Ghana
Poverty Reduction Strategy Paper

Ghana has pursued several programs to accelerate the growth of the economy. In 1995, the government presented “Ghana: Vision 2020,” aimed at making Ghana a middle-income country in 25 years. Vision 2020 focused on human development, economic growth, rural development, urban development, infrastructure development, and an enabling environment. It was followed by the Ghana Poverty Reduction Strategy. One of the main challenges to economic growth is the unemployment problem. The recent discoveries of oil and gas create tremendous opportunities for stimulating national development.

Abstract

Ghana has pursued several programs to accelerate the growth of the economy. In 1995, the government presented “Ghana: Vision 2020,” aimed at making Ghana a middle-income country in 25 years. Vision 2020 focused on human development, economic growth, rural development, urban development, infrastructure development, and an enabling environment. It was followed by the Ghana Poverty Reduction Strategy. One of the main challenges to economic growth is the unemployment problem. The recent discoveries of oil and gas create tremendous opportunities for stimulating national development.

Chapter One: Introduction

1.1 Purpose

The 1992 Constitution provides a long-term national development imperative for Ghana through the Directive Principles of State Policy which requires that every Government must pursue policies that would ultimately lead to the “establishment of a just and free society”, where every Ghanaian would have the opportunity to live long, productive, and meaningful lives.

In fulfillment of the constitutional provision, the President is to present to Parliament a Coordinated Programme of Economic and Social Development Policies within two years of assuming office. This Ghana Shared Growth and Development Agenda (GSGDA), 2010 to 2013 covers the first phase of the Coordinated Programme. It forms the basis for the preparation of development plans and annual budgets at the sector and district levels throughout the country. In preparing this medium-term policy framework, GSGDA, 2010–2013, Government responds to the constitutional injunction within the context of its Better Ghana Agenda. The “Better Ghana Agenda” encompasses the following overarching social and economic goals:

  • Putting food on people’s tables;

  • Providing citizens with secure and sustainable jobs;

  • Rehabilitating and expanding infrastructural facilities;

  • Ensuring gender equity in access to productive resources such as land, labour, technology, capital/finance and information;

  • Expanding access to potable water and sanitation, health, housing and education;

  • Ensuring the safety of life and property;

  • Embarking on an affirmative action to rectify errors of the past, particularly as they relate to discrimination against women;

  • Reducing gender and geographical disparities in the distribution of national resources;

  • Ensuring environmental sustainability in the use of natural resources through science, technology and innovation;

  • Pursuing an employment-led economic growth strategy that will appropriately link agriculture to industry, particularly manufacturing;

  • Creating a new order of social justice and equity, premised on the inclusion of all hitherto excluded and marginalized people, particularly the poor, the underprivileged and persons with disabilities;

  • Ensuring that the benefits of economic growth are fairly shared among the various segments of society;

  • Improving transparency and accountability in the use of public funds and other national resources; and

  • Accelerating economic growth rate to at least 8% per annum.

It is the belief of Government that the policies and programmes emanating from this Ghana Shared Growth and Development Agenda (GSGDA) will lay the foundation to move Ghanaians closer to the long-term aspiration of a just, free and prosperous society.

1.2 Background

Since Ghana attained independence in 1957, all Governments have pursued, with varying degrees of success, several policies and programmes to accelerate the growth of the economy and raise the living standards of the people. With the return to constitutional rule in 1993, successive Governments have provided policy frameworks and development plans to guide the overall economic and social development of Ghana in line with Article 36 (5) of the Constitution.1

In 1995, Government presented to Parliament the first Coordinated Programme of Economic and Social Development Policies under the title, Ghana: Vision 2020, aimed at making Ghana a middle-income country in 25 years. The First Medium-Term Development Plan (1997–2000) based on Vision 2020 focused on the following priority areas: Human Development, Economic Growth, Rural Development, Urban Development, Infrastructure Development, and an Enabling Environment.

The Vision 2020 was followed by the Ghana Poverty Reduction Strategy (GPRS I, 2003–2005) and the Growth and Poverty Reduction Strategy (GPRS II, 2006–2009). GPRS I was initiated as a condition for development assistance under the IMF-World Bank-supported Heavily Indebted Poor Countries (HIPC) debt relief initiative in 2002. It sought to restore macroeconomic stability and reduce the incidence of poverty. It focused on the following themes: Production and Gainful Employment, Human Resource Development and Basic Services, Special Programmes for the Poor and Vulnerable, and Governance. Across these themes, five areas were selected for priority action: Infrastructure, Rural Development based on Modernized Agriculture, Enhanced Social Services, Good Governance, and Private Sector Development.

The GPRS II placed emphasis on growth as the basis for sustained poverty reduction “so that Ghana can achieve middle-income status within a measurable planning period”. Its thematic areas were: Continued Macroeconomic Stability, Private Sector Competitiveness, Human Resource Development, and Good Governance and Civic Responsibility. Both GPRS I and GPRS II contributed significantly to guiding the allocation of resources and also provided a platform for dialogue between the Government of Ghana and the Development Partners, and mainstreamed the Millennium Development Goals (MDGs) and other international commitments relevant to poverty reduction into the national development agenda.

Under GPRS I and GPRS II substantial progress was made towards the realisation of macroeconomic stability and the achievement of poverty reduction goals. However, structural challenges also emerged, characterized by large fiscal and balance of payment deficits mainly as a result of fiscal over-runs and external shocks including upsurge in crude oil and food prices. Remittances declined and access to private external financing became more difficult as a result of the global financial crisis. This was in spite of favourable global market conditions for cocoa and gold exports.

In 2010, Ghana will become an oil producing country with the prospect of being able to accelerate progress towards the achievement of middle income status. The transition to petroleum producing and exporting economy represents a critical phase in Ghana’s development since oil production presents opportunities as well as risks. Government is fully aware that even with prudent management, petroleum revenues alone are not likely to change the country’s development status immediately; the full reach of the country’s transformation can only come with economic and social modernization, which underpins the shared growth agenda. Presently, the country faces several challenges. These include:

  • Accelerating progress towards the achievement of the Millennium Development Goals, especially those relating to maternal mortality, child mortality, gender equality and environmental sanitation;

  • Major regional inequalities with the north experiencing significantly higher levels of poverty than the rest of the country; and

  • Major gender inequalities with women and girls performing worse across all the main social indicators.

Although the proportion of Ghana’s population defined as poor fell from 51.7% in 1991/92 to 39.5% in 1998/99 and further to 28.5% in 2005/06, poverty still remains an important challenge. This challenge means that Ghana must optimally harness the necessary resources including aid inflows in implementing the shared growth agenda.

In many respects, the current medium-term framework seeks to address the challenges that had emerged at the end of 2008. These included a fiscal deficit that had risen to 14.5% of Gross Domestic Product (GDP) excluding new domestic expenditure arrears of 4.2% of GDP as well as resurgence of macroeconomic instability that manifested in an end-year inflation rate of 18.1% and increased volatility on the foreign exchange market.

In spite of the improved GDP performance recorded over the period 2003–2009, national income data indicate that agriculture, especially crops and livestock; and fisheries as well as manufacturing, which have the potential to generate large scale employment opportunities, underperformed. Not surprisingly, poverty studies in Ghana, including various Ghana Living Standard Surveys (GLSS), reveal that while poverty has continued to fall in the forest zones and cocoa producing communities of Ghana, it has increased in the predominantly food crop producing areas and fishing communities.

Considering the challenges and setbacks of the immediate past, this framework outlines the development policies and strategies that will guide the management of the economy between 2010 and 2013. During the implementation period, emphasis will be placed on human development, transparent and accountable governance and infrastructure development particularly transport, ICT, housing and energy in support of agriculture modernisation, value-added natural resource development with emphasis on oil and gas, and private sector development. These efforts together are expected to accelerate employment creation and income generation for poverty reduction and shared growth. The framework also envisages protecting the environment and minimizing the impacts of climate change.

In view of the dominance of agriculture as the single largest sector, in terms of income, employment, food security, and export earnings, the sector needs to be modernised to improve its performance. Government considers the modernisation of agriculture as a pre-condition for the structural transformation of the economy and the sustainable reduction in the incidence of poverty. Policy options will therefore be focused in this strategic direction.

1.3 Policy Context and Strategic Direction

1.3.1 The Policy Context

Despite significant improvements in the performance of the economy in the last two decades, there remain a number of macroeconomic and structural challenges that limit the capacity of the economy to achieve sustainable improvements in the standards of living of the people. These include over-reliance on the production of primary commodities without sufficient linkages to other sectors of the economy, over-reliance on rain-fed agriculture and low application of science, technology and innovation in the various production and distribution chains.

The medium-term strategy is anchored on the continued pursuit of macroeconomic stability and the sustainable exploitation of Ghana’s natural resource endowments in agriculture, minerals and oil and gas supported by strategic investments in human capital, infrastructure, human settlements, science, technology and innovation to drive industrialisation, in particular manufacturing.

The GSGDA is underpinned by the fact that Ghana has discovered crude oil and natural gas in commercial quantities. The exploitation of these natural resources, which is expected to commence in the last quarter of 2010, would significantly change the trajectory of economic growth and the level of per capita income. This would statistically make Ghana a middle income country without the concomitant structural changes that are typically characteristic of middle income countries. That is, in spite of the anticipated increase in per capita income, the structure of the Ghanaian economy would fundamentally remain unchanged in the medium-term.

Together with cocoa and gold, oil and gas would be the main drivers of economic growth; Ghana’s growth would therefore continue to be natural resources-driven. For this reason, the GSGDA is aimed at ensuring that the new growth poles are reinforced to accelerate poverty reduction without becoming enclaves. The proceeds from oil and gas will therefore be deployed in catalyzing the growth potentials of the other sectors, especially agriculture, human development, water and sanitation, and infrastructure particularly transportation, housing, ICT and energy to enhance Ghana’s socio-economic development, the overall competitiveness of the economy while avoiding the effects of the Dutch disease.

The rebasing of the national accounts also affects the statistical definition of economic activities. Although rebasing enables the level of economic activity to be more accurately determined, it also has implications for many of the indicators that use GDP as the denominator. To this end, Government will ensure that sufficient awareness is created on the intended objectives of the rebasing in order to better manage expectations.

It is recognized that the overall growth strategy will have implications for the environment. Special attention shall therefore be paid to environmental sustainability as well as determine the impact pathways of climate change and the areas of national vulnerability for appropriate policy interventions.

1.3.2 Strategic Direction and Priorities

In the medium-term, the strategic direction will be to lay the foundation for the structural transformation of the economy within the decade ending 2020, through industrialisation especially manufacturing, based on modernised agriculture and sustainable exploitation of Ghana’s natural resources, particularly minerals, oil and gas. The process will be underpinned by rapid infrastructure and human development as well as the application of science, technology and innovation.

In this regard, expenditure will be prioritized in favour of policies, programmes and projects in the following areas:

  • 1. Agriculture

  • 2. Infrastructure (including transport, energy, housing, etc)

  • 3. Water and sanitation

  • 4. Health

  • 5. Education (including ICT, Science, Technology and Innovation)

The strategy will also entail:

  • Improved enabling environment to empower the private sector;

  • Active collaboration between the public and private sectors, including public-private partnerships;

  • Active Government interventions where appropriate;

  • Transparent and accountable governance, and efficiency in public service delivery at all levels;

  • Effective decentralisation for enhanced local economic development; and

  • Efficient use of resources through inter-sectoral collaboration.

This will enhance the creation of employment and income earning opportunities for rapid and sustained economic growth and poverty reduction. Within this context, the thematic areas of the medium-term policy will be as follows:

  • Ensuring and sustaining macroeconomic stability;

  • Enhanced competitiveness of Ghana’s private sector;

  • Accelerated agricultural modernisation and natural resource management;

  • Oil and gas development;

  • Infrastructure and human settlements development;

  • Human development, productivity and employment; and

  • Transparent and accountable governance.

Chapter Two: Ensuring and Sustaining Macroeconomic Stability

2.1 Introduction

In view of the large fiscal imbalance experienced in 2008 and the difficult macroeconomic situation at the beginning of 2009, the overarching goal for the medium-term economic development policy framework, is to achieve and sustain macroeconomic stability while placing the economy on a path of higher growth, in order to attain a per capita income of at least US$3,000 by year 2020, while also achieving the Millennium Development Goals (MDGs). It is also aimed at reducing poverty through a pro-poor, export-led growth strategy based on modernizing agriculture and linking it to industry in an emerging oil and gas economy.

This chapter reviews the performance of the economy in the recent past, including changes in the structure of the economy, pattern of growth, relation between growth, poverty and employment, and the performance of the key macroeconomic variables. It also identifies the critical interventions that would have maximum impact in ensuring and sustaining macroeconomic stability.

