Develop a global partnership for development
In terms of Global Partnerships for development (MDG 8), Official Development Assistance (ODA) inflows to Ghana which has dropped from 13.2 per cent of GDP in 2003 to 10.3 per cent of GDP in 2008 rose to 14.6 per cent of GDP in 2009 but declined to 12.8 per cent in 2010. The portfolio of aid inflows continued to be dominated by project aid which constitutes more than 60 per cent of ODA inflows. In terms of cooperation with the private sector, Ghana has seen rapid and dramatic improvement in mobile phone and internet usage over the past decade. Mobile cellular phone subscription surged from about 0.67 in 2000 to 63 per 100 inhabitants in 2009. In addition, subscribers of internet service for the entire population have almost doubled within a period of one year from 2.3 million in 2009 to 4.2 million in 2010.
What contributed to the progress?
The main factors contributing to the progress in MDG 8 include:
• Good governance: Political stability and improved democratic governance including strengthening of Parliament, protecting of rights under rule of law, ensuring public safety and security, empowering women and vulnerable groups, and improving domestic accountability, have led to growing confidence of development partners in the country’s systems.
• Improved government-donor partnership has facilitated a shift from activity-based to results-oriented approach to aid delivery and management, and has contributed positively to changing the aid architecture in Ghana.
• Ownership of the development process as characterized by a country’s ability to exercise effective leadership over its development policies and strategies is critical to achieving development results and is central to the Paris Declaration. In acknowledgement of this fact, Ghana has since 2003 prepared three Medium Term National Development Policy Frameworks, namely, Ghana Poverty Reduction Strategy (GPRS I), the Growth and Poverty Reduction Strategy (GPRS II) and the Ghana Shared Growth and Development Agenda, which have provided the basis for donor coordination and alignment. Sector and local governments derive their respective medium-term development plans from them, and also monitor the progress made in achieving sector and district development targets. This process has enabled the government to deepen the ownership of the development process as well as the coordination of donor assistance towards implementation of the development policy framework.
• Transparency and Accountability through improvement in public financial management: The improved public financial management increases the confidence of Development Partners in the use of the country’s systems. Though some weaknesses exist in the rules, systems and capacity of users in the public sector, improvements have been observed in:
The key challenges to the continued aid inflows are:
• The current debt crisis in EU and poor economic performance in the USA and Japan both of which are major contributing factors. Preliminary findings based on Development Assistance Committee (DAC) members’ returns to the forward spending survey suggest slower aid growth ahead. Global country programmable aid is planned to grow at a real rate of 2 per cent per year from 2011 to 2013, compared to 8 per cent per year on average over the past three years. The projected increase in bilateral aid is slightly lower at 1.3 per cent per year;
• The implications of the country’s attainment of a middle income status in relation to the availability of donor support and the terms on which loans are provided to the government;
• Weakness in aid administration in Ghana due to the absence of a comprehensive framework guidelines and targets to facilitate effective aid delivery is another challenge. The participatory process towards formulating a National Aid Policy, currently in progress, is expected to address this weakness.