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# **Introduction**

**Mauritania is rich in natural resources, but its human development is low.** Natural resources constitute the backbone of the Mauritanian economy. For decades, iron ore and fisheries have contributed to the public coffers. In 2006, the country joined the rank of oil-exporters. However, both exports and growth have been unable to bring about significant human development over the years. The 2007 Human Development Index (HDI) ranked Mauritania 137<sup>th</sup> out of a total of 177 countries (UNDP 2007).

**To improve the living standards of the population and sustain broad-based growth, the authorities need to achieve the Millennium Development Goals (MDGs).** The government has laid out an ambitious strategy to propel the country into the middleincome group in the medium-term (GIRM 2007a).<sup>2</sup> To achieve this, Mauritania needs to differentiate growth beyond natural resources, and ensure that all segments of the population – 47 percent of which still lives in poverty (GIRM 2006) -- benefits from inclusive broad-based growth.

**However, with current policies and resources (both national and external), Mauritania is unlikely to reach most of the MDGs.** As of today, only gender equality in primary and secondary education (MDG3) can be reached, while the poverty reduction goal (MDG1) is at risk. The probability of reaching the other MDGs including the primary school retention rate and all the health-related goals is minimal. The country may reach the goal for HIV/AIDS, given its low prevalence, and – given recent progress – the goal for maternal mortality (GIRM 2007).

**The authorities should consider the MDGs as the centerpiece for the development strategy of Mauritania.** The MDGs provide a valuable set of result-oriented monitoring indicators. Adopting them as the government’s overall development framework will keep policy-makers focused on concrete results; help them avoid the so-called “natural resource curse”<sup>3</sup> ; and ultimately increase the likelihood that reforms will be kept on track. Indeed, establishing a credible roadmap to achieve the MDGs (i.e.: invest resources to reduce poverty and promote human development) can mitigate the risk of reduced commitment to reform due to the easing of resource constraints, notably if oil production picks up in the future.

**To accelerate progress towards the MDGs, more resources and better policies are needed.** Over 2008-2015, simulations show that the total cost of reaching the MDGs and the resulting financing gap are, respectively, 8.9 and 3.2 percent of non-oil GDP on average per year. Education is the most expensive goal in absolute terms, but the financing gaps are widest for poverty reduction and improving maternal health. On the policy side, sectoral strategies need to be better aligned with the MDGs, and resources allocated more than proportionally to the disadvantaged groups, notably at the local level.

> 2 In 2006, the country’s Gross Domestic Product (GDP) was US$2.7 billion, which conferred a per capita Gross National Income (GNI) of US$938 on its 2.9 million people.

> 3 Evidence suggests that resource-rich developing countries lag the resource-poor countries in terms of per capita income (Sachs and Warner 2001) and the quality of institutions and governance (Sala-iMartin and Subramanian 2003).