2.2 Review of Economic Performance

2.2.1 GDP Growth and the Structure of the Economy

i. Productive Sector Performance

The performance of the economy, as measured by the rate of growth of Gross Domestic Product (GDP), averaged an annual rate of 4.3% per annum in the 1990s. Due to the external shocks, triggered by the decline in the world market prices of Ghana’s major export commodities, cocoa and gold, GDP growth reduced from 4.4% in 1999 to 3.7% in 2000.

From 2001 onwards, however, growth began to accelerate and reached a high rate of 7.3% in 2008, which is the second highest growth rate in the past three decades after the 8.6% recorded in 1984. In the wake of the global financial crisis and economic decline in 2007/2008, the real GDP growth rate declined to 4.1% in 2009 (Table 2.1).

Table 2.1:

Sector and Sub-Sector Real Growth Rates, 1998 – 2009

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Source: MOFEP, 2009

In terms of sectoral performance over the past decade, the Agriculture sector continued to be the largest with about 39% of total GDP, thus maintaining its historical dominant position in economic structure of the country. The Services sector accounts for about 35% of total GDP while the Industry sector accounts for about 26%.

Though the structure of the economy has remained basically unchanged over the years, a slight shift has occurred between the shares of Agriculture and Services while Industry’s share in GDP has remained fairly constant. Whereas Agriculture’s share in GDP has declined from its historical levels of about 45% to about 39% in recent years, the Services sector’s share in GDP has increased from around 30% to 35% (Figure 2.1).

Figure 2.1:
Figure 2.1:

Structure of Ghanaian Economy

Citation: IMF Staff Country Reports 2012, 203; 10.5089/9781475506594.002.A001

Source: MOFEP, 2009

Despite the fact that Agriculture has the single largest share in GDP, its growth rates over the period were generally below overall GDP growth rates. The GDP growth rates experienced in recent years were on the back of the Services and Industry sectors of the economy. Indeed, for the Agriculture sector, the growth rates were generally attributed to cocoa production and marketing. Livestock, Fisheries and Food Crops sub-sectors, on the other hand, have not shown any appreciable improvements, thus reinforcing the characteristics found in various poverty studies including Ghana Living Standard Surveys (GLSS).

Although the Industry sector has maintained its share in GDP, intra-sectoral shifts occurred with a significant decline in the Manufacturing sub-sector’s share while those of the Mining and Construction sub-sectors have increased. Manufacturing sub-sector’s share in GDP declined consistently from 9.1% of GDP in 1997 to 7.9% in 2007. Indeed in 2007, its growth rate was -2.3% in spite of a 5.7% overall GDP growth and at 4.5% in 2008 when GDP growth rate was 7.3%. Manufacturing, essentially, continues to shrink and does not have effective linkages to domestic raw materials and export markets (Table 2.1).

The growth points of the Services sector, which are all above the GDP growth rates, are the Finance, Insurance, Real Estate, and Business Services, Wholesale and Retail Trade and Government Services sub-sectors. Although these growth rates are significant, these sub-sectors are not sufficiently complementing agricultural and manufacturing production on the scale needed to create sustainable decent employment opportunities.

With Financial Services in particular, although growth rates were as high as 14.4% and 10% in 2007 and 2009 respectively, credit supply by the Deposit Money Banks (DMBs) was largely to the Services sector, and to Construction and Mining as well as to the Cocoa sub-sectors. Not surprisingly, most studies including those carried out by the Association of Ghanaian Industries (AGI) suggest that availability and cost of credit constitute the single largest constraint to private sector operations. Available evidence shows that financial institutions consider manufacturing and agricultural enterprises as very risky undertakings with high default traits.

ii. Growth and Poverty

The strong growth in GDP nearly halved the poverty rate in Ghana from approximately 52% at the beginning of the 1990s to 28.6% in 2005/6. At this rate, Ghana is poised to achieve the MDG of halving extreme poverty ahead of the 2015 target date. The reduction in poverty may be attributed to the strong growth in cocoa and forestry sub-sectors. Despite these gains, income inequality across regions and between socio-economic groups remains high and has increased during the period of accelerated growth.

iii. Growth and Employment

In spite of consistent GDP growth over the past two decades, formal sector employment as a percentage of total employable labour force is on the decline. Current estimates indicate that only about 8% of total labour force is in the formal sector of the economy with the remaining in the informal sector.

This implies that Ghana faces significant unemployment and under-employment problems which need to be addressed. However, in view of the lack of reliable data on labour dynamics, there is an urgent need for Ghana Statistical Service (GSS) to revert to its regular publication of labour statistics for policy formulation and implementation purposes.

2.2.2 Challenges to Economic Growth

Despite the positive growth rates recorded in the recent past and the positive outlook for the medium-term, several issues have emerged, which need to be addressed within the framework of the medium-term agenda. Some of these are:

  • Growth of the services sector, which lacks effective linkages with the agriculture and manufacturing sectors;

  • Lack of overlap of production for domestic market and external market, especially the disconnect between agriculture and manufacturing;

  • Dominance of cocoa and poor performance of crops and livestock as well as fisheries;

  • Growth that inures more to the benefit of the external sector, thus, begging the issue of whether GDP is the appropriate measure for poverty-related policies and programmes;

  • The need to take appropriate measures to ensure that the oil and gas industry does not become an enclave like mining with little effective linkages to other sectors of the economy;

  • All income groups have benefited from the economic expansion since the beginning of the 1990s, however the gains by the extreme poor have been much lower;

  • Even though all regions recorded gains in incomes and reduction in poverty, these gains and poverty reduction were much less pronounced in the three northern regions; and

  • Ghana faces significant unemployment and under-employment problems with formal sector employment as a percentage of total employable labour force declining in spite of the consistent GDP growth over the past two decades.

2.3 Accelerating Growth in the Medium-Term

2.3.1 The Medium-Term Growth Targets

i. Projected Medium-Term Real GDP Growth, 2010–2013

The long-term objective of Government’s macroeconomic stability and growth-oriented programmes is to achieve a per capita income of at least US$3,000, accompanied by the necessary infrastructural and socio-economic transformation by the year 2020. Over the medium-term, however, per capita income is projected to reach at least US$1,035 by 2013, with a projected non-oil average real GDP growth rate of at least 7% per annum, and an oil average real GDP growth rate of at least 9% to achieve and sustain per capita income levels consistent with Government’s long-term vision. The highest real GDP growth is expected to be recorded in 2011 at 12.3% when the full impact of oil production is expected to be recorded. These projections are based on the 1993 constant prices, however on the basis of the re-based GDP of 2006 constant prices these projections are expected to be higher with a higher per capita income of US$1,567 (Table 2.3).

Table 2.2:

Medium-Term Projected Real GDP Growth, 2010–2013

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Source: GSS and MOFEP
Table 2.3:

GDP Growth Projections, 2010 – 2013

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Source: GSS and MOFEP

The key sector to lead the overall real GDP growth rate is Industry which is projected to grow at an average annual rate of about 14.5%, followed by the Services sector with 8.3% and Agriculture with 6.1% (Table 2.2).

Though the global financial crisis has had an adverse impact on the economies of most countries, the effect on Ghana has been relatively moderate. This is partly due to favourable prices for Ghana’s two main exports, cocoa and gold, and partly because of strong agricultural production.

Despite the low projected growth rates in the medium-term for the African sub-region due partly to the residual effects of the global financial crisis, it is estimated that the average medium-term real GDP growth rate in Ghana is expected to exceed the sub-regional average, mainly on account of the consolidation of macroeconomic stability, and policies to stimulate growth of the Agriculture, Industry and Services sectors and also of employment generation. It is expected that the impact of the global financial crisis would ease from 2010 with a significant bounce back in global economic activities by 2012.

ii. Sector Growth Projections
Agriculture

The modernization of the Agriculture sector is expected to be an important driver of growth in the medium-term on the basis of improved productivity (e.g., adoption of high yield crops, improved seedlings, use of pesticides and spraying technologies, and mass spraying in the cocoa sector) and increased acreage due to factors such as improved irrigation, subsidized inputs, improved mechanization services along the value chain, improved marketing, improved extension services and improved institutional coordination for agricultural development.

The Agriculture sector is therefore expected to grow at an average annual growth rate of 6.1% over the medium-term. Growth in the Agriculture sector is expected to be led by the crops and livestock sub-sector with about 7% per annum, followed by the fisheries sub-sector with 4.3%. Cocoa production and marketing is expected to grow at the rate of 3.9%, while forestry and logging is expected to grow at 3.5 (Appendix table 2.1).

Industry

Currently, the Industry sector is the least contributor to Gross Domestic Product (GDP), behind the Agriculture and the Services sectors. For the attainment of economic transformation envisaged under Government’s medium-term agenda, the Industry sector is expected to play a pivotal role, growing at an average annual rate of 14.5% over the period 2010 – 2013.

The main drivers of this sector include: enhanced growth from the construction sub-sector; growth in infrastructure development, in the oil, energy and water sub-sectors in 2011 and beyond resulting mainly from the Bui Dam’s operations; production of gas to generate thermal energy; and an increase in output from the mining sector, especially in salt production to meet industrial demand.

The mining and quarrying sub-sector including the oil and gas industry is expected to lead the growth in this sector with an average annual growth rate of 22.7% over the period. The highest growth rate in the sub-sector is expected to be recorded in 2011 at 56.7% when oil production begins and eventually decline to 11.5% in 2013. The electricity and water sub-sector is expected to grow at an average annual rate of 15%, while the construction sub-sector is expected to grow by about 13.8% per annum. The manufacturing sub-sector is expected to register the least annual growth in this sector at the rate of 8.5% per annum (Appendix table 2.1).

Services

This sector depends on growth in Agriculture and Industry. The abating of the global financial crisis in the medium-term and the development of the oil and gas industry should positively impact growth of the Services sector, via the hotel and restaurants; transportation; international travel and tourism; and the banking and insurance sub-sectors. The transport, wholesale, and finance sub-sectors are expected to be the main growth drivers in the sector.

The Services sector is expected to grow at an average annual growth rate of 9.3% over the medium-term, with finance, insurance, real estate and business services leading the growth in the sector with an average annual growth rate of about 13.5%. The wholesale and retail trade, restaurants and hotels sub-sector is expected to follow with an average annual growth rate of 9%, while the transport, storage and communication sub-sector is projected to grow at an average rate of 8.5% per annum. Government services and community, social and personal services are projected to grow at average annual growth rate of 5.6% and 5% respectively (Appendix table 2.1).

iii. Structure of the Economy

Currently, under the old series with 1993 constant prices Agriculture constitutes the dominant sector of the economy, followed by Services and Industry respectively. However, on the basis of the new series with 2006 as the base year, Services sector constitutes the largest sector of the economy, followed by Agriculture and Industry in that order. Over the medium-term however the structure of the economy is projected to change significantly in favour of Services and Industry sectors. The development of the infrastructure, salt-based and petrochemical industries to support the oil and gas production; the development of an integrated aluminium industry on the back of adequate and affordable energy supply, etc all hold great prospects for the long-term industrial transformation of the economy.

On the basis of the old series with 1993 as the base year, the Agriculture share of GDP is projected to decline from 34.5% in 2009 to about 30.9% in 2013, while the Services sector is expected to decline marginally from 32.3% in 2009 to about 31.3% in 2013. On the other hand, the Industry sector share is projected to increase from 24.9% in 2009 to 30% in 2013.

A similar pattern is observed under the new series when the Agriculture and Services sectors share of GDP is projected to decline, in favour of the Industry sector (Appendix table 2.2)

2.3.2 Assumptions underlying the Medium-Term Growth Targets

The economic growth targets derived from the current level of development and the feasible expectations in the long-term perspective of the economy are based on the following assumptions:

  • The population growth rate will not exceed 2.2% per annum;

  • Inflation is contained within single digit rate;

  • A stable Ghana cedi/ dollar exchange rate with prudent management that will keep the Ghana cedi depreciation at below 4% per annum;

  • Containment of fiscal deficits and preventing them from being a major source of macroeconomic instability;

  • Reduced cost of investment loans as incentives for stimulating investment in support of private sector growth;

  • Stable global financial and economic environment; and

  • Favourable world market prices and increase in the volumes of Ghana’s main exports, commodities including cocoa and gold.

The strategies for realizing these macroeconomic assumptions are outlined in section 2.4.

2.3.3 Opportunities and Challenges

i. Major Development Opportunities
Political Stability

The successful conduct of the 2008 general elections that marked the second time political power shifted from one political party to another since the return to constitutional rule in 1993 has established Ghana’s credentials as a model of democratic practice for developing countries. The recognition of Ghana as a beacon of democratic governance on a continent where the democratic gains of the 1990s appear to be receding provides an opportunity to attract considerable investments into all sectors of the economy. The generally stable and peaceful atmosphere which prevails in the country provides an opportunity to focus on the implementation of the appropriate policies that are required for accelerated growth of the economy and the creation of quality jobs.

