT could be a symptom of absorption capacity issues (value for money), high income elasticity in the demand for NT that is not compensated for by an elastic price supply or demand. dZJ""#(  5Experience With Investment in Social Expenditure-cont 61""Productivity gains from social expenditure take long to materialize In the meantime, the private sector is being crowded through the upward pressures on exchange and interest rates Some argue that the increased BS should be absorbed through the deterioration of the CAB meaning that developing countries should import more goods and services. Would depend on the type of imports-Machinery and equipment preferred to consumer goods. Unfortunately basis for expansion in government expenditure and CAB is on MDG related aspects.JZC"pb#Z"<C q Y 5Experience of countries that have graduated from aid 86 ")&"'" * These countries have traded themselves out of poverty Raised domestic savings to avoid reliance on foreign savings through Increasing incomes of the households through investments in infrastructure, improving technologies, marketing and processing Trade reforms such as lowering and unifying tariffs and dismantling of quotas and other non tariff barriers. Expanded markets: domestic, regional and international |Z"ZZ6'DFfb7BB(z "  5Experience of countries that have graduated from aid 86 ")&"'" * Macroeconomic reforms: Pursued prudent fiscal and sound monetary policies. Reforms in the financial sector- regulation and supervision, increased competition to spur better financial intermediation and reforms in the pension system. Institutional reforms to ensure: Effective and efficient property ownership (property rights) and contracts enforcements, honest and corrupt free public administration. ZZ!ZZZ# #"( 6G  =Experience of countries that have graduated from aid -SummaryH> ")&"'"&" 2  Government expenditures specifically targeted at raising total factor productivity Mobilizing domestic resources for development,Root EntrydO)@{\k(tCurrent UserJSummaryInformation(:PowerPoint Document(   !"#$%&'()*+,-./0123456789W;<=>?@ABCEFGHIJKLMNOPQRSwVXYZ[\]^_`abcdefghijklmnopqrDuxyz{|}~DocumentSummaryInformation8t/ 0DTimes New Romanr|d0|Wo 0DComic Sans MSnr|d0|Wo 0B DBatangans MSnr|d0|Wo 00DBookman Old Style|d0|Wo 0@DArialn Old Style|d0|Wo 0"PDCourier NewStyle|d0|Wo 01`DAdobe Garamondle|d0|Wo 0 a.  @n?" dd@  @@`` PA       0@8uʚ;2Nʚ;g4MdMd0pppp@ <4!d!d 0,s<4dddd 0,s rj___PPT9LD^nTۂP<{PNG  IHDRW?sRGBgAMA7 cHRMz&u0`:pQ<PLTEֵνƭccc!!!BBB999RRR)))sskBB9!!sc{{{{sRRJƭƽƭ!99111)ƽ!!)1)191BJBJZRcJBZJBRkZkR{{kƥJJJZZZkkkccZRBZJ9RƭRJRB9B!!%&tRNSKF cmPPJCmp07123IDAT(m0 PaA7tTR 'H)Z :GNI>""Iz#n?Xݏl8[&JF2F|}{3d sJ:+0wƴl V#~^~r6Id=b)h'a13; kayz> h44ap:Xñ  şR"IENDB` WnME)%S.ISjPNG  IHDR asRGBgAMA7 cHRMz&u0`:pQ<EPLTEJB)ބJތRޔZkss{sss991BB)B9!RJ)ތJkkc筄ZR9ƥ0tRNS@f cmPPJCmp07128kDIDAT1 @@yLc6 uYWnql wo@T2PU `3a buIENDB`? %z%Moving Out of Aid Dependency]Michael Atingi-Ego 2nd Committee Panel Discussion 51Թ, New York 16 November 2007.2^ G.   K.Why Do Developing Countries Need External Aid?//"Low domestic savings Savings-Investment Gaps Typically financing social sectors such as Poverty Reduction in the context of MDG s Labour productivity, H/h incomes Infrastructure Development  raising productivity and lowering cost of doing business.}x4Need External Aid to Trade themselves out of Poverty65""""Through lower cost of doing business, increased factor productivity, LDC s products should become competitive in the international markets. Able to trade themselves out of poverty But this should be supplemented by Most importantly Market Access-(Regional and International) Pursuance of prudent macroeconomic policiesFZ%ZhZ"6=  A 0Experience With Investment in Social Expenditure11"Most of the external aid is in the form of Government budget support (BS) Increased BS in the face of non-tradable supply bottlenecks could increase appreciation pressures if the net imports do not rise fast enough to offset the increase in domestic absorption. Increasing prices of NT could be a symptom of absorption capacity issues (value for money), high income elasticity in the demand for NT that is not compensated for by an elastic price supply or demand. dZJ""#(  5Experience With Investment in Social Expenditure-cont 61""Productivity gains from social expenditure take long to materialize In the meantime, the private sector is being crowded through the upward pressures on exchange and interest rates Some argue that the increased BS should be absorbed through the deterioration of the CAB meaning that developing countries should import more goods and services. Would depend on the type of imports-Machinery and equipment preferred to consumer goods. Unfortunately basis for expansion in