December 18, 2006
GHANA
OWNERSHIP
1. Partners have operational national development strategies
a. Coherent long-term vision with medium-term strategy derived from vision
1.
There is a constitutionally-mandated long-term vision—the Coordinated
Programme for Economic and Social Development through 2012—prepared by the
Government of Ghana and approved by Parliament in December 2002, after extensive
consultations with stakeholders. The Government has also adopted NEPAD as an overall
socio-economic policy framework to entrench democracy and good governance, foster
regional integration and achieve long-term development. It is conducting consultations
with national stakeholders on NEPAD implementation.
2.
In 2005, the Cabinet approved a medium-term strategy for 2006-09—the Growth
and Poverty Reduction Strategy (GPRS II). The GPRS II builds on the Ghana Poverty
Reduction Strategy (GPRS I) for 2003-05, Ghana’s version of the PRS1. The GPRS II is
derived from the long-term vision, and NEPAD sectoral priorities have been integrated
into the GPRS II. Sector strategies underpin its implementation.
3.
Sector strategies, prepared in 2003 and 2004, guided GPRS I implementation and
have underpinned the formulation of the GPRS II. These strategies include: a National
Medium Term Private Sector Development Strategy (PSDS), a Financial Sector Strategic
Plan (FINSSP), a Power Sector Reform Strategy (PSRS), and a Food and Agriculture
Sector Development Policy (FASDEP). In addition, the Cabinet approved a National
Trade Policy Framework. To support human development, there are an Education Sector
Strategic Plan and a Health Sector Program of Work. To strengthen governance, there are
a National Decentralization Action Plan, a Public Sector Reform Strategy, and an Action
Plan for Public Financial Management. Also water and social protection strategies have
been finalized.
4.
As provided by the Constitution, district assemblies prepare their own mediumterm development plans with the assistance of the National Development Planning
Commission (NDPC). The preparation of these plans is, however, hampered by limited
capacity at the local level. The Government is taking steps to address these capacity gaps.
With UNICEF, GTZ and SNV support, the NDPC has prepared guidelines to assist the
District Assemblies to prepare their district medium-term development plans in alignment
with the GPRS II. District development plans are informed by participatory poverty maps
developed for all districts.
b. Country specific development targets with holistic, balanced, and well
sequenced strategy
5.
The implementation of the medium-term strategies is geared toward the
achievement of the MDGs. Ghana is a UN Millennium Project pilot country. The
Government in collaboration with the Millennium Project Secretariat conducted a MDG
1
The GPRS II was finalized in November 2005. The Government of President Kufuor completed the
GPRS I in February 2003 and Progress Reports in March 2004 and March 2005.
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needs assessment. Findings of this exercise informed the costing of the GPRS II,
particularly in the areas of health and education.
6.
The GPRS II places emphasis on poverty reduction through economic growth and
infrastructure development, with continued emphasis on social investment and
macroeconomic stability. It focuses on three main areas: 1) accelerated private sector
growth, 2) vigorous human resource development, and 3) good governance and civic
responsibility. It thus addresses the five thematic areas on which the GPRS I focused—
macroeconomic stability, production and gainful employment, human resource
development and provision of basic services, good governance, special programmes for
the vulnerable and excluded—through a more integrated approach. For example, it seeks
to exploit more fully the links between agriculture modernization, infrastructure,
environmental management and tourism as key vehicles to foster growth. Prioritization of
activities and the development of the results framework within GPRS II are still in
progress. The GPRS II highlights regional socioeconomic imbalances, with poverty
remaining predominantly rural and concentrated in the Northern, Central, Upper West
and Upper East regions. However, it only partially addresses these imbalances through
targeted policies.
7.
Cross-cutting issues that underpin Ghana’s development are sufficiently
addressed in the GPRS. The GPRS II increases attention for the environment, thus
addressing an issue left open in the GPRS I. The Government is taking initiatives aimed
at reducing gender-related gaps in education and health. There are scholarships to enable
girls to complete primary education, and fee exemptions for maternal deliveries. Also,
there is a Women’s Development Fund and a Youth Development Fund, which provide
micro-credits for women and youth respectively. The Government has taken action to
fight HIV/AIDS through a first National Strategic Framework that ended in 2005. A
second National Strategic Framework for 2006-10 has been formulated. The Government
has also made monitoring and evaluation a cross-cutting issue.
c. Capacity and resources for implementation
8.
