Thursday, February 22, 2007

Africa can help itself out of poverty

By Isabella Gyau Orhin

An advisor to the Vice President and Manger of the Partnership Group of the World Bank in Africa Prof. Benno Ndulu has called on Africans to work very hard to move the continent out of poverty and economic malaise.
Speaking at a media interaction programme organized by the Ghana Journalists Association in collaboration with the World Bank in Accra Prof. Ndulu. an African National from Tanzania said “Success is not foreign to Africa, countries have made it and a third of African countries have improved over the past two decades.”
The discussion was on the report of a study dubbed Facing the challenges of African Growth: Opportunities, Constraints, and Strategic Directions which refers to four constraints facing Africa. These consist of Infrastructure, Investment, Innovation and Institutions. .
He said Africa holds a very huge proportion of their wealth outside the continent. In 1990, he said the wealth of Africa outside the continent was said to be around 300 billion dollars. Now it has grown to about 600 billion dollars.

“This is what gives me hope that we can build on these and fix things,” he said stressing “Nobody will do it for us.”
He said over the years African countries like Mauritius and Bostwana have moved forward with Mauritius relying on its manufactured export led market while Bostwana has developed through its natural resource base. He said countries like Ghana, Tanzania and Uganda have also moved forward economically.
He said a country like Nigeria has a lot of money coming in a result of its oil and the nation can make good use of that resource.
While the global business environment is a major concern that cannot be ignored, Prof. Ndulu said Africans can do a lot in spite of the global business climate.
“How much leverage do we have in changing the world environment as opposed to what we can do with what we have?”
Speaking in his Capacity as an African Scholar, Prof. Ndulu said a lot of things happen within African countries which must be transcended if Africa is to make headway in economic development.
He the leadership of African countries over the years have been worried about local people having businesses and becoming rich for fear that they may use their wealth to sponsor opposition party activities. “As these are going on foreigners with money are not questioned,” he said adding, “what is good for the foreign investor is also good for he local investor as well.

Speaking about the activities of the world bank in Africa, Prof. Ndulu said within the bank lessons have been learnt than wholesale privatization is not good enough and does not solve the problems of African countries as envisaged earlier.
For me, the modus operandi is the Public Private Partnership (PPP).
Some of the lessons learned he said are that infrastructure to a large extent is a public good. For instance he said investing in the rail sector is dangerous for the private sector. The Public sector can play a major role in financing while the private sector sees to the management of it,” he said.
He said privatization of telecommunications has done better but water and infrastructure has been the toughest.
The Lead Economist of he African Region of the World Bank Zeljko Bogetic said Ghana’s recent improvements in growth is attributable to improved macro economic stability, accompanied by rising investment, productivity and higher aid.
He said over the past five to six years, Ghana’s growth accelerated significantly from a 35 year average of 2.7 percent to 5.6 percent. “An important part of the recent growth appears to be driven by productivity gains partly from agriculture such as the cocoa sector.
The cocoa sector he said has registered important improvements due to productivity enhancing measures such as disease control, use of proper varieties and fertilizers on small privately owned farms.
In spite of this Bogetic says productivity in Ghana is still below some of the most dynamic African economies and rapidly growing Asian countries.
He said Ghana is now one of the top five policy performers in Africa. He said Ghana enjoys favourable coastal position and many natural resources, but spatial constraints and urbanisation pose challenges to efficient and rapid expansion of private investments and exports.
Agricultural produce he said must be moved from village to market and produce must be standardised, refrigerated and efficiently transported and exported through the ports. This he said requires market and logistics infrastructure.

Source: Public Agenda newspaper, Ghana

Gov’t asked to change language and format of budget

By Isabella Gyau Orhin

A new study dubbed “Building the Demand Side of Good Governance: Enhancing conditions for Social Accountability in Ghana” has recommended that government should among others review the language and format of the national budget to make it simple for citizens to understand and participate in its formulation.
The study said for instance instead of saying “macro economic indicators,” the budget should say “intended progress in human development outcomes.”
The study also said government should support civil society efforts such as those undertaken by Centre for Budget Advocacy (CBA) of the Integrated Social Development Centre (ISODEC) to undertake independent budget analysis and to promote public understanding of budget content and key issues.
The study was undertaken by the Centre for Democratic Development (CDD) and the World Bank.
According to the study, citizen’s access to financial and budget information is particularly difficult and limited.
This seriously hinders participatory budgeting, independent budget analysis and expenditure tracking.

The study therefore recommended that government should make available information and processes related to the national budget and expenditures more open and accessible.
The government was also asked to make in-year reports, audit reports, Public Accounts Committee reports and reports on extra- budgetary activities available to the public.
Again, government according to the study recommendations should expedite the implementation of the 2003 Public Procurement Act including programmes for institution and capacity building as recommended in World Bank/IMF report of 2004.
The study further urged government to introduce the requirement for public officials to declare their assets, form a task force of government and civil society representatives to explore ways for improving access to data on public transfers and expenditures in sectors of priority and public interest.
According to the CDD-WB study, it will be important for government to introduce formal mechanisms for citizens and Civil Society organizations to make input into budget policies and debate.
“At the local level, government should continue to build upon piloting of composite budgeting and participatory budgeting process,” the study said.
In a reaction to the research report, the Head of the Budget Development Unit of the Ministry of Finance and Economic Planning Ms. Eva Mends said the doors of the ministry are always open to all those looking for information on the national budget.
She said very few individuals and organizations have shown interested in contributing to the budget.
She said each stage of the budget process is transparent and citizens as well as civil society groups can participate and send their contributions or seek information on it.
Aside from that, she said the budget is sent to Parliament with detailed estimates, but neither the Civil Society organizations nor the media follow-up to pick up the issues for public discussion and debate.
She said although, the budget processes are technical, so much can be done to break down the technical aspects of it.
Until public interest in the budget processes are whipped up, Ms. Mends said it would be difficult to build the demand side of good governance and social accountability.
“While acknowledging that a lot needs to be done, we should also try and build the capacity of the public to participate in the budget processes,” she said.
A policy Analyst with the CBA Nicholas Adamtten said over the past five or six years, the Centre has been working on the national budget, analyzing it and involving citizens in budget debates debate.
He said there are other offices in the Ministry where it is difficult to access information and this discourages the public from taking part in the budget processes.

Mr. Adamten said access to information in the districts is very difficult and called on the Ministry of Finance to simplify ways of getting access to financial information in the districts.


Speaking at the Stakeholder Review Workshop on the study, the Executive Director of CDD Ghana Prof. Emmanuel Gyimah-Boadi said it is clear that there has been considerable progress in fostering public accountability in Ghana since the return to democratic rule under the constitution of the Fourth Republic. However he said few will deny that serious deficits remain in national efforts to institutionalize public accountability.
“The deficits are severe especially in the demand side of accountability which is a necessary complement to the supply side as enshrined in the 1992 Constitution.”
According to him, the 1992 constitution supplies a good framework for public accountability but there is insufficient citizen demand on state institutions and officials accountability. “This is where social accountability comes in, it is a fancy term describing citizen actions to secure accountability on the part of the state and its agencies and officials,” Prof. Gyimah-Boadi said.
The research report was developed and produced by the Participation and Civic Engagement Group of the World Bank with guidance and contribution by Beatrix Allah-Mensah and Kofi Marrah both of World Bank Ghana office and Carmen Monico.
In country research for the study was undertaken by the CDD under the leadership of Prof. Gyimah Boadi.




Source: Public Agenda Newspaper, Ghana

GES/GHS to rid school children of worms

By Isabella Gyau Orhin

It was a day for Post mortem, following the death of a mentally deranged adult male.
It was not unusual to find worms in the abdomen of a human being even after they have passed away but what shocked the pathologist was the huge number of worms that had besieged the body of this person.
“Right from the nostrils to the rectum, there were thick balls of worms and that is how bad it can be,” says Prof. Agyeman Badu Akosa, Director General of the Ghana Health Service who was the Pathologist. He said although this particular person was mentally ill and was therefore not living hygienically, this is how worms can infest a person if there is no prevention or treatment of worms.

Worms take away essential nutrients especially iron and contribute to anaemia, and stunted growth.
Chronic infestation of worms can lead to long term retardation of mental and physical development. The most severe worm infestation can lead to death.
Worm eggs are passed out through human faeces of infected persons and grow on soil and in water when faeces are left out in the open.
Symptoms of worm infestation depend on the type of worms but the most common signs include loss of appetite, swollen or painful; abdomen, coughing, fever, vomiting diarrhea among others
Speaking at the Launch of the National Deworming Day in Accra last Monday, Prof. Akosa said many children in basic public schools are infested with worms worsening the already poor nutrition status of their bodies.
“If we get this deworming exercise done, we would have solved part of our malnutrition problems,” he said.
The Ministry of Education and the Ghana Health Service are embarking on the programme to deworm about 4.5 million children in over 28, 000 basic public schools across the country from the 12 to 16 of February 2007.

The Children will be dewormed by head teachers and school health teachers who have been trained to administer the deworming medicine Mebendazole which is 500mg and to teach their students about the dangers of worms.

