Vitus azeem the centre for budget advocacy of isodec 2003 7 for example it was reported in august 2004 that cedis 6 billion of hipc funds were being allocated to drill 70 boreholes in the guinea worm endemic communities in the upper east region. The hipc initiative and poverty reduction in ghana. Chad, democratic republic of congo, ethiopia, the gambia, ghana. Easing the shift from aid dependency to oil economy. This document contains errata or corrigenda see annexes. Enhanced initiative for heavily indebted poor countries completion point document this paper was prepared by staff of the international monetary fund and the world bank in connection with the executive boards consideration of ghanas progress under the enhanced initiative for heavily indebted poor countries. After two debt relief initiatives launched in 1996 the heavily indebted poor. Ghana integrated financial management and information system gifmis, with a view to improve budget comprehensiveness and consolidated cash management, monitoring and control of outstanding commitments, and payroll management. Impact of enhanced hipc initiative assistance on debt and debt service 28. Rearrange individual pages or entire files in the desired order. Ghanas external debt accumulated over time, and the imf classified ghana as a heavilyindebted poor country hipc in 1999, with the imf. The sat3wasc cable ghana case study 5 inflation declined to 10.
Ghana before oil the year 2000 brought with it a new government in ghana and a period of macroeconomic stability. On july, 2004, ghana became the 11 th of the regional member countries rmcs that have reached the completion point under the enhanced hipc initiative. Third, the changing landscape of development finance may pose a threat for debt sustainability in hipcs, notably. The informal sector in ghana friedrich ebert foundation. Ghana cooperative susu collectors association 16 ghamfin 16 investment climate 17 reporting and information sharing 18 investment opportunities 18 risk factors 20 political risk 20 economic risk 20 financial risk 20 organizations interviewed 23 documents referred 25 ghana. Heavily indebted poor countries hipc initiative and. Together with the authorities, the missions conducted the debt sustainability analysis dsa. What links here related changes upload file special pages permanent link.
There are also intermediary service providers along the value chain such as suppliers of raw materials to manufacturers on contractual basis. The heavily indebted poor countries hipc are a group of 39 developing countries with high levels of poverty and debt overhang which are eligible for special assistance from the international monetary fund imf and the world bank. This paper highlights ghana s poverty reduction strategy. Ghana enhanced heavily indebted poor countries hipc debt. On the domestic currency market, the ghana cedi cumulatively depreciated by 8. Ghana enhanced heavily indebted poor countries hipc. Impact of enhanced hipc initiative assistance on debt and debt service28. Ghana hipc assessment and action program prepared by the world bank and imf staff october 2001 contents i. West african highly indebted poor countries hipc in million us dollars. Heavily indebted poor countries initiative world bank. These terms will be implemented by a debt relief agreement between the bank group and the government of ghana. Jun 11, 2019 on 16 december 2010, the republic of guinea bissau became the 26 th r egional m ember c ountry to reach the end of t he hipc initiative process by attaining the completion point, more than ten years after reaching the decision point in december 2000.
Guinea bissau completion point document hipc initiative. The executive boards of ida and the imf discussed the preliminary hipc document for ghana idar20010111 of 61201, and imfebs0189 of 61401 on july 3, 2001 and june 27, 2001, respectively. The government also plans to start work on the development of a budget manual for use. Prior to the 1990s, domestic debt was not an issue. The early 1990s marked a shift in ghana s politics, with competitive and open multiparty elections introduced in. The hipc initiative was launched in 1996 by the imf and world bank, with the aim of ensuring. Ghana s uturn to the imf in 2009 raised numerous questions given the concerns about the impact of imf conditionalities on the ghanaian economy. Hipc initiative total original hipc initiative enhanced hipc initiative total date of approval countries that have reached their comple tion point burkina faso 229 324 553 400 530 930 apr02 countries that have reached their decision points benin 0265 460 jul00 cameroon 01,260 2,000 oct00 the gambia 067 90 dec00 ghana 02,186 3,700 3,70 feb02. Debt relief under the heavily indebted poor countries. The author examines recent changes in the ghanaian aid and investment. As a requirement for receiving heavily indebted poor countries hipc debt relief, ghana adhered to an imf programme. A reexamination 45 accordingly, in 1996 the heavily indebted poor countries hipc initiative was launched by the imf and the world bank, with the goal of. Enhanced initiative for heavily indebted poor countries completion point document this paper was prepared by staff of the international monetary fund and the world bank in connection with the executive boards consideration of ghana s progress under the enhanced initiative for heavily indebted poor countries. The paper also highlights ghana s performance in observing the requirements for reaching the floating completion point under the framework, including implementation of the national poverty reduction strategy.
