GHANA AID POLICY & STRATEGY by Veronica Rita Sackey - MDBS Coordinator Accra, 23 September 2010 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 2 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. 3 Rationale Country Policies & Procedures Human capacity Optimal allocation & impact of aid on growth & poverty reduction Economic management Institutional arrangements 4 Highlights of the Policy Overview of the challenges in aid management; Identifies additional work to be undertaken Defines the legislative framework and assigns roles as well as responsibilities to various Government institutions. Sets out Policy Areas; Outlines aid planning, mobilization, management and coordination strategies; 5 Objectives Ownership & Leadership Move beyond aid dependency Strengthen mutual accountability Promote aid effectiveness Effective aid coordination & mgmt Manage for development results 6 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 7 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. 8 Policy/Strategy Areas I: ♦ Legal Framework ♦ Sourcing/Mobilization of external aid (Aid Modalities) ♦ Technical Cooperation & Capacity Development ♦ Aid Coordination ♦ Aligning Aid with Development Priorities 9 Policy/Strategy Areas II: ♦ Harmonization ♦ Financial Oversight & Accountability ♦ Mutual Accountability ♦ Managing for Development Results ♦ Institutional Framework for Sourcing & Managing Aid 10 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 11 President’s Office MoFEP Development Coordination Architecture - Ghana DP Quarterly Pr. Review; DP Portfolio Reviews; Annual Policy Hearings Parliament CSPG (MDAs, CSOs) CSO Umbrella Group 16 SWGs in total MDBS Group SWG SWG Heads of Mission Group SWG SWG Regional Monitoring Group District Monitoring Group Aid Coordination Mechanisms and M&E of Development Framework GoG – DP Group GSS NDPC CSO Group on Aid Effectiveness legend Government Gov - DP Heads of Cooperation Group Dev. Partners CSO 12 Implementing the Policy Specific roles are identified for the following Government institutions: ♦ Cabinet ♦ Parliament ♦ MoFEP ♦ MDAs ♦ Ghana Audit Service ♦ NDPC ♦ BoG ♦ CAGD 13 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 14 THANK YOU FOR YOUR ATTENTION 15