The exercise is the beginning of an annual effort to implement two rounds of deworming each year.
The second round will take place later this year and will include treatment for Schistomiases or Bilharzia, a type of worm infestation caused by water transmitted worms.
Globally, intestinal worms account for an estimated 11 to 12 percent of total disease burden. Although there are no accurate figures on the prevalence rate in Ghana, the Ministry of Education says evidence suggests the situation in Ghana is similar to the global one. The Ministry says the three most common forms of soil transmitted worms affecting children are round worms, whip worms and hook worms.
Prof. Akosa said the health of children in any nation is paramount. Four out of 10 Children living in Northern Ghana are malnourished while 2.5 out of 10 children living in southern Ghana are malnourished as well.
Worm infestation he said is worsening the situation of the Ghana’s malnourished children.
Prof. Akosa partly blamed the issue of worm infestation among children to the break down of hygienic practices and the wanton defaecation of the citizenry anywhere.
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He said the situation was better in the olden days when personal hygiene was part of school requirements.
“Those days at the Mampong St Monica’s School, teachers examined our finger nails; our handkerchiefs and everything to make sure that were clean.”
Prof. Akosa also said children no longer played on green grass in their school as their playground is bare ground.
“Their contact with the ground is direct and exposed earth,” he said adding “Hand contact with bare earth is one of the sources of worm infestation.”
Prof. Akosa further explained that when people defaecate anywhere, the worms are spread across and this leads to worm load among children who usually play in the soil.
“The worm load is no joke, the child’s attention in the classroom very small because worms make children disinterested in their own environment.
According to Prof. Akosa, the programme should go hand in hand with educating the adult population about personal cleanliness; else the exercise will be in futility.
He said after the exercise if the children go home and their parents continue to defaecate anywhere or do not wash their hands after defecating and feed the children they will get more worm infestations.
“If we do not deliver to the GES a bouncy child, the education system will not flourish,” Prof. Akosa said.
He called on mothers and those handling the School Feeding Programme to give school children adequate nutrition.
“Food is the drug of health” he said saying if everyone will have good food, immunization and live in clean environment, most of us will do other things other than prescribing pills to people.”
Dr. Akosah said giving a child one ladle of beans everyday will go along way to improve on their health and nutrition status.
The Deputy Minister for Education Science and Sports Mr. Kwame Ampofo Twumasi said worm infestation impact seriously on a child’s health and ability to attend school and perform well by robbing children of some of the food they eat.
The National Coordinator of the School Health Education Programme (SHEP) Mrs. Cynthia Bosumtwi-Sam said efforts are underway to extend the programme to the private basic schools. Due to lack of logistics, she said the first round is only limited to children in public basic schools.
The 4.5 million tablets of the drug Mebendazole was bought by UNICEF at a cost of 80,000 dollars. The Chief of Child Health of UNICEF Mark Young said “what this mean is the opportunity to grow up without the interference of worms.”
.Source: Public Agenda Newspaper

Protecting the rights and dignity of civilians in times of crisis

By Isabella Gyau Orhin

It has been described by the United Nations as "one of the world's worst humanitarian crises" - Sudan's Western region of Darfur.
More than a million have fled their homes in western Sudan since February 2004 while. Some 10,000 people are dying from disease and conflict every month, according to the World Health Organisation.
“I have urged the Security Council to act on the draft resolution without delay, and to be united as possible in the face of the crisis," said former UN Secretary-General Mr. Annan.
"It is urgent to act now. Civilians are still being attacked and fleeing their villages as we speak," he said at the time.
Kofi Annan said civilians were being attacked "even as we speak" despite Khartoum's pledge to stop the violence.
Today, three years on, the crisis in Dafur continues unabated. And that is not the only hotspot in the world that is demanding the attention of the UN, the African Union (AU), ECOWAS and other regional bodies around the world.
Ghana’s role in international Peacekeeping is very paramount particularly now that President John Kufuor is the African Union Chairman.
Last week, International experts on Peace Keeping gathered at the Kofi Annan Peace Keeping Training Centre (KAIPTC) in Accra to deliberate on “Halting widespread or systematic attacks on civilians: Military strategies and operational Concepts.”
They included senior personnel and military officers from all over the world with knowledge and years of experience to deliberate on civilian protection issues.

The meeting was supported by the Henry L Stimson Centre based in Washington DC, USA.
In 1999, the then UN secretary General Kofi Annan made several pleas to the international community to strive for a consensus on how to approach the issue of the protection of civilians and to forge unity around the basic principles and processes involved in civilian protection.
The government of Canada together with a group of major foundations took up the challenge in response to the Secretary General’s call establishing the International Commission on Intervention and States Sovereignty (ICISS).
The Work of the Commission has culminated in the “Responsibility to Protect” principle.
The core argument of this principle is that sovereign states have a responsibility to protect their own citizens from avoidable catastrophe such as mass murder, widespread torture, rape and starvation.
However, when a state is unwilling or unable to do so, that responsibility must be borne by the broader community of states.
“There is the need to protect civilians through military intervention to prevent genocide, ethnic cleansing or mass killings,” says Victoria Holt, a Senior Associate of the Stimson Centre.
“Civilian protection should be the primary mission.” According to her when a state is unable to protect its citizens, then the sovereign rights will fall back.
She said in the case of genocide in any part of the world, how the military will operate without hurting the civilians is very important.
She also said there is the need to examine the crisis in Rwanda, Sierra-Leone, Bosnia, and Democratic Republic of Congo to find out what strategies were used and how they can be improved to enhance future peacekeeping operations and also to handle the Dafur crisis.
The meeting was a follow up to an earlier one held in September 2006, on Garnering the political will to meet the Responsibility to protect In Africa.
According to the KAIPTC, this meeting generated lots of interesting debates on civilian protection and getting the international community involved in ensuring that the concept of the Responsibility to Protect becomes successful on the African continent.
The emphasis was to draw the attention of African leaders on the Responsibility to Protect and also get them more involved in operationalising the concept.
“The Protection of human rights during civil war is crucial,” says Major General John Attipoe, Commandant of the KAIPTC.
Major-General Attipoe described the meeting as timely taking into consideration the crisis in Dafur and a few other places in the continent of Africa.
“As a follow up, we are gathered here today, to take the issue a step further by considering primary military challenges and concepts to halt widespread attacks on civilians.
The Minister for Defence, Dr. Kwame Addo Kufuor, said the rights of innocent civilians have been consistently violated with impunity while the international community and host governments remain unconcerned as it happened in the case of Rwanda, DRC, Sebrenica and East Timor.
These abuses committed by both state and non-state actors and the inaction on the part of the international community ought to be addressed either through preventive or reactionary measures under the Responsibility to Protect concept.
“While we all agree that the implementation of the Responsibility to Protect is a primary duty of government, the states responsibility to protect its own citizens or citizens of other countries must be equally complemented by efforts of non-state actors.”
This is to ensure “rapid decision making processes and timely intervention during threatening humanitarian disasters.”
Special consideration must therefore be given to the role of intergovernmental and Non-governmental organizations, associations or networks –individually or collectively in operationalising the concept of Responsibility to Protect through policy development, research programmes, training and other relevant measures.
“We must also begin to think about obligations to the civilians we protect after we have intervened,” Dr. Addo-Kufuor said.
This is because if the military departs prematurely, the possibility of abuses recurring becomes greater. Therefore “appropriate or sound withdrawal strategies ought to be put in place to guarantee the success of the intervention.”
“The Dafur crisis in Sudan constitutes a major challenge or test case for the protection of civilians,” he said adding, “In Sudan, there has been clear evidence of systematic attacks on specific targets in the population.”
“The question is how long will this continue, despite the presence of AU and the involvement of the UN in finding a solution to the conflict?” Dr. Addo-Kufuor asked.
“There is the urgent need for the AU and the UN to act with dispatch to save the lives and property in Dafur,” he said.
Source : Public Agenda Newspaper Ghana