Oil and Gas Discovery and Development

With the discovery of oil and gas in commercial quantities in June 2007, Ghana is positioned to become a major player in the international oil and gas trade. This would have implications for the pace and direction of national development. A critical concern of Government is to manage the impact of the oil and gas proceeds on inflation in order to avoid the situation where exchange rate appreciation may lead to a decrease in exports, an increase in imports of consumption goods and inflation (Dutch Disease).

Accordingly, Government will optimize the use of the revenues from the oil and gas industry by adopting policies that will encourage the importation of capital goods, which would enhance domestic productivity and production. Investments will be made in productivity-enhancing infrastructure including roads, cost-efficient and reliable energy supplies, storage facilities and irrigation works that would ‘crowd-in’ or stimulate private investments to reduce the inflationary impact of the inflows. Additionally, public investment programmes (PIPs) would be directed at increasing the production of tradeable goods.

Furthermore, with the restructuring of the financial system, policies would be put in place to accelerate the establishment of a financial centre of excellence in Ghana. This would enable the financial institutions to develop appropriate products to meet the needs of the emergent oil and gas industry and other new export-oriented productive ventures such as gold refineries, expanded salt production and integrated bauxite and petrochemical industries.

Natural Resource Endowments

Ghana is uniquely endowed with significant amounts of valuable natural resources. Indeed, Ghana is among a few countries where oil and gas have been discovered together with endowments of gold, diamond, salt, bauxite, limestone, iron ore, and manganese. These natural resources create the possibility for a gold refinery, and industrial complexes embracing aluminium, petrochemicals, fertilizer, iron and ferro-manganese production, and value-added industrial and consumer products linked to the outputs from these basic industrial goods. These endowments make Ghana one of the few countries to be in such a position with the opportunity to leverage the natural resources to achieve a quantum leap in economic growth and development.

Strategic Development Initiatives

In the medium-term, Government will embark on special development initiatives. The significance of such development initiatives including the Savannah Accelerated Development Authority (SADA), Western Corridor Development Authority, Eastern Corridor Development Authority, the Forest Belt Development Authority, the Capital City Development Authority and the Millennium Development Authority (MiDA), for achieving the strategic objectives of the shared growth agenda cannot be overemphasized. These initiatives will ultimately contribute to an improvement in infrastructure that will lead to the creation of new growth poles, enhancing employment-creation and income-generation opportunities. In the medium to long-term, they would contribute to the reduction of spatial, social and economic inequalities as well as rural-urban migration.

ii. Key Development Challenges
Institutional

Political, legal and administrative challenges continue to limit the efficient administration and provision of private services. These challenges also have an impact on the creation of an effective enabling environment for the private sector as well as the efficient management of other branches of state including the Judiciary, Legislature, independent constitutional bodies and the media. The imperative is to reform the public sector, address issues of corruption, and transparent and accountable governance at all levels that will also improve on efficiency in the operations of private sector institutions. The Judiciary, Legislature and other independent constitutional bodies will be encouraged to embark on their own reforms to complement the programmed reforms within the public sector.

Socio-Cultural Dynamics

The nation’s efforts and aspirations are also challenged by prevalent socio-cultural dynamics including public morality, attitudes, behaviours, conduct, responsiveness, time-consciousness, among others, that weaken our capacity to achieve our development goals. As a nation, there is the need to introduce and promote certain core values that will help shape people’s thinking, behaviour and conduct for national development.

Resource Constraints

The small size of the economy limits resource mobilisation potential and the fiscal space for the implementation of Government’s programmes. The financial system is characterised by a small financial market marked by a banking system that depends largely on wide spreads between savings and lending rates. Ghana’s capital market is small and underdeveloped with limited instruments for resource mobilisation. These challenges constrain domestic resource mobilisation at all levels and expose the country to reliance on external financial support as well as foreign direct investment as the principal sources of funding for both public and private sectors.

Climate Variability and Change

Climate variability and change constitute a major threat to national development. From a decline in precipitation to floods, climate change imposes a limitation on national development efforts. Climate change also manifests in increasing levels of desertification in the northern savannah zone, and undermines the agricultural potential and the economic viability of the northern ecological zone and its capacity to contribute to national development. The challenge is to turn climate change and variability into an opportunity to expand national output and productivity and embark on systemic protection programmes.

Global Economic Developments

Though developments in the world economy show that the worst of the fall-out from the financial melt-down and the food crisis of 2007/2008 are over, the recovery of the international economy continues to be in a state of flux. The austerity measures being implemented by some of our major traditional trading partners are likely to reduce the demand for some of our low-valued agricultural exports. Their remediation measures and the subsequent downsizing by both public and private sector institutions are likely to reduce the remittances from Ghanaians in the Diaspora in the years ahead.

Unless Official Development Assistance (ODA) is maintained at the pre-recession levels and possibly increased, aid levels are likely to decline as a consequence of the austerity measures, especially when Ghana has become an oil producing country and most likely to reach middle-income status ahead of the projected time. Lower ODA levels would impact negatively on the economy.

In spite of the prospects of increased revenue from oil, Government considers it essential to continue accessing development assistance in the transition period primarily because of the volatility in oil prices, the large deficit in economic and social infrastructure and the need to intensify efforts to achieve the MDGs and reduce spatial disparities in development.

In view of this, Government is in the process of preparing an Aid Policy document to address, in a comprehensive and systematic manner, issues concerning development assistance. The Ghana Aid Policy and Strategy recognizes the need for the Government of Ghana (GoG) to improve its structures and systems to ensure effective coordination and delivery of aid. To this end, it aims to ensure aid effectiveness by aligning aid to Ghana’s national development priorities; and serves as a guide to Government, Development Partners, Civil Society Organizations and other stakeholders in the management and coordination of external aid in Ghana.

2.4 Key Macroeconomic Policies and Strategies

In order to achieve the overall macroeconomic stability objective, key policies and strategies to be implemented will focus on the following policy areas:

  • Improved monetary and financial developments and management;

  • Effective and efficient fiscal policy management; and

  • Promotion of international trade management.

2.4.1 Monetary and Financial Developments and Management

i. Overview of monetary and financial performance
Inflation

The acceleration of inflation was due to high expansionary fiscal policy, particularly in 2008, to counter the global food and fuel price increases and the currency depreciation between June 2008 and June 2009. Inflation continues to be a major challenge although the peak levels observed between October 2007 and June 2009 have reduced significantly. Inflation increased from 10.1% at the end of October 2008 to peak at 20.7% in June 2009. The decline in inflation is as a result of tighter fiscal and monetary policies as well as an improvement in the food component of the Consumer Price Index (CPI).

Figure 2.1:
Figure 2.1:

Annual Consumer Inflation (%)

Citation: IMF Staff Country Reports 2012, 203; 10.5089/9781475506594.002.A001

Source: BOG
Interest rates

Interest rates have generally trended downwards over the past decade alongside the deceleration of inflation. Although Bank of Ghana’s policy rates have generally been reduced, the operational rates of the banks, especially the lending rates have not reduced significantly to reflect the reduction in the policy rates. While lending rates to the private sector are very high, deposit rates are generally very low, creating huge spreads. The challenge is how to reduce the spreads to enable the private sector access funds at lower rates for investments and encourage savings.

Figure 2.2:
Figure 2.2:

Trends in Interest Rates (%)

Citation: IMF Staff Country Reports 2012, 203; 10.5089/9781475506594.002.A001

Source: BOG
Exchange Rates

The foreign exchange market has remained relatively stable in recent years on account of strong inflows and prudent fiscal and monetary policies. Excluding periods of high volatility, exchange rate depreciation has averaged 5.0% per annum over the last decade. In 2009, the Cedi depreciated by 15% against the US Dollar, 16% against the Euro, and 20.1% against the Pound Sterling. Figure 2.3 shows the movements in the exchange rate from 2001 to 2008.

Figure 2.3:
Figure 2.3:

Exchange Rate Movements (%)

Citation: IMF Staff Country Reports 2012, 203; 10.5089/9781475506594.002.A001

Source: BOG

The thrust of exchange rate policy regime is underpinned by the Foreign Exchange Act 2006 (Act 723) which places emphasis on flexible exchange rate dealings, determined through the interbank and forex bureaux on a daily basis. The current market-based exchange rate strategy is consistent with the Inflation Targeting Framework of the Bank of Ghana with an overall objective of price stability. Exchange rate developments over the past decade depict periods of stability interspersed with fluctuations largely explained by the strength of international currencies, commodity price movements and capital inflows.

Access to Credit

Although there has been an improvement in credit to the private sector, the cost and availability of credit remains a major obstacle to private sector investment. Various studies, including those undertaken by the AGI indicate that cost and availability of credit remains the single greatest constraint in their operations. This is in spite of the fact that the number of banks has increased from 17 in 2000 to 26 in 2009 with a total branch network of 706.

Another factor which militates against the willingness of the banks to make credit available to the private sector is the default rate which has been on the ascendancy in the recent past. The challenge therefore is how to minimize the risk factors that banks perceive as obstacles to credit delivery to the private sector. Although the upsurge of micro-finance institutions has bridged the gaps in gender inequalities in access to credit, new challenges need to be addressed.

ii. Key Monetary Policies and Strategies to be implemented

To address and effectively manage the identified monetary and financial issues, and promote sound and competitive banking and financial system which can support the growth strategy the following policy objectives have been identified:

  • Ensure Price and Exchange Rate Stability;

  • Deepen the Capital Markets; and

  • Create a more diversified financial sector and improve access to financial services.

The strategies for achieving these objectives include: improving liquidity management; strengthening the inter-bank foreign exchange market; consolidating the implementation of BASEL II approach to risk-based supervision; the implementation of strategies to increase long-term savings/funds; implement schemes to improve women access to credit; and review the legal information and the regulatory systems of micro-finance institutions to improve credit availability to women.

2.4.2 Fiscal Developments and Management

i. Overview of fiscal performance
Fiscal Deficits

A perennial characteristic of Ghana’s fiscal position is the huge deficits, which have since 1992 become cyclical and tend to worsen in election years. In 2000, it was 8.4% and this nearly doubled to 14.5% in 2008. Major sources of the fiscal deficits over the years are the intractability of the public sector wage bill and unplanned expenditures. In addition to this is the tendency to accumulate arrears which are then redeemed in election years with further debt built-up.

Revenues and Expenditures

Although budgetary estimates are robust ex-ante, they tend to exhibit significant shortfalls, which automatically widen the deficits. On the other hand, expenditures tend to exceed estimated targets. The expenditure over-runs are particularly on recurrent budgets while the capital expenditures are reduced. For example in 2009, there was a revenue shortfall equivalent to 1.9% of GDP, while in the case of expenditures, the wage over-run and domestic interest cost exceeded budgeted targets by 0.6% of GDP in each instance. The excess expenditures over revenues are typically financed by borrowing from the domestic banking system, divestiture proceeds and external sources. Borrowings from the banking system tend to crowd out the private sector. In some cases, divestiture proceeds have also been used to finance recurrent expenditures.

The challenge is how to improve upon revenue mobilization through the implementation of appropriate tax reforms and institutional arrangements to make the collecting agencies more effective and efficient. Similarly, expenditure management needs strengthening through the full scale implementation of all financial management reform schemes that are initiated by the Ministry of Finance and Economic Planning.

Debt Profile

In spite of the HIPC write-off and the Gleneagles Debt Initiative of the past decade, Ghana’s current debt level, at over 60% of GDP, is approaching an unsustainable level. The critical issues are to rationalize Ghana’s debt policy and to ensure that it is brought to manageable levels.

Ghana’s economic outlook in the medium-term depends critically on the ability to address existing fiscal imbalances through a series of structural policy measures while Government maintains fiscal discipline in the management of revenues and expenditures.

ii. Key Fiscal Policies and Strategies to be implemented

To effectively and efficiently manage fiscal policies, the medium-term policy interventions will focus on the following key objectives: improving financial resource mobilization; improving public expenditure management, public sector and energy sector reforms to reinforce expenditure control systems and improve service delivery at sustainable cost levels; promoting increased transparency and accountability in fiscal policy processes; promote effective debt management; ensuring that the national budget reflects the medium-term development priorities set out in the GSGDA; and institute mechanisms to manage external shocks.

The key strategies to be adopted to achieve the fiscal policy objectives include: minimizing revenue leakages in all collecting agencies through such measures as reforms to raise tax collection (Ghana Revenue Authority, taxation of natural resources and reduction of tax exemptions); institute tax reforms with emphasis on indirect taxes and enhancing tax incentives; and pursuing of the revenue agencies modernization programme; ensuring transparent, efficient and effective oil and gas revenue management; and ensuring expeditious utilization of all aid inflows.