government expenditure and CAB is on MDG related aspects.JZC"pb#Z"<C q Y 5Experience of countries that have graduated from aid 86 ")&"'" * These countries have traded themselves out of poverty Raised domestic savings to avoid reliance on foreign savings through Increasing incomes of the households through investments in infrastructure, improving technologies, marketing and processing Trade reforms such as lowering and unifying tariffs and dismantling of quotas and other non tariff barriers. Expanded markets: domestic, regional and international |Z"ZZ6'DFfb7BB(z "  5Experience of countries that have graduated from aid 86 ")&"'" * Macroeconomic reforms: Pursued prudent fiscal and sound monetary policies. Reforms in the financial sector- regulation and supervision, increased competition to spur better financial intermediation and reforms in the pension system. Institutional reforms to ensure: Effective and efficient property ownership (property rights) and contracts enforcements, honest and corrupt free public administration. ZZ!ZZZ# #"( 6G  =Experience of countries that have graduated from aid -SummaryH> ")&"'"&" 2  Government expenditures specifically targeted at raising total factor productivity Mobilizing domestic resources for development, specifically long term savings Promoting international trade Promoting the role of private sector through institutional development; simplifying business regulations, strengthening property rights, easing tax burdens, increased access to credit and reducing the cost of doing business pZZ'&&   Enhancing aid effectiveness  Domestic will for reform. Developing countries to design comprehensive development framework that raise economic growth and poverty reduction in a sustainable manner. Reducing conditionality Aid to finance human and physical Infrastructure: to ease infrastructure and other structural bottlenecks. Aid should largely be given to countries pursuing good macro-economic policies In other cases should take the form of TA, Relief and post conflict support. hF B1F BF B< 1    9Criteria for Allocating Aid to Enhance its effectiveness :8"9 >Predictability of aid flows over time Constraint allocation to absorption capacity of the recipient economy. Be allocated with a fundamental objective of increasing the recipient's productivity and reducing the costs of production through investment in human and physical infrastructure, and financial market deepening. Be allocated for supporting diversification of exports and reducing domestic supply side constraints, as well as the ability to comply with trade standards, raising productivity of the export sector itself and adopting the correct marketing strategies R&ZGZZ&F""(l    In ConclusionFor Recipient Countries Still need aid to trade themselves out of poverty including including regional approach; integration for trade and infrastructure development However, simultaneous reforms needed to wean themselves out should be implemented e.g. promotion of trade, financial market development to mobilize savings, rationalization of government expenditures in favour of increasing productivity and lower costs of doing business Institutional development to increase the absorption capacity via increased value for money.:ZZ@\   In ConclusionDonor Countries Donor emphasis on MDGs without addressing physical infrastructure and other supply side constraints could leave developing countries aid dependant. Donor aid could focus on the integration of developing countries in international trade. Consider financing sectors that reduce exports supply side constraints, as well as the ability to comply with trade standards, raising productivity of the export sector itself and adopting the correct marketing strategies RZZZ,"."  In ConclusionDonor Countries Increased access to international markets remains key. Increase on predictability of aid flows over time Less aid conditionality Increased aid to countries pursing good macroeconomic policies.  G  END_  0(  x  c $8%   x  c $H80  H  0޽h ? ̙33  p@$(  @r @ S 38YFm0   r @ S G80  H @ 0޽h ? -[̛e   `D0(  Dx D c $0U8YFm0   x D c $80  H D 0޽h ? -[̛e rs  sxD0( / 0DTimes New Romanr|d0|Wo 0DComic Sans MSnr|d0|Wo 0B DBatangans MSnr|d0|Wo 0՜.