World Social Forum: WB/Gov'ts asked to ensure human rights in extractive sector

World Bank/gov’t asked to ensure human rights in extractive sector

By Isabella Gyau Orhin

Civil Society groups, CIDSE and Partner organizations across the globe that participated in the just ended World Social Forum in Nairobi Kenya have asked the World Bank to implement the original recommendations of the Extractive Industries Review report which includes the need to secure the free, prior and informed consent of local people.
They have also asked Trans-national Corporations to respect their contracts with host governments, which must be in line with national laws and international human rights and environmental standards while asking governments to allow for renegotiation of contracts which are not in the best interests of affected communities.
They are also to obtain the free, prior and informed consent of indigenous people and local communities before operations commence and to respect the right of such communities to say “No” to projects that are not in their best interests. Such free, prior and informed consent must be a condition of any contract signed with the host government.
In a paper titled “PROSPECTING FOR SOLUTIONS” issued on January 23 which carried recommendations on the impact of oil, mining and logging on development, to companies, governments International Financial Institutions (IFIs) and the United Nations, the group expressed their disgust for the current spate of pollution and underdevelopment going on in mining communities among others.
“We are deeply concerned that rather than benefit from their natural resources, local people in areas of natural resource exploitation, such as oil, gas, mining and logging, experience increased poverty,” adding “We believe that a country’s natural resources belong to its citizens and should be used in the best interests of the people.”
According to the statement, these natural resources are God given and should serve all mankind and future generations.
They also asked the Trans National Corporations to sign on to the Extractive Industries Transparency Initiative (EITI) and ensure publication of all payments and contracts made to governments.
They also asked them to ensure that their operations do not cause or exacerbate conflict. However, where it does, they should suspend operations until the conflict has been resolved to the satisfaction of all parties.
“The Bank World Bank and other Regional Development Banks should consider the particular circumstances of each country and the right of its population to determine their own development,” the groups said.
The Bank according to the group should observe a moratorium on the funding of extractive projects to evaluate the costs and benefits of extractive industries, taking into consideration the economic, social and environmental impacts, including loss of bio-diversity and climate change.
They also asked the Bank and other international financial institutions to end their policies of wholesale liberalisation and privatisation of the extractives sector.
The group also asked the IFIs to insist on mandatory independent monitoring of projects which recognize the full participation of civil society.
The groups were also interested in the activities of governments in the developing world.
They therefore called on governments to develop and ensure compliance with clear policies and legal frameworks to control extractive industries effectively. Such policies and legislation should be in line with international human rights and environmental standards, including the International Covenant on Civil and Political Rights, the International Covenant on Social, Economic and Cultural Rights, the Convention on the Elimination of all Discrimination against Women, indigenous peoples’ human rights safeguards and the ILO Core Labour Standards.
“Governments should hold companies accountable for their extractive activities, wherever they operate,” the groups said adding, “require independent environmental, social and human rights impact assessments and publish the results at an early stage and in a form that is accessible and comprehensive to the population affected.”
Such impact assessments they said should form the basis of an informed decision by all stakeholders as to whether extractive projects are in the best interests of the people.”
The groups particularly called on governments of the South to include in their legal frameworks as a guarantee for the genuine participation of local communities at all stages of extractive projects;
Governments they said should only grant licences for extractive industries’ operations with the free, prior and informed consent of the local community and improve transparency with regard to revenue management by signing up to the EITI and to guarantee a fair and equitable distribution of such revenues, in order to serve poverty reduction;
Governments should “immediately end all harassment and intimidation of individuals advocating against corruption, human rights violations and environmental destruction associated with natural resource exploitation.”
Governments in the Northern Hemisphere were asked by the groups to implement mechanisms necessary to change patterns of consumptions of their populations and promote the sustainable use of energy and other natural resources;
They should “deny export credits and investment guarantees to those companies that do not meet the highest internationally accepted standards including the OECD guidelines for multinational enterprises, the ILO Core Labour Standards and Extractive Industries Transparency Initiative (EITI) reporting criteria,” the groups said.
The United Nations was not left out of the groups concerns. According to the group, the UN should guarantees the rights of people in extractive areas. They therefore called on the Special Representative of the United Nations Secretary General on Business and Human Rights to develop an effective mandatory regulatory human rights framework for Transnational Corporations and other business enterprises that allows for sanctions in severe cases of non-compliance.
“We call on the General Assembly and on all UN member states to support the approval of the Draft Declaration of Indigenous Peoples’ Rights, including their right to free, prior and informed consent, and to extend this right to all affected local communities.”
In another development, the World Bank has announced its decision to protect human rights more and more than previously. Its new Senior Vice President and General Counsel of the Bank Ana Palacio who joined the Bank Last September describe the move as a paradigm shift.
Speaking via Video Conference from Washington DC, in Accra last week Palacio said it is now widely recognized that human rights have relevance for several other international goals including development.
“It is now clear that the Bank can and sometimes should take human rights into considerations as part of its decision-making process,” Palacio said.

However, Palacio also says that Human rights have an unavoidable political content and embody value commitments which are not uniformly interpreted. Yet she said the World Bank has limitations on strictly political activities.
In Ghana, President John Agyekum Kufuor who is now the newly elected African Union Chairman has asked Ghanaians studying in the areas of mining engineering and geology to take their studies seriously so they can take over control of mining activities in the country.
Speaking at the annual People’s assembly in Sunyani recently, the President said as a result of lack of expertise and financial resources, Ghana has no choice but to allow foreign mining firms to do prospecting and invest in capital and equipment for mining as well.

President Kufuor said these when he responded to a question posed by a participant at this year’s annual People’s Assembly held in Sunyani last Tuesday.
The Participant wanted to know why Newmont Ghana Gold Limited, (NGGL) a multinational mining company operating in the Brong-Ahafo and Eastern Regions of the country gets 90 percent of proceeds from mining Ghana’s gold while the nation only gets 10 percent.
The President explained that, it is as a result of mining laws and earlier agreements which are renewable every 15 years.
He also said efforts are being put in place to ensure that Ghana gets a fair share of proceeds from its minerals just as in its agreements with Anglogold Ashanti.
“Students of geology and mining engineering should endeavour to learn hard,” the president said, adding, “With time when Ghana has developed the skill of the white men in terms of mining, the nation will be able to take over its mining activities.”

Tuesday, December 19, 2006

Akuaba calls on Ghanaian women to distribute local products

By Isabella Gyau Orhin

The Managing Director of Akuaba Limited, manufacturers of furniture, toys and educational equipments Dr. Akua Adu-sei Hebstein has called on the government and all well meaning Ghanaians to persuade women traders to sell or distribute locally manufactured goods.

She said the current situation where almost all women traders are into the distribution and sale of foreign products are not good for the economic growth of the country.

Dr. Hebstein was speaking at a one-day meeting in Accra organised by the Gender Unit of Third World Network, and Abantu for Development, both non-for profit advocacy organisations on Services Liberalisation of the World Trade Organisation and its impact on Ghanaian traders,.

“Local traders should get to know local manufacturers, that area yields so much profit,” she said, adding “if you have a market for me, you will probably not need that loan from the bank.”
She also said Ghanaian women are very good distributors and traders who can help boost local industry by marketing their products. She explained further that after the collapse of the Ghana Food Distribution Corporation (GFDC) Ghanaian women took over the distribution of foods across the country at no expense whatsoever to the government.
We run to China and many other places buying goods and looking for profit when we can make the same profit here by selling locally manufactured goods, she said.
She also placed the demise of local industries at the doorstep of the Structural Adjustment Programme (SAP), which she said brought a lot of problems to local industries thorough competition.
Dr. Hebstein said this is contrary to what happened in Asia where Ghanaian traders do business today.
“Asian countries did not develop on pure market basis,” she said, adding, “there were controls, they were assisted, it was not a growth that was not controlled.”
According to her a developing country like Ghana needs to put in place measures to protect its local industries as Asia did in the past.

Supporting Dr, Hebstein, a Journalist from The Point newspaper Leonard Akunor said some of the foreign products sold by Ghanaian women traders especially at Makola market area in Accra are expired and harmful to the health of their unsuspecting patrons.

Dr. Hebstein’s call come at a time when Ghana is feverishly dialoguing with one of its major trading partners, the European Union over the Economic Partnership Agreements (EPAs) which will introduce more competition and has the potential of affecting local industries.
The Minister for Finance and Economic Planning Kwadwo Baah Wiredu at a recent meeting on the EPAs in Accra said trade relations between African Caribbean and Pacific (ACP) countries and the EU should be flexible to take account of the economic, social and environmental constraints of the ACP countries and their capacity to adapt to the new trading environment.
He also said the EPAs should be implemented at country level to identify the cost and mitigating factors.

In a speech read on his behalf at a Conference on Private Sector Development, Regional Integration and EPAs between West Africa and the EU, The Minister said the major concerns of Ghana over the EPAs in the short term is the expected loss of revenue accruing from customs and excise duties and support of development efforts including support to the private sector as a result of the abolition of customs barriers among member states.
“Another major concern is the establishment of the free trade areas between us and our partners to end the non-reciprocal trade regime currently in place and its impact in the short term on our domestic firms,” the Minister said.
He explained that given the lower competitive advantage of firms in the sub-region, it would lead to the folding up of most firms.
Baah-Wiredu therefore suggested the harmonization of customs policies to reduce the effect of revenue losses resulting from the removal of customs barriers.
He said in order to protect Ghana’s interest; there is the need to systematically review how Ghana can take advantage of the opportunities available in open economies that can speed up the county’s development.


The Deputy Minister For Trade, Industry, Private Sector Development and Presidents Special Initiative (PSI) on his part said the nation is worried over the EPAs and Ghana’s inability to take advantage of market access in EU countries. “This has been our main source of worry and apprehension as we negotiate an EPA with The EU, under which we will also extend preferential treatment to substantial amount of EU exports,” he said.
According to him, history has taught the country that unless Ghana’s productive processes are radically transformed and its competitive supply capacity enhanced, “there is no way the country can benefit from the asymmetrical reciprocal preferential trade arrangement under the EPA.”
The Minister also said the capacity of the private sector to build competitiveness will depend on the extent of flexibilities of the EPA as well as the extent of liberalisation that would be undertaken.

Large govt size not too bad- Dr.Anaman

By Isabella Gyau Orhin
The Head of the Economics Centre and Director of Research of the Institute of Economic Affairs (IEA) Dr. Kwabena A. Anaman has said that , increasing government size in Ghana has led to increase economic growth over the years.
Speaking at a roundtable conference organized by the IEA in Accra last Tuesday Dr. Anaman said “The relationship between economic growth and government size is quadratic with increasing government size leading to increasing economic growth up to a certain point when increasing government size leads to decreased economic growth.”
The topic of his presentation was “Determinants of Economic Growth in Ghana,” which came out of a study to determine the factors influencing the long-run economic growth rate in Ghana using economic growth model based on available data from 1966 to 2000.

The study also included a summary description of economic structure of Ghana as it has evolved since independence to the year 2005.

