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The Other War: Global Poverty and the Millennium Challenge by Lael Brainard, Carol L. Graham, Nigel Purvis, Steven

By Lael Brainard, Carol L. Graham, Nigel Purvis, Steven Radelet, Gayle E. Smith

In March 2002, President Bush introduced the production of the Millennium problem Account (MCA), a bilateral improvement fund representing a rise of $5 billion according to yr over present guidance degrees, to advertise progress in reform-oriented constructing international locations. This e-book considers the possibility of the MCA in addition to the bigger content material folks overseas guidance during which the MCA needs to locate its position. whereas the MCA might create incentives for governments to enhance fiscal rules and governance, and enhance funding climates, it may well additionally upload to the confusion of overlapping international tips enterprises. The authors urge the management to obviously outline the MCA's function and to deal with the continual tensions among international coverage and improvement targets - tensions which were made tougher through matters over terrorism and nationwide defense. In making tips on find out how to enforce the MCA successfully, this ebook heavily examines past reduction efforts, traits within the US price range for international information, the enterprises presently curious about administering US improvement coverage, and the ways that congress can impact and be sure reduction results.

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The PRSP relies on proposals from recipient countries, as the MCC intends to do, and is a means to foster country ownership and donor coordination. As the PRSP process goes forward, it provides valuable lessons about the promises and the pitfalls of incorporating local participation and about institutional capacity in poor countries. These lessons are directly relevant to the operations of the MCC. There may be economies of scale for the MCC, meanwhile, in collaborating with the monitoring and evaluation mechanisms established by the PRSP process.

While most observers agree that country ownership is a desirable objective, it is not clear how much extensive debate about policy alternatives contributes to better outcomes. In some cases PRSPs have become mired in polemical debates that have significantly slowed the debt relief and lending processes. These debates often suffer from lack of adequate data on poverty and on the records of alternative policies. In other cases dialogue seems to have been curtailed or circumvented by the urgency of debt relief needs, resulting in justified criticisms that the process can be less than democratic.

It has a narrow mandate, it is a multilateral initiative, and it provides relief on the basis of strict formulas. Moreover, the HIPC quantitative eligibility criteria select for unsustainable debt burdens, while judgments on policy performance are largely qualitative. Nonetheless HIPC is among the first and best-known development programs that determine eligibility strictly on the basis of a set of quantitative indicators that are freely available, making possible a transparent and open selection process.

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