+,0D    On-screen Showbou J Times New RomanComic Sans MSBatangBookman Old StyleArial Courier NewAdobe GaramondGestureMoving Out of Aid Dependency/Why Do Developing Countries Need External Aid?5Need External Aid to Trade themselves out of Poverty1Experience With Investment in Social Expenditure6Experience With Investment in Social Expenditure-cont6Experience of countries that have graduated from aid 6Experience of countries that have graduated from aid >Experience of countries that have graduated from aid -SummaryEnhancing aid effectiveness :Criteria for Allocating Aid to Enhance its effectiveness In ConclusionIn ConclusionIn   specifically long term savings Promoting international trade Promoting the role of private sector through institutional development; simplifying business regulations, strengthening property rights, easing tax burdens, increased access to credit and reducing the cost of doing business pZZ'&&   Enhancing aid effectiveness  Domestic will for reform. Developing countries to design comprehensive development framework that raise economic growth and poverty reduction in a sustainable manner. Reducing conditionality Aid to finance human and physical Infrastructure: to ease infrastructure and other structural bottlenecks. Aid should largely be given to countries pursuing good macro-economic policies In other cases should take the form of TA, Relief and post conflict support. hF B1F BF B< 1    9Criteria for Allocating Aid to Enhance its effectiveness :8"9 >Predictability of aid flows over time Constraint allocation to absorption capacity of the recipient economy. Be allocated with a fundamental objective of increasing the recipient's productivity and reducing the costs of production through investment in human and physical infrastructure, and financial market deepening. Be allocated for supporting diversification of exports and reducing domestic supply side constraints, as well as the ability to comply with trade standards, raising productivity of the export sector itself and adopting the correct marketing strategies R&ZGZZ&F""(l    In ConclusionFor Recipient Countries Still need aid to trade themselves out of poverty including including regional approach; integration for trade and infrastructure development However, simultaneous reforms needed to wean themselves out should be implemented e.g. promotion of trade, financial market development to mobilize savings, rationalization of government expenditures in favour of increasing productivity and lower costs of doing business Institutional development to increase the absorption capacity via increased value for money.:ZZ@\   In ConclusionDonor Countries Donor emphasis on MDGs without addressing physical infrastructure and other supply side constraints could leave developing countries aid dependant. Donor aid could focus on the integration of developing countries in international trade. Consider financing sectors that reduce exports supply side constraints, as well as the ability to comply with trade standards, raising productivity of the export sector itself and adopting the correct marketing strategies RZZZ,"."  In ConclusionDonor Countries Increased access to international markets remains key. Increase on predictability of aid flows over time Less aid conditionality Increased aid to countries pursing good macroeconomic policies.  G  END_r D0( / 0ConclusionEND  Fonts UsedDesign Template Slide Titles&_ 51ԹUnited NationsDTimes New Romanr0Wo 0DComic Sans MSnr0Wo 0B DBatangans MSnr0Wo 00DBookman Old Style0Wo 0@DArialn Old Style0Wo 0"PDCourier NewStyle0Wo 01`DAdobe Garamondle0Wo 0 a.  @n?" dd@  @@`` PA       0@8uʚ;2Nʚ;g4MdMd0ppp@ <4!d!d 0Ls<4dddd 0Ls rj___PPT9LD^nTۂP<{PNG  IHDRW?sRGBgAMA7 cHRMz&u0`:pQ<PLTEֵνƭccc!!!BBB999RRR)))sskBB9!!sc{{{{sRRJƭƽƭ!99111)ƽ!!)1)191BJBJZRcJBZJBRkZkR{{kƥJJJZZZkkkccZRBZJ9RƭRJRB9B!!%&tRNSKF cmPPJCmp07123IDAT(m0 PaA7tTR 'H)Z :GNI>""Iz#n?Xݏl8[&JF2F|}{3d sJ:+0wƴl V#~^~r6Id=b)h'a13; kayz> h44ap:Xñ  şR"IENDB` WnME)%S.ISjPNG  IHDR asRGBgAMA7 cHRMz&u0`:pQ<EPLTEJB)ބJތRޔZkss{sss991BB)B9!RJ)ތJkkc筄ZR9ƥ0tRNS@f cmPPJCmp07128kDIDAT1 @@yLc6 uYWnql wo@T2PU `3a buIENDB`? %z%Moving Out of Aid Dependency]Michael Atingi-Ego 2nd Committee Panel Discussion 51Թ, New York 16 November 2007.2^ G.   K.Why Do Developing Countries Need External Aid?//"Low domestic savings Savings-Investment Gaps Typically financing social sectors such as Poverty Reduction in the context of MDG s Labour productivity, H/h incomes Infrastructure Development  raising productivity and lowering cost of doing business.