The 2012 Consultative Group Annual Partnership Meeting and Multi-Donor Budget Support (MDBS) Annual Review Meeting are underway in Accra to discuss major development and strategic orientation of external assistance to the country.

The three-day meeting scheduled for June 18-21 is on the theme “Leveraging Partnership in a Transitional Middle Income Country for Sustainable Economic Growth and Development”.

It is being held for the first time back-to-back with the Multi-Donor Budget Support (MDBS) Annual Review to facilitate cross-fertilisation, enhance alignment of MDBS to the national budget calendar and minimise transaction costs.

Officials from government institutions, diplomatic missions in Ghana, the private sector, civil society and NGOs will engage on mutual partnership deliberations during the meeting.

Addressing the opening session, Dr. Kwabena Duffuor, Minister of Finance and Economic Planning, said although the government had met all its quantitative targets for fiscal performance in the first quarter, payment of public sector wages arising from the implementation of the Single Spine Salary Structure (SSSS) remained a risk to the economy.

In this direction, he said the government had embarked on a payroll audit with the prospects of making some savings to help reduce the public sector wage bill by the end of the year.

“We wish to re-assure our development partners and other stakeholders that government is committed to maintaining fiscal consolidation and sustain the gains chalked under the Extended Credit Facility Programme with the IMF,” Dr. Duffuor said.

The Sector Minister underscored the importance of development partners to address the implications of the changing context of development cooperation and the negative impact of global economic crisis as well as climate change.

Besides, they must welcome the other forms of development cooperation and the official development assistance, which were affecting the pattern of future development.

“The issue of how to reform the architecture for international development cooperation to make it more effective, transparent and inclusive should engage our attention,” the Sector Minister said.

Mr. Yusupha Crookes, World Bank Country Director for Ghana, said despite progress in mobilizing domestic revenue and non-aid financing as well as strengthening policy for attracting private financing for key public investments, development assistance and general budget support would still be critical.

Since 2010, there has been an active on-going dialogue with regard to the role, nature and volume of official development assistance within the context of managing the transition to middle income.

With the current focus on Ghana as a middle income country and the added benefits of the emerging oil and gas industry, both government and development partners realize the need to review and re-define the overall strategy of Ghana’s partnership arrangements in relation to development priorities.

The MDBS Annual Review will precede the meeting with a holistic assessment of progress in the national development plan and the 2011 indicators of the MDBS policy matrix.

In addition, the review will seek to assess the underlying principles related to macroeconomic performance, sound budgeting and public financial management, human rights and good governance in Ghana.

This is in line with the Framework Memorandum of the MDBS instrument to ensure continued provision of general budget support to Ghana.

The outcome of the annual review will determine the amount of un-earmarked aid resources for the national budget for 2013.

The Consultative Group/Annual Partnership Meeting will cover key priority areas in the development agenda including infrastructure, private sector development, the MDGs and equity, as well as capacity development.

It will discuss current and emerging issues as well as the nature of partnerships which could be instrumental in supporting government to achieve its objectives in these four thematic areas.

It is expected that government and development partners will agree to enter into a compact with the objective of improving the effective and strategic use of external resources at the end of the meeting.**