Other strategies will include: introduce the budget law; introduce the budget execution reforms; adopt measures to manage the wage bill efficiently; introduce efficient financial management in key sectors of the economy; continue with treasury management reforms; implement asset management systems in all MDAs and MMDAs; adopt a comprehensive Ghana Integrated Financial Management Information System (GIFMIS) for effective budget management; and develop a well-functioning domestic debt market as a vibrant and alternative source of financing for public investment projects.

2.4.3 International Trade Developments and Management

i. Overview of International Trade Development

The policy thrust of the external sector is to build reserves that can cushion the economy against external shocks. In the medium-term, the strategy is to build enough reserves to cover imports for, at least, three months, while in the long-term the strategy is to build six months of imports cover to meet the appropriate West Africa Monetary Zone (WAMZ) convergence criterion. This will entail outward-oriented policies to promote exports and attract inward direct investments.

Accordingly, the present level of exports, which stood at US$5,839 million in 2009, would have to be increased to substantial levels. Although the expected oil and gas exports beginning in the last quarter of 2010 would increase export earnings, Ghana would have to take steps to diversify its exports. The challenge for the medium-term is how to address the incidence of the persistently high trade deficits.

ii. Key International Trade Policies and Strategies to be implemented

Within the framework of trade liberalization, trade policy will be used to promote the international competitiveness of domestic enterprises. The implementation of policies will focus on achieving the following objectives: improve export competitiveness; diversify and increase exports and markets; and accelerate economic integration with other regional and/or sub-regional states.

The key strategies adopted to achieve the international trade objectives include: maintaining competitive real exchange rates; improve the import/export regime; establish the Ghana International Trade Commission to deal with unfair international trade practices; promote new goods and services; and continue to take full advantage of Preferential Access to markets, such as AGOA, etc.

Others include engaging fully in multilateral trade negotiations; implementing the WAMZ programme; ensuring that National Trade Policy reflects ECOWAS protocols; and strengthen links between industrial and trade policies.

Chapter Three: Enhancing Competitiveness of Ghana’s Private Sector

3.1 Introduction

Ghana needs to accelerate the growth and transformation of its economy. The role of the private sector will be crucial. However, the private sector lacks the level of competitiveness that will enable it lead Ghana’s growth and transformation and in that regard a major effort shall be made to build a vibrant and competitive private sector.

Ghana’s private sector comprises predominantly of indigenous micro, small and medium enterprises (MSMEs) and a few large companies mostly multinationals. In spite of several attempts by succeeding Governments to enhance its competitiveness, the sector continues to remain uncompetitive both domestically and globally.

The potential of the private sector in national development is well acknowledged. However, this potential remains largely untapped due to a number of challenges which continue to face the sector. Paramount among these are: ineffective national strategic agenda; capable but non-responsive public sector; unfavourable macroeconomic conditions; unreliable and expensive infrastructure services; inadequate legal and regulatory regimes; inadequate managerial skills; inadequate capital base; poor entrepreneurial orientation; obsolete technology; low productivity; corruption; and poor market access. These obstacles have hampered the growth of the private sector and hence the centrality of the issue of competitiveness to Ghana’s private sector development.

As an important element of the medium-term strategy, the private sector is expected to partner with Government and other stakeholders in the transformation of the economy for industrialisation and modernised agriculture.

To unleash its potential and prepare it to play the earmarked role, policy initiatives in the medium-term will focus on developing a thriving private sector that creates jobs and enhances livelihoods for all. The principal elements of the strategy will focus on the following: private sector development; development of viable and efficient MSMEs; accelerated industrial development; development of tourism as a major industry; and developing and strengthening of Ghana’s Creative arts industry.

3.2 Private Sector Development

The agenda for private sector development will be pursued through a comprehensive Private Sector Development Strategy (PSDS) II. The key policy objectives to be achieved will include the following: improve private sector competiveness domestically and globally; reform financial sector; attracting private capital from both domestic and international sources; pursue and expand market access; making the private sector work for Ghana and Ghanaians; ensuring the health, safety and economic interest of consumers; and expanding opportunities for job creation.

3.2.1 Improve Private Sector Competiveness (domestically and globally)

To improve private sector competitiveness both domestically and globally and enable the sector overcome systemic constraints, Government policy will address the following:

i) Remove barriers to trade and investment: Many barriers confront investors and make investing in Ghana unattractive. These barriers have to be removed if Ghana should become competitive as an investment destination. The barriers include several business registration requirements, several levies for business registration, several investment legislations, unresponsive MDAs that create long delays in executing investment propositions; perceived corruption in the public sector; and lack of coordination among key institutions leading to duplication and waste.

ii) Reduce the cost of doing business by removing internal value chain and institutional constraints: To enhance productivity and efficiency, action shall be taken to reduce the cost of doing business in Ghana. The focus will be on removing value chain constraints and improving service delivery. Furthermore, efforts will be made to reduce the cost of infrastructure, and improve efficiency and reliability.

iii) Invest in Science, Technology and Innovation: Ghana needs modern skills to drive its growth and economic transformation. It will also be crucial to align the manpower output from the education sector to Ghana’s development needs. A more detailed policy framework has been provided under the Human Development, Productivity and Employment section in this document but it is captured here to emphasize its importance to the competitiveness of Ghana’s private sector.

iv) Invest aggressively in modern infrastructure: There is an urgent need to aggressively invest in both physical and social infrastructure in both rural and urban areas to enhance Ghana’s competitiveness. It is acknowledged that the quality and cost of infrastructure impact directly on the cost of doing business, profitability of industries and the quality of life of consumers. They also determine, to a large extent, whether countries and their enterprises can compete locally, regionally and globally. It will therefore be a priority in the medium-term to invest aggressively in basic physical and social infrastructure including water, health and education, energy, roads and transport, ports and harbours, and information technology.

Government is often constrained in mobilizing the required financial and technical resources to cope with the rising cost of financing the infrastructure deficit. Hence, it is the objective of the GSGDA to actively promote Public-Private Partnerships (PPPs) to address the financing and capacity issues to ease the burden on the budget.

v) Invest in relevant and quality human resources to provide modern skills and competencies: Ghana’s industries require modern skills and competencies in general management and entrepreneurship; science, technology and innovation; information communication technology; brand building, domestic and international marketing; supply chain and logistics management; financial management; and human resource training, development and retention. These modern skills are often missing and it does not only make Ghana less competitive internationally but it also creates room for the massive use of expatriates by many local enterprises thus constricting the opportunities for employing Ghanaian professionals. A gender equitable human resource development strategy will be pursued.

3.2.2 Attract Private Capital from both domestic and international sources

While private capital inflows have increased, there is much that needs to be done to deepen financial intermediation if Ghana’s financial sector is to play a stronger role in driving economic transformation. There is need to increase private sector access to credit at competitive cost and provide innovative products that are better suited to the needs of the private sector. Furthermore, to ensure that the financial sector responds effectively to the needs of the private sector, Government will continue to deepen financial sector reforms and also continue to implement, monitor, evaluate and regularly update the on-going Financial Sector Strategic Plan (FINSSP I). In this regard, the following strategies will be deployed:

i) Sustain stable and predictable macro-environment, medium to long-term: Outside of the extractive industries and equity investment on the Ghana Stock Exchange, private capital flows have generally been low over the past 20 years. Swings in the macro-environment have often resulted in short-periods of stability followed by long periods of painful adjustments. Ghana needs to overcome this record because it creates considerable uncertainty. A financial strategy that builds and sustains a prudent fiscal and monetary environment will be the hallmark of the GSGDA.

ii) Deepen financial intermediation and promote inward transfers of capital including Diaspora sources: The financial sector has undergone a tremendous change and is performing relatively well. However, access to credit is still a major issue to the private sector. There are structural issues that need to be resolved including non-interest bearing reserves with the Bank of Ghana and the many levies imposed on the banks. There are also relatively high levels of non-performing assets that need to be restructured. Finally, the unstable macro-environment exposes the banks to great risk. The GSGDA will address these issues to make the banks adequately resourced to meet the challenge of financing Ghana’s growth and transformation. Another source of attracting capital will be transfers from Ghanaians living and working abroad. Transfers from the Diaspora averaged US$1.8billion per annum in 2008 and 2009 without any official promotion. Action will be taken in the medium-term to target Ghanaians in the Diaspora with incentives to improve transfers for investment, among others. A clear target will be set.

iii) Expand the space for private sector investment and participation: There is limited fiscal space for Government to undertake the enormous cost of transforming the economy, especially the development of requisite infrastructure. To ensure the achievement of the goals of the GSGDA, there is an urgent need to expand the space for private sector investment and participation. The following policy actions will be adopted: an aggressive deployment of Public-Private Partnerships (PPPs), particularly in infrastructure building; the enforcement of local content in Foreign Direct Investments (FDIs); and the divestiture of non-sensitive State-Owned-Enterprises (SOEs).

iv) Guarantee and protect security of investments as well as personal security: The Ghana Investment Promotion Centre (GIPC) Act, 1994, Act 478 explicitly guarantees investments against expropriation. However, it is weak on sanctity of contracts and in recent years, there have been concerns about the enforcement of contracts. The new GIPC law under preparation will seek to strengthen the enforcement of contracts for all investors including Government. Additionally, it will be the focus of the GSGDA to seek to resource the police to enforce personal security.

v) Provide predictable and speedy resolution of commercial disputes: Commercial litigation in the Courts is arduously frustrating; it is indeed a great barrier to attracting private capital. The Courts are not only under-resourced, the infrastructure is old and inefficient and delays are long and costly.

The GSGDA will continue to focus attention on enhancing the capacity of the Courts to provide speedy resolution of commercial disputes. To build trust in the administration of justice, efforts shall continue to be made to fight the perceived corruption in the Court system which tends to undermine confidence.

3.2.3 Pursue and Expand Market Access

Given Ghana’s current limited access to the global market, there is the critical and urgent need to aggressively pursue measures to expand access and share of global trade. Though a number of trade-related policy initiatives have been implemented by way of preferential trade regimes /relations, there still remain a number of pertinent challenges that need to be addressed to achieve real expansion in global market access. In the medium-term, strategies to be implemented will include the following:

i) Pursue Regional Economic Integration: Regional integration is an important strategic issue requiring the active participation of all stakeholders especially the private sector. Unfortunately, sub-regional integration has been seen as a government-to-government agenda and the private sector has not participated fully in ensuring that more attention is focused on enhancing greater regional trade and investment.

As a priority, Government will support the development of regional infrastructure which will promote intra-regional trade, including investments in energy, harmonisation of trade and investment regulations and policies, removal of non-tariff barriers and promote trade facilitation. There shall be greater engagement with the private sector to build awareness about regional initiatives. The private sector, through its associations will be helped to forge stronger intra-regional relationships and build its capacity to negotiate. Above all the private sector in West Africa should aim to build strong relationship with the ECOWAS Private Sector Directorate to be able to influence policies to promote intra-regional trade.

Furthermore, Government will accelerate the full implementation of the National Trade Policy, to promote the integration of Ghana into regional and global markets. It shall explore the possibility of deriving maximum relief under all international trade arrangements and protocols (WTO, ECOWAS, etc) to support domestic industry to grow.

Complementary measures will also be taken to ensure the effective utilisation of EXIM Guarantee facilities to support the export of Ghanaian produce to ECOWAS countries in particular and the rest of Africa in general. The Public Procurement Act will be amended to enhance the local content of goods in all public procurement transactions. In addition, the government will set up a Trade Adjustment Fund to assist industries which suffer from the negative consequences of the free trade regime.

ii) Promote Regional Infrastructure: Regional economic integration will not work unless there is a focus on developing regional infrastructure – roads and highways, rail, energy, shipping, airlines, immigration, customs and law enforcement. Already, there are many protocols that are not being implemented. Nevertheless, it will be important to focus development assistance on this area. Ghana has a small market. We need the large ECOWAS market to build the economies of scale that should allow us to compete on the global market. The GSGDA will seek to build on existing protocols and encourage the Development Partners to invest in regional infrastructure.

iii) Secure emerging market level competitiveness: In 2009, Ghana’s competitive rating was 87 while the World Bank Doing Business Report placed Ghana at 92. This confirms the difficulty that the public sector reform agenda has encountered. To grow at an average rate of 8% per annum in the medium-term and pursue economic transformation, Ghana’s competitiveness rating should not be lower than the average of emerging market rating which is currently 51. Unless this is achieved, Ghana’s emerging market competitors will outperform the country in global markets.

iv) Leverage existing trade and investment partnerships and build new ones: Ghana’s trading partners are predominantly Western countries. Ghana should continue to leverage the longstanding relationship it has built with these countries. However, in the medium-term there are opportunities from some emerging global economic giants, namely, Brazil, Russia, India and China (BRIC). The BRIC group offers new opportunities for wider market access and greater access to investment funds. Therefore, under the GSGDA the private sector shall be encouraged to look to these countries for capital, technology and markets.

