World Bank Money Not Without Conditions

-Appoint Minister for Private Sector Reforms

-Pass Rights to Information Bill

-Outline clear policy on budget deficit reduction

Ghana’s hope of attracting a handsome financial help from the World Bank may not come easy as the multilateral agency has spelt out its conditions under which the US$1.2 billion facility will be accessed. Boahene Asamoah reports

THE euphoria that greeted the government’s announcement that the World Bank is providing it with a US$1.2 billion to cushion the economy is gradually fading with the revelation that the facility comes with “heavy” conditions that may not be too comfortable to the government.

The Bank has indicated that its assistance to Ghana would not flow unless certain conditions are met, Country Director Mr Ishac Diwan has said. According to the Bank boss in Ghana, the government must show the clear policy direction it intends to use to reduce the budget deficit; pass the right to information bill; as well as appoint a Minister for Private sector reforms to see to the improvement of the private sector.

News monitored on local radio stations quoted the country director as saying that the government must also make public the timelines for the implementation of the Freedom of Information bill before any funds would begin to flow. The Minister of Finance, Dr Kwabena Duffuor, in a recent interaction with the Association of Ghana Industries (AGI) stated that “recent negotiations with the multilateral institutions will hopefully see an inflow of US$1.2 billion budgetary and project support from the World Bank, and possible US$D1.0 billion from the IMF for balance of payments support”.

Analysts are of the view that considering the outlined conditions, it was likely that the budgetary support from the World Bank would delay.

That is because, the appointment of a Minister of State for Public sector reforms, for instance, was likely to take about a month or two if the government was to abide by that condition.

The minister would have to be vetted and approved by Parliament before he or she becomes fully functional. However, there is also the belief that if the government is able to convince the Bank that it will abide by the conditions; the funds can then start to flow.