Interviews

T.W.D.: Prime Minister Tony Blair said at the launching of the CFA that its recommendations should be seen as British Government policy. Even if not all were taken up in Gleneagles, are there any that can be implemented bilaterally?

G. Wetherel: Yes. While the UK clearly cannot take responsibility for implementing all Commission for Africa (CFA) recommendations - for example, many refer to global or African responses - the UK government has been working to close any gaps between existing policy and the CFA, and a ministerial committee has been set up to take this work forward.  

T.W.D.: What do the Gleneagles decisions on cancelling multilateral debt for 14 HIPC eligible countries mean for Ghana?

G. Wetherel: The G8's multilateral debt deal will cancel the remaining debts owed by Heavily Indebted Poor Countries (HIPCs) to the concessional lending arms of the World Bank, African Development Bank (AfDB) and International Monetary Fund (IMF). This could be worth up to $55bn for 38 HIPCs. Discussions are now in progress to work out details of the propo- sal.  We hope that the Boards of the World Bank, IMF and African Development Bank will discuss and agree this new initiative later this year. 

Under the proposal, debt relief will form part of the HIPCs' agreed annual allocations from these institutions. Donors will fully compensate the Banks for the repayments they forgo each year, that is, the debt service that HIPC countries would otherwise have paid. These additional funds will then be allocated to all poor countries, using the institutions' normal (performance-based allocation) systems. 

To qualify for this relief, countries must meet the conditions required to complete the HIPC Initiative. This is to provide confidence in their public financial management systems, and ensure that savings will be used for poverty reduction.   For countries like Ghana that have already completed the HIPC process, the assistance will be given provided they are on track and continue to demonstrate a strong commitment to poverty reduction.

The extent of benefit to Ghana cannot yet be determined exactly. However, as a good performer, Ghana will be expected to receive a significant share of the additional resources.  There is still some discussion about the debts that would be covered.  We anti-cipate that the cut-off date will be not earlier than 1 January 2004 and may be later.  However, it is clear that debt cancellation will be irrevocable and will free up resources in government budgets to fund national poverty reduction strategies and accelerate progress towards the Millennium Development Goals. 

T.W.D.: What else can Ghana take comfort from in the Gleneagles decisions?

G. Wetherel: Ghana can take comfort from the fact that there will be increasing aid flows, particularly from multilateral donors. Gleneagles laid the foundation for achieving a good outcome in the December trade talks in Hong Kong and Ghana will benefit from this. And it should ensure that pan-African institutions are strengthened, particularly in terms of their capacity to help keep the peace and promote stability in Africa. This will be of benefit to the continent as a whole, including Ghana.  

T.W.D.: The President of Ghana was one of the African leaders invited to Gleneagles. Did the Summit help reinforce UK-Ghana relations?

G. Wetherel: Yes, I think it did. UK-Ghana relations are already strong and well developed, with both partners engaged in constructive dialogue on many bilateral and multilateral issues. We hope that the outcomes of the summit will also affect Ghana's own development in a positive way. Although the summit was focused on wider issues, it provided some opportunities for exchanges on UK-Ghana relations, for example, between the President of Ghana and our Secretary of State for International Development, Hilary Benn, who discussed ways in which the UK can strengthen its support for Ghana's development. 

T.W.D.: In view of the commitment to double aid to Africa in five years, are there reasons why Ghana would expect to be an important beneficiary? 

G. Wetherel: Yes, even though Ghana is relatively well aided compared to other African countries, I would expect Ghana to be a beneficiary. Ghana has many poor people and an environment that gives reasonable assurances that aid is used effectively. Its economic policies have led to strong economic growth and its governance is steadily improving. However, if it is to make effective use of increased aid flows, Ghana needs to make real progress in improving public service capacity and public financial management in particular.

Ghana was the first country to sign up to the African Peer Review Mechanism (APRM).  APRM signatories will receive support via the G8's assistance to the APRM Trust Fund.  The G8 have also said that where appropriate they would support African countries in the implementation of their national good governance strategies. Ghana could benefit from this.

The Gleneagles commitment to focus on regional infrastructure will have an effect on West Africa and Ghana. We have said we will bring together key players to form an infrastructure consortium.  The IMF/World Bank will be looking at how best to support enhanced investment in infrastructure. The African Development Bank, as the regional development bank for Africa, will be closely involved. 

T.W.D.: What would be the areas of concentration should there be an expansion of aid inflows?

G. Wetherel: There is a need for more aid in most areas of society.  Government is developing its own national development plan and this is informed by the  President's three priorities - human resource development, private sector and good governance. We anticipate that if Ghana received more aid it would want to invest more in education and health services, agriculture and infrastructure and in providing a better environment for private sector growth.

T.W.D.: Do you think Ghana has the capacity to absorb aid?

G. Wetherel:Yes. But referring to my earlier answer, I think Ghana needs to strengthen the ability of its public service to implement government policies. As the UK knows from its own experience, improving the public service is a complex, incremental and long-term process. Public service reform is high on the President's agenda and we are confident that Ghana's ability to use aid effectively is moving in the right direction.          

<< back