Money Isn't Everything: The Challenge of Scaling Up Aid to Achieve the Millennium Development Goals in Ethiopia

34 Pages Posted: 3 Oct 2006

See all articles by Todd D. Mattina

Todd D. Mattina

International Monetary Fund (IMF)

Date Written: August 2006

Abstract

This paper outlines the challenge of developing an operational macroeconomic framework in Ethiopia consistent with the large envisaged scaling up of aid to achieve the Millennium Development Goals (MDGs). This paper describes an MDG scenario that addresses both microeconomic and macroeconomic constraints, such as the need to boost sustainable growth, limit Dutch disease, formulate an exit strategy from aid dependency, enhance public financial management (PFM), and expand the supply of skilled labor. The paper will argue that a carefully sequenced MDG strategy is essential so that the scaled-up aid and public spending will remain in line with Ethiopia's absorptive capacity.

Keywords: Millennium Development Goals, Dutch disease, absorptive capacity, aid scaling up

JEL Classification: E62, H2, H5, O23

Suggested Citation

Mattina, Todd D., Money Isn't Everything: The Challenge of Scaling Up Aid to Achieve the Millennium Development Goals in Ethiopia (August 2006). IMF Working Paper, Vol. , pp. 1-34, 2006. Available at SSRN: https://ssrn.com/abstract=934451

Todd D. Mattina (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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