3.2.4 Make Private Sector Work for Ghana; Share the Benefits of Growth and Transformation

i) Pursue technology transfer: Act 478, the GIPC Act, 1994 provides incentives for technology transfer. However, most companies do not plan to transfer technology. If FDI should be beneficial to Ghana, one of the basic principles is that it must promote the transfer of technology. Under the GSGDA, agencies responsible for monitoring technology transfer including the GIPC will be expected to enforce provisions in Agreements. In most instances technology transfer is linked to expatriate quota. It will be a focus area to ensure that non-compliance with technology transfer agreements does not constrain the development and employment of trained Ghanaians.

ii) Protecting the environment, mitigate the effects of, and adapt to climate change: Implementation of environmentally sustainable policies will be key to the success of Ghana’s industrialization drive and the achievement of access to global markets. It will be important for the Environmental Protection Agency (EPA) in the medium-term to enforce environmental standards. Ghana shall also endorse and implement international conventions that seek to protect the environment and respond to climate change risks. Companies operating in Ghana shall be expected to respect environmental standards no lower than what their parent companies insist on in the developed world. With predictions that agricultural output may fall in Africa as a result of climate change and the effect that low rainfall patterns may have on the country, Ghana will make its contribution to international efforts to contain and mitigate the anticipated effects of climate change.

In many ways, the threat of climate change represents an opportunity for Ghana and its private sector. The threat to global food security should keep food prices high, thus increasing the return on investment in irrigation and water management. Rising energy prices will provide greater incentives to increase the efficiency of power usage. The focus on sustainable, low carbon intensive production should provide opportunities for agriculture and industry. PSDS II will, therefore, identify and promote technologies and business models that can help to mitigate the effects of climate change and adapt our economy to a less carbon intensive future.

iii) Pursue diversity and equity: Promoting equal opportunity must be a major corporate responsibility. Women and the physically challenged shall not be discriminated against. While there are laws against discrimination, companies operating in Ghana will be encouraged to promote women’s interests in their organizations and give them equal opportunity to promotion and senior-level appointments. Equally, with respect to the physically challenged, so far as their disability does not prevent them from undertaking a particular task they shall be given equal opportunity. Furthermore, as earlier indicated, the GSGDA will aim to speed up industrialization outside urban areas to spread income distribution, provision of amenities and promote pro-poor policies.

3.2.5 Ensure the Health, Safety and Economic Interest of Consumers

Currently Ghanaian consumers are exposed to trade malpractices and many risks including the illegal sale of expired and fake goods, particularly pharmaceuticals, and arbitrary application of weights and measures. Over the medium-term Government will enact a comprehensive consumer protection law and ensure its enforcement.

Other specific interventions to be implemented to ensure the health, safety and economic interest of consumers shall include: preparation of a consumer protection policy; establishment of a national agency for the protection of consumers; prohibiting the sale of sub-standard, fake and hazardous goods on local markets; enacting legislation to ensure the protection of economic rights, safety and welfare of consumers; and empowering consumers to form associations and ensure representation of consumers on relevant national bodies.

3.2.6 Expand opportunities for job creation

The GSGDA will focus on expanding opportunities for job creation. The Private Sector Development Strategy (PSDS II) has elaborate policy actions for expanding opportunities for job creation. It will be important, however, to acknowledge that education and the provision of relevant modern skills will be crucial for delivering this strategy. Besides the focus on modernized agriculture and infrastructure development, MSMEs development will be a vital instrument for delivering this strategy.

Other strategies to be pursued towards expanding job opportunities will include: promotion of labour intensive industries; promotion of deeper and wider application of local content law; identification of strategic growth poles and provision of adequate Government support for their growth and development; and removal of rigidities in the labour regulatory environment especially relating to redundancies and wage negotiations.

3.3 Promote Good Corporate Governance

The need for good governance practices at both national and corporate levels to promote accelerated growth, poverty reduction and socio-economic development cannot be overemphasised. The recent global experiences of dishonesty displayed by international financial institutions that led to global business failures have reinforced the need for effective corporate governance regimes.

i) Promoting an enabling environment and effective regulatory framework for corporate management: Over the medium-term Government policy will focus on promoting an enabling environment and effective regulatory framework for corporate management. The regulatory framework and institutions that have responsibility for monitoring the behaviour and practices of companies shall be strengthened, while capacity will be built to enhance the ability of these agencies to effectively do their work. Additionally, efforts will be made to promote the adoption of codes of good business ethics, providing for accountability and transparency through full disclosure.

ii) Training of high quality and result-oriented managers: Other drawbacks for the development of the private sector have been the dearth of high quality and result-oriented enterprise managers. In the medium-term, special training programmes would be rolled out to raise the quality of the human resource base of the private sector. Emphasis will be placed on such specialised areas as: logistics and procurement management; financial management; project planning, design and management; and oil and gas management.

3.4 Develop Micro, Small, and Medium Enterprises (MSMEs)

Ghana’s economy is mostly made up of MSMEs dominated mainly by women. Their efficiency and competitiveness will be crucial to the country’s growth, employment generation and poverty reduction. Training and developing entrepreneurs at the MSME level will therefore be vital to improving their performance. It is common for MSMEs to blame their difficulties on lack of access to finance, however there is overwhelming evidence that lack of management skills, especially, of women has often constrained their growth. The policy objectives identified to drive the development of MSMEs will include the following:

i) Providing training and business development services: It will be the strategy of Government to provide entrepreneurial, vocational and management training to improve the capacity of private sector managers to run successful and efficient businesses. It will also aim to increase the supply of good quality services, making them affordable to smaller firms thus helping to raise productivity. There already exist a number of public institutions established to support the training and development of MSMEs. These include the MDPI, NBSSI, GIMPA and NVTI, among others. The public institutions will be resourced and refocused to be gender sensitive in the needs of the MSMEs. The GSGDA will also promote the establishment of incubators and technology parks in addition to land banks for the promotion and expansion of MSMEs.

ii) Enhancing access to affordable credit: Having improved the managerial and entrepreneurial capacity of MSMEs, access to affordable credit especially by women entrepreneurs will be facilitated under the GSGDA. Existing sources of funding including the Export Development and Investment Fund (EDIF) and the Venture Capital Trust Fund (VCTF) are mandated to provide credit but access to such funds has been cumbersome and expensive. The Commercial Banks have traditionally also lacked the appetite to lend to MSMEs because they find them risky.

The GSGDA will focus on streamlining access to credit from existing institutions, encourage the establishment of private sector MSMEs-focussed credit facilities and provide some guarantees. Consideration will also be given to the establishment of very low cost start-up capital funds. It is anticipated that the low inflation/low interest regime being pursued, if sustained, should make this possible.

iii) Making available appropriate but cost-effective technology to improve productivity: Providing appropriate technology to MSMEs will be essential to their growth and development. There are already in existence medium scale machinery manufactures. There is the need to align existing medium scale manufacturers behind the needs of MSMEs. Government will promote on-shore provision of appropriate technology and consciously support and grow the sector.

iv) Removing Value Chain Constraints to promote productivity and efficiency: The key to removing value chain constraints will be to improve the quality and efficiency of infrastructure and reduce its cost. Besides, there is also a strong link to the availability of credit and the ease with which it is accessed as well as the productivity of the producer. The GSGDA will focus on removing these constraints.

v) Pursue push-pull arrangements: Large foreign-owned and domestic firms are potentially a valuable source for technology and supply chain opportunities that small and medium scale enterprises (SMEs) can take advantage of to build their businesses and improve productivity. The GSGDA will support large businesses to outsource processes and goods from SMEs to reduce supply chain cost and improve the efficiency and profitability of both partners. Support will be granted on a case-by-case basis and may take the form of paying for the cost of establishing the new relationship. Sponsors and their suppliers will need to demonstrate that they will be financially self-supporting in the medium-term in order to avoid permanent dependency.

v) Providing incentives: The Ghana Investment Act, 1994, Act 478 provides no incentives to local SMEs; the incentive regime only favours foreign direct investments to the disadvantage of local SMEs. This, clearly, is an anomaly, which the new GIPC law shall address. It will also be necessary to include SMEs in all PPPs and local content arrangements.

3.5 Accelerated Industrial Development

To transform the economy and deliver an average growth rate of 8% per annum in the medium-term will require an accelerated industrial development. In the medium-term, the focus will be to build the foundation for an efficiency-driven economy from the current factor-driven economy. This will be achieved by anchoring industrial development on the conversion of Ghana’s natural resources into value-added products with emphasis on agro-based manufacturing, down-stream oil and gas and minerals processing and manufacturing, tourism and creative arts. Some of the policy objectives are to:

i) Ensure rapid industrialization driven by strong linkages to agriculture and other natural resource endowments: Ghana’s economy is heavily commodity dependent; it is a factor-driven economy. Hence, it is always at the mercy of the wide swings in the world market prices of its major export commodities which provide over 80% of its foreign exchange inflows. It also makes the economy overly dependent on import tax revenues for development.

Under the GSGDA a major effort shall be made to move from a factor-driven economy to an efficiency-driven economy in the context of an accelerated industrialization programme. It is essential that enterprises in the Services sector, particularly financial and IT services are resourced to provide the bedrock for the industrialization programme.

In agriculture, value addition preferably at the farm gate, will be a major focus. There will also be the need to adopt modern manufacturing techniques while promoting market access and providing incentives.

The Medium-Term strategy will further aim at transforming the extractive industry for economic development. Ghana depends significantly on the extractive industry for foreign exchange earnings. However, much of the produce from this sector is exported unprocessed. The industry cannot only make a bigger financial contribution to Ghana’s budget if it is integrated into the economy through downstream manufacturing processing but it can also earn more foreign exchange.

The mining sub-sector for instance employs over 20,000 people and 50,000 if artisanal mining is included. The sub-sector contributes 40% of total export earnings, 14% of total tax revenues and 5.5% of GDP but this could be raised substantially through local value addition. A major policy initiative shall be tailored towards the correction of the obvious inconsistencies vis-a-vis the oil and gas regime by reviewing the mining law to improve local content and the linkage to the national economy.

The potential impact of the oil and gas find could be a major factor in propelling Ghana to achieve its vision of a middle-income status by 2020. Government is already in the process of putting before Parliament an Oil Revenue Management Bill which should define the best way oil revenues will be managed to catalyze Ghana’s economic transformation. Besides, the local content law to be passed will aim to create opportunities for active participation by Ghanaians in the sector.

ii) Define and promote priority areas for direct private and public sector investments: For an accelerated industrialization to be attained, Ghana will need to clearly define the key pillars which will drive its industrialization agenda. These priority areas shall provide the foundation for Ghana’s long-term growth and economic transformation. In the GSGDA, the growth pillars will be agriculture, manufacturing, infrastructure, services, extractive industry (oil, gas and minerals), tourism and Creative arts. Public and private sector investments will be directed at these sectors and should provide the private sector with a better clarity on the country’s direction. The GSGDA will also ensure that Public Investment Programmes (PIPs) are put behind these sectors to facilitate their growth.

It will be important that there are clear criteria when selecting investment opportunities and benchmarks, assessment of the potential impact of the investment, its multiplier effect, as well as its capacity in terms of growth, employment creation and poverty reduction. Above all, for Ghana to become a major player on the world stage the GSGDA will promote brand building at country and enterprise levels, promote an investment-friendly environment, and where necessary provide special incentives especially for outstanding performance including women.

iii) Diversify exports: It is anticipated that the accelerated industrial development will enable Ghana diversify its exports away from primary commodities. However, it will be the focus in the GSGDA to sustain the growth of non-traditional exports while also encouraging the processing of horticulture. Salt production will be considered as a strategic venture for production for export to other countries in the sub-region and the creation of the raw material base for the development of an indigenous petrochemical industry. Ghana has the capacity and opportunity to exploit niche markets for healthy organic foods. Clear targets will be set for growth and revenue generation.

iv) Pursue spatial and geographic industrialization: The GSGDA will aim to decentralize the industrialization agenda in order to exploit the resource endowments of Districts and the rural areas. This will create employment and income earning opportunities to accelerate poverty reduction.

