The 19 donors and funding agencies who provide direct support to the Mozambican state budget have concluded that the government is making sufficient progress to allow them to continue with this form of aid.This was the main conclusion announced on Thursday at the end of the annual joint review between the government and the “Programme Aid Partners” (PAPs), sometimes known as the “G-19”.This group consists of the countries and institutions that give at least some of their aid directly to the state budget. They are the European Union, 13 EU member states, Canada, Norway, Switzerland, the World Bank and the African Development Bank.Addressing the final session of the review, Planning and Development Minister Aiuba Cuereneia said that work on the review was particularly intense this year, because it coincided with the finalization of the government’s new Poverty Reduction Action Plan (PARP) for the 2011-2014 period.
PARP, Cuereneia said, “defines the promotion of inclusive economic growth and poverty reduction as the central goals of government action”.The new plan, he continued, is focused on “increasing agricultural and fisheries production and productivity; job creation; human and social development; macro-economic management and public finance; and good governance”.Cuereneia added that, despite rising international fuel and food prices, “careful macro-economic management allowed our economy to remain stable and to grow in 2010. Growth in our GDP reached 6.5 per cent, exports reached 2.2 billion US dollars, and net international reserves came to more than 1.87 million dollars, enough to cover five months of imports”.The review assesses the performance, not only of the government, but also of the PAPs. This year that assessment was done by the government, rather than by independent consultants, and showed that the donors are still missing most of the targets for aid effectiveness.There were 21 targets for the PAPs, and they only met eight of them, while there was progress in a further three. These targets concern such matters as the predictability and harmonization of aid, donor alignment with the strategies of the host country, use of the country’s own institutions and systems, and a reduction in the number of donor missions.
The meeting reported that the number of missions had dropped – from 167 in 2009 to 85 in 2010. This is still a considerable drain on government resources, since these missions, all expecting to meet senior officials up to and including ministers, were arriving at the rate of one every four days. The government had 43 targets to meet, and the PAP assessment of the government performance was that it met 20 of them, made progress in a further 15, while eight were not met at all.The weakest area remained governance. The outgoing chairperson of the PAPs, British High Commissioner Sean Cleary, said the donors regarded performance as “satisfactory in most areas, except governance”.“Good political and economic governance and the struggle against corruption are absolutely important for the development of the country and for the maintenance of budget support”, warned Cleary.Nonetheless here were some encouraging signs, such as the government’s public commitment to the Extractive Industries Transparency Initiative (EITI) and to the African Peer Review Mechanism (APRM).But the PAPs wanted to see more progress. Cleary said the key areas were a new package of legislation against corruption, which would include dealing with conflicts of interests, the declaration of assets by high ranking state officials and protection for whistle-blowers. He also wanted to see “a strategic plan to strengthen the government’s capacity to fight against corruption”.
Cleary also stressed that “greater efforts in agricultural productivity, and in job creation, and in improving the business environment are essential to guarantee inclusive and sustainable growth”.But in this area the government and the donors are singing from the same hymn sheet. “We are pleased to see that these matters have been stressed in the government’s new PARP”, said Cleary. “Implementing them will bring significant challenges, and the government can be sure of our support”.But he added that budget support “can only be justified on the basis of results. In these times of severe financial pressures, it is essential to show results to the Mozambican public, and to our publics, and to show that public funds are being used efficiently and effectively”.But this could not be guaranteed for the future – the amount of budget support for 2012 will be pledged by each of the PAPs at a ceremony on 31 May.Cuereneia added that the main impact on Mozambique of problems in the Euro zone had been a disruption in flows of capital. He said that lines of credit promised by Portugal have not been put into operation because of that country’s financial woes.
PARP, Cuereneia said, “defines the promotion of inclusive economic growth and poverty reduction as the central goals of government action”.The new plan, he continued, is focused on “increasing agricultural and fisheries production and productivity; job creation; human and social development; macro-economic management and public finance; and good governance”.Cuereneia added that, despite rising international fuel and food prices, “careful macro-economic management allowed our economy to remain stable and to grow in 2010. Growth in our GDP reached 6.5 per cent, exports reached 2.2 billion US dollars, and net international reserves came to more than 1.87 million dollars, enough to cover five months of imports”.The review assesses the performance, not only of the government, but also of the PAPs. This year that assessment was done by the government, rather than by independent consultants, and showed that the donors are still missing most of the targets for aid effectiveness.There were 21 targets for the PAPs, and they only met eight of them, while there was progress in a further three. These targets concern such matters as the predictability and harmonization of aid, donor alignment with the strategies of the host country, use of the country’s own institutions and systems, and a reduction in the number of donor missions.
The meeting reported that the number of missions had dropped – from 167 in 2009 to 85 in 2010. This is still a considerable drain on government resources, since these missions, all expecting to meet senior officials up to and including ministers, were arriving at the rate of one every four days. The government had 43 targets to meet, and the PAP assessment of the government performance was that it met 20 of them, made progress in a further 15, while eight were not met at all.The weakest area remained governance. The outgoing chairperson of the PAPs, British High Commissioner Sean Cleary, said the donors regarded performance as “satisfactory in most areas, except governance”.“Good political and economic governance and the struggle against corruption are absolutely important for the development of the country and for the maintenance of budget support”, warned Cleary.Nonetheless here were some encouraging signs, such as the government’s public commitment to the Extractive Industries Transparency Initiative (EITI) and to the African Peer Review Mechanism (APRM).But the PAPs wanted to see more progress. Cleary said the key areas were a new package of legislation against corruption, which would include dealing with conflicts of interests, the declaration of assets by high ranking state officials and protection for whistle-blowers. He also wanted to see “a strategic plan to strengthen the government’s capacity to fight against corruption”.
Cleary also stressed that “greater efforts in agricultural productivity, and in job creation, and in improving the business environment are essential to guarantee inclusive and sustainable growth”.But in this area the government and the donors are singing from the same hymn sheet. “We are pleased to see that these matters have been stressed in the government’s new PARP”, said Cleary. “Implementing them will bring significant challenges, and the government can be sure of our support”.But he added that budget support “can only be justified on the basis of results. In these times of severe financial pressures, it is essential to show results to the Mozambican public, and to our publics, and to show that public funds are being used efficiently and effectively”.But this could not be guaranteed for the future – the amount of budget support for 2012 will be pledged by each of the PAPs at a ceremony on 31 May.Cuereneia added that the main impact on Mozambique of problems in the Euro zone had been a disruption in flows of capital. He said that lines of credit promised by Portugal have not been put into operation because of that country’s financial woes.
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