Ghana Consolidates Strides In Halving Poverty – World Bank/IMF Report

A current World Bank/IMF report shows that Ghana is consolidating gains the country has made in halving poverty towards achieving Millennium Development Goals (MDGs). The report which was released Tuesday April 8, 2008, however, indicates that most countries in Sub-Sahara Africa would not be able to half poverty and hunger by the year 2015. Ghana, together with the following countries, Mozambique, Tanzania, and Uganda are making what the report describes as solid progress towards achieving the MDGs. According to the report, Ethiopia’s poverty headcount as of 2005 was 39%. Zambia’s was 68% as of 2004 and 70% of Sierra Leone’s population fell below the poverty line. Overall, Africa’s economic growth has risen from 2.1% in the 1990s to an average 5.6% in 2003 – 2007. About 20 African countries are facing some of the greatest challenges. These countries are characterized by low or negative growth, including enhancing security, the provision of private sector growth opportunities and building basic government capacity to put international aid to good and appropriate use. Africa depends largely on aid, which has been rising over the years. Much of the aid though is in the form of debt relief. The report says the overall aid flows from the Development Assistance Committee (DCA) and multilateral donors to Sub-Sahara Africa rose to over $40 billion in 2006, representing an increase of $6.9 billion in real terms over 2005 levels and $12.4 billion over 2004 amounts. These figures make aid essential for most countries in the region. Significant information of note in the report is the identification of China as a new donor of growing importance. The report has identified countries in Africa that have made strong progress in strengthening development strategies and institutional frameworks for implementation. Among the countries in this category are Ghana, Burkina Faso, Madagascar, Mozambique, Rwanda and Tanzania. These countries the report says are good candidates for scaled-up aid. Mali has been noted as a country that could use a moderate increase.