Relative government size is measured as government spending over Gross Domestic Product (GDP) growth rate by economists.
He said between 1957and 1965 which was the era of Dr Kwame Nkrumah’s Administration, government spent 25.31 percent of GDP as compared to that of the period of political instability which is 17.22 percent (1966-1983) as well as that of the Rawlings era of 1984 to 2000 which is 18.01 percent with the present Kufuor era which is 20.43 spanning the periods 2001 to 2005.
“If you are looking for development, government has to be a bit big,” he said adding, “at some point when government gets too large, you have to scale back.”
He said the difference between President Kufuor’s government spending and that of Nkrumah is not too much but said today, President Kufuor is taking care of a population which is thrice the size of that of Nkrumah.
He also said data from 1966 to 2000 show that long run economic growth in Ghana is influenced by growth of exports and political stability but negatively influenced by world oil market price shocks.
Dr. Anaman further said Ghana’s average annual economic growth since 2001 has been 5.2 percent. Factors influencing this growth rate he said include prudent macro economic management such as relatively low inflation and exchange rate stability.
Again relatively high world commodity prices for major exports have helped but these he said have been bogged down by high world oil prices.
Ghana he said has also enjoyed good weather conditions such as good rains boosting its economic and energy situations.
Energy shocks he said have been a big set back to the country’s economic development.
“If the current power cuts continue, we cannot hit our anticipated six percent GDP growth rate,” he said.
Again he said the nation should be grateful to the eight year continuous high level of investment to GDP ratio from 1993 to 2000.
He said investment to GDP ratio at the time under former President Jerry Rawlings was always above 20 percent and averaged 22.7 percent.
This can be compared to 9.3 percent during the Nkrumah era and the period of instability.
Dr. Anaman also said Ghana has enjoyed a peaceful and orderly transfer of political power and stability and has had a high inflow of donor funds and foreign remittances.
“Both long run and short-run growth functions indicate a strong link between political and economic growth,” he said adding, “Therefore the democratic governance in Ghana should not only be deepened by broadened as well.”
In order to broaden democracy, Dr. Anaman said there should be financing of political parties to allow the emergence of viable third parties to break the duopoly of the ruling New Patriotic Party (NPP) and the main opposition party, the National Democratic Congress (NDC).
“Let’s avoid the Pakistani syndrome in Ghana where the military inserts itself as the third force when the two main parties engage in high level quarreling,” he said.
Dr. Anaman also said there is the need to broaden the export base of Ghana away from the over dependence on Cocoa, timber and gold.
This is because in 2005 alone, non -traditional exports accounted for 17.43 percent of total exports.
Also, there should be government’s investment in labour intensive public works to accelerate economic growth and reduce high unemployment among the youth.
He said although government is currently using agriculture, tourism and Information Communication Technology (ICT) as main drivers of economic growth, there is the need to look at other drivers of economic growth such as the construction industry.
Dr. Anaman also said low labour productivity needs to be tackled through more resources for non-formal education with strong emphasis on basic literacy skills training among others.

The International Monetary Fund (IMF) Country Director in Ghana Mr. Arnold …………..said Ghana also needs to strengthen its investment climate through law enforcement of rules and ensure an independent judiciary.
He said although Ghana is doing very well in attracting investment other challenges such as difficulty in land acquisition remain.
An Economic Consultant Kwamena Essilfie Adjyae was of the view that Ghana needs an economic model with human capital development.

Women's pelves now goldmine-Dr. Taylor

By Isabella Gyau Orhin

A Medical Officer at the Eastern Regional Health Directorate, Dr. Joe Taylor has described the female pelvic as a ‘goldmine’ where quack healthcare providers are busily making huge sums of money through galamsey (illegal mining) or unsafe abortion.

Dr. Taylor, a Gynaecologist by profession, said some qualified doctors and male nurses are also involved in the business and are digging into the female pelvic.

She explained that, the practice of terminating pregnancy has become a lucrative business since women desperate to get rid of pregnancy are vulnerable and can easily be exploited.

Dr. Taylor was speaking at a meeting on reproductive health organized in Accra by the Population Reference Bureau (PRB) based in Washington DC, USA.

He also alleged that some doctors are cashing in on the issue quietly and charging exorbitant fees since women cannot walk into public health institutions where charges are low and demand the termination of unwanted pregnancy.

“In fact it is the abortions that some of my colleagues are using to sustain their private clinics,” he said.

According to Dr. Taylor, what makes the situation serious is that termination of unwanted pregnancy sometimes takes place in unauthorized places such as doctors’ bedrooms, toilets, dining tables, and bathrooms which are risky for the patients.
He said unsafe abortion is a procedure for terminating unwanted pregnancy either by persons lacking the necessary skills or in an environment lacking minimal medical standards.
According to Dr. Taylor, there are doctors who perform abortions in their garages adding, we are talking to them to put a stop to such practices.
As a member of a committee that is coming out with a new protocol n Reproductive Health that will ensure that women can access safe abortion services in public health institutions, Dr. Taylor says the best precaution is to avoid unwanted pregnancy.
“Every procedure has risks, safe means it is done by skilled personnel and with that there is a lower chance of risks.”
Dr. Taylor said it is too risky to use abortion as a family planning method and women who undergo the procedure need to be counseled to avoid future occurrences.
He said if doctors were counseling women who consult them to procure abortion services, the number of women who seek abortion would have reduced considerably.
Such doctors he said do not provide their patients on post abortion care and contraceptive use.

According to Nana Oye Lithur, a legal expert abortion is legal in Ghana in certain cases and this is highlighted by the additional protocol to the African Charter which states that “State parties are to protect reproductive rights of women by authorizing medical abortion in cases of sexual assault, rape, incest and where the pregnancy endangers the mental and physical health of the mother or foetus.”



Although induced abortion is the oldest and common fertility control method, few societies have looked at the issue dispassionately; this is because experts say it bothers on morality.

Lithur also says it is time women are given the chance to choose whether they would want to keep a pregnancy or abort it under safe and affordable conditions.
The World Health Organization defines abortion as the termination of pregnancy before viability.
African women are said to experience the greatest risk of death from unsafe abortion.
Studies show that one in 150 African women die from unsafe abortion, as against one in 250 women, in Asia; one in 800 in Latin America and one in 3,700 from the Northern countries.
Again about 20 million abortion cases take place each year worldwide with 55,000 abortions on the average per day.
The Ghana Demographic and Health Survey of 1993 puts maternal mortality ratio in Ghana at 214 per 100,000 live births.
A study conducted by the then Chief Pathologist of Ghana’s premier teaching hospital Korle Bu, Prof. Agyeman Badu Akosa in 1998 indicate that 30 percent of maternal deaths are due to unsafe abortions.

According to Dr. Afua Hesse in the book “Abortion within Reproductive Health in
Ghana,” until 1985 abortion in Ghana was governed by the criminal code of 1960. (ACT 29).

Under the code anyone causing or attempting to cause an abortion, regardless of whether the woman was pregnanat could be fined or imprisoned for up to 10 years. Also a woman inducing her own abortion or undergoing an illegal abortion was subject to the same punishment.
Ghana enacted a new law on abortion in 1985 which made it a crime for any person to give any poison or other noxious substances to a woman or use any instruments or other means with the intent of causing an abortion.
According to the Law, a legal abortion must be performed by a registered medical practitioner with the consent of the pregnant woman.
The abortion must be performed in a government hospital or a private hospital or a clinic registered under the Private Hospitals and Maternity Homes act of 1958 or in a place approved for that purpose by the law.

According to Dr. Taylor, some women resort to abortion because they have no access family planning or as a result of contraceptive failure.
Others he said do it because the pregnancy was as a result of rape, sexual abuse economic and social reasons.
Those who have no means to procure at the doctors table resort to drinking concoctions and using all forms of crude methods to get rid of unwanted pregnancy.
In an interview with Ghana Television recently, Prof. Agyeman Badu Akosa now the Director of the Ghana Health Service (GHS) said women should be given access to safe re[productive health services in the country.



The Code of Ethics for the GHS which defines the general moral principles and rules of behavior for all service personnel in the Ghana Health Service does not make room for quacks , forbids exploitation and expects doctors to operate within the law.
“All Service personnel shall be competent, dedicated, honest, client-focused and operate within the law of the land ,” it states adding, “All Health Professionals shall be registered and remain registered with their Professional Regulatory Bodies.”

High fees deter women from going to court

By Isabella Gyau Orhin

A human rights activist Nana Oye Lithur has said high cost of accessing justice is discouraging a lot of Ghanaian women from taking their cases to court.
. “The court fees are not affordable which makes it harder to gain access to justice,” she said.

Speaking at a one day meeting in Accra on Women and the Justice system in Ghana organized by the Journalists for Human Rights, Nana Oye Lithur said, depending on what needs to be done, court fees can range from 10,000 cedis for a writ of summons at a district court to millions of cedis.
She said after one initiates a court procedure,one needs to pay filing charges, pay bailiffs transport and pay the lawyer.
Sometimes she said one needs to put down between one to two million cedis before a lawyer takes up a case.
That is not all; each time the lawyer goes to court his or her transport must be paid by the complainant.
According to Lithur some lawyers charge between 200 to 300, 000 cedis as transport each time they go to court.


For instance Nana Oye explained that it costs as much as 400,000 cedis to file a divorce case, this is minus lawyers fees of 2, 000, 000, transport cost of 200, 000 cedis per court appearance and bailiffs cost of serving papers which is 100,000 cedis among others.
She said it is because of these problems that the Legal Aid Board and the International Federation of Women lawyers (FIDA) and other independent practitioners are offering services to vulnerable people who cannot afford to seek justice as a result of the high fees.

Added to the issue of cost is the frequent adjournment of cases in the present judicial system in Ghana.

She said since women are engaged in economic activities or are in employment, it is difficult for them to leave their work and attend the court hearings.

“How do they leave their work, and spend half their time in court?” she asked.
She said a study done by a Canadian organisation known as CUSO is a pointer to this fact.
For the cases they studied, there were 70 percent adjournments.
For 34 percent of the cases, the adjournments were at the instance of the prosecution.
In Tamale, it climbed to 54 percent with 30 percent attributable to the court.

Nana Oye Lithur also said sometimes it is difficult for women to enforce judgments they obtain in court especially in property settlement cases with their spouses and also maintenance of their children.
“This is because the men work in the informal sector and the women do not know their income to facilitate attachment by the court,” she said.
Nana Oye Lithur who is also the head of the African Office of the Commonwealth Human Rights Initiative (CHRI) said most of the cases women take to court bother on domestic violence with rape and threats topping the list.
“For children of whom girls are the most, the highest type of cases is defilement cases,” she said.
For instance from 2002 to 2006, 4468 cases of defilement were reported to the police. Also for the first quarter of 2006, also the total number of victims that reported cases to the Domestic Violence Victims Support Unit (DOVVSU) of the Ghana Police Service was 239 females as against 45 males.
Lithur said most of he victims were aged between 13 and 18 years.