Notwithstanding significant progress in formulating the medium-term strategies,
some resource gaps have been identified. The GPRS II includes an indicative MTEF
through 2009, building on the MTEF prepared for GPRS I implementation. Budgeted
expenditures for 2006 are broadly aligned with the GPRS II. This builds on early
involvement in GPRS II formulation and costing of the Budget Division within the
Ministry of Finance and Economic Planning and budget officers within line ministries,
and continues a process started during implementation of the GPRS I. The 2002 and 2003
budgets increasingly focused on GPRS priorities. The Government further improved the
link between GPRS priorities and budgetary allocations in the 2004 budget by drawing
on GPRS M&E structures. By the end of FY04, expenditures for poverty reduction
activities had increased from 22.5 percent at the beginning of GPRS implementation to
28 percent of overall government expenditures. Key recommendations from the 2003
GPRS Progress Report with budgetary implications were highlighted and distributed to
the ministries and government agencies. This process began as early as May 2004 when
the 2005 Budget Preparation Committee had its first meeting. A series of meetings
ensued culminating in Government workshops involving budget officers from the
Ministry of Finance and Economic Planning (MoFEP). The budget hearings were used to
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further ensure that the Progress Report had fully informed the budget estimates from each
ministry and government agency. This process continued in 2005 and helped complete
the 2006 budget in November 2005, for the first time in line with the constitutional
timeframe. The same timetable was followed for the preparation of the 2007 budget,
which was completed in November 2006.
d. Participation of national stakeholders in strategy formulation and
implementation
9.
The locus of initiative for the GPRS comes from the NDPC—a government unit
that is constitutionally independent and is under the office of the President. NDPC has
been responsible for coordinating the formulation of both GPRS I and GPRS II.
10.
Inter-ministerial coordination has improved. For instance, NDPC and the MoFEP
are collaborating on a number of training sessions to strengthen budget preparation,
including organizing workshops to train directors and budget officers at line ministries.
Implementation of GPRS I and II has been regularly discussed at ministerial committees
and the Cabinet.
11.
There is a sustainable structure for continuing government-stakeholder dialogue.
At the national level, there are National Interagency Poverty Monitoring Groups, which
include government representatives, CSOs and external partners to oversee GPRS
implementation. At the local level, there are Regional Poverty Monitoring Groups,
activated in eight regions in the course of 2004. These Regional Groups build on and
enhance existing Regional Planning Coordinating Units, by including the Regional Heads
of the Ghana Statistical Service, regional Government representatives, CSOs and a
representative of the Regional House of Chiefs. While the Regional Groups are
functioning and participated in GPRS II formulation, insufficient funding undermines
their effectiveness. There is also a National Economic Dialogue, a governmentstakeholder forum established in May 2001 to discuss economic issues. The 2004 forum
was attended by participants from Government, NGOs, Parliament, the private sector,
think tanks and academia. The recommendations made at the dialogue informed the
preparation of the GPRS II.
12.
Similar to the process followed for GPRS I formulation, in September 2004 the
NDPC constituted five Cross Sectoral Planning Groups (CSPG) around the five GPRS I
thematic areas to develop the GPRS II. The output of these five Planning Groups was
consolidated into three pillars of the GPRS II. Each CSPG was composed of government
and stakeholder representatives, supported by a consultant, a research assistant and a
coordinator. They prepared initial reports for each thematic area and drafted the GPRS II.
Between February and August 2005, the NDPC submitted the reports and early drafts of
the GPRS II to national stakeholders and consulted with them through validation
workshops as well as national, regional and district consultations.
13.
During GPRS II formulation, CSOs participated in the Cross Sectoral Planning
Groups and validation workshops at the local and central level. The Coalition of Women
Groups—an umbrella NGO—and other women’s organizations participated in Gender
Consultative Groups and provided inputs into the thematic reports and drafts of the GPRS
II. As for GPRS I formulation, labor unions were represented by the Trade Union
Congress, which attended national level consultations. Think tanks such as the Institute
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for Statistical, Social and Economic Research (ISSER) reviewed and validated a draft of
the GPRS II prior to submission to the Cabinet. Also CSOs were not always able to
communicate between each other and share information with their members. CSOs
participate in GPRS implementation through the National Interagency Monitoring
Groups. However, NGOs outside the Monitoring Groups and CSOs outside the capital
are not yet fully involved in GPRS implementation. GAPVOD—an umbrella NGO—
participated in the preparation of the government proposal for MCA assistance. GPRS
implementation and GPRS II formulation contributed to a dialogue within civil society on
policy priorities, however the impact of this process in shaping government policies still
remains limited.
