The MDGs in the European region and beyond: a holistic approach needed to correct uneven progress.

• Author: Belka, Marek
• Position: Millennium Development Goals

The regions covered by the United Nations Economic Commission for Europe (UNECE)--the whole European continent, North America and Central Asia--are characterized by a tremendous diversity in levels of economic development. While most countries of Western Europe and North America have levels of gross domestic product (GDP) per capita well above $20,000, for Eastern Europe, the Caucasus and Central Asia (EECCA) and South Eastern Europe (SEE), the level is below $10,000. Some countries are emerging market economies, thus very close to the corresponding average GDP per capita of Latin American countries and some better-off African countries, such as Egypt (above $4,000). Others have much lower levels of income; for example, Tajikistan has the same level as Rwanda (about $1,200) and in Moldova, the income level is close to that of Ghana ($2,000).

This situation is reflected in the uneven progress with the Millennium Development Goals (MDGs) within the UNECE region. While the MDG targets have largely been reached in North America, Western and Central Europe, many Goals are still a challenge for most of the EECCA/SEE countries. Overall, these countries recorded sustained economic growth between 2000 and 2005, largely due to a favourable global environment, including low interest rates and high commodity prices and, to a much lesser degree, to institutional reforms and their further integration into the global economy.

Degrees of achievement. Overall, this economic performance has reduced the level of poverty (MDG 1), but in an uneven manner. In the resource-rich countries, the benefits of growth resulting from commodity exports have not trickled down sufficiently to the poorest sectors of the population, due in particular to a lack of investment in new job-generating activities and an insufficient redistribution of the surplus through income transfers or targeted social programmes. For low-income countries, the significantly lower growth rate has so far not been mitigated by the level of official development assistance (ODA) commensurate with the financing needs of these countries for substantial poverty reduction. Another major reason for the persistence of poverty is the employment situation. With very few exceptions, such as Armenia, Moldova and Ukraine, the activity rate between 2000 and 2005 in EECCA countries stagnated and even declined in some cases. Overall, it has stayed within the range of 45 to 55 per cent, except for the Russian...