megaproject operating in the country in terms of fiscal exemptions as to harmonize with domestic legislation on the issue. 261. Furthermore, it is important to analyse and pay attention to the outcomes that the country is having in reducing foreign aid. The present situation of economic and financial crises that is affecting some of the country´s partners may eventually reduce the level of support to the State Budget at medium term. However, it is important to stress that Mozambique should be able to have its preferences in terms of external partners by extending its ray of external aid. 262. With regards to the recommendation by the APR Panel on the need to implement the Paris Declaration on Aid effectiveness as to strengthen ownership of the country´s development policies in terms of aid activities, it should be noted that in 2005 Mozambique was at the end of the implementation of its first Action Plan for the Reduction of Absolute Poverty (PARPA I). Meanwhile it entered into the drafting phase of the second plan (PARPA II). The ownership was ranked at “moderate” by the base study which was carried out in 2005 and by the analysis and monitoring in 2007. It is believed that such ranking has been maintained up to today. The country has an operational Medium Term Fiscal Scenario (CFMP) which is related to annual budgets. There are also examples of cases in which the government takes ownership of given aspects.23 263. However, there are sentiments by public servants indicating that Development Partners are not willing (or able) to allow national ownership, in particular in cases where there are contradicting approaches. Taking into account this scepticism may be it would be reasonable to limit such ownership to partial. However, it ought to be mentioned that all Development Partners have referred that there is a strong alignment between their programmes, the countries and the national plans for the reduction of poverty.24 264. Likewise, another challenge in the field of foreign aid to Mozambique is related to the high costs of transaction imposed by assessment processes among the parties as a result of complex networks of Working Groups and on which there is doubt about the effectiveness of some of these “working groups” Objective 2: To accelerate socioeconomic development to achieve sustainable development and poverty eradicate The APR Panel recommended: (i) Allocation of 10% of the State Budget to agriculture in line with NEPAD Maputo Declaration (ii) strengthen Monitoring and Evaluation System to assess progress in fulfilment of targets contained in PARPA and MDG; (iii) Deal with the issue of youth unemployment through the design of adequate programmes for employment promotion; (iv) increase national awareness on the importance of social progress in the processes for the reduction of poverty. 23 Ministry of Planning and Development, Mozambique: (Assessment of Paris Declaration) Avaliação da Declaração de Paris, Maputo, 2010. 24 idem 88