About afrodad vision afrodad aspires for an equitable and sustainable development process leading to a prosperous africa. This was barely two years after ghana exited the funds supported programmes. Ghanas external debt service as percentage of exports of goods and services reduced from 5. Hipc heavily indebted poor countries ilo international labour organization iom international organization for migration isser institute of statistical, social and economic research jhs junior high school mida migration for development in africa mmb migration management bureau mtos money transmitter operators mu migration unit. Assessment of existing capacity to track povertyreducing expenditures iii. Loan contraction and debt management in ghana afrodad countrys balance of payments, leading the government, in 2001, to request debt relief under the terms of the highly indebted poor country hipc initiative. Ghana has conducted a debt sustainability analysis.
Ghana signed up to the highly indebted poor countries hipc initiative and period during the initiative. Heavily indebted poor countries hipc initiative and multilateral debt relief initiative mdri statistical update executive summary the hipc initiative and mdri are nearly complete, with 36 countries having already reached the completion point under the hipc initiative. The report will not only provide parliament with details of the debt dynamics in 2016, but. Use the free adobe acrobat reader to view this pdf file. The basis of the dacf in ghana, it has been realised that the issue of fiscal decentralisation is one of the main causes of the failure of successive local government systems in the country asibuo and nsarkoh, 1994. Hipc debt relief myths and reality fondad, february 2004.
Poverty reduction strategy paper annual progress report poverty reduction strategy paper annual progress report prsps are prepared by member countries in broad consultation with stakeholders and development partners, including the staffs of. Enhanced initiative for heavily indebted poor countries. Debt sustainability in hipcs in a new age of choice vi what are the trends in external debt ratios stock and service ratios on gdp in hipc mdri countries since the early 2000s, and are any hipcs seeing their debt ratios rising. Heavily indebted poor countries initiative fact sheet annual meetings 2004 contents. Economic base of accra ghana advanced issue in development planning page 2 introduction with more than three million inhabitants, accra is among africas largest cities in a region undergoing one of the continents fastest rates of urbanization. Initiative for heavily indebted poor countries hipc initiative, which created a. Ghana enhanced heavily indebted poor countries hipc debt initiative english. President john agyekum kufuor on wednesday explained his governments decision to opt for the highly indebted poor countries hipc initiative saying it was not political but based on an objective analysis of the economic situation. It consists of producers, wholesalers, retailers and consumers.
The cedi came under pressure in february 2019, but the pressure receded. Into the 3rd year of hipc and property owning democracy ed. The findings are based on two joint missions of ida and imf in march and may 2001. Introduction from 1996, the hipc initiative and multilateral debt. Since then, ghana has been caught in a cycle of debt. Chad, in april 2015, is the latest country to reach the completion point. Fondad, 2004, book, pdf hipc initiative university of iowa center for. Enhanced initiative for heavily indebted poor countries completion point document this paper was prepared by staff of the international monetary fund and the world bank in connection with the executive boards consideration of ghana s progress under the. Hipc debt relief initiative, through the mechanism of debt service relief, in accordance with the terms described in the preceding paragraphs. In 2007, ghana discovered oil in commercial quantities. The annual public debt report ministry of finance and.
This paper assesses ghana s progress in meeting those triggers, and seeks the boards approval of the completion point, including a waiver of one of the completion point triggers. Hipc heavily indebted poor countries ilo international labour organization iom international organization for migration isser institute of statistical, social and economic research. Ghana microfinance policy microfinance gateway cgap. After a detailed assessment, the hipc initiative was enhanced in september 1999 to provide deeper and more rapid relief to a wider group of countries, and to reinforce the relationships between debt relief, poverty reduction and social policies. President kufuor restated his vision to usher ghana into a golden age of business, which he said, would be pursued through good governance, the rule of law and support for the private sector.
Main characteristics of the hipc initiative and the mdri 1 mdri related estimates include debt relief delivered under the iadb 2007 debt initiative 2 excludes imfs mdri assistance to two nonhipcs cambodia and tajikistan hipc initiative mdri 1, 2 country coverage idaonly, ecfeligible countries with debt indicators above the hipc initiative thresholds. In february 2002, the executive boards of the international monetary fund imf and the international development association ida, agreed to support a comprehensive debt reduction package for ghana under the enhanced heavily indebted poor countries. Apc publications the case for open access communications infrastructure in africa. After a detailed assessment, the hipc initiative was enhanced in september 1999 to provide deeper and more rapid relief to a wider group of countries, and to reinforce the relationships between. By the mid1960s, ghana s reserves were gone, and the country could not meet repayment schedules. Introduction a joint bankfund mission 1 visited accra from august 6 to 15, 2001 to prepare a draft hipc assessment and action plan aap. The annual public debt report for the 2018 financial year submitted to parliament on friday, 29th march, 2019 by ken oforiatta minister for finance in fulfilment of the requirements of section 72 of the. Public expenditure management country assessment and action plan aap ghana prepared by the staff of the world bank and the imf in collaboration with the ghanaian authorities1 may 28, 2004 1 the hipc aap mission took place between february 1625, 2004 and comprised marcelo andrade head, world.