14.
Private sector participation has strengthened. While private sector representatives
were not adequately involved in GPRS I formulation, during GPRS II formulation
professional bodies and business associations such as the Ghana Employers Association
and the Association of Ghana Industries participated in the CSPGs. Private sector
representatives also participated in national level consultations. The Government has
established a Ministry of Private Sector Development to interface with the private sector
and reform legislation to foster private sector development.2 There is also a Ghana
Investors’ Advisory Council that advises the President on policies to improve the
business environment for the private sector. Two business associations—the Private
Enterprise Foundation and the Federation of Associations of Ghana Exporters—are
participating in the preparation of the government proposal for MCA assistance and were
also involved in GPRS II formulation. Private sector participation has improved with the
formulation of the GPRS II.
15.
Action has been taken to involve more broadly local authorities in GPRS
formulation. The NDPC reached out to district assemblies and traditional authorities and
other bodies (Chiefs and Queen Mothers, women’s advocacy groups, professional
associations, Labor Organizations, Regional Coordinating Councils, District Assemblies)
through local consultations convened between May and June 2005. Also the National
Association of Local Authorities and the House of Chiefs participated in national
consultations.
16.
Parliamentary involvement is substantially in place. Parliament approved the
Coordinated Program for Economic and Social Development in December 2002, in line
with the constitutional requirement that “within two years after assuming office, the
President shall present to Parliament a coordinated program of economic and social
development policies,” and the GPRS in February 2003. Since 2002 there is a special
committee on poverty reduction assembling parliamentarians from different standing
committees to report to the plenary on the focus, content and adequacy of the GPRS. An
early draft of the GPRS II was submitted to Parliament in April 2005, leading to a
consultative workshop with the parliamentary committees on finance and poverty
reduction. In August 2005, a new draft was discussed with the committee on poverty
reduction and the final draft was submitted to Parliament in October 2005 and the
document has been approved.
2
In May 2006, the Ministry of Private Sector Development became part of the reorganized Ministry of
Trade, Industry, Private Sector Development and Presidential Special Initiatives.
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17.
The Executive is constitutionally required to present the Budget Statement and
Economic Policy to Parliament no later than end-November to allow sufficient time for
discussion. While in the past only revenue and expenditure estimates were typically
submitted on time, in 2005 and 2006 the Budget Statement and Economic Policy was
also presented to Parliament by end-November, before the start of the fiscal year. The
budget was subsequently passed by the Parliament before the beginning of the fiscal year,
which starts on January 1. It underwent substantial parliamentary oversight.
ALIGNMENT
2. Reliable country systems
18.
Progress has been made toward strengthening public financial management. The
budget statement discusses the main assumptions underlying the budget and provides an
overview of the implementation of fiscal policies for the previous year and the objectives
for the current year. It includes an outline of GPRS targets. The Medium-Term
Expenditure Framework (MTEF) mirrors the budget with overall and sectoral allocations.
However, the coverage of external funds in the annual estimates is not yet complete, and
annual estimates are not yet fully translated into appropriations, expenditure authorization
and cash releases. In the past internal and external audits were not conducted regularly,
resulting in insufficient oversight and a major backlog of audit reports. However, with the
reform of the Audit Service and the establishment of the Internal Audit Agency, marked
improvements have been achieved in these areas.
19.
The Government is also enhancing fiduciary systems to align them with
internationally-agreed standards and plans to use the PEFA (Public Expenditure and
Financial Accountability) performance measurement framework to assess progress in
enhancing fiduciary systems. Financial management and public procurement have been
strengthened through the enactment of a revised Financial Administration Act and a
landmark Public Procurement Act in 2003. The Act established a Procurement Board to
spearhead implementation of new procurement rules. In 2003, the Government adopted a
Competitive Bidding Law for concessions in the timber sector to improve transparency.
