DUFFOUR CALLS FOR REFORMS IN DEVELOPMENT CO-OPERATION

The Minister of Finance and Economic Planning, Hon. Dr. Kwabena Duffuor speaking at the opening of a three-day Multi-Donor Budget Support (MDBS) Annual Review meeting under the theme; Leveraging Partnership in a Transitional Middle Income Country for Sustainable Economic Growth and Development held in Accra last Monday, noted that international development co-operation had been changing relatively very fast, particularly, during the past decade.

He lamented that with an increase in the volume of Overseas Development Assistance (ODA) and questions about its effectiveness in contributing to sustainable development outcomes, the emergence of new aid providers and their expanded role in terms of volume and aid delivery modalities, and South-South Co-operation becoming an important source of development co-operation, it had become necessary to address the implications of the changing context of development co-operation.

He reiterated that while fiscal performance had met all the quantitative targets for the first quarter of the year, payment of public sector wages arising from the implementation of the Single Spine Salary Structure and the perception of possible over-spending, on account of the 2012 elections, among others, posed serious risks to the economy.

He explained that government had embarked on a payroll audit with the objective of making some savings to help reduce the public sector wage bill by the end of the year.

In a keynote address, the World Bank Country Director, Mr. Yusupha Crookes said Ghana was bound to face new potential sources of macroeconomic vulnerability as the country opens up.

Mr. Crookes hinted that the Development Partners had been refining the MDBS mechanism to sharpen its effectiveness as the key vehicle for both harmonization among Development Partners and for fostering greater alignment with Government of Ghana strategies, policies, priorities and processes.

Meanwhile the Vice President John Dramani Mahama is expected to officially open the part 2 session of the meeting on Thursday 21st June, 2012 which is scheduled to take place at La-palm.

BY JOSEPH NANA YAW COBBINA