Economic reforms bring donor conference closer

Angola's long-awaited donor conference could take place in the "near future" after recent moves by the authorities towards greater economic transparency. President Eduardo Dos Santos requested a donor conference to help fund reconstruction after the protracted civil conflict ended in April 2002, but donors have called on the government to stamp out financial mismanagement, arguing that Angola's own finances were not being put to the best use. Dos Santos reiterated the need for international aid in Washington last week, highlighting several initiatives the government had undertaken over the past year to reduce poverty, tighten its fiscal policy, and open up its oil accounts to independent scrutiny. On Wednesday diplomats told IRIN there were "real and significant signs" that the Angolan government was committed to economic reforms. "The prospect of holding a donor conference in the near future is very possible - this is mainly because the government has proven to be committed to improving the country's macroeconomic performance. A year ago there were still serious doubts if, in fact, the authorities would implement much of what they said regarding greater transparency, but now there are signs that the situation has changed," said Francisco Esteves, Portugal's ambassador to Angola. One of the main obstacles that had reportedly delayed such a conference was the frosty relationship between the International Monetary Fund (IMF) and the government, who differed over figures in the country's oil accounts. The international advocacy groups, Human Rights Watch and Global Witness, also accused senior Angolan officials of stealing billions of dollars of oil revenue each year. But recent dialogue between the IMF and the government over economic reforms had raised the possibility that a donor conference might be imminent. A World Bank director in Luanda told IRIN: "The ongoing discussion between the IMF and the government is key to the preparations for the donor conference, and it is hoped that this dialogue will be sustained. But Angola has also completed a final draft of its PRSP (Poverty Reduction Strategy Paper) and this a central pre-condition before any donor conference is held." He recommended that the authorities remain "open" to dialogue with the international community regarding further reforms. It is still unclear how much money would be needed to rebuild the country, but donors who met in Brussels in September 1995, under the auspices of the United Nations Development Programme, promised over a billion dollars. According to Esteves it was unlikely that the country would recieve that amount this time around, despite the formidabble challenges. "It's been two years since the end of the war, and it is possible that international donors may have other humanitarian concerns. Angola will receive support, but it is likley to be less than what they ask for."