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Forum for the Future of Aid

Southern Voices for Change in the International Aid System Project

The Forum on the Future of Aid is an online community dedicated to research and opinions about how the international aid system currently works and where it should go next

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News Commentary on the HIPC Debt Savings

Source: ISODEC

This commentary argues that in the absence of a complete debt cancellation and the fact that Ghana had to implement the conditionalities, taking up the HIPC initiative was the best option given circumstances at the time. Some of the targeted beneficiaries had at the time been allocated the funds to carry out their poverty related projects and programme.

However, the commentary questions the basis upon which resources were allocated. It argues that decisions were based on political expedience rather than on needs, targets and/or priorities. It goes on to say the Government of Ghana has learnt little from the PAMSCAD of the 1980s as it implements the Ghana Poverty Reduction Strategy. Many do not see the link between poverty reduction and the emphasis on huge infrastructural expenditure, private sector development and macroeconomic stability.

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