}x4Need External Aid to Trade themselves out of Poverty65""""Through lower cost of doing business, increased factor productivity, LDC s products should become competitive in the international markets. Able to trade themselves out of poverty But this should be supplemented by Most importantly Market Access-(Regional and International) Pursuance of prudent macroeconomic policiesFZ%ZhZ"6=  A 0Experience With Investment in Social Expenditure11"Most of the external aid is in the form of Government budget support (BS) Increased BS in the face of non-tradable supply bottlenecks could increase appreciation pressures if the net imports do not rise fast enough to offset the increase in domestic absorption. Increasing prices of NT could be a symptom of absorption capacity issues (value for money), high income elasticity in the demand for NT that is not compensated for by an elastic price supply or demand. dZJ""#(  5Experience With Investment in Social Expenditure-cont 61""Productivity gains from social expenditure take long to materialize In the meantime, the private sector is being crowded through the upward pressures on exchange and interest rates Some argue that the increased BS should be absorbed through the deterioration of the CAB meaning that developing countries should import more goods and services. Would depend on the type of imports-Machinery and equipment preferred to consumer goods. Unfortunately basis for expansion in government expenditure and CAB is on MDG related aspects.JZC"pb#Z"<C q Y 5Experience of countries that have graduated from aid 86 ")&"'" * These countries have traded themselves out of poverty Raised domestic savings to avoid reliance on foreign savings through Increasing incomes of the households through investments in infrastructure, improving technologies, marketing and processing Trade reforms such as lowering and unifying tariffs and dismantling of quotas and other non tariff barriers. Expanded markets: domestic, regional and international |Z"ZZ6'DFfb7BB(z "  5Experience of countries that have graduated from aid 86 ")&"'" * Macroeconomic reforms: Pursued prudent fiscal and sound monetary policies. Reforms in the financial sector- regulation and supervision, increased competition to spur better financial intermediation and reforms in the pension system. Institutional reforms to ensure: Effective and efficient property ownership (property rights) and contracts enforcements, honest and corrupt free public administration. ZZ!ZZZ# #"( 6G  =Experience of countries that have graduated from aid -SummaryH> ")&"'"&" 2  Government expenditures specifically targeted at raising total factor productivity Mobilizing domestic resources for development, specifically long term savings Promoting international trade Promoting the role of private sector through institutional development; simplifying business regulations, strengthening property rights, easing tax burdens, increased access to credit and reducing the cost of doing business pZZ'&&   Enhancing aid effectiveness  Domestic will for reform. Developing countries to design comprehensive development framework that raise economic growth and poverty reduction in a sustainable manner. Reducing conditionality Aid to finance human and physical Infrastructure: to ease infrastructure and other structural bottlenecks. Aid should largely be given to countries pursuing good macro-economic policies In other cases should take the form of TA, Relief and post conflict support. hF B1F BF B< 1    9Criteria for Allocating Aid to Enhance its effectiveness :8"9 >Predictability of aid flows over time Constraint allocation to absorption capacity of the recipient economy. Be allocated with a fundamental objective of increasing the recipient's productivity and reducing the costs of production through investment in human and physical infrastructure, and financial market deepening. Be allocated for supporting diversification of exports and reducing domestic supply side constraints, as well as the ability to comply with trade standards, raising productivity of the export sector itself and adopting the correct marketing strategies R&ZGZZ&F""(l    In ConclusionFor Recipient Countries Still need aid to trade themselves out of poverty including including regional approach; integration for trade and infrastructure development However, simultaneous reforms needed to wean themselves out should be implemented e.g. promotion of trade, financial market development to mobilize savings, rationalization of government expenditures in favour of increasing productivity and lower costs of doing business Institutional development to increase the absorption capacity via increased value for money.:ZZ@\   In ConclusionDonor Countries Donor emphasis on MDGs without addressing physical infrastructure and other supply side constraints could leave developing countries aid dependant. Donor aid could focus on the integration of developing countries in international trade. Consider financing sectors that reduce exports supply side constraints, as well as the ability to comply with trade standards, raising productivity of the export sector itself and adopting the correct marketing strategies RZZZ,"."  In ConclusionDonor Countries Increased access to international markets remains key. Increase on predictability of aid flows over time Less aid conditionality Increased aid to countries pursing good macroeconomic policies.  G  END_r v U