Furthermore, as part of measures to ensure even development across the different ecological zones in the country and to address the historical and current development imbalances, specific interventions to bridge the existing gaps between the North and the South and within other poverty endemic communities in the country, especially the Central Region and rural Greater Accra, will be adopted. The interventions will include the provision of basic social services, improvement of infrastructure and the provision of opportunities for sustainable development. In the specific case of the three northern regions, the Central Region, and rural Greater Accra, Government will endeavour to fast-track their development, and harness all available resource potentials. These include the limestone deposits at Buipe, Nauli and Nadowli for cement as well as the clay deposits in the Central Region for the production of bricks, tiles and ceramics. Overall, the strategy will be to address the peculiar problems of all poverty-endemic parts of the country. Existing tax incentives will be enhanced to encourage targeted companies to locate in these areas.

v) Improve access to land: Access to land is a major development issue in Ghana. Government will have to confront it; otherwise it will frustrate the country’s industrialization strategy. For years, Governments supported by the Development Partners have tried to improve land administration so as to facilitate land acquisition. It has taken too long to complete the facilitation process. Under the GSGDA, greater effort will be made to complete the Land Administration Project (LAP). Government will also establish more land banks while traditional custodians of land will be encouraged to release land for projects. Because of the many conflicting claims to land in Ghana, land disputes abound. Government will consider the establishment of special Land Courts within the Commercial Courts system to facilitate the settlement of land disputes. Gender issues in access to land will also be addressed.

3.6 Developing the Tourism Industry for Jobs and Revenue Generation

Over the medium-term, the priority interventions in this focus area are aimed at increasing the sector’s contribution to GDP and foreign exchange earnings, as well as high value employment and incomes. This is expected be achieved through: diversifying and expanding the tourism industry for revenue generation; promoting domestic tourism to foster national cohesion as well as redistribute income; and promoting sustainable and responsible tourism in such a way as to preserve historical, cultural and natural heritage. The attainment of these broad objectives will be anchored on improving the legal and institutional framework for managing the sector, improving human resource capacity of the industry, improving the infrastructure base of the industry, and reducing credit constraints associated with the sector.

The specific strategies identified to achieve the policy objectives outlined above are as follows:

i) Diversify and expand the tourism industry for revenue generation: To diversify and expand the tourism industry for revenue generation, Ghana will be marketed as a competitive tourist destination; new, high-value options in the leisure market, and the culture, heritage and eco-tourism sub-sectors will be developed, while enhancing the attractiveness of the existing products. Tourism services and standards will be enhanced through inspection, licensing and classification of formal and informal tourism establishments; and human resource capacity of skilled and unskilled personnel in the hospitality industry will be enhanced.

Programmes will also be designed to promote the development of more high value accommodation and condominiums by the private investors; attract health care entrepreneurs to establish medical facilities offering clinical and surgical services to promote wellness facilities (i.e. natural SPAs) in order to ensure long-term stay of convalescents at selected tourism sites. These are expected to improve and strengthen the infrastructure base of the industry.

To improve the overall financing of the sector, interventions will be designed to reduce the credit constraint facing operators in the sector including granting “export” status to hotels so that tourism sub-sector players can also enjoy the benefits and concessions enjoyed by other exports.

The overall legal and institutional framework to support the industry, and the development of national parks and other high-rated natural attractions will be enhanced and strengthened.

ii) Promote Domestic Tourism to foster National Cohesion as well as redistribution of income: To promote domestic tourism and foster national cohesion, the specific strategies identified for implementation include: vigorous promotion of domestic tourism to encourage Ghanaians to appreciate and preserve their national heritage and create wealth in the communities; and develop domestic tourism infrastructure including tourist receptacles.

iii) Promote sustainable and responsible tourism in such a way to preserve historical, cultural and natural heritage: The specific strategies identified under this policy objective include developing sustainable ecotourism, culture and historical sites; and ensuring the elimination of incidence of sex abuse and the spread of sexually transmitted diseases via the tourism industry.

3.7 Promote the Creative Industry for Economic Development

The linkage between the Creative industry - namely Cultural Sites, Visual Arts, Traditional Cultural Expressions, Performing Arts, Music, Publishing, Audio Visuals, New Media, Design and Creative Services – and economic development is gradually becoming clearer. According to UNCTAD, trade in cultural goods and services world-wide was valued at $2.2 trillion in 2000 and continues to grow at 5% annually. There is need to forge a holistic and integrated approach towards enhancing the economic viability of our cultural institutions and the resourcefulness of practitioners, reviving traditional technologies, developing local markets and gaining access to internal markets. The development of cultural villages as critical appendages to tourism is fast gaining economic relevance as a source of revenue generation and employment creation. Key policy interventions and strategies to be pursued include:

The existing institutional framework for the development of the Creative arts industry is weak as industry related-laws do not conform to the tenets of the copyright law and contract. Lack of access to long-term financing for the industry is also a major challenge.

Over the medium term, Government will put in place measures to develop and strengthen Ghana’s Creative industry to support its potential to compete effectively in the world trade in creative goods and services.

To develop and strengthen Ghana’s Creative industry the strategies to be implemented will include: provision of an appropriate legal and regulatory framework for promoting the creative areas and for protecting intellectual property rights; enforcement and supervision of laws and regulations pertaining to intellectual property rights; promotion of the use of multimedia technology in the Creative industry, with the creation of opportunities for the development of the relevant human resources; coordination among key MDAs in the development of the Creative industry; facilitation of access to finance and the export market for products of Ghanaian Creative industry; and facilitation of the establishment of a Council for the Creative industry.

Chapter Four: Accelerated Agricultural Modernisation and Sustainable Natural Resource Management

4.1 Accelerated Agricultural Modernisation

4.1.1 Introduction

Currently, Ghana’s agriculture is made up, predominantly of subsistence small holder production units, with weak linkages to industry and the services sectors. The sector is dominated by women and accounts for much of women’s labour. It is characterised by low level of technology and productivity, low income and un-competitiveness in production, processing and distribution. Given its central role in generating income and providing livelihood for majority of the people as well as its potential to lead the transformation of the economy, agriculture is expected to drive the new development agenda.

The main focus of agricultural development, over the medium-term, will be to accelerate the modernisation of agriculture through the implementation of the Food and Agriculture Sector Development Policy (FASDEP II) and the corresponding investment plan as detailed in the Medium-Term Agricultural Sector Investment Plan (METASIP) and ensure an effective linkage between agriculture and industry. The modernised agriculture sector is expected to underpin the transformation of the economy through job creation, increased export earnings, food security, and supply of raw materials for value addition. This will contribute to rural development and reduction in the incidence of poverty. This will be complemented by an effective natural resource management and environmental governance regime.

4.1.2 Improved Agricultural Productivity

Low productivity in the Agricultural sector has been a perennial problem. The causes, which are many and varied, include the following:

  • Low level of mechanization;

  • Inadequate post-production infrastructure (i.e. storage, processing facilities, transport etc);

  • Low uptake of research findings by stakeholders;

  • Limited availability of improved technological packages, especially planting materials and certified seeds;

  • Limited participation of beneficiaries in extension programme planning and implementation; and

  • Limited access to guaranteed markets for farmers and producers, especially women.

Other related challenges include limited and uncoordinated research efforts; absence of up-to-date and disaggregated data /statistics on the sector to inform policy-making and programming as well as lack of special programmes for training agricultural labour and low capacity of Farmer-Based Organisations (FBOs) to access or deliver services.

To raise productivity and increase production, agriculture mechanisation will be accelerated. Government will assist the private sector to build capacity to produce and/or assemble appropriate and affordable agricultural machinery, tools, and other equipment locally. The establishment of Agricultural Mechanization and Service Centres (AMSEC), and machinery hire purchase and lease schemes with backup spare parts for all machinery and equipment will be supported to improve access to relevant technology. The production and use of small-scale multi-purpose machinery and equipment along the value chain, including farm level storage facilities, appropriate agro-processing machinery/ equipment and Intermediate Means of Transport (IMTs) will be actively promoted.

The utilisation of appropriate technology farmers and the introduction of economies of scale in food crop production will be promoted. Other strategies include strengthening the Research-Extension-Farmer Linkages (RELCs), promoting collaboration between public agencies, private companies, and consumers, and between local and foreign research institutions.

Strategies aimed at promoting seed development for improved yields include: development and adoption of resilient and high-yielding crop varieties and support for the production of certified seeds and improved planting materials for both staple and industrial crops.

To ensure increased access to extension services and agricultural education, the following strategies will be implemented:

  • Improve allocation of resources to districts for efficient and cost-effective extension service delivery, especially for women farmers;

  • Build capacity of Farmer-Based Organisations (FBOs) and Community-Based Organisations (CBOs) to facilitate delivery of extension services to their members;

  • Intensify the use of pluralistic extension methods;

  • Establish Junior Farm Field and Life Schools (JFFLS) in the districts to improve livelihood options for young people in deprived communities;

  • Create District Centres for Agricultural Advisory Services (DAAS) to provide advice on productivity enhancing technologies such as drought-resistant seeds and improved breeds for smallholder farmers; and

  • Investing in small scale irrigation projects in rural areas.

4.1.3 Increased Agricultural Competitiveness and Enhanced Integration into Domestic and International Markets

The medium-term framework also focuses on accelerating growth in the agriculture sector by transforming the capacities of the mainly smallholder production and processing players, particularly women, into large scale commercial operations that integrate smallholder farmers, to meet the complexities of the markets. This will enhance scale opportunities as well as enhance Ghana’s competitive advantage in food value chain, especially in export markets.

Currently, the sector is faced with challenges, some of which are poor quality and irregular supplies of raw materials to agro-processing enterprises; low patronage of locally processed products and inadequate institutional and financing arrangements to support large scale agro-processing. There are also challenges with the legal and regulatory framework, which make it difficult to establish and enforce contractual arrangements in the production and marketing of agricultural produce. Other constraints are poor road networks linking production, processing and marketing centres; inadequate market information including limited marketing extension for producers, traders and exporters; weak market integration between local, district, and regional markets; and low standardisation and product differentiation in domestic markets (weights and measures; grades and standards).

Post-harvest management practices will be improved to reduce post-harvest losses. The strategies to be pursued include the provision of silos, pack-houses and warehouses for the creation of a national buffer stock to ensure food security using the Commodity Exchange Approach as well as the establishment of the National Food Buffer Company to stabilise food prices. There is also the need to develop product clusters to enhance access to technical advice and logistics and promote the utilisation of locally processed products through improved quality standards and packaging.

Government will also give attention to the development of the domestic market. Partnership between the private sector and District Assemblies will be encouraged to develop trade in internal markets and help minimise risks. In addition, the development of commodity brokerage services will be encouraged to support marketing of agricultural produce and for promoting good agricultural practices along the value chain. Government will continue to promote the formation of viable Farmer-Based Organisations to enhance their knowledge, skills and access to resources along the value chain, and foster stronger bargaining power in marketing and awareness creation about Good Agricultural Practices/ Hazard Analysis and Critical Control Points (GAP/HACCP). This will be complemented by the accelerated development of feeder roads and associated rural infrastructure for the transportation and marketing of food and food products in high potential areas.

The development of agricultural exports is a major strategy to stimulate growth and improve incomes in the sector. Government will provide comprehensive support for improved access to market information and intelligence. The following strategies will also be pursued: provision of relevant technology, market infrastructure (e.g. cold chain) and Export Trade Houses in counterpart countries and financing to enable operators respond to the changing needs of markets; support operators to identify market niches for new products; and encourage the formation of strong FBOs to present a common front.

4.1.4 Reduced Production and Distribution Risks/ Bottlenecks in Agriculture and Industry

The high risk traditionally associated with the Agriculture sector does not make it attractive for private equity investments. The unpredictability in food supply and prices due to climate variability and other natural occurrences negatively impact on food security all-year-round, especially in the three northern regions. The sector is also challenged by low productivity and output due to over-dependence on rainfall, low application of technology and high cost of production among others. Furthermore, socio-cultural practices limit and in some cases inhibit access to land including irrigated land by women for agricultural purposes in some traditional communities.

Other challenges facing the sector are:

  • Inadequate flow of financing facilities for agricultural productivity;

  • Absence of effective sectoral value chain linkages to industry;

  • Inadequate agriculture-related infrastructure and facilitating services; and

  • Ineffective institutional framework for collaboration with the appropriate agencies to address environmental issues related to agriculture.

Irrigation: In order to address these challenges, Government will pursue the following policy objectives: expand agriculture-related infrastructure; and promote sustainable management of land and the environment. Strategies identified to achieve these objectives include the following: promote the development of appropriate irrigation schemes such as small drainage dams, dug-outs and lifting of water from rivers and wells, and other water harvesting techniques for different categories of users; promote land reforms that ensure equal accessibility to irrigated land especially for women, the youth and persons with disabilities; and promote the use of early warning meteorological information system in agriculture at the district level.

Irrigation is seen as a necessary instrument for the modernisation of agriculture, and in particular, for reducing vulnerability of farmers to rainfall variability. However, expansion in irrigation facilities is slow and the productivity of public systems is low due to poor management.

Less than one per cent of the country’s arable land is under irrigation; formal public irrigation schemes are operating at approximately a third of their design capacity with low yield and low cropping intensity because of poor operation and maintenance of the facilities, the latter being partly due to inadequate cost recovery. Formal irrigation development has been very much supply-driven, and over-reliance on the formal system is limiting the area under irrigation. The informal sector, on the other hand, is not serviced sufficiently to realise its potential. Irrigation support services, especially for the private sector, have been inadequate due to unclear institutional mandates.