However, implementation of the fiduciary framework has proved at times difficult.
Although remarkable improvement has been accomplished, a number of Ministries,
Departments and Agencies (MDAs) have not yet established internal auditing
departments and procurement officials have not yet been adequately trained to handle the
2003 procurement rules. In 2006, the Government introduced a self-assessment
mechanism for monitoring public procurement. An upcoming external review of public
financial management, scheduled for 2007, will focus on procurement performance. The
2005 World Bank Country Policy and Institutional Assessment (CPIA) performance
criterion that assesses the quality of budgetary and financial management places Ghana at
3.5 on a scale of 1 (very weak) to 6 (very strong).
20.
Skills and resources for planning across government institutions need
strengthening and action is being taken toward this end. The MoFEP has insufficient
personnel to coordinate the work of all ministries in charge of undertaking specific
programs and projects, faces financial constraints, and has not yet developed sufficient
capacity to efficiently coordinate the allocation of funds and track progress. Parliament’s
impact on poverty-related expenditures and budget discussion has been strengthened
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through capacity development in the Finance and Public Accounts Committee, as
demonstrated in the quality of the Parliamentary debate on the 2006 Budget Statement
and Economic Policy.
3. Aid flows are aligned on national priorities
a. Government leadership of coordination
21.
The Government takes overall leadership in coordinating development assistance.
The MoFEP takes the lead in coordination and a multi-donor budget support initiative has
significantly strengthened its role. There are 18 Sector Working Groups, partly comprised
of sector ministries and external partners acting as focal points and partly composed of
external partners only. Some of the Sector Working Groups are well established
(agriculture, health, HIV/AIDS, education, roads, water) while others are more informal
and ad hoc in character (public financial management, public sector reform,
vulnerability). Over half of them (agriculture, decentralization, education, governance,
health, HIV/AIDS, private sector development, roads, water) are chaired by government
institutions. In health, HIV/AIDS, education and roads the government takes a clear
leadership role, but less so in the others, which convene more sporadically. External
partners rotate leads, and membership is generally open to interested external partners. A
joint Government-external partner working group has agreed on actions to standardize
the functions of Sector Working Groups, increase their effectiveness and strengthen the
links with national processes.
22.
Since 1999, when Ghana started piloting the CDF, Consultative Group (CG)
meetings have been held in the country. At the November 2005 meeting, the Government
and development partners agreed to hold CG meetings on an annual basis and align them
with the Government budget cycle. Accordingly, the last CG took place as planned in
June 2006, following a “Results and Resources” format. Annual CGs de facto replaced
quarterly mini-CGs, which were introduced in 1999 but did not convene regularly.
b. Partners’ assistance strategy alignment
23.
Under the Government’s leadership, external partners’ strategies are aligned with
the GPRS. Alignment is being further strengthened through a Ghana Partnership
Strategy, agreed upon by the Government and external partners at the November 2005
CG. The Partnership Strategy includes a Results Matrix, spelling out the alignment of
external partners’ activities with the GPRS. This has helped external partners prepare a
Ghana Joint Assistance Strategy (G-JAS), a draft of which was completed in October
2006, to cover the period 2007-10 and deepen agreement on division of labour, aid
modalities and joint arrangements for policy dialogue.
24.
The five major external partners are Japan, the World Bank, the UK, the
Netherlands and the USA, accounting for approximately 80 percent of gross ODA in
2003-04. Net ODA accounted for 16 percent of GNI in 2004.3 Sixteen partners have
agreed to participate in the G-JAS: AfDB, Canada, Denmark, the EC, France, Germany,
IFAD, Italy, Japan, the Netherlands, Spain, Switzerland, the UK, the UN, the USA and
the World Bank. Canada, Denmark, DFID, the EC, Germany and the World Bank will
fully integrate their strategic framework into the G-JAS. The other G-JAS partners are at
3
See OECD/DAC Aid Statistics at http://www.oecd.org/dataoecd/21/40/1881076.gif
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various stages in their programming cycle. Their assistance strategies, currently under
implementation, have informed the G-JAS.
25.
The G-JAS builds on substantial progress in aligning development assistance with
the GPRS I. JICA assistance focuses on revitalization of rural communities, agricultural
development and administrative capacity building, and supports GPRS implementation.
