Ghana
Development planning and institutional capacity building
Since 2008, ACET has been assisting the Government of Ghana (GoG) to review institutional capacity, and strengthen the institutional framework to formulate and implement national development plans.
Our process of engagement involves consultation with government officials at the highest levels at the onset, and work with representative teams to diagnose problems, isolate policy issues, and perform rigorous technical reviews to generate policy options and recommendations. We rely primarily on seasoned and technically competent African staff and consultants, fostering the trust of governments to address institutional reform issues that are politically and administratively complex.
In October 2008, ACET provided assisted in the preparation of Ghana’s 10-year development plan and conducted a review of the institutional arrangements for implementation of the plan. ACET’s team, comprising of experts in development planning from Ghana and India, examined the links between Ghana’s development plans and the budgetary process; they also proposed models for diffusing best practices from other emerging economies.
The recommendations from this exercise concluded that coordination between the Ministry of Finance and Economic Planning and the National Development Planning Commission (NDPC), the body constitutionally charged with preparing medium and long-term plans, needed improvement to provide an adequate basis for leveraging reforms. ACET is now working together with NDPC to review its institutional structures and to strengthen its role as the central body for development planning, coordination, and monitoring in Ghana—as well as for regular review of the performance of the economy and policy reforms in different sectors of the economy.
Improving Aid Management in Ghana
In 2009, the Government of Ghana requested that ACET serve as an independent advisor in developing an aid policy that would orient all stakeholders around Ghana’s long-term development objectives, to ensure the effectiveness of external assistance by furthering its alignment to national development priorities and systems.
Over the last two decades, aid has constituted an important source of financing for Ghana’s development and will continue to play a vital role over the medium to long-term. Currently, aid accounts for approximately 20 percent of the total annual Government budget resources and 10 percent of Gross Domestic Product (GDP).
In Ghana, aid has provided critical support for the balance of payments and budget financing while contributing to sound macro-economic management and stability. Furthermore, aid has been a vital source of funding for local and international Civil Society Organizations (CSOs) in their effort to support poor and vulnerable groups and to complement the Government of Ghana‟s (GoG) poverty reduction programmes.
The challenge of aid management can partly be attributed to the absence of an aid policy, it also includes: difficulties in operationalizing development priorities and aligning aid; the limited use of country systems in aid delivery; fragmentation in sourcing and managing aid; high transaction costs and inadequate capacity in aid delivery; conditionality and unpredictability of aid; the lack of a mutual accountability framework; inadequate information on aid flows; and, insufficient coordination among stakeholders.
The Ghana Aid Policy and Strategy (2011-2015) is aimed at rationalizing aid management processes and creating co-operation guidelines to ensure that aid programs support shared long-term growth goals for growth.
As part of the work, ACET held extensive consultations across government institutions, civil society organizations and development partners to gather their feedback on the challenges and made recommendations for improving aid management in Ghana.
This policy seeks to ensure the Government’s leadership and ownership of the aid management process and the strict observance of the principal international agreements on aid effectiveness—the Paris Declaration and Accra Agenda for Action.
In the run up to the Accra High-Level Forum on Aid Effectiveness in 2008, the Government of Ghana appointed ACET president Dr. K.Y. Amoako, as Special Advisor with responsibility for convening and chairing the Contact Group to promote discussion and support negotiation of partner country contributions to the Accra Forum.
Improving Health System Capacity
As part of a broader study of Ghana’s health system, ACET recently completed a comprehensive scoping exercise to assess the challenges facing the country’s National Health Insurance Scheme (NHIS). Despite some notable gains, questions have been raised about the effectiveness of the scheme’s design and implementation. The findings of this ACET exercise indicated that issues financial, operational, and technical sustainability are areas where major challenges exist. Further analytical work to address these challenges identified may follow.
Liberia
Following the successful implementation of Liberia’s Poverty Reduction Strategy Paper (PRSP) as well as the country’s completion of the Heavily Indebted Poor Country (HIPC) initiative, which led to massive debt relief for Liberia, the Government is beginning to turn its attention to developing a long-term vision for growth and transformation for the country. ACET is one of the partners supporting this exercise.
ACET has been supporting the Government of Liberia in a number of ongoing areas of intervention as it develops its ambitious long-term transformation plan, Liberia Rising 2030. Our activities are aimed at strengthening coordination functions and institutional capacities of the State for sustained growth and economic transformation. The focus has been in the following areas:
The ACET team has worked with the Government of Liberia to develop a long term aid strategy. The draft aid strategy document advances the principles of aligning aid with government priorities and harmonizing donor efforts. And the proposed strategy for managing and implementing the aid policy calls for developing the capacity of government and strengthening coordination between the Ministries of Finance, and Planning and Economic Affairs, and other relevant government bodies involved in aid management.
Strengthening Public Finance, Economic Management and Planning Functions
An important aspect of our advisory engagements have focused on improving public investment programs, rationalizing planning and budgeting functions, and supporting effective long-term planning. We will continue to work in these areas to assist governments to improve public resource and expenditure management.
