Envoy advises govt to reform expenditure systems

Envoy advises govt to reform expenditure systems
By Maluba Jere
Tuesday June 24, 2008 [04:00]

NETHERLANDS Ambassador to Zambia Eduard Middeldorp has said additional funding from donors may not lead to desired results and poverty reduction unless the government reforms its expenditure systems. In an interview, Ambassador Middeldorp said there was need for capacity building in the government expenditure system to ensure no huge sums of money remained unspent at the end of the year.

"Also in Zambia the Ministry of Finance and National Planning complains about funds not being used by line ministries and mopped up at the end of the year," he said.

"The key word is capacity, which links to issues such as complex procurement regulations, motivation in the public sector and unwillingness to move funds and authority to lower levels, such as districts, health clinics and schools. Unless major reforms are put in place to transform these systems, additional funding may not lead to results and poverty reduction."

Asked to comment on former United Nations secretary general Koffi Anan's concern about G8 countries not living to their promises of doubling assistance to African countries, Ambassador Middeldorp observed that most countries lagged behind in the international commitment to allocate 0.7 per cent of their GDP to development aid.

"There are two issues to be considered with regard to the former UN Secretary-General's comment that the G8 countries do not live up to their promise to double their assistance to African countries. Actually, some G8 countries are far away from this benchmark," he said. "Only a few countries, including the Netherlands, honour this commitment."

However, Ambassador Middeldorp urged the G8 countries to increase their aid budgets and build capacity, which he said called for political will and time.

"My reaction would be to urge our colleagues in the G8 countries to increase their aid budgets, but also to bear in mind that money alone will not solve Africa's problems," he said. "More is needed, such as deep reforms and the building of capacity which takes not only money, but also political will and time.

"I would like to urge the G8 countries to follow suit in line with those commitments made in international fora such as the Millennium Development Goals... or the Financing for Development Conference.

"At the same time, I am also convinced that money alone will not solve Africa's problems, which in many countries are the outcome of a leadership crisis, mismanagement of government funds and political violence and war. In addition, it is well documented that additional resources cannot always be spent meaningfully as a result of a lack of absorptive capacity."