by Veronica Rita Sackey - MDBS Coordinator

GHANA AID POLICY & STRATEGY

Accra, 23 September 2010

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Presentation Outline

♦ What is the Ghana Aid Policy & Strategy♦ Rationale for the Policy♦ Highlights of the Policy♦ Objectives of the Policy♦ Overview of Challenges♦ Policy/Strategy Areas ♦ What is New?♦ Implementing the Policy♦ Next Steps

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What is the Ghana Aid Policy & Strategy

♦ A coherent and consolidated framework in the management and coordination of external aid.

♦ Sets out policies and strategies for the sourcing and utilisation of aid.

♦ Under-pinned by the principles agreed to in the PD and reinforced in the AAA.

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Rationale

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Highlights of the Policy

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Objectives

Promote aid effectiveness

Ownership & Leadership

Effective aid coordination &

mgmt

Manage for development

resultsStrengthen

mutual accountability

Move beyond aid

dependency

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Overview of Challenges I

♦ Aligning aid: Much of the assistance provided remains off-plan and off budget.

♦ Non-use of Country Systems: Despite improvements in PFM systems, DPs’ use has declined.

♦ Fragmentation in sourcing/managing aid: Contracting of aid is currently not centrally coordinated.

♦ Transaction Costs: Demand on GoG in terms of time, reporting needs, uncoordinated missions, etc

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Overview of Challenges II

♦ Inadequate capacity for aid delivery: Absence of national capacity development strategy.

♦ Conditionality & Unpredictability of aid: Use of policy/process conditionalities affects predictability of aid (volume, quality, timing, etc)

♦ Information on aid flows: Incomplete reporting of ODA hinders monitoring & management of aid received.

♦ Inadequate coordination of aid: Lack of strong linkages within MoFEP and with MDAs as well as non-alignment of DP commitments to GoG priorities.

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Policy/Strategy Areas I:

♦ Legal Framework

♦ Sourcing/Mobilization of external aid (Aid

Modalities)

♦ Technical Cooperation & Capacity Development

♦ Aid Coordination

♦ Aligning Aid with Development Priorities

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Policy/Strategy Areas II:

♦ Harmonization

♦ Financial Oversight & Accountability

♦ Mutual Accountability

♦ Managing for Development Results

♦ Institutional Framework for Sourcing &

Managing Aid

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What is New?

♦ Legal framework governing aid, which provides the basis for additional documents to complement the Policy.

♦ Mutual Accountability Framework: Independent monitoring group

♦ Aid Management Information System♦ Capacity Development Framework♦ GoG Coordination: National Aid Roundtable♦ Coordination with DPs: Government-DP Group

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NDPC GSSMoFEP

CSPG (MDAs, CSOs)

Regional Monitoring

Group

District Monitoring

Group

President’s Office

Parliament

GoG – DP Group

MDBS Group

DP Quarterly Pr. Review; DP

Portfolio Reviews;

Annual Policy Hearings

SWG SWG

SWGSWG

Heads of Cooperation

Group

Heads of Mission Group

CSO Umbrella

Group

Government

Gov - DP

Dev. Partners

CSO

16 S

WG

s in

tot

al

CSO Group on Aid

Effectiveness

Development Coordination Architecture - GhanaAid Coordination Mechanisms and M&E of Development Framework

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Implementing the Policy

Specific roles are identified for the following Government institutions:

♦ Cabinet♦ Parliament♦ MoFEP♦ MDAs♦ Ghana Audit Service♦ NDPC♦ BoG♦ CAGD

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Next Steps

♦ The development of additional documents to fully operationalize the Policy document.

♦ Development and approval of roadmap towards implementing the Aid Policy and Strategy

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THANK YOU FOR YOUR ATTENTION