![]() ![]() ![]() Second, it shows how scaling up of these services has economy-wide impacts that may change resource allocation in the non-government sector and relative prices, including the unit cost of government services. It also allows for interactions across the MDGs-for example, improved water supply positively impacts health indicators - and between the MDGs and economic growth. First, the representation of the production of government services like health or education takes into account demand as well as supply factors and the efficiency of these services. In comparison with existing approaches, the present framework offers three types of advantage. Its originality is to fully integrate government services and their impact on the economy within an otherwise standard economy-wide dynamic framework. To help countries monitor progress towards the MDGs, the World Bank has developed a new analytical tool, known as the Maquette for MDG Simulations (or MAMS). Especially for low-income countries, the challenges related to the MDGs cannot be well understood unless sector issues are seen in the context of constraints at the macro level and in labor markets. It will also require careful planning of public spending in terms of sectoral allocation, sequencing and macro-economic implications. ![]() Achieving the Millennium Development Goals by 2015 in many developing countries will require significant scaling-up of expenditures on social service delivery and an increase in foreign assistance. ![]()
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