Constraints to achieving the MDGs through domestic resource mobilization
نویسندگان
چکیده
Th e present paper focuses on the role of domestic resource mobilization for fi nancing poverty reduction strategies. Policy makers should be aware of important macroeconomic trade-off s associated with MDG strategies fi nanced from tax increases or domestic borrowing. Th e trade-off s are largely intertemporal: can poor and middle-income countries absorb the initial fi nancing costs in order to achieve expected gains in productivity and human development over time? Th is calls for a dynamic economy-wide framework to identify the importance of such trade-off s. Th e paper presents such a framework and illustrates its usefulness in applications for Costa Rica and Ecuador. JEL Classifi cation: C68; I3; F35; O11
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