ACET has provided ongoing support to the Government of Liberia in its efforts to improve infrastructure development. We assisted the Government in preparing a paper on the infrastructure financing needs for Liberia’s July 2008 Development Partners Forum in Berlin. We also prepared a comprehensive study on an integrated strategy for infrastructure planning, management, and financing, drawing on best practices from other countries. This study, which we presented to the Government in March 2009, observed that while an increase in physical investments is clearly needed to improve the country’s infrastructure, the capacity of sector-focused government institutions to plan, manage, and implement these investments must also be strengthened. It also outlined recommendations for developing a well-functioning and accountable system of setting priorities, implementing projects, and managing infrastructure services.
ACET is currently engaged in the design and articulation of a comprehensive 5-year development plan for the infrastructure sector. This new plan will present a clear picture of the sector’s future landscape and provide the structure upon which to hinge the new policy coordination framework.
The infrastructure strategy recognizes that this is a priority sector both for economic recovery and poverty alleviation. It provides a framework and a methodology for planning the rehabilitation, expansion and management of the country’s infrastructure.
Supporting Effective Management of Extractive Resources
In partnership with NORAD and the Revenue Watch Institute (RWI), ACET has supported the governments of Liberia in developing the institutional and governance structures in the oil and gas sectors, with a focus on legal, policy, and administrative frameworks. This support has included training workshops on legal issues for government officials.
ACET is advising the government to strengthen Liberia’s policy framework for more strategic engagement with China. We are helping to define Liberia’s Championship role in support of greater African Union (AU) involvement in Africa-China partnerships.
ACET’s advisory work in this area is informed by a Country Case Study on Liberia-China engagements which was completed in 2009. In the course of our work we are determining how to increase the value-added components of Liberian exports to China by diversifying their scope and scale.
We are drawing lessons from the negotiations of recent major Chinese investments in the bauxite industry for more equitable terms and conditions in future deals. And we are hoping to ensure that Chinese economic and technical cooperation is aligned with building local capacity through increased skill development and technology transfer. This strategic framework for Liberia’s engagement with China could be a model for other African countries.
Mozambique
In Mozambique, ACET has conducted an initial scoping mission and has now began an engagement that will develop a framework to address four key areas identified as challenges by the Government of Mozambique in the extractive sector. The four areas are Resources Management, Value-added policy, Citizens Participation and Institutional and Human Resources Capacity. The plan calls for submitting an overall policy framework for the sector, to the Council of Ministers by year-end.
Rwanda
Boosting Public-Private Partnerships
The government of Rwanda engaged ACET to help it streamline the public sector’s role in supporting its private investment program. ACET’s team of experts worked with local officials to develop a detailed public-private partnership (PPP) handbook that covers key aspects of the project cycle. The Government adopted the handbook and the ACET team also provided technical support in the recruitment of key personnel to bolster the capacity of the unit that manages PPP projects. Going forward ACET may offer support to the Government in ensuring that PPP projects are consistent with the macroeconomic framework and in developing a monitoring and evaluation function for PPPs. ACET may also work with other partners to develop strategies for promoting export-oriented PPP initiatives.
These activities are intended to strengthen Rwanda’s long-term goals as elaborated in Vision 2020 and the Economic Development and Poverty Reduction Strategy Paper (EDPRS).
As part of our Research and Analytical studies to promote our vision for Economic Transformation, we have been working with the Institute for Policy Analysis and Research (IPAR) in Rwanda to assess the prospects for transformation. The Rwanda country case study will help to inform our policy advice to the government, and identify policy options.
The case study will also provide an opportunity to learn from Rwanda and share experiences with other African countries, which is one of our operating principles. ACET has already used the experience of Rwanda to inform policy in Liberia during a two-day cabinet retreat, convened by the President of Liberia in 2008. These experiences were key inputs to the formulation of Liberia’s Poverty Reduction Strategy (PRS).
ACET has also conducted a country case review of Chinese engagements in Rwanda. The study focused on identifying opportunities and challenges in the areas of trade, Foreign Direct Investment and technical cooperation. This is part of a comprehensive two-part study on China’s engagements with Africa.
Sierra Leone
ACET conducted a functional review of the Office of the President to strengthen decision-making processes and coordination functions at the center of government in 2008.
After a comprehensive and in-depth review we proposed restructuring and streamlining reporting mechanisms. This helped to facilitate better coordination among the various parties and create stronger support systems for individual functions. In addition, we developed several proposed performance management measures to improve delivery and also a feedback system to enable ongoing attention to stakeholder concerns. Our proposals have been accepted by the Presidency, and are currently being implemented.
Together with Norway’s Oil for Development Program (NORAD) and the Revenue Watch Institute (RWI)—we are supporting the government of Sierra Leone to develop capacity for the effective management of extractive resources. In particular, we are helping to them develop the institutional and governance structures in the oil, gas, and mineral sector, with a focus on legal, policy, and administrative frameworks. This support has included training workshops on legal issues for government officials.
The government of Rwanda engaged ACET to help it streamline the public sector’s role in supporting its private investment program. ACET’s team of experts worked with local officials to develop a detailed public-private partnership (PPP) handbook that covers key aspects of the project cycle. The Government adopted the handbook and the ACET team also provided technical support in the recruitment of key personnel to bolster the capacity of the unit that manages PPP projects. Going forward ACET may offer support to the Government in ensuring that PPP projects are consistent with the macroeconomic framework and in developing a monitoring and evaluation function for PPPs. ACET may also work with other partners to develop strategies for promoting export-oriented PPP initiatives.
