THE GHANAIAN TIMES
SATURDAY 8th Nov, 2008
NOTHERN DEV. FUND APPROVED
By: Salifu Abdul-Rahaman
Parliament passed the Northern Development Fund Bill to provide a long term strategy for transforming and accelerating the development of the northern Ghana.
Dr, Anthony Akoto Osei, Minister of State at the Ministry of Finance and Development Planning, moved for the passage of the bill and was seconded by Nii Daku Adu Mante (NPP-Korle Klottey), Chairman of the Finance Committee.
The components of the strategy include community-driven development actions, focusing on small-holder agriculture and off-farm investments to create opportunities for the poor.
The fund will also be used to implement strategic infrastructure in roads, energy and water resources, flood initiation, environmental renewal investments, as well as food, livelihood, security and peace initiatives.
The Finance’s Committee’s report on the bill noted that the slow growth in the northern sector had delayed and reduced Ghana’s attainment of the Millennium Development Goals and middle-income status.
He said it was necessary to create a “growth pole” linking northern Ghana and the neighboring Sahelian countries to contribute to overall national development.
It is recalled that the government’s budget and economic policy statement for this year had a provision for seed money of GH₵25 million for the establishment of a Northern Development Fund to address the development gap and help alleviate the chronic poverty in the area.
The report predicted that with the global climatic change, the frequency of drought and sporadic flood in the north would increase, adding that such persistent climatic change phenomenon was already affecting the re-charge of Ghana’s water bodies while causing destruction of lives and livelihood in most parts of the area.
The committee explained that the fund was not meant to be a substitute for existing and traditional government funding towards the three regions – Northern, Upper-East and Upper West regions.
As part of measures to comprehensively develop the area, Parliament approved a loan agreement between the government and a Brazilian bank for 500 million dollars to construct hydroelectric dams at Pwalugu and Juale in the Upper East and the Northern Regions respectively, to ensure sustainable energy supply.
The state is enjoined in the Directive Principles of State Policy under Article 36 (2) of the Constitution to take the necessary steps to establish a healthy economy through balanced development of all regions and improvement of conditions of life in the rural areas.
The imbalances in the developments between the rural and urban areas should be addressed to ensure balanced development, the report of the committee stressed.
It noted that in considering the bill the Minister of state, Dr. Akoto-Osei and Professor Gyan-Baffour, the Deputy Minister, the consultants on the fund project, as well as other stakeholders were consulted to make inputs.
Traditional authorities if the north were engage to review of the strategic proposal which aims at reducing poverty in the area to about 20 per cent within 15 years of the Bill, prior to the finalization.
In a related development, Parliament approved a loan agreement of 59.5 million dollars between Northern Ghana Groundnuts Limited and Helios Investment partners of United Kingdom, with the government as a guarantor to develop and promotes growing of groundnuts to international standard.
