Accra, Oct. 28, GNA - Finance Minister, Dr Kwabena Duffuor on Wednesday appealed to development partners to reduce the high transaction cost on development aid and introduce flexibility in the assessment mechanism. Speaking at the Multi Donor Budget Support (MDBS) high level meeting in Accra, Dr Duffuor said development partners must adjust to the fast changing aid environment, to ensure that all players in the aid delivery business benefited.
The MDBS programme was initiated in 2002, during the Consultative Group meetings to provide more harmonised assistance to Ghana in her quest to achieve the development agenda through policy reform. It also aims at increasing the predictability of donor flows through agreed targets, reduce tied aids and improve development partners co-ordination.
Currently, 11 development partners have signed on to the programmes. The MDBS envelope is about 300 million dollars annually. Dr Duffuor said government was taking steps to enhance the understanding of the principles and growing demands of the MDBS mechanism as well as take control of its ownership.
He lauded the multi-year targets and disbursements of the programme which allowed development partners not only to make commitments for a given year but also indicate their contributions for the next two years. The Minister said the strategy was consistent with the Medium Term Development Plan and would help address the current macro-economic conditions for sustaining economic growth, poverty reduction and wealth creation.
Dr Duffuor reiterated government's commitment to improving national systems to deepen accountability and improve monitoring and evaluation at the local and national levels.
It is in this direction that the public financial management systems have been improved with the strengthening of the Controller and Accountant-General's Department and the Ghana Audit Service, to ensure efficient and timely budget reporting while the tax agencies' capacity are being put in shape to mobilise more local resources for development. Mr Ishac Diwan, World Bank Country Director welcomed the need to introduce greater flexibility in the MDBS process to respond better to unexpected shocks.
He referred to the twin crisis of food and fuel and the ongoing macro-economic difficulties, saying they provided the need to address in a timely manner new policy areas that were not planned for previously. 28 Oct. 09