The World Bank’s Country Assistance Strategy FY04-07 is based on the GPRS I. DFID’s
Country Assistance Plan for 2003-06 focuses on health, education, water and
infrastructure, in line with the GPRS I. The Netherlands’ Multiannual Strategic Plan
2005-08 broadly supports the GPRS I objectives. USAID’s Country Assistance Plan for
2004-10 explicitly supports the poverty-reduction objectives identified by the
Government in line with the GPRS I. The UN Development Assistance Framework for
2006-10, completed in 2005, lays out the UN system’s assistance strategy in Ghana, in
line with GPRS I priorities.
26.
In 2004, Ghana was selected as one of the countries eligible for support through
the MCA. The Millennium Challenge Compact, signed in August 2006, focuses on
private sector-led agribusiness development. It will finance projects in the areas of
agriculture development, transport development and rural services, including education,
electricity and water and sanitation. The Compact reflects GPRS II priorities.
c. Partnership organization
27.
A number of development assistance agencies have taken steps to increase their
presence in the country to better participate in daily decision making and have
decentralized decision-making to their country offices following a progressive move
toward joint budget support. The World Bank Country Director is based in Accra; cluster
leaders for environment, social development and human development as well as task
managers for agriculture, health, HIV/AIDS, rural development, water and sanitation are
also based in Accra, coordinating implementation of 9 of 19 World Bank-financed
projects and programs. Germany, Denmark, Sweden, the UK and the Netherlands have
decentralized their decision-making processes and established a stronger presence in the
country. DFID has organized the internal structure of the Accra office around the GPRS
II pillars and its Country Assistance Plan.
28.
Silent partnerships are also facilitating coordination and common understanding
among external partners at the technical level. Currently DFID and the Netherlands share
a sector advisor in health, and DFID and the EC share an advisor in transport. Proposals
for additional silent partnerships exist between CIDA and DFID in agriculture and
between the EC, the Netherlands and DFID in education. DFID support to the water
sector is being currently managed by Denmark and German Development
Cooperation/KfW, although DFID maintains a presence in policy dialogue in the sector.
4. Strengthen capacity by coordinated support
Coherent and coordinated capacity support
29.
A coherent capacity building strategy is not yet in place, but action is being taken
around government sector strategies. The GPRS I identified capacity constraints and
bottlenecks but fell short of proposing a comprehensive capacity building strategy. The
GPRS II does not include a capacity building strategy. It does, however, indicate the
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existence of a Comprehensive Work Plan to strengthen public service delivery. A major
element of this Work Plan concerns upgrading the capacity of the public service to
perform—with training and performance management as key features. Capacity building
is being provided by external partners in specific sectors in line with government sectoral
policies, in health and education. This in large measure proved to be stand-alone and
uncoordinated and fragmentation remains a challenge. In 2005, a comprehensive
economic management capacity building program was finalized to help enhance
government management capacity in the financial and public sectors, under MoFEP and
Ministry of Public Sector Reform respectively. The World Bank, GTZ, Denmark and
DFID have aligned their support around it. The Government and external partners are
also preparing a coordinated program to strengthen capacity for environmental
governance. However, in some sectors like decentralization, capacity building remains
fragmented.
5. Use of country systems
Donor financing relying on country systems
30.
Approximately 26 percent of external financing is channeled through the
Government’s budget, thus relying on country systems. At the 2005 CG meeting, external
partners committed to increase budget support for GPRS II implementation. This was a
further action taken in 2003, when a Memorandum of Understanding for multi-donor
budget support was signed between the Government and fourteen bilateral and
multilateral external partners—the Multi Donor Budget Support (MDBS) group—
providing for alignment of budget support around a common policy matrix with detailed
expenditure priorities for the period 2003-05, consistent with GPRS priorities. The
Netherlands channels approximately 70 percent of its development assistance through
sectoral and general budget support. DFID disburses approximately 50 percent of its
development assistance through budget support and approximately 25 percent through
SWAps. In June 2006, the World Bank completed its fourth PRSC and now provides
approximately 40 percent of its new lending through budget support.
31.
After approval of the 2003 procurement law, external partners have also started
relying more extensively on the national procurement system. For example,
implementation of the World Bank-financed micro, small and medium enterprise and
land administration projects rely on national procurement for National Competitive
Bidding. A health SWAp as well as external partner support for education and the fight
against HIV/AIDS also partially rely on national procurement.