Again statistics from the Judicial Service shows that of the 2145 cases studied in the courts, 44 percent of these cases involved assault and 90 percent of offenders were males.
Other women also take cases concerning maintenance of children and custody related cases to court.

“Other cases women take to court include divorce, matrimonial cases and inheritance related cases,” she said adding “For divorce, it is likely the petitioner will be a woman.”
Nana Oye Lithur further said, another barrier women face as they seek justice in the law court is that of language and the adversarial system being practiced in the court system instead of conciliatory or mediatory system.
She said women are by nature are not adversarial or competitive and as such this practices at the court makes them uncomfortable.

Speaking at the meeting, a Human Rights Expert with the Journalists for Human Rights, a Canadian based Non-Governmental Organisation (NGO) Nick Fobih asked journalists to verify human rights cases and give fair hearing to all sides of a case before publication.

UN says media work is vital to poverty reduction

By Isabella Gyau Orhin

The UN Resident Coordinator in Ghana Mr. Daouda Toure has said the role of the media in eradicating poverty is vital to development.
Speaking at a conference on Media and Development in Accra last Monday Mr. Toure said the provision of information by the media to the people helps them to make a sense of their lives.
“Covering issues relevant to those living in poverty and those at the margins of society have been central in development organisations such as the UN for years,” he told the conference which was organized by the National Media Commission (NMC) in collaboration with the United Nations Development Programme (UNDP).
He said in the year 2000, a poverty survey done in partnership with the government of Norway and UNDP revealed that people living in poverty wanted a voice or a say in decisions that affect them.
“This comes way ahead of money,” he said.
According to him, the extent to which the perspectives of those living in poverty are reflected in the media is becoming equally important.
Current development strategies he said are rooted in two central assumptions mainly ownership and accountability.
He said gone are the days when in development assistance when hundreds of donors, thousands of organisations and millions of people were involved in a multiplicity of sometimes small piecemeal development projects.
“A revolution is taking place in development assistance and development strategies,” he said.
Mr. Toure who is also The UNDP Resident Representative explained that global development efforts is now structured around meeting the Millennium Development Goals (MDGs) which is a graduation from chronic poverty.
“Halving the number of people living in abject poverty by the target date of 2015 was a major milestone in development assistance,” he said adding, “Another milestone is the creation of methodologies and strategies to achieve these goals.”
This in the UN is reflected by the increased harmonization of activities and programmes with others, especially among UN agencies themselves under Country Programme Action Framework.
He also said development partners have committed themselves to work much more close together according to a set of frameworks developed by developing countries themselves.

He also said that the analysis of media treatment of issues be it the MDGs or Growth and Poverty Reduction Strategies (GPRS II) have repeatedly shown a poor level of coverage.
“Analysis suggests “lack of technical skills among journalists to report on economic development and issues specific to sectors such as health, education and agriculture,” he said.
Also he said there was lack of interaction between Non-governmental organizations, Civil Society organizations and the media.
If this occurs, the UN Resident coordinator said it might lead to enhanced media understanding and engagement.
Failure to address the external dimension of development, the partners’ performances, the hindrance linked to external markets, the potential role of Diaspora, and the promotion of Ghana as an investment climate and insufficient support for mature media are some of the lapses on the part of the Ghanaian media.
Mr. Toure also said one of the central conclusions of a report by the UN Commission for Africa says because so many conditions were imposed on development assistance , developing countries governments felt more accountable to western donors than they did to their own citizens, an issue the Commission and current development thinking and practice hope to change.

The Minister for Information and National Orientation Mr. Kwamena Bartels on his part said the some media houses are abusing the freedom of speech guaranteed under the constitution.
Some people he said are fond of using the Phone-In programmes of radio stations to heap personal insults on citizens.
He said it is important for Ghanaians and the conference to think about how to empower the National Media Commission to check these abuses without violating the constitution.

“How can we strengthen the NMC with sanctioned powers to sanction erring media practitioners without infringing the constitution?” he asked.

He said the government is prepared to expand the frontiers of free speech and this is evident in the abolition of the Criminal Libel law and the introduction of the Freedom of Information Act and the Whistle Blowers Bill.
The Chairman of the National Media Commission Mr. Paul Adu Gyamfi said media activity can lead to chaos in a society if not checked and as such their work demand scrutiny.
He said his expectation was how the NMC could be empowered to offer the best services to the benefit of society chaos.

Music to the rescue of Africa's economic malaise

By Isabella Gyau Orhin

Music since time immemorial is acknowledged as an important facet of life without which human life will be miserable.
Philosophers and great writers like Shakespeare all dwelt on the joy and melody of music, then popularly touted as facilitator of love and romance and relationships.
Musicians in the olden days were regarded as entertainers. However in the second half of the last century musicians have gained a different level or status in society.
Music is regarded as a resource of economic growth which has propelled the economies of advanced countries into greater heights.
Despite its reputation for vibrant music scene and talented musicians, Africa has so far been unable to capitalize domestically on these natural resources. Economic experts say there is the need to develop the potential for economic growth in the African music industry and new methods to build on the industry’s resources.
It is believed that Music can be used to reduce poverty and improve economic situation in Africa where poverty where more than half of its 600 million people live on less than a dollar a day.
Areas that could be developed include sound technicians, back up musicians and also state of the art technology which could enable African musicians to be compensated
automatically and transparently for the use of their music on the internet.
For instance new technology from IBM has the potential to prevent access without payment and to deliver instant payments to musicians for the online sale and performance of their music.
At a workshop organized by the World Bank and the Policies Sciences Centre in 2001 in the US, Participants explored several alternative legal approaches to developing an intellectual property rights system appropriate to African needs and resources.
It also included the controversial issue of copyright in cyberspace and examined the model of the Nashville experience where a one time dirty poor town became a music industry powerhouse and notable contributor to regional economy.
An Economist Michael Finger says there seems to be little connection between developing the music industry in Africa and empowering developing countries at the World Trade Organisation.
Finger says several of the arguments o music and development that came out of the Uruguay round are based on the experiences of the advanced countries and often have little meaning in developing economies.
One example is the agreement on the Trade Related aspects of Intellectual Property Rights (TRIPS) Finger says there is the need for a good intellectual property system tailored to the needs of the music industry in Africa.
In recent years, the World Bank has been developing its cultural industries loan program introduced since James D. Wolfensohn became its president. According to the World Bank’s Daily Online Newspaper Today, the Bank as at the year 2000, was lending between 265 million to 300 million dollars for cultural activities. This comprised of loans to help culture related tourism such as ecological and craft initiatives.
This focus on music by the World Bank is seen by critics as an attempt by the Bank to clean its image and tone down opposition form anti-globalisation protestors.
Wolfensohn is said to have used music and the arts industry to transform himself from a “hardnosed investment banker to the Rock star in the aid community,” The Music Agenda by the world banks is also considered as one of the Mission creeps suffered by the Bank that is loss of focus.
In Ghana, there is no doubt about the importance of the music industry to the development of the nation.
“Music in Ghana has always had various beneficial effects such as physical and spiritual healing, for the knowledge and histories embedded in musical griots, for the calendrical markings of events by musical performance and as work songs that could help coordinate muscle power in agricultural and fishing,” says Professor John Collins, a lecturer at the Music Department, University of Ghana.
Ghana’s Music Industry which started off well in the colonial days came to a standstill two decades ago. This was attributed to political problems such as a long period of curfew during the 1980s which killed nightlife and live band performances as well as economic problems faced by musicians.
However Prof. Collins say with the situation has improved with the influx of tourists into the country.
For instance between 1992 and 2002, the number of tourists visiting Ghana doubled and only in 2004 650,000 tourists visited the country bringing with them 800 million dollars.
By 2007, a million visitors are expected each year with 1.5 billion dollars.
“Ten percent of the foreign exchange spent here by tourists is connected with the entertainment sector which of course includes music,” Prof. Collins explains.
Again he says a growing component of the tourism industry is linked to what might be called World Music Tourists who are particularly attracted to Ghana’s wealth of local music including traditional and folkloric music. “Some tourists money finds its way into even the poorest layers of society in rural areas,” citing the Kakum village Bamboo band as an example.
Royalties for African sales music abroad was 220 million dollars in 1997.
Recent studies in UK shoes that Music improves mathematical ability, physical coordination and communication skills.
Music has the potential of developing Ghana’s economy. This is because there are many types of business that involve music. Local craftsmen make traditional instruments, Ghana’s estimated 100 or so recording studios employ technicians and session musicians, night clubs and hotels employ bands, workshops are needed to repair musical equipments and music cassettes and Compact Discs need to be manufactured, produced and distributed.
Prof. Collins also say There is also music journalism, the music component of radio and TV stations, background Music for films and the local video industry as well as music jingles for the advertising industry.
Music is also used therapeutically in both modern hospitals and in the traditional settings of drum dances associated with healing cults.
In addition to these, quite a number of Ghanaian bands travel outside the country each year with some catering for the fans of folkloric music, others satisfy the musical needs of the millions of Ghanaians in the Diaspora. These include musicians like Amakye Dede, Pat Thomas, Daddy Lumba . Some hitherto poor people have joined the high class soon after successful albums.
The music being performed by a top Ghanaian Musician popularly known as Obuor on the airwaves warning drivers about accidents is one of the ways in which music has contributed to the socio-economic development of the country. There have been several other campaign songs on health issues such as on infant vaccination, family planning, prevention of HIV/AIDS and malaria which are all song in local languages to educate nursing mothers and all on the dangers of diseases and what o do about them.
Prof. John Collins recalls song lyrics that provide a voice to the voiceless and marginalized social groups that are critical of corruption, the older generation, government mismanagement and unequal distribution o power and wealth.
“An old well-known example is the 1967 African Brothers hi life records of ‘Ebe te yie’ (Some sit well) which criticized the emergence of a nouveau riche in Ghana after independence.
. The President of the Musicians Association of Ghana (MUSIGHA) Alhaji Sidiku Buari have always called for the adequate support for the music industry.
According to him, in spite of the improvement in the quality of music, exploitation continues unabated especially in piracy.
Ghana has made efforts to develop its music industry with meetings with development partners such as the World Bank, UNESCO European Union, French Embassy, Goethe Institut, and many more without much success.
Experts have blamed divisions among musicians and lack of government support as some of the draw backs and a World Bank project to support them in Ghana is still in the womb of time due to a number o factors.
According to the Institute for Music and Development 50 percent of sales in African music are pirated. The institute says several African countries including Ghana have no adequate statistics on total value of revenue accruing from music publishing industries.
Today the Growth and Poverty Reduction strategy (GPRS II) regards music as one of the means to reduce poverty.
A German proverb sums up the importance of music to the world today. “Where you hear people singing, there settle down in peace, for evil people know no songs.”

