by Veronica Rita Sackey - MDBS Coordinator GHANA AID POLICY & STRATEGY Accra, 23 September 2010

2 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

3 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.

4 Rationale Optimal allocation & impact of aid on growth & poverty reduction Country Policies & Procedures Economic management Institutional arrangements Human capacity

5 Highlights of the Policy Overview of the challenges in aid management; Sets out Policy Areas; Outlines aid planning, mobilization, management and coordination strategies; Defines the legislative framework and assigns roles as well as responsibilities to various Government institutions. Identifies additional work to be undertaken

6 Objectives Promote aid effectiveness Ownership & Leadership Effective aid coordination & mgmt Manage for development results Strengthen mutual accountability Move beyond aid dependency

7 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

8 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.

9 Policy/Strategy Areas I: ♦Legal Framework ♦Sourcing/Mobilization of external aid (Aid Modalities) ♦Technical Cooperation & Capacity Development ♦Aid Coordination ♦Aligning Aid with Development Priorities

10 Policy/Strategy Areas II: ♦Harmonization ♦Financial Oversight & Accountability ♦Mutual Accountability ♦Managing for Development Results ♦Institutional Framework for Sourcing & Managing Aid

11 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

12 legend NDPC GSS MoFEP 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 Heads of Cooperation Group Heads of Mission Group CSO Umbrella Group Government Gov - DP Dev. Partners CSO 16 SWGs in total CSO Group on Aid Effectiveness Development Coordination Architecture - Ghana Aid Coordination Mechanisms and M&E of Development Framework

13 Implementing the Policy Specific roles are identified for the following Government institutions: ♦ Cabinet ♦ Parliament ♦ MoFEP ♦ MDAs ♦ Ghana Audit Service ♦ NDPC ♦ BoG ♦ CAGD

14 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

15 THANK YOU FOR YOUR ATTENTION