Finally, the multilateral debt relief initiative mdri delivered 100 percent debt cancellation for qualifying countries obligations to the international monetary fund imf, world bank, and african development bank afdb. Ghana and cote divoire appear to be the only exceptions in the subregion1. The program was designed to ensure that the poorest countries in the world are not overwhelmed by unmanageable or unsustainable debt burdens. The financial sector adjustment programme finsap, launched in 1987. Alternatives to hipc for african debtdistressed countries. Ghana completion point document hipc framework african. Mission to secure policies that will redress the african debt crisis based on. Parliaments not irrelevant, but continue to be ineffectual in poverty and budget policies community monitoring of poverty reduction further. The informal sector in ghana is made up of proprietary of micro and smallscaled enterprises. Gea ghana employers association ghs new ghana cedi glss ghana living standards survey gog government of ghana gprs growth and poverty reduction strategy paper gss ghana statistical service guf global union federation of trade unions hipc heavily indebted poor countries ibid. Thus the second paper will take into account three main variables, the dacf, the internallygenerated funds igf, and the hipc funds. At that time, a set of floating triggers was agreed for ghana to reach the completion point under the initiative. Debt relief under the heavily indebted poor countries hipc initiative the joint imfworld bank comprehensive approach to debt reduction is designed to ensure that no poor country faces a debt burden it cannot manage. List of the main ongoing and planned technical assistance iv.
To ensure the implementation of the foregoing, among others, article 36, clause 5 requires that. National social protection strategy nsps and ghana 7 poverty reduction strategy gprs 3. The heavily indebted poor countries hipc are a group of 39 developing countries with high. Hipc funds distorted poor monitoring poor and gender equity gaps parliamentary audits in benin, kenya, ghana, niger, senegal and tanzania confirmed the rather bleak picture from the study. What are the risks and opportunities for debt sustainability in. Pdf the hipc initiative and poverty reduction in ghana. This paper presents a decision point assessment of ghanas eligibility for.
However, this enterprise have come along with its own effects positive and negative including election related violence. As a first step, we present this maiden annual debt management report to the parliament of ghana in accordance with section 72 of the public financial management act, 2016 act 921. The program was designed to ensure that the poorest countries in the world are not overwhelmed by. The case for open access communications infrastructure. Debt relief under the heavily indebted poor countries tralac. Debt relief before and after hipc 48 poverty reduction 50 hipc and debt sustainability 52 challenges for the future 56 from. The world bank, the international monetary fund imf and other multilateral, bilateral and commercial creditors began the heavily indebted poor country hipc initiative in 1996.
The prsp was adopted by the government in february 2003 and endorsed by the boards of directors of the world bank and imf in may 2003 as a sound framework for implementing the governments antipoverty agenda. Debt sustainability in hipcs in a new age of choice. By peter quartey phd1 an inaugural lecture paper, university of ghana april 27, 2017 1 professor of economics, head, department of economics, university of ghana. Actionaid ghana accordingly commissioned this study to ascertain the implications of. Ghana is a third world country with a huge foreign debt, and of late, there has been this debate as to whether ghana should declare itself hipc or not. Cddghana briefing paper volume 8, number 4 page 1 briefing paper ghana center for democratic development cddghana volume 8 number 4 january2008 ghanas fourth republic. Ghana hipc assessment and action program world bank.
Graph, map and compare more than 1,000 time series indicators from the world development indicators. Annual debt management report ministry of finance ghana. Migration in ghana a country profile 2009 migration in ghana 17 route des morillons ch1211 geneva 19, switzerland. Among the initiatives are economic reforms such as the economic recovery program erp of 1983, the structural adjustment programme of 1986, the vision 2020, the highly. A copy of the relevant hipc decision point document is annexed to this report.
Ghana enhanced heavily indebted poor countries hipc debt initiative english abstract. Gog government of ghana gprs growth and poverty reduction strategy gsba globally significant biodiversity area gtz german agency for technical cooperation deutsche gesellschaft fur technische zusammenarbeit gwcl ghana water company limited gwd ghana wildlife division hipc heavily indebted poor countries hq headquarters. Ghana is a beacon of hope in africa for its democratic laurels since it entered into multi party democratic elections in 1992. The preliminary results show that ghana could qualify for debt relief under both the npv of. To date, debt reduction packages under the hipc initiative have been approved for 36 countries. Economic base of accra, ghana millennium cities initiative.
The updated debt sustainability analysis shows that the amount of debt relief estimated at the decision point will be. Social protection in ghana friedrich ebert foundation. Ghana s eligibility to reach the completion point under the enhanced hipc framework have been successfully met. Through an analysis of ghana s hipc fund which was established as part of the prsp process, this article shows how aidfinanced efforts to reduce regional inequality in ghana have failed. Ghanas uturn to the imf in 2009 raised numerous questions given the concerns about the impact of imf conditionalities on the ghanaian economy. Ethiopia gambia ghana guinea guineabissau guyana haiti. The basis of the dacf in ghana, it has been realised that the issue of fiscal decentralisation is one. Between 1966 and 1969, on three occasions, ghana s creditors agreed to reschedule repayments due.
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