US rewards Ghana
2004-05-16 19:19
Accra - Ghana's ambitious economic and political reform campaign under President John Kufuor has received another boost with the announcement that it qualifies for a share in %3.5bn of US aid.
Ghana was one of 16 nations selected last week by the US administration of President George W Bush under the Millennium Challenge strategy (MCA) that rewards good governance.
Eight of the countries are in Africa. In addition to Ghana, they are: Benin, Cape Verde, Lesotho, Madagascar, Mali, Mozambique and Senegal.
Countries are ranked by independent monitors on a series of civil, social and economic benchmarks including inflation, corruption and health care. Once chosen, a country is eligible to submit proposals to the US government for specific projects it needs foreign aid to help finance.
The new strategy marks a departure from the traditional way foreign aid is disbursed in that it asks countries to design and then seek funding for projects that have a three-year timeline. Countries are also required to track and audit their progress for the US government.
Finance Minister Yaw Osafo-Maafo said that Ghana sailed through the selection process, with top marks in six categories: civil liberties, political rights, voice and accountability, quality of government institutions, rule of law and control of corruption.
Above average score
Ghanaian spending on primary education and public health services, as well as its immunisation rate, were also above average.
"The MCA selection process provides yet another strand of evidence that our overall performance and trajectory for economic, social and political advancement in relation to our peers is on the right track," Osafo-Maafo said.
"It will help us in reducing poverty, help empower Ghanaians to build a better future and draw the whole nation into an expanding circle of opportunity and enterprise development," he said.
In coming weeks, Ghana will begin preparing proposals for projects to include infrastructure development, education, health care, agriculture and financial sector reform, Osafo-Maafo said.
Ghana is currently seen by the international community as a model of economic and democratic progress on the world's poorest continent.
Its inclusion in the MCA program came alongside its acceptance into the Censad African bloc founded in 1998 by Libyan leader Muammar Gaddafi, which represents 43% of all Africans or some 350m people.
Boasting a wealth of natural resources including cocoa, timber, coffee and gold, Ghana, a country of 20m people, had revenues of $1.6bn and expenditures of $1.975bn in 2001, according to the most recent figures available