Microfinance and Poverty

By Isabella Gyau Orhin
An Adjunct Professor at the Institute of Statistical Social and Economic Research (ISSER) William F. Steel has called for capacity building in the micro finance sector to increase credit to the poor especially those in poor rural communities.
“The rural poor lack business and financial skills and this leads to poor repayment of loans, loans taken as gifts and interest that do not cover costs,” he said.
Commercial Banks he also said do not know how to do business with low income self employed people and as such the poor depend on their own savings and loans from family members.
Thus training in the sector should include not only the Rural Micro Finance Institutions (RMFI) comprising the Apex bodies, specialized licensed bodies, grass roots micro finances schemes, and clients but also at the level of commercial banks so that they can both service and drive the system.


Speaking at the annual ISSER-Merchant Bank lectures series on the topic “Extending Financial Systems to the Poor: What strategies for Ghana?” Prof. Steel said Internationally, Micro Finance has moved through phases, from high cost, heavily subsidized operations reaching limited numbers to financially self-sufficient microfinance institutions reaching millions.
Micro Finance can be defined as small financial transitions sustainable available to the poor whether formal or informal.


Special microfinance methodologies he said can help overcome many of the constraints that have generally blocked the extension of formal financial services to the poor.
This he said is done through the use of traditional banking practices or methodologies.
These methods can be applied along with skill strengthening at all levels to develop pro-poor financial systems that make small financial transactions such as savings, loans, insurance , money transfer and leasing among others available to the poor.
Government he said can subsidise micro finance through provision of equipment for farmers such as irrigation machines or pumps.
“If the poor farmer interested in irrigation can get a pump to help him, that farmer can get himself out of poverty,” he said.

Ghana according to Prof. Steel has the advantage of a wide range of different types of rural and micro finance institutions serving different niches such as Rural and Community banks, Savings and Loans companies, Credit Unions, Financial NGOs, Susu collectors and groups as well as informal savings and credit associations.
“One advantage is that most of these bodies are based on local savings mobilisation,” he said adding, “Rural Microfinance Institutions depositors are growing at an average of 40 percent a year” especially between 2001 to 2004.”
He said the number of borrowers which is now about half a million has grown over 20 percent and the total Micro Finance loan portfolio has more than tripled in three years.
In spite of all these, Prof. Steel said the operating cost to provide and monitor these small transactions remain even higher in Ghana. He explained that this is higher than the average of 28 percent for loan portfolio in other African countries.
Many of Ghana’s micro finance institutions cannot stand on their feet without financial subsidies. Prof. Steel further said it is important for Ghana to integrate rural micro finance institutions and micro finance methodologies into the financial system to extend its out reach to rural areas, the poor and to clients of Small and Medium scale Enterprises.

While subsidies are limited, Prof. Steel said expanding micro credit to thousands of poor people requires sustainable Micro Finance institutions generating their own resources and accessing commercial funds.
Again he said Micro finance development must be complemented by other challenges to address related challenges, particularly agricultural finance and targeting the very poor.
Prof. Steel also said government-directed credit at restrictive interest rates has been counter productive over the years worldwide in addressing challenges of micro finance.
Supporting Prof. Steel, the Deputy Minister for Finance and Economic Planning Prof. George Gyan Baffour said access to capital is a problem for several businesses particularly small ones.
“As we look for help, the difficult aspect is how to get help for he poor in he rural communities and informal sector who the banks say are not bankable.
The Director of ISSER Professor Ernest Aryeetey said despite the fact that there are several micro finance institutions the practice varies from one to the other.
It is against this background that methodologies suitable for Ghana are being sought, he said.

Ghana’s agriculture and industrialisation

By Isabella Gyau Orhin

“Mr. Speaker, growth in the agricultural sector, the mainstay of the economy, is projected at 5.7 per cent indicating 0.9 percentage shortfall against the target of 6.6 per cent. The contributory sub-sectors to the underperformance are the Cocoa Production and Marketing; and the Forestry and logging sub-sectors.”
This confession came from the Minister of Finance, Kwadwo Baah-Wiredu when he presented the 2007 budget to Parliament recently.
According to the Minister, the attainment of the objectives of the Growth and Poverty Reduction Strategy (GPRS II) is anchored on the Agricultural Sector showing a strong growth.
“In line with Government’s policy to create wealth and alleviate poverty, the Ministry is pursuing programmes and projects to transform the rural economy through the modernisation of agriculture,” he said.

The Minister further said the sectoral goal of the Ministry is to develop a progressive, dynamic and viable agricultural economy that will ensure food self sufficiency, food security; the production of raw materials for industry; and increased foreign exchange earnings through diversification of export crops.

Agriculture is regarded as Ghana's most important economic sector that employs about 54 percent of the countries workforce on a formal and informal basis. It also accounts for about 40 percent of GDP and 42 percent of export earnings.

Critics say although the first president Dr. Kwame Nkrumah attempted to use agricultural wealth as a springboard for the country's overall economic development and industrialisation, Ghanaian agricultural output has consistently fallen since the 1960s.
During the 1980s and the 1990s when Ghana Implemented the Economic Recovery Programme (ERP) and the Structural Adjustment Programme (SAP) the woes of farmers were deepened with withdrawal of subsidies in the agricultural sector. Government’s support for agro-based industries was withdrawn and the industries were listed for divestiture.
In particular, industrial tree crops such as cocoa, coffee, and oil palm seedlings were singled out for assistance. Clearly, agricultural sectors that could not produce foreign exchange earnings such as rice production were assigned a lower priority under the ERP.
Since then, government through loans and grants from the World Bank has strived to improve upon agriculture as the mainstay of industrialization.
The Rome Declaration on World Food Security says poverty a major cause of food insecurity and sustainable progress in poverty eradication is critical to improve access to food.
The number of people without enough food to eat on a regular basis remains stubbornly high, at over 800 million and is not falling significantly. Over 60 percent of the world’s undernourished people live in Asia and a quarter in Africa.
The proportion of people who go hungry however is greater in Africa than in Asia.
The latest FAO report shows that there are 22 countries out of which 16 are in Africa.

To improve upon food security especially on rice production, to partly serve as the industrial base of the economy, Baah-Wiredu said the Inland Valley Rice Development Project extended credit to 905 farmers and also provided technical support in the areas of land and water management techniques in 17 project districts. It has also assisted 850 farmers with average holding of 0.4 hectares to plant 340 hectares of rice under the Nerica Rice Dissemination Project.

Again the Minister said the Irrigation Company of the Upper Region (ICOUR) facilitated the production of 200 tons of Paddy Rice seed, 1,800 tons of Rice Grains and also cropped 220 hectares of millet and 34 hectares of soyabeans at its Vea and Tono dam sites.
But not every one is convinced that things will work well for the rice sector especially.
According to the General Agricultural Workers Union (GAWU) Trade Liberalisation has had serious implications on Ghana’s farmers and farm employees.
“WTO farm regulations are forcing many small scale farmers out of business,” the Union said.
According to the Union, low cost imports of rice have been flooding into the Ghanaian market and whether these come from competitive rice exporters or are dumped by heavily subsidized sources such as the United States, the impact threatens to destroy the livelihoods of thousands of farming families.
It is estimated that developing nations would benefit by about four billion dollars annually if subsidies in the developed world are halved.
“The strategy of producing in pursuit of food sufficiency has been subverted by an influx of cheap imported agricultural produce are destroying local production,” GAWU said.

Tuesday, December 12, 2006

The Woman behind Busy Internet-Estelle Sowah

By Isabella Gyau Orhin

It is a fine Monday morning, at the first floor of the Busy Internet Building at the Kwame Nkrumah Circle, Accra. A fair coloured woman with a low hair cut walks in, beaming with smiles as she enters.
She says hello to every one; workers, clients, and visitors. Wearing a popular Ghanaian white cloth from Ghana Textiles Prints (GTP); known in local Akan parlance as Akyekyedee akyi or the (back of a tortoise), sewn in a long dress form, her well-endowed African body curves draw the attention of everyone, both men and women.
Ah! Is she white or black? One first time visitor murmured to herself.