6. Strengthen capacity by avoiding parallel implementation structures
PIUs progressively phased out
32.
Implementation of a number of externally financed projects is still carried out by
PIUs but action is being taken to progressively phase them out. For example, parallel
PIUs managing implementation of some World Bank-financed projects and programs are
being consolidated and progressively integrated into country structures. In the education
sector, a Funds and Procurement Management Unit, established in 1999, to consolidate a
number of PIUs managing externally-financed projects is being gradually phased out and
its functions are being integrated into the structure of the Ministry of Education, Science
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and Sports. To consolidate management of all externally financed projects, in 2004 the
then Ministry of Local Government and Rural Development4 created a single Project
Coordinating Unit, staffed with civil servants.
7. Aid is more predictable
Disbursements aligned with annual budgetary framework
33.
Action is being taken to increasingly align external assistance with the annual
budgetary framework. Essential to this effort is the Government’s commitment to
produce the yearly budget on a timely basis. External partners providing budget support
have helped increase predictability by informing the Government of agreed funding
levels a year in advance of budget formulation. This has involved a major change in the
way partners give budget support. For GPRS priority sectors like health, education, roads
and energy, ministries discussed with external partners priorities and financing gaps
during budget preparation. This in turn has helped the Government and external partners
come up with a full set of actual (2003-05) and projected (2006-09) aid disbursements,
discussed at the November 2005 CG meeting, which could guide future budgetary
allocations according to needs and shortfalls. Following a process initiated with the June
2006 CG, external partners will provide updated financial information every June to
facilitate budget planning, using a 3-year rolling cycle as input into the MTEF.
34.
Predictability of development assistance remains however a challenge because of
the limited reliability of development assistance data. The data provided by external
partners at the CG meeting of June 2006 contrasts with the data provided for the 2006
Survey to monitor the Paris Declaration on Aid Effectiveness. Data provided by external
partners also conflicts with the data available to the Government. This discrepancy could
be partially due to the difficulty in scheduling project disbursements, which rely on
project implementation progress.
8. Aid is untied
35.
Most aid to Ghana is untied. In 2006, CIDA prepared a baseline survey of the
percentage of untied aid provided at the country level to further progress in untying aid.
HARMONIZATION
9. Use of common arrangements or procedures
36.
Harmonization with country systems is taking place through budget support and
SWAps, which are helping the Government enhance its fiduciary systems. For example,
there is a common reporting format for financial management and auditing guiding
assistance to the health sector. There is a well-established SWAp in health. Where
SWAps are not in place, external partners are taking action to harmonize among
themselves. For example, for rural financing, the World Bank and IFAD are harmonizing
the timing of their disbursements and the closing of the respective projects. Support is
highly coordinated around a road sector strategy, including annual joint reviews. Progress
is also being made to establish common implementation arrangements and prepare for
SWAps in education, agriculture, water and decentralization. External partners are
pooling funds to support implementation of a private sector development strategy and a
4
From May 2006, it is called Ministry of Local Government, Rural Development and Environment.
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public sector reform strategy. In June 2006, Canada, Denmark, the EC, France, Germany,
JICA, the Netherlands, Switzerland, DFID, USAID, AfDB and the World Bank agreed to
adopt a common set of allowance practices and per diem rates for the projects they are
funding. In some sectors use of common arrangements is still developing. For example,
there is a Ghana AIDS Commission that is coordinating and managing support to fight
HIV/AIDS from most external partners, thus laying the ground for a SWAp. A separate
body—the Country Coordinating Mechanism—continues, however, to manage
implementation of activities financed by the Global Fund for the fight against TB,
Malaria and HIV/AIDS.
10. Encouraging shared analysis
a. Joint missions
37.
There are currently joint supervisory and review missions with respect to the
MDBS and PRSP. In June 2006, it was agreed to establish a mission-free period from
mid-September to mid-November to enable Government to focus on its budget process.
External partners will track implementation of the mission-free period to assess its
effectiveness.
b. Analytical partnership
38.
