| The World Bank (DEC) has developed a tool for economy-wide, country-level analysis of medium- and long-run development policies, including strategies for reducing poverty and achieving the Millennium Development Goals (MDGs). The tool – named MAMS (Maquette for MDG Simulations) – is a dynamic Computable General Equilibrium (CGE) model that has been extended to cover the generation of outcomes in terms of growth, MDGs, and the educational make-up of the labor force, as well as the interaction of these outcomes with other aspects of economic performance. |
The government policies that are considered include:spending: its level and allocation across different areas (including education, health, and infrastructure); financing: policies for taxation, domestic and foreign borrowing, and foreign aid.
- Economic performance is measured by the evolution of:
poverty and other MDG targets; macro indicators: GDP (split into private and government consumption and investment; exports; imports); the composition of the government budget, the balance of payments, and the savings-investment balance; total factor productivity; domestic and foreign debt stocks.
sectoral structure of production, employment, incomes, and trade; the labor market: unemployment; educational composition of the labor force.
MAMS is a flexible tool that can be run in different versions that differ in data needs. For example, for analysis of macro issues, it is sufficient to use a version with minimal data needs; analysis of MDG strategies requires a version with additional sectoral disaggregation and a more detailed database. | |
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