Well that is Estelle Akofio Sowah, the Managing Director of Busy Internet, the country’s biggest internet CafĂ© and business resource centre which celebrated its fifth year of existence in Ghana in November 2006.

Born some 34 years ago in Edinburgh Scotland, Estelle Sowah was six months old when she was brought to Ghana.“My father, a Ghanaian was studying in Scotland when he met my mother who is
from Scotland” she explains her Ghanaian and Scottish background.

In Ghana she was educated at the Ghana International School and pursued a Bachelors Degree in Economic sand Development in the United Kingdom. Six Months after completion Ms. Sowah returned to Ghana and landed a job with ProNet, a community based service delivery civil society organisation.

She later worked with La Palm Royal Beach Hotel before settling down with SIMNET, a South African ICT company working in Partnership with the Department of National Lotteries.
She joined Busy Internet when the company was about nine months old and the rest is the success story today. “I did not have much trouble getting the job,” she says.

“I joined Busy as the Program Manager and was offered the position of deputy and then Managing Director about 6 months after I joined,” she says.

Ms. Sowah who is married with two children, a boy and a girl is very proud of her unique features. Asked how she has been so successful heading Busy Internet, she mentions hard work, dedication, tact, diplomacy and veracity, focus and the fact that she is a woman as some of her driving forces.

“As a woman a lot of people expect you to fail and as such not much impediments are put in your way,” she says.
Being a woman to her is a talent. “You can use it to your advantage; sometimes the men get confuse with your beauty and you can get away with a lot of things,” she says with smiles.

“Open 24hours a day, 365 days a year, Busy Internet is a place where people come for different reasons,” says a recent World Bank Study. “Tourist come to check their emails; students to research an assignment; aspiring entrepreneurs to learn about their target market ; established business people to write , print and bind proposals,” says the study.

It operates a big hall with 100 high speed flat screen computers, fully serviced executive office suites, high tech training and conference facilities and a 24hour digital documentation centre.
Other facilities include Busy ISP; a customer focused Internet Service Provider with a suite of Internet solutions for small businesses and large corporate organizations. “These include our flexible pay as you go dialup, wireless radio, and Vsat solutions. With a 24 hour technical support and monitoring crew in place, our customers enjoy a hassle free service,” Ms. Sowah explains.

Established in 2001, Busy Internet is the largest privately owned and operated centre of digital entrepreneurship in Africa with a mission to provide both commercial services as well as social and economic development. It has been featured as a promising hybrid model for Africa.
The company is located in a 14,00square foot piece of land which formerly housed the defunct gas bottling factory in the heart of the city and it is owned by Busy Internet International and two Ghanaian investments companies, Fidelity Capital Partners, Data Bank and Softribe.

Through a grant from the World Bank’s Infodev Incubator Programme, Busy internet launched an important programme to select and assist start-up companies with business plans to incubate them within Busy Internet’s premises for a period of 18 months.
The first of its kind in West Africa Ms. Sowah explains that the small incubation programme is designed to increase the chances of survival of young companies’ by providing them with a good opportunity to grow in a supportive and nurturing environment as well as promote economic growth by fostering private sector development.
Companies benefiting from the programme have access to professional advice in areas such as marketing, business development, financing as well as best practice standards.

Although she had no formal training in ICT, she says she is learning very fast since ICT is all about customer care, communication and meeting the needs of your clients.
She describes the art of combining family life with occupying a high position like hers as “tough but possible.”
“Being pregnant and running such a facility is no easy task,” she says.
“A few days after having my daughter, my laptop was on, and I was holding meetings at home with my managers among others,” she recalls. “Now that my daughter is one year old, my life is fully mine again,” she says. She said though she could spend more time with them, she is very happy now.

On the issue of blending marriage and work, Ms. Sowah says though she is not a feminist, but believes women must be allowed the freedom to work.”
When you have a career, which was part of your life before you got married, you have to continue, she believes. “For me Marriage is like two parallel lines, so long as the two of you are going the same direction, each partner must be able to manage with every situation.”

On future prospects of Busy Internet, Ms. Sowah says the ICT sector has changed drastically over the past two years.
“With Ghana Telecom Rolling out Internet services and the Mobile phone companies also coming in, we need to be more strategic to stay in business,” she says.

Monday, November 20, 2006

Ghanaians pay more for water than UK and US residents

By Isabella Gyau Orhin


Ghanaians pay more for water than their United States and United Kingdom counterparts, according to the 2006 Human Development Report launched in Accra on Tuesday.

The report says while Ghanaians in the capital city, Accra, pay US $3.20 for a cubic metre or 1000 litres of water, their counterparts in New York, USA pay US$ 0.70 per cubic metre of water with residents of London in the UK paying about US$ 1.80 per cubic metre of water.

“Across the world, the poor are forced to pay much more than their affluent neighbors,” says a summary of the report.
Further analysis show that Ghanaians pay approximately US$0.003 US per litre which is about 29 cedis which adds up to 600 cedis for a bucket of water which is 21 litres.
This is against that of the US residents who pay 0.70 per 1000 litres or cubic metre. This means that for one litre US residents pay US$ 0.0007 which works up to approximately six cedis per litre or 126 cedis per bucket of 21 litres.
The UK also pay about US$ 0.002 per litre which is about approximately 18 cedis per litre or 378 cedis per bucket of 21 litres.


The report has therefore called on governments and world leaders to put water at the centre of poverty reduction strategies and budget planning.
The Millennium Development Goals (MDG) number seven is to ensure environmental sustainability with emphasis on water and sanitation.
However, the report says if the current trend continues, poor countries will miss the MDG 7, of halving the number of people without access to water by 235 million people.
Also 800 million people in total will still lack access to potable water while the sanitation target will be missed by 431 million people with 2.1 billion people still without decent sanitation.
According to the report, a bold coherent national water plan grounded in strategies for reducing poverty and extreme inequality backed by predictable finance is a first step in the right direction. It also said a new, more strategic approach that puts the poor at the centre of the solution is essential to reach the Millennium Development Goals (MDGs).

The report dubbed Beyond Scarcity: Power and Politics and the Global Water Crisis further says that people living in the slums of Nairobi in Kenya pay five times more than the rich living in the same city, while the poor households in Nicaragua, El Salvador, and Jamaica spend an average of over 10 percent of their income on water.

The report said even in the United Kingdom spending more than three percent of family income on water is considered an economic hardship.
The biggest financing gaps are in rural areas and in informal urban settlements, the report said adding, closing those gaps require increased financing and a reorientation of public spending to rural communities through the provision of wells and boreholes and to urban slum areas through the provision of standpipes.

The report points out that the long standing “Public versus Private” debate on water will not bring prices down. Recent debates on water delivery policy in developing countries have been dominated by a polarizing discussion on privatization as against public ownership.
However, the authors of the report argue that this is a wrong choice since it diverts attention from the ultimate aim of finding a lasting solution of getting potable water to the poor in society.
“The debate over the relative merits of public- private sector performance has been a distraction from the inadequate performance of both public and private water providers in overcoming the global water deficit, the report said.

The report argues strongly that lifeline tariffs would allow poor households to access a minimum amount of water for very low prices or no charge.
Presenting the key findings of the report at the launch in Accra, the Chief Executive Officer of Wastecare Associate, an advocacy organization, Mr. Lukman Y. Salif said there is the need for Ghana to place water and sanitation at the centre of the development agenda.

Ghana aims to achieve 85percent coverage for both water supply and sanitation by 2015, which is a higher coverage ratio than what is recommended by the MDGs which is 73 percent. To reach the 85 percent target, Ghana will need a capacity increase of 4.8 times for water supply and five times for sanitation.

The total cost involved according to Mr. Salif is estimated at 1.5 billion dollars with an annual estimate of 68 million dollars for the rural and small towns and 81 million for urban water supply.
In total, 12 million and 15 million more people will need to be provided with potable water and improved sanitation respectively, leaving an unserved population of 4.1 million and 4.8 million for waste and sanitation respectively.


Mr. Salif called for the allocation of one percent of Gross Domestic Product (GDP) for water and sanitation through public spending. He also said if Ghanaians are able to send piped water to various homes, it will reduce diarrheoal disease by 70percent, while homes with flash toilets can reduce diarrheoa by 50 percent.

Such acts will also reduce the burden on the National health Insurance Scheme and free resources for the development of critical areas of the economy.
“In short improvement in water and sanitation means the lives of the poor will improve, since they will spend less on health,” Mr. Salif said.
The Minister for Works and Housing Hackman Owusu Agyeman said in spite of the obstacles; the water sector will meet the MDG target by 2015.

He said sanitation which is a bigger challenge is being tackled by the Ministry of Local Government and Rural Development (MLGRD), adding that plans are advanced to build a treatment plant at Kpone and Weija to improve water supply in Accra.

He said unlike in the past when water was drawn from the rural areas without supplying the surrounding villages, the various water projects going on in places like Cape Coast, Koforidua, Assin among others are all taking supplying the towns and villages along the route of the pipes
Sometimes urban poverty can be more stressful than rural poverty and it comes with the stress of not having water and sanitation,” he said.
The Country Director of the United Nations Development Programme (UNDP) Mr. Dauoda Toure said without water, life becomes more endangered and precarious.
He said at least every person should get 20 litres of water per day in all parts of the world.
The report further said almost two million children die each year for want of a glass of clean water and adequate sanitation. Millions of women and young girls are forced to spend hours collecting and carrying water, restricting their opportunities and their choices. And water-borne infectious diseases are holding back poverty reduction and economic growth in some of the world’s poorest countries.
Beyond the household, competition for water as a productive resource is intensifying. Symptoms of that competition include the collapse of water-based ecological systems, declining river flows and large-scale groundwater depletion. Conflicts over water are intensifying within countries, with the rural poor losing out. The potential for tensions between countries is also growing, though there are large potential human development gains from increased cooperation.
The Human Development Report continues to frame debates on some of the most pressing challenges facing humanity.
Dauoda Toure said the Human Development Report 2006 investigates the underlying causes and consequences of a crisis that leaves 1.2 billion people without access to safe water and 2.6 billion without access to sanitationThe report also argues for a concerted drive to achieve water and sanitation for all through national strategies and a global plan of action.it also examines the social and economic forces that are driving water shortages and marginalizing the poor in agriculture while looking at the scope for international cooperation to resolve cross-border tensions in water management
The HDR is prepared annually and is launched in over 100 countries world wide This years report Mr.Toure said include special contributions from Gordon Brown and Ngozi Okonjo-Iweala, President Lula Da Silva of Brazil , Former US President Jimmy Carter, and the UN Secretary General, Kofi Annan.

