Dynamic Analysis of Millennium Development Goals (MDG) Interventions: The Ghana Case Study

An increasing number of countries are orientating their development strategies on the Millennium Development Goals (MDG), a broad set of development goals agreed by the United Nations (UN) in the year 2000. Developing coherent plans to achieve the MDG is complicated by the multi-disciplinary nature of the goals and by the complexity of the system being managed. To support this planning process, various approaches have been developed that facilitate the identification of the necessary interventions to achieve the MDG and their cost. The work described in this paper complements the most commonly used approaches for MDG planning by analyzing the impact of alternative interventions in an integrated socioeconomic-environmental framework. Our framework is implemented with the System Dynamics method, ideally suited to capture the elements of dynamic complexity – feedback loops in particular – that make public policy analysis in this area particularly difficult. This allows us to estimate the impact of the MDG-related interventions on the economic and demographic development of the country under study, as well as the possible positive and negative synergies between different interventions, e.g. between education and health interventions. Results indicate that failure to account for these factors can lead to sub-optimal strategies. Our objective is to provide policy-makers with a comprehensive picture of the outcomes of alternative MDG interventions, and their implications for financing.

[1]  G. B. Rodgers Income and inequality as determinants of mortality: An international cross-section analysis , 1979 .

[2]  M. Haacker Modeling the Macroeconomic Impact of Hiv/Aids , 2002, SSRN Electronic Journal.

[3]  Khalid Saeed,et al.  A re-evaluation of the effort to alleviate poverty and hunger , 1987 .

[4]  R. Gaiha Are Millennium Goals of Poverty Reduction Useful? , 2003 .

[5]  Nancy Birdsall Economic approaches to population growth , 1988 .

[6]  Michael A. Clemens,et al.  The Trouble with the MDGS: Confronting Expectations of Aid and Development Success , 2004 .

[7]  P. Romer Endogenous Technological Change , 1989, Journal of Political Economy.

[8]  George P. Richardson,et al.  Introduction to System Dynamics Modeling with DYNAMO , 1981 .

[9]  Ricardo Hausmann,et al.  Getting the diagnosis right , 2006 .

[10]  Santiago Arango Simulation of alternative regulations in the Colombian electricity market , 2007 .

[11]  S. Collins,et al.  The Empirics of Growth: An Update , 2003 .

[12]  George P. Richardson,et al.  Problems with causal‐loop diagrams , 1986 .

[13]  Yaman Barlas,et al.  Formal aspects of model validity and validation in system dynamics , 1996 .

[14]  Economic growth and human development in Latin America , 2002 .

[15]  S. Robinson,et al.  From stylized to applied models:: Building multisector CGE models for policy analysis , 1999 .

[16]  Andreas Größler,et al.  Enhancing Learning Capabilities by Providing Transparency in Business Simulators , 2000 .

[17]  M. Bussolo,et al.  Challenges to MDG Achievement in Low Income Countries: Lessons from Ghana and Honduras , 2007 .

[18]  M. Kruk,et al.  Ending Africa's Poverty Trap , 2004 .

[19]  S. Robinson,et al.  A standard computable general equilibrium (CGE) model in GAMS , 2002 .

[20]  Matteo Pedercini Potential Contribution of Existing Computer-Based Models to Comparative Assessment of Development Options , 2003 .

[21]  Erling Moxnes,et al.  Not only the tragedy of the commons: misperceptions of feedback and policies for sustainable development , 2000 .

[22]  K. Saeed,et al.  The dynamics of indebtedness in developing countries: The case of the Philippines , 1993 .

[23]  P. Douglas,et al.  A theory of production , 1928 .

[24]  Muhammad Azeem Qureshi,et al.  Challenging trickle‐down approach , 2008 .