Success in achieving the MDGs primarily depends on the actions of each developing country. Goal 8 declares the need to undertake collaborative efforts to enhance economic growth and reduce poverty and commits wealthier countries to work with developing countries and create an environment that makes rapid, sustainable development possible. It calls for an open, rule-based trading and financial system, more generous aid, and debt relief to countries committed to poverty reduction.
Between 1960 and 2001, official development assistance (ODA) from major aid donors declined worldwide from 0.5% of gross national income (GNI) to 0.22%. To reverse this trend, high-income countries made commitments - at the UN international conference on Financing for Development held at Monterrey, Mexico, in March 2001 - that would increase ODA to an average of 0.26% of GNI by 2006.
An operational framework is required at the national level to translate the MDG targets into action. To be effective, this framework needs to set out a country-owned agenda aimed at sustained, shared growth and public action to achieve the goals. As in many developing countries, the primary strategic and implementation vehicle to reach the MDGs in Uzbekistan is the Welfare Improvement Strategy Paper.

Aid Coordination and Management in Uzbekistan

The coordination and management of AID is especially important. The Ministry for Foreign Economic Relations is the executing agency for the Aid Coordination and Management Component initiated by the Government and the UNDP in 2001. The primary goal of that was monitoring of implementation of technical assistance projects to ensure effective utilization of loans and grants.

ODA by Donor Group

From the total amount of loans and grants committed in 2004, 54.9% was provided by multilateral sources, 43.4% by bilateral and 1.7% by NGOs. The ADB, IBRD, and IDA remained the leading multilateral donor agencies, while the main bilateral development partner was Kreditanstalt fur Wiederaufbau.
Loans accounted for 72% of ODA committed in 2004, whereas technical assistance grants represent 28%. Share of loans in total ODA account for 91% as of the end of 2004.

Focus of Technical Assistance

Distribution of allocations by sectors illustrates that improvement of quality of life remains a priority area for assistance. Social development, health, education and science sectors received over 60% of total technical assistance in 2004. Allocations for economic development exceeded 17%. Good Governance, including democratization and human rights, received 10.5% of total technical assistance. Environmental issues remained among priority areas for external aid allocation and were provided with more than 6% of total grants.

Focus of Loans

The priority sectors of Uzbekistan's economy, development and enhancement of which will facilitate overall development of the country (Agriculture, Energy, Transport and Industries), seemed to be the main focus of development partners. 61% of loans were distributed for economic development by the end of 2004.
Allocations for Social development, Health and Education sectors accounted for 39% of total loans by the end of 2004.