The focus of policy under the medium-term strategy will be to target the rehabilitation, expansion and promotion of the use of existing irrigation facilities and infrastructure along with intervention to promote the development of small scale community-based valley-bottom irrigation schemes; ground water development and exploitation for irrigation purposes; and the promotion of hand-fix pumps for irrigation purposes. The flagship irrigation project within the period will, however, be a phased irrigation of the Accra plains subject to the results of on-going technical studies being undertaken by a team of experts.

Agricultural Financing: Improved agricultural financing is to be based on value chain financing to be achieved through the facilitation of development and enhancement of the capacities of various financial institutions by Bank of Ghana to develop appropriate products to that effect, including specifications and regulations for export market; by the establishment of an Agricultural Development Fund to enhance the liquidities of all financial institutions and strengthen their capacities to provide the short, medium and long-term financing facilities for agriculture and incidental infrastructure. The financing strategy will seek to provide direct support to selected projects and establishments which engage the services of the youth as well as provide a legal and regulatory framework, including the provision of incentives to financial institutions to ensure adequate flow of financial resources to the Agriculture sector.

Funding will be sourced from the oil proceeds and the progressive implementation of the NEPAD’s CAADP recommendations of allocating at least 10% of Government expenditure to agriculture and also provide selective subsidies for the Agriculture sector for the procurement of inputs. The development and provision of agricultural insurance products by the insurance sub-sector will be strongly supported and promoted to reduce the risks along the value chain. There will be a special pension scheme for farmers and the provision of special financial packages will be developed to make agriculture more attractive, especially to the youth. Government will also introduce an insurance scheme to protect farmers against natural disasters such as drought and floods on a pilot basis. The pilot scheme will cover grains production.

Accessibility and Sustainable Management of Land: Sustainable land and environmental management practices will be mainstreamed in Agriculture sector planning and implementation as well as the creation of awareness and sensitization of stakeholders on environmental and climate change issues. Attention will be given to the development of an effective and efficient policy framework for collaboration with appropriate agencies to ensure environmental compliance.

The key strategies for ensuring access and sustainable management of land include:

  • Establishment of land banks by District Assemblies and land owners and stools to resolve the problem of land acquisition and security of title;

  • Development of community land-use plans and the enforcement of their use, particularly in urban and peri-urban agriculture;

  • Establishment of agri-business zones and land banks with special consideration for needs of women;

  • Improve access of operators in peri-urban agriculture to sustainable land and environmental management practices;

  • Establishment of an Agricultural Development Fund;

  • Promotion of agricultural insurance and pension schemes; and

  • Promotion of the removal of cultural barriers to land acquisition and ownership by women.

4.1.5 Selected Crops Development

This policy framework looks at encouraging the diversification of agricultural production for the triple purposes of attaining food security, increasing exports revenues and securing the raw material base to support industry.

The promotion of selected crops development is to be adopted as one of the complementary options to help address the chronically low productivity in staples and horticultural crops; inadequate research into the utilisation of selected crops as well as the inadequate investment in processing and value-addition to other traditional cash crops/ raw materials including shea nuts and dawadawa. Strategies with respect to staples and horticultural crops include: the promotion and development of selected staples (cereals, tubers, beans and pulses) and horticultural crops including fruits (mangoes, pineapples and bananas) and vegetables (okra and pepper) in the relevant agro-ecological zones with comparative and competitive advantage. This approach will extend the concept of nucleus-outgrower, block farming schemes and contract farming to cover staples and horticulture crops to integrate small scale producers into large scale farming. Closely linked to this is the need to promote a linkage between smallholder production (including indigenous and industrial crops, livestock, and fisheries) and industry

The industrial crop development strategy will concentrate on cocoa, dawadawa, shea-nuts, oil palm and cotton. Strategies include encouraging the promotion of organic cocoa and oil palm for strategic buyers; intensification and extension of the mass spraying exercise; introduction of special incentives to stimulate investments in the processing of cocoa in the country by local and foreign entrepreneurs; establishment of a Task Force to encourage large-scale dawadawa tree development, processing and utilization; establishment of a Shea nuts Development Board to be responsible for the introduction of effective production, post-production and marketing initiatives; promotion and the development of the various shea nuts markets locally and globally; and revival of the cotton industry to create jobs and enhance the economy of the three northern regions. Consideration will be given to the possibility of using part of the oil revenue to develop oil palm in the south, bast fiber in the transitional zone, and cotton and shea nuts in the north. Policy framework will be developed to clear the dilemmas on bio-fuels promotion.

4.1.6 Livestock and Poultry Development

The Agriculture sector’s objective of attaining food security covers access to supply of quality meat, animal and dairy products to ensure healthy diet and adequate nutrition for the people.

Ghana has a supply-consumption deficit of livestock and poultry products. This is due largely to the low genetic material of livestock species; poor management practices (feeding and health care); and low productivity making it difficult for local livestock farmers to match the stiff competition from cheap imports. Strategies outlined to achieve this objective include the following: initiate research into large scale breeding and production of guinea fowls, cattle, sheep, and goats especially in the northern regions; support large scale cultivation of maize and soya-beans for the formulation of animal feed to improve access to quality feed and watering resources; improve the dispensation of animal health services as well as institute mass vaccination against Pest de Petit Ruminant (PPR) in small ruminants and Newcastle disease in poultry; improve access of operators to technology and appropriate financial instruments to enhance their competitiveness; design appropriate interventions to address processing and marketing of livestock; increase awareness on food safety and public health; and strengthen the enforcement of quarantine regulations on livestock movement including those herded by Fulanis. The issue of the Fulani herdsmen will be addressed through the ECOWAS protocol on trans-humans. A National Poultry Council would be established to promote and strengthen commercial poultry production.

4.1.7 Promotion of Fisheries Development

The fisheries sub-sector is confronted with a number of challenges including the consistent decline in national output and dwindling stock levels, resulting in high levels of national annual consumption deficits. This state of affairs has been attributed largely to over exploitation of stock on the relatively narrow continental shelf due to reasons that include: insufficient monitoring and control to ensure compliance with laws and regulations on fisheries; weak collaboration with communities in the management of fisheries resources; lack of alternative livelihood opportunities for coastal/ fishing communities; and inadequate fishing infrastructure including the use of over-aged fishing crafts and other obsolete fishing methods.

In marine fishery, the strategies are aimed at preventing the over-exploitation of the resources of the sea and the lagoons caused by inefficient and destructive fishing methods as well as promoting the general principles of responsible fishery with emphasis on the enforcement and compliance with the maximum allowable fish catches that will enable the resources to renew themselves. The policy on the establishment of co-management mechanisms with local communities for fisheries resource management will be vigorously pursued; all existing agreements on fishing within Ghana’s territorial waters/EEZ will be reviewed to ensure sustained livelihoods and the long-term interests of fishing communities; effective monitoring, controls and surveillance systems will be strengthened; and compliance with applicable laws and regulations on managing fishery resources in the country will be enforced to forestall the inimical practices of rogue operators.

A fisheries college will be established to train extension officers and technicians for marine and inland fisheries. The existing fish landing sites and related infrastructure for storage, processing and exports would be expanded and upgraded to international standards, while the current fleet of fishing crafts will be revamped with modern ones equipped with appropriate storage and processing facilities. In addition, credit lines for improvement in the livelihoods of people in the fishing communities would be provided in tandem with the improvement and diversification of livelihood opportunities for operators in the post-harvest fisheries sub-sector.

In the area of inland fishing and aquaculture, the set of strategies seek to support the formation of “Fish Farmers Associations” which will be assisted to train their members as service providers; private sector investments in aquaculture would be supported to boost the adoption of scientific practices in the breeding and production of fingerlings, and enhance the general management of different fish species.

4.1.8 Improved Institutional Coordination

The policy objective seeks to promote enhanced partnerships and the harmonisation of efforts that will create the right synergy to achieve maximum results in the growth and development of the sector. Currently the sector has a weak framework for collaboration with other MDAs to promote the development agenda for agriculture. In addition, there is a limited public-private sector engagement in the Agriculture sector.

The strategies identified seek to strengthen the intra-sectoral and inter-ministerial coordination through a platform for joint planning; review the development and implementation of a communication strategy to improve institutional coordination as well as create and strengthen the framework for coordinating activities among the range of diverse stakeholders in the sector. This will include each ministry identifying an agricultural content for its strategic policy.

4.2 Sustainable Natural Resource Management

4.2.1 Introduction

One of the three main targets specified under the Millennium Development Goals (MDG 7) is the integration of the principles of sustainable development into country policies and programmes and reversing the loss of environmental resources by 2015. However, the West African sub-region suffers from environmental problems that essentially emanate from elsewhere, such as the dumping of used computers in Ghana as is the case with many other countries in the sub-region.

i. The Current Situation

The environmental problems associated with overpopulation of urban areas in Ghana are those that have direct bearing on human health, such as basic sanitation and disposal of waste, the shortage of essential facilities and disregard of approved land use allocations. Ghana’s current pattern of development puts a lot of stress on the environment. The total economic cost of poor environmental management and sanitation is estimated at over 10% of Ghana’s GDP.

Many efforts have been made in the past to address environmental issues, including the ratification of a number of international conventions related to the environment. However, there is still the need to continuously adopt realistic environmental policies to solve the current challenging issues and emerging national and global environmental problems as and when they occur.

Two major drawbacks militating against progress are the lack of knowledge on the environment and a lack of capacity to deal with management of the environment and sanitation issues. The environmental problems are very complex and their solutions necessitate the inclusion of social, economic, and political aspects, in addition to the technical issues involved, especially as several of these issues are trans-boundary in their nature and effects. Government has risen to these challenges by the funding of a new Institute of Environment and Sanitation Studies at the University of Ghana to address the information and capacity needs in the sector.

ii. The Key Issues and Challenges

Ghana is endowed with abundant natural resources, which have played a very important role in the agricultural and industrial development efforts of the country. However, as a result of the unplanned exploitation of some of these natural resources to meet legitimate socio-economic needs, irreparable damage has been done to productive lands through deforestation, air and water pollution, desertification, overgrazing, and the destruction of biodiversity.

The fast growing population is presently exerting immense pressure on national resources, as well as creating waste management problems in the major towns and cities. Land degradation has been identified as one of the key environmental problems facing the country, resulting in declining productivity of the land in the face of mounting population pressure. There is a rapid loss of biological diversity and wildlife populations.

The state of Ghana’s natural resources and environment are rapidly changing due to:

  • Declining resources, e.g. shrinking of areas under natural forests;

  • New opportunities for communities from the Forestry and Mining Sectors, e.g. oil;

  • Possible threats, e.g. pollution;

  • Cross-sector dynamics, e.g. revenue generation from forestry to the national exchequer and in the provision of household income and to subsistence needs; and

  • Global issues like climate change and biodiversity conservation.

Local issues relating to solid and liquid waste disposal, sanitation, mining and the loss of wetlands as well as other forms of environmental degradation, deforestation and poor urban planning all have impacts on society.

4.2.2 The Vision for the Environment and Natural Resource Sector

Environment is cross-cutting and the sustainable management of natural and renewable resources is essential to delivering the Medium-Term National Development Agenda. The key objectives of the sector for the future are as follows:

  • Improved cross-sectoral environmental management, including the consideration of global issues such as climate change and loss of biodiversity, as well as the opportunities of initiatives such as reducing emission from deforestation and forest degradation plus (REDD+), Voluntary Partnership Agreement/ Forest Law Enforcement, Governance and Trade (VPA/FLEGT);

  • Strategic Environmental Assessment (SEA) applied to inform decision-making and mainstream environment into all sectors of the economy, especially as regards the cost of environmental degradation;

  • Improved Environmental and Social Impact Assessment (ESIA) processes and compliance;

  • Decentralized environmental management, including the enforcement of laws on waste, illegal mining and chain-saw logging at the local level;

  • Improved environmental monitoring and reporting; and

  • Strengthened functional partnership and participation in environmental management with civil society including women groups, development partners, industry, and research bodies.

