The Ghanaian economy suffered a fallout from the large terms-of-trade shock that began in 1999. The fiscal program adopted is prudent and faces up to the country's difficult economic circumstances. Effective control of public expenditure commitments will be essential to the success of the program. Monetary policy will have to remain reasonably tight in the very near term. The IMF staff welcomes the new government's emphasis on mobilizing the private sector, its anticorruption campaign, and transparency in its dealings.