The Role of Foreign Aid in Achieving the MDGs

Abstract

Progress towards the achievement of the MDGs is largely determined by developing country governments. Strong government commitment to the goals, policy reform and political leadership are crucial for suc­cess. However, it is widely agreed that international aid donors also have an important role to play and this is recognised by the eighth MDG, calling for a global partnership for development. It is also recog­nised by the Monterrey Consensus, emanating from the United Nations Conference for Finance and Development in 2002 (see Box 2.1). Many developing country governments do not have the domestic resources to fund the interventions necessary for MDG achievement. This is par­ticularly true for low-income countries in the Asia-Pacific with low dom­estic revenues bases and which are unable to attract significant private capital flows.