Ghana is not interested in IMF Money anymore

By Isabella Gyau Orhin
Ghana will no longer need financial support from the International Monetary Fund (IMF).
The Minister for Finance and Economic Planning Mr. Kwadwo Baah Wiredu announced this last Thursday when he presented the 2007 budget to Parliament.
Our disciplined management of the economy and the use of IMF resources have resulted in unprecedented economic stability and economic performance that has positioned the country for accelerated growth, Baah-Wiredu told the House.
He explained that the latest Poverty Reduction Growth Facility (PGRF) expired on October 31, 2006. “We are happy to announce today that with the completion of the latest arrangement on October 31, 2006, Government has decided to exit the PRGF and the use of the Funds financial resources while continuing to pursue our development agenda in line with our aspirations,” the Minister said.

Government he said will now enter the international capital markets by 2007 taking advantage of stable macroeconomic conditions as well as the confidence of the markets in the economy which is reflected in the B+ sovereign rating.
In addition, government will seek more funding by requesting access to the non-concessionary loan window of the World Bank and African Development Bank.
“Government sees this as a major turning point in the economic history of Ghana and will be approaching it with all the necessary precautions,” he said.

The Minister further promised that the size of borrowing will be well within the debt sustainability of Ghana.
Ghana he said has had a long and fruitful relationship with the IMF which has supported economic programmes of Ghana with annual disbursements in 20 of the last 23 years.
In spite of the announcement, Baah-Wiredu said Ghana will continue to meet its Fund obligation as an active member adding that Ghana will also take advantage of the Fund’s Policy Support Instrument.

This he said will enable the country to seek ongoing IMF advice and endorsement of economic policies in order to provide positive signals to the nation’s development partners as well as the global economy.

“While reliance on donor-provided grants and concessional loans has served well, there is, however, the need to expand the scope and structure of financing if government is to meet its goal o f scaling up investments for accelerated growth from the current six percent to eight percent annually.
In this regard, the Minister said the government will establish a high powered project evaluation unit to access and monitor projects benefiting from these resources to ensure that they can be justified in terms of economic returns.
On policy initiatives towards economic independence, the Minister said the government has built a strong political, social and economic foundation from which it is now ready to launch a new and intensified thrust for accelerated growth.
“As we shift to a new development paradigm, numerous challenges will confront us,” the Minster said adding, “This year’s policy initiatives are geared towards confronting these challenges.”
Some of the initiatives include promotion of home ownership, diversification of sources of funding, enhancement of revenue, tax relief and incentives as well as improvement in the business environment.
Elaborating on the progress Ghana has made in the business environment, the Minister said Ghana’s ranking in the 2007 World Bank Doing Business Report was 94th compared to last year’s rank of 102nd.
Again Ghana was rated among the top 10 reformers on the ease of doing business despite the fact that some of the scores reflected the misinterpretation of local requirements.
For instance he said the report adds the procurement of a corporate seal and environmental permit as requirements for starting Business in Ghana which in reality is not true.
The Minister explained that only environmental permits are required for a limited list of businesses and not corporate seals.
Mr. Baah-Wiredu moreover said government is developing national index that tracks the costs of doing business in the country while improving the process of reform itself by opening up the process of design and implementation to more stakeholders in order to obtain useful inputs and to build consensus and ownership.
Furthermore, the Minister said government is strengthening the implementation of the Financial Administration Act of 2003, the Public Procurement Act 2003 and the Internal Audit Act also of 2003, to further ensure transparency and reduction of corruption in the delivery of government services.
Ghana’s decision to wean itself from IMF financial support is a step in the right direction for some third world civil society activists.
This is because the IMF came under heavy criticism in the last Social Watch report which was launched in Singapore in September during the World Bank and IMF annual spring meetings.

Commenting on the activities, especially governance of the Fund and the Bank and on aid in general, the report said only a fraction of aid money actually goes to help the poor in developing countries. This is because administrative costs, technical assistance, accounting for debt relief and tying aid to purchases in donor countries are some of the reasons why about 60 percent of aid money is not available as money that can be spent on real and urgent development needs.
The report also said since 1991, net transfers and net disbursements from the International Bank for Reconstruction and Development (IBRD) of the World Bank have been negative.

According to the report, “The financial viability of the IMF has come to depend on the financial instability and crisis in emerging markets.”
Since there are no crises to solve, the IMF is finding it difficult to maintain itself and pay its staff.
“All major emerging market economies, except turkey have now paid off what they owed and exited from IMF Supervision leaving only the poor countries as its sole regular clientele,” said the Social Watch Report which is prepared annually by a coalition of international NGOs.
The IMF lends from its PGRF a very small proportion of the financing made available to developing countries.
At the end of 2004, outstanding PGRF credits were less than 9,900 billion US dollars or 10 percent of outstanding total IMF credits.
In 2005, total PRGF lending approved was less than 500 million US dollars.
The International Monetary Fund was created in 1945 to promote the health of the world economy. Headquartered in Washington DC, it is governed by and accountable to the governments of the 184 countries that make up its near-global membership.
It was conceived at a United Nations conference convened in Bretton Woods, New Hampshire, U.S. in July 1944. The 45 governments represented at that conference sought to build a framework for economic cooperation that would avoid a repetition of the disastrous economic policies that had contributed to the Great Depression of the 1930s.

Africa too is at risk of WMD

By Isabella Gyau Orhin

The United Nations Under Secretary-General for Disarmament Affairs Mr. Nobuaki Tanaka has said that no country however small or remote can consider itself totally immune from the threat of Weapons of Mass Destruction (WMD) or from having its territory exploited by terrorists.
He said although some have said that WMD is not a problem in Africa but small arms,
there lies the real risk of proliferation of WMD even in the African continent.


Speaking at the opening of a two day workshop on “Implementing United Nations Security Council Resolution 1540 in Africa which is on Disarmament in Accra last Thursday, Mr. Tanaka said while the UN will do its utmost to help Africa overcome the problem of small and light arms, it is also vital for countries to meet the requirements set out in the UNSC 1540 consisting of putting in place national legal and regulatory measures and commitment to international cooperation on non-proliferation.

He said the meeting was significant in that it was designed specifically to increase awareness about obligations and requirements of the UNSC resolution 1540 and to assist the member states in implementing the resolution at the national and regional level.
“As a region, the African continent has thus far experienced more challenges than other regions with the implementation of resolution 1540,” he said adding, “For instance with regard to reporting the total number of first reports received globally by the 1540 Committee, to date 132 with 85 having submitted additional information.”
He said so far 18 African states have submitted reports with only six submitting additional information.
“It is clear that some of the first steps in implementation of there solution are already difficult for some states and those other aspects of implementation will also present similar challenges.
He said states lacking the necessary legal and regulatory infrastructure, implementation experience or resources may require assistance in implementing the provisions of resolution 1540.
“For that reason, states in a position to do so are strongly encouraged to offer assistance in response to specific requests.

The Deputy Minister for Foreign Affairs Mr. Akwasi Osei Adjei on his part said the government of Ghana supports all international efforts at promoting a more peaceful and safer world.
“The Workshop takes place at a period of grave uncertainties,” he said adding, “The most urgent concerns of terrorism and the proliferation of WMD constitute the pre-eminent threat to global collective security,” he said.
He explained that recurring acts of terrorism continue to pose a security challenge to humanity as terrorist groups choose their targets without discrimination, evolve their modes of operation and devise more complex ways to carry out their heinous acts with even deadlier consequences.
He said it is against this background that the Security Councils adoption of resolution 1540 in 2004 and 1673 of 2006 has been widely hailed as landmark decisions.
“These resolutions demonstrate the determination of the Un to pursue comprehensive efforts to address the nexus between WMDs and terrorism and close the gap in international law regarding non-state actors and WMDs.”
The Security Council Resolution 1540 affirms that proliferation of nuclear, chemical, and biological weapons as well as their means of delivery constitutes a threat to international peace and security.
It also affirms to take appropriate and effective action against any threat to international peace and security caused by the proliferation of nuclear, chemical and biological weapons and their means of delivery in conformity with its primary responsibilities as provided for in the United nations Charter.

The resolution also affirms its support for the multilateral treaties whose aim is to eliminate or prevent the proliferation of nuclear, chemical or biological weapons and the importance for all states parties to these treaties to implement them fully in order to promote international stability.
The resolution further said it recognizes that most states have undertaken binding legal obligations under treaties to which they are parties or have made other commitments aimed at preventing the proliferation of nuclear, chemical or biological weapons and have taken effective measures to account for, secure and physically protect sensitive materials.
Also acting under Chapter VII of the UN Charter, the resolution decides hat all states shall refrain from providing any form o support to non-state actors that attempt to develop, acquire, manufacture, possess, transport, transfer or use nuclear, chemical or biological weapons.