Interviews

T.W.D.: The G8 Summit at Gleneagles refused to consider suggestions for total, unconditional debt cancellation in addition to the June 2005 debt cancellations and instead opted for a highly enhanced aid package.  Considering the genuine concerns about the numerous instances of aid abuse in the past, how does the G8 ensure that, this time, aid money would be properly applied?

M. C. Yates: The G-8 proposal does provide 100 percent irrevocable debt stock relief for post-Completion Point HIPC countries, including Ghana. Additional donor contributions by the International Development Association (IDA) and the African Development Fund (AfDF) will be allocated to all IDA-only countries, based on the existing performance-based allocation system. This approach ensures equity between HIPC countries and non-HIPC countries and creates an incentive for the pursuit of responsible, pro-growth policies. 

T.W.D.: How committed is the US to the Gleneagles decisions and how will she ensure that these promises are kept?

M. C. Yates: The US Government is committed to the Gleneagles G8 proposal for 100% debt relief for HIPC countries. Of course, the World Bank and the African Development Bank Governors, as well as the Executive Board of the IMF, must approve the proposal in order for it to be implemented. The US is working closely with these organisations and its donor partners to move the proposal forward.               

T.W.D.: Meeting the targets set in the Millennium Development Goals depends fairly largely on the delivery of the inputs promised by the US and other  rich countries. Are the recent debt cancellation and enhanced aid promised by the G8 being linked in any way to the MDG?

M. C. Yates: Under the G8 proposal, the motivation for debt relief in the World Bank and the ADF is both to improve debt sustainability and provide additional resources to help countries achieve the MDGs. For this reason, the G8 made a commitment to provide additional contributions to the IDA and the AfDF on a dollar-for-dollar basis. In the case of the IMF, debt relief is intended to improve balance of payments positions and ensure debt sustainability, address roll-over pressures, make the IMF more effective in low-income countries, and help create the conditions for growth and stability, and in so doing support countries' effort to achieve the MDGs. Debt relief is linked to the attainment of the HIPC Completion Point and is not explicitly linked to MDG targets. Debt relief will, however, help countries' efforts to reduce poverty, increase growth and assist countries reach their objectives under the MDGs. 

T.W.D.: For more than a year Ghana has been on the list of 16 selected countries waiting to benefit from the Millennium Challenge Account.  What is the reason for the long delay?

M. C. Yates: The Millennium Challenge Account (MCA) is a key part of the US Government's effort to increase assistance to countries that are taking responsibility for their own development. Given the stringent qualifying criteria for MCA eligibility, I consider it an enormous accomplishment for Ghana that it was included in the list of 16 countries t  hat are to receive MCA assistance. The Millennium Challenge Corporation (MCC), which administers the MCA proposal, is collaborating with Ghana to develop its proposal, or "MCA Compact." On August 11, 2005, the MCC and Ghana signed a grant agreement under which the MCC is to provide up to $3 million to assist Ghana to continue the development of its proposal. This process of developing a proposal that will be fully fundable and truly transformational can be lengthy and complex. But the Government is attempting to develop a Compact that will transform Ghana's economy and the living standards of its citizens. We expect Ghana's Compact, when implemented, to provide significant support to Ghana's overall effort to reduce poverty and increase economic growth. We are honoured to be working with Ghana in this important effort, and our two sides are working as a team to complete the Compact as quickly as possible. 

T.W.D.: How would you describe your time in Ghana, working with the government and Ghanaian and numerous other officials managing US aid and other programmes, and interacting with people in all parts of the country?  Which experience has been of the most interest to you?

M. C. Yates: One of the things that impresses me most about Ghana is the way Ga and Dagbani, Muslim and Christian, all live and work side by side in relative peace. I've had the privilege to visit Tamale, Wa, Ho, Sunyani, Kumasi, Takoradi and Bolgatanga, among other places, during my time here and I know that Ghana's greatest strength is in all of her people. We only have to look around the region to see how ethnic divisions take their toll. The stability that Ghana has created, then, is all the more precious.  There have been so many American visitors to Ghana during my stay here, including former Presidents, trade delegations, academics rtists and musicians. They all tell me the same thing: how impressed they are with the kindness and energy of the people here, and that the prospects for Ghana seem bright. More and more Ghanaians are going to the US, too, for trade expositions, training and academic and cultural exchanges. Our two countries have a lot to share and learn from each other. One of my most memorable experiences was during the elections of December 2004. I visited some polling stations that day and the enthusiasm and seriousness with which those free elections were conducted was absolutely breathtaking.     [back]

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