Partnerships in external analytical support are strong. There has been a consistent
move toward joint fiduciary assessments, building on joint budgetary support. In 2003,
the Government, AfDB, DFID, ILO, OECD and the World Bank jointly completed a
Country Procurement Assessment Review (CPAR), which helped the Government
strengthen the national procurement system. In 2004, the Government, DFID, the IMF
and the World Bank jointly completed an update of the Country Financial Accountability
Assessment (CFAA) conducted in 2001. In 2006, external partners participating in the
MDBS group jointly supported a PEFA assessment of public financial management.
They are also supporting a joint evaluation of the MDBS mechanism. DFID, France, the
Netherlands and the World Bank also conducted a joint Country Environmental
Assessment. External partners have posted 58 documents on the Country Analytic Work
website as of October 2006.5
MANAGING FOR RESULTS
11. Results oriented frameworks
a. Quality of development information
39.
The quality and availability of poverty-related data is improving. A census was
held in 2000. In 2003 the Ghana Statistical Service (GSS) conducted a Core Welfare
Indicators Questionnaire (CWIQ) Monitoring Survey, a Demographic and Health Survey.
The GSS is also conducting a Ghana Living Standards Survey (GLSS-5) whose
preliminary results are expected in December 2006. The NDPC piloted Poverty and
Social Impact Analyses which fed into the GPRS II. The GSS and NDPC have started
implementation of national database “GhanaInfo”. The Government prepares regular
reports on poverty-related expenditures. However, ministries and government agencies
use different data collection systems, which create inconsistencies and time lags.
5
http://www.countryanalyticwork.net
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Reporting on achievements on different sets of indicators for a number of strategies and
programs—GPRS, multi-donor budget support, MDGs—is straining the already weak
information management system and adding external requirements to existing country
reporting. While there is increased appreciation among government and external partners
of the need to harmonize indicators and move toward joint reporting, action is at an early
stage. Earlier accounting systems did not report on activities, outputs and objectives, thus
reducing the scope for monitoring performance against budget targets. The current
computerized financial management system addresses these shortcomings. The GSS is
also developing a Corporate Plan to enhance statistical skills and resources, with the
support of a multi-donor Trust Fund for Statistical Capacity Building managed by the
World Bank.
b. Stakeholder access to development information
40.
Information on Government policies is easily accessible and disseminated
regularly. A simplified version of the GPRS I was circulated in local languages and the
NDPC plans to develop a simplified version of the GPRS II in English and local
languages. There has been broad dissemination of the Annual Progress Report by NDPC,
to parliamentarians, ministries, government agencies and other stakeholders. The
dissemination exercise was extended in the second half of 2004 to Regional Planning
Coordinating Units (RPCUs). Also, in a joint effort by NDPC, the then Ministry of
Information6 and the National Commission for Civic Education (NCCE), there was broad
dissemination of the Progress Reports to rural communities, with the outreach including
radio broadcasts and Government vans with displays and video presentations. The NDPC
has developed a Communication Strategy aimed at informing citizens on progress in
achieving development goals and exposing possible failures in service delivery, and posts
draft bills and policy proposals on its website for consultation with stakeholders.
Information on the final GPRS II has been widely shared within the country. Sector
guidelines have been prepared and will be circulated to the MDAs for the preparation of
their budgets. Through the NEPAD focal point and the African Peer Review Mechanism
Governing Council, Government has prepared and is implementing an awareness and
ownership creation programme on the NEPAD framework.
41.
The GPRS II is posted on the website of the NDPC together with the GPRS II
costing framework, the guidelines for the preparation of district development plans, and
the 2004 GPRS Progress Report.7 The Coordinated Programme for Economic and Social
Development and other reports are slated to be posted on the website. The GSS is in the
process of setting up a Data Center where electronic data on various surveys can be easily
accessed.
c. Coordinated country-level monitoring and evaluation
42.
Significant progress has been made to implement a GPRS M&E Plan, but a
country-level M&E system is still under development. GPRS I implementation was
monitored through 60 core indicators. The draft Results Matrix of the GPRS II discussed
with external partners at the November 2005 CG meeting, identified 178 indicators.
6
7
From May 2006, it is called Ministry of Information and National Orientation.
http://www.ndpc.gov.gh/
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December 18, 2006
Final selection of indicators to monitor GPRS II is ongoing. NDPC is also preparing the
GPRS II M&E plan.
43.