4.2.3 Investing in the Natural Capital for Development

To sustain the development of the economy, where production and incomes are based on the use of natural capital, management of the environment becomes a development issue and this management must be efficient. There is a need for a clearly articulated and widely accepted strategic direction, which focuses on sustainable and equitable development. The ten key areas of focus for the sector are:

  • Mineral Extraction (including oil and gas)

  • Biodiversity

  • Protected Areas

  • Restoration of degraded Forest and Land Management

  • Marine and Coastal Ecosystems

  • Wetlands and Water Resources

  • Waste, Pollution and Noise

  • Community Participation

  • Natural Disasters, Risks and Vulnerability

  • Climate Variability and Change

4.2.3.1 Mineral Extraction (including oil and gas)

The policy objective aims at reducing the environmental impacts of mineral extraction (including oil and gas). Mineral extraction contributes a significant portion to revenue mobilization. However, the activities of both large and small scale mining companies will be monitored in order to protect the environment. This objective will be achieved with following strategies:

i) Restoration of Degraded Mining Areas: The issue of environmental degradation will be checked by controlling the negative effects of mining (especially illegal mining) by vigorously pursuing the reclamation and plantation development measures in areas mined-out specially by illegal miners.

ii) Promote Sustainable Extraction and Use of Mineral Resources: The issues raised on mines, would be addressed through the diversification of the mineral production base of the nation to reduce over-dependence on the few precious minerals. The salt industry will be supported to expand production to provide the raw material requirements of the petrochemical industry.

Government interventions would also seek to enhance international and regional cooperation in the mining industry and actively promote the country’s involvement in the Extractive Industries Transparency Initiative (EITI). The EITI seeks to ensure transparency in the payment, receipts, disbursement and utilization of extractive sector revenues. The current legal framework on mining will be reviewed with special emphasis on the fiscal regime to ensure that the state and mining communities derive maximum benefits from the country’s mineral resources. This should ultimately provide fiscal and related incentives that would encourage value addition downstream in mining activities such as refining and smelting.

iii) Building the Institutional Frameworks for Sustainable Extraction and Management of Mineral Resources: Weak institutional and regulatory frameworks for natural resource management and environmental governance compromise the nation’s ability to effectively manage its natural resources. The policy and the relevant regulatory framework for effective co-ordination among key Government agencies to improve the performance of the mining sector would be enhanced. Government will in the medium-term strengthen and enforce existing environmental laws and regulations including the passage of regulations under the current Minerals and Mining Act, 2006 (Act 703). The formulation of a National Mining Policy would be accelerated and the Minerals Development Fund would be reviewed to address concerns of communities, chiefs and District Assemblies on the allocations to, and use of royalties by beneficiaries.

4.2.3.2 Biodiversity

The loss of biodiversity is proceeding at an alarming rate. A major area of concern is the lack of integration of biodiversity issues into development planning. A Steering Committee will be established to mainstream biodiversity issues into sector programmes to facilitate the development of relevant sector biodiversity policies. Another drawback is the lack of research, public education and awareness on biodiversity and ecosystem services. The Ministry of Environment, Science and Technology will facilitate the collaboration and harmonization of the biodiversity-related agreements. The Ministry will also establish monitoring mechanisms for biodiversity activities.

4.2.3.3 Protected Areas

Currently, there are 16 legally constituted wildlife reserves in Ghana, which cover about 5.3% of the total surface land area. These have been categorized into: one strict nature reserve, six National Parks, two wildlife sanctuaries, six resource reserves and one biosphere reserve. There are also six wetlands declared as Ramsar sites. For most of the protected areas, budgetary allocations are too low to provide adequate protection for the wildlife populations, which have been gradually declining due to habitat fragmentation and the trade in bush-meat. Key policy strategies that have been identified to address these challenges are: maintaining and enhancing the Protected Area system; and strengthening the legal framework on protected areas.

i) Maintaining and Enhancing the Protected Area system: Government will ensure adequate accommodation, logistics and remuneration for protected area staff by creating a financial framework that would ensure adequate motivation for protected area field staff. There is also the need to implement national buffer zone policies for rivers and protected areas incorporating the education of potential users on dangers their activities pose to wildlife and water bodies.

Government will also implement appropriate policies to enable communities near protected areas and local communities benefit from revenues earned from the exploitation of natural resources. The identification of river basins and corridors best suited for connectivity and acquisition of lands that could possibly serve as landscape corridors will be fast-tracked. There is also the need to ensure that local participation is an integral component of forest and wildlife policy by making local communities partners in protected area management where local people will be involved in all stages of the management process. The provision of alternative livelihood for local people to reduce pressure on lands adjacent to protected areas and water bodies shall be considered a priority.

ii) Strengthening the legal framework on protected areas: The promulgation of strict national legislation on initiation of bush fires would enable District Assemblies to enforce bye-laws on bush fires and empower local authorities to prosecute bush fire offenders. The creation of specialized courts to adjudicate protected area offences, with intensified community education to promote partnerships will also help strengthen the legal framework on protected areas. Government will strengthen the law enforcement unit of the Wildlife Division, so as to enforce laws on capture of, and trade in bush-meat and wild animals. A law will be passed to prevent mining activities in all protected areas. Government will also constitute a multi-sectoral body to upgrade and possibly separate wildlife policy from forest policy as contained in the 1994 policy.

4.2.3.4 Restoration of degraded Forest and Land Management

About 69% of the total land surface area is estimated as being prone to severe or very severe soil erosion. Farming practices and the removal of vegetation cover are some of the direct causes of soil degradation, with deforestation and mining, especially illegal mining activities, contributing the most serious forms of natural resource degradation. Land use is classified as agricultural, i.e., the cultivation of annual crops, tree crops, bush fallow and other uses, and unimproved pasture or non-agricultural, which includes forest reserves, wildlife reserves, unreserved closed forests, unreserved savanna lands, lands for mining, settlements, and institutional uses.

Land degradation has a significant impact on the environment and natural resource base of the country. Key policy objectives identified to address this, include reversing land degradation through investments and encouraging appropriate land use.

i) Reversing Land and Natural Resources Degradation through Investments: Various strategic actions have been identified to reverse natural resource degradation. Appropriate agriculture intensification techniques that provide irrigation infrastructure and promote correct soil conservation techniques will be applied, while afforestation of degraded forests and off-reserve areas would be encouraged, including the adoption of a medium to long-term plan for public and private programmes. Investments would be encouraged in industrial scale tree farming in specific depleted Forest Reserves and on degraded land, and in commercial forestry outside forest reserves and along dried up and flowing streams and rivers Other strategies include the promotion of plantation/woodlot development to meet the needs of society; human-centred biodiversity conservation initiatives; the use of Lesser Used Species (LUS), particularly for the construction industry on the domestic market; and the utilization of non-traditional tree species such as rubber-wood, coconut and bamboo to supplement raw material supply from natural forests.

ii) Encouraging Appropriate Land Use: Agriculture Extension Services personnel will be empowered to promote interactive learning processes that will entail the demonstration of the appropriate use of agrochemicals. Stakeholders would be consulted and district assemblies and traditional leaders sensitized on the prohibition of farming along steep slopes. The national policy on the reclamation of degraded and deforested land by timber and mining companies would be strictly enforced with compliance as the precondition for renewal of license. Value addition to timber products will also be encouraged.

4.2.3.5 Marine and Coastal Ecosystems

The coastal zone covers only 6.5 percent of the total land area. However, about a quarter of the nation’s population and more than three quarters of its industries are located in this area. With increasing pressure of population growth, conflicts over land, water and resource utilization constraints will be exacerbated. In addition, overlapping policies at all levels of governance have led to sectoral conflicts with regard to resource development and management, including environmental protection.

To address these issues, three key policy objectives have been identified. These include: investing directly for financing control structures, construction, technological improvements including appropriate technology suited to small-scale enterprises; promoting regulatory or economic incentives (in the form of taxes, subsidies, charges, licenses) and improving institutional/policy reforms for effective coastal resource management; and increasing knowledge and awareness of decision-makers or resource users, for more appropriate management of coastal resources.

i) Investing directly for financing control structures, construction, technological improvements including appropriate technology suited to small-scale situations: In order to arrest and delay further deterioration of the coastal zone habitat, there is the need for direct investments in control structures; the establishment of gabions and boulder revetments to arrest erosion; and the promotion of mangrove forests replanting and planting of other vegetative cover to contain erosion. In reducing the impacts of pollution on the environment, investments would be encouraged in upgrading and maintaining waste treatment and small scale waste collection facilities. Appropriate policies will also be designed to promote recycling, recovery, re-use and reduction of all types of waste.

ii) Promoting regulatory or economic incentives (in the form of taxes, subsidies, charges, licenses) and improving institutional/policy reforms for effective coastal resources management: To minimize environmental pollution, industries will be compelled to comply with EPA maximum permissible environmental quality discharge limits. The Agency will be empowered to implement regulations and fines for illegal mining, indiscriminate bush burning, mangrove and wetlands destruction, sand and gravel mining. Effective management of coastal resources requires monitoring and enforcement of regulations contained in the newly enacted Legislative Instrument against inappropriate fishing methods, such as the use of light for fishing and the use of small mesh size, strengthening enforcement of laws on illegal fishing by trawlers, and strengthening institutional capacity for research, monitoring and enforcement of all bye-laws. Further strategies to improve coastal zone management include ensuring proper location of industries in developing coastal towns; encouraging the use of alternative building materials to minimize the use of sand and beach building materials; the provision of fishery infrastructure to reduce post-harvest losses as incentives for fishermen; and the establishment of a specialised unit within the Development Authorities with jurisdiction over the coastal stretch to address the peculiar environmental problems along the coast.

iii) Increasing knowledge and awareness of decision-makers or resource-users, for more appropriate management of coastal resources: For better management of coastal resources, various groups such as decision-makers and resource-users should be better informed. Community participation in safe disposal of sewage and garbage will be encouraged to create public awareness in order to avoid unwise exploitation, conflicts and pollution of sensitive habitats. Coastal communities will also be empowered and encouraged to generate income from coastal resources, e.g. tourism. Strengthening cooperation and coordination among various institutions and programmes will also lead to effective management of the coastal zone and its resources.

4.2.3.6 Wetlands and Water Resources

i) Sustainable Use of Wetlands: Until recently, wetlands were virtually considered as waste lands. Since the coming into force of the Conversion on Wetlands in 1971, however, wetlands have been internationally recognised as ecosystems of considerable importance, comparable to forests, rangelands and marine ecosystems. Wetlands ecosystems in Ghana constitute about ten percent of the country’s total land surface. They provide a range of socio-economic, cultural and ecological values for wetlands communities in particular and the nation as a whole.

Government, together with all stakeholders, would promote decentralization and participatory wetlands management. National capacity building will be accelerated and the appropriate legal and institutional framework to regulate the sustainable use of wetlands will be instituted. Government would also support comprehensive wetlands inventory, backed by research and monitoring and put strategies in place to restore and rehabilitate degraded and badly altered wetlands. Furthermore, the long-term sustainability of wetlands will be ensured by preserving their ecological, cultural, recreational and aesthetic values. At the community level, Government will establish sustainable livelihood strategies so as to enhance poverty reduction in communities that depend on wetlands for their livelihoods.

ii) Integrated Water Resources Management: Current trends point to the fact that an integrated water resources management approach is needed to ensure that water does not become a constraint to national development. With continued population growth and urbanisation, and rapidly growing and diversified demands, including water for irrigation, hydropower generation, industrial processes, fisheries and aquatic ecosystem protection, the resource is becoming increasingly scarce and is often of inferior quality. The result of this prevalent situation has often been in the form of non-optimal and unsustainable use of the resource. Current approaches to natural resource management acknowledge that planning for the use and preservation of any natural resource must take the wider sustainable development needs of society into consideration.

Government will adopt water resources planning as a cross-cutting basic component of national economic planning. Government will also ensure the preparation of the Institute of Water Resources Management (IWRM) strategies using the various river basins as the planning units. Appropriate institutional structures will be established to enhance capacity building. In addition, Government will ensure that planning for water resources is made with due recognition of “environmental flow” requirements as well as the adoption of sustainable practices that avoid damage to critical natural capital and irreversible ecological processes. In line with the current position on PPPs, Government will promote partnership with the private sector for the protection and conservation of water resources. Government policy will also be tailored towards ensuring cost recovery to guarantee sustainability of water projects as well as promote equity taking into account the specific needs and preferences of the poor.

4.2.3.7 Waste, Pollution and Noise

With increasing population, more waste is generated. Separation of waste will be encouraged and collection would be regular so as to prevent any outbreak of diseases as a result of pollution. The existing sanitation laws would be properly enforced by relevant authorities and offenders will face the appropriate penalties. Old recycling plants will be rehabilitated and where possible, a new one will be set up in every district. Existing regulations on noise pollution will be updated as and when appropriate for strict enforcement.

4.2.3.8 Community Participation

Local communities, as custodians of natural resources, often possess immense knowledge about local ecosystems, resources, and their use that is often not available at the national level. Effective community participation in the management of resources will therefore become a hallmark of the new regime as community involvement in decision-making and awareness of issues increases while fostering ownership of local resources.

i) Enhancing Community participation in environmental and natural resources management: Awareness creation is important for the success of any community participation initiatives. Awareness will be created in the communities about the environmental value of local natural resources and Government’s strategies for their management. Initiatives to increase awareness of the conditions of natural resources within local communities will be put in place. Government will promote Information, Communication