There are different M&E systems in line ministries at various stages of
development. External partners are moving toward coordinating their support for M&E
and are aligning project indicators with country indicators. The health SWAp has
significantly strengthened the Ministry of Health’s capacity to monitor sector-wide
progress. Government and external partners use a common set of 25 indicators to monitor
progress in access to, quality and efficiency of health services, as well as partnership and
financing. Six of them were used to monitor GPRS I implementation. In December 2005,
the World Bank proposed a revision of the indicators of the education sector project
under implementation to harmonize them with the Government’s Education Sector Plan.
However, in other sectors where coordination among external partners is more ad hoc,
sector-wide M&E is not yet in place.
MUTUAL ACCOUNTABILITY
Development effectiveness assessment frameworks
44.
At the November 2005 CG meeting, the Government and external partners agreed
on an Aid Harmonization and Effectiveness Matrix, which was reviewed at the June 2006
CG. The Matrix includes country outcomes for each of the 12 Paris Indicators and actions
the Government and external partners commit to undertaking to achieve them. The
Matrix was developed under the leadership of a Core Working Group composed of two
government representatives, DFID and AFD for the bilateral partners providing budget
support, USAID for the other bilateral partners and the World Bank for the multilaterals.
The Core Working Group identified individual partners to act as champions and
spearhead action, including advancing preparation and implementation of SWAps and
joint analytical work. The Core Working Group meets monthly to monitor progress in
implementation. Ghana has signed the Paris Declaration on Aid Effectiveness. In
addition, the Government and external partners have agreed on an independent
monitoring mechanism to assess progress. The first independent review is expected to be
completed in 2008. Ghana is a signatory to the Paris Declaration on Aid Effectiveness, a
Co-Vice-Chair of the Working Party on Aid Effectiveness (WP-EFF) and a member of
the Joint Venture on Monitoring the Paris Declaration. Ghana will host the 2008 High
Level Forum on Aid Effectiveness.
45.
Since acceding to the African Peer Review Mechanism (APRM) in March 2003,
Ghana has played a lead role in its implementation. Ghana reached the ultimate milestone
of the APRM aspirations when H.E. the President was peer-reviewed at the Fourth APR
Forum in Khartoum, Sudan in January 2006. The conclusions and recommendations of
Ghana APRM Report have been translated into the APRM Programme of Action the
implementation of which will cost US$5 billion. Ghana is committed to sending halfyearly reports on implementation to the APRM Secretariat in South Africa. The
conclusions of the assessment were incorporated into the GPRS II.
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December 18, 2006
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APRM (2005), Brief report issued at the end of the African Peer Review Mechanism Country
Review Mission to Ghana, 04-16 April 2005, Accra, Ghana.
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DFID (2006), ‘UK announces 120 million of support for Ghana over next years’. March 3.
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Ghana. Accra
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Module. Washington DC.
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Paper Annual Progress Report. Washington DC.
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__________ (2003), ‘Evolution of Poverty and Welfare in Ghana in the 1990s’. Africa Region
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__________ (2004), Country Assistance Strategy for the Republic of Ghana. Washington DC.
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Related websites
Aid Harmonization and Alignment: Initiatives for Ghana
http://www.aidharmonization.org/ah-cla/ah-browser/index-abridged?rgn_cnt=gh&master=master
DFID: Ghana
http://www.dfid.gov.uk/countries/africa/ghana.asp
Government of Ghana
http://www.ghana.gov.gh/
JICA Ghana
http://www.jica.go.jp/english/countries/af/ghana.html
IMF Ghana
http://www.imf.org/external/country/GHA/index.htm
Millennium Challenge Account Ghana
http://www.mida.gov.gh/
NEPAD African Peer Review Mechanism
http://www.nepad.org/2005/files/aprm.php
Royal Netherlands Embassy in Ghana: Bilateral Cooperation
http://www.mfa.nl/acc/bilateral
UNDP Ghana
http://www.undp-gha.org/
USAID Ghana
http://www.usaid.gov/gh/
World Bank Country Policy and Institutional Assessment (CPIA)
http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/IDA/0,,contentMDK:2093360
0~pagePK:51236175~piPK:437394~theSitePK:73154,00.html
World Bank Ghana
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/AFRICAEXT/GHANAE
XTN/0,,menuPK:351958~pagePK:141159~piPK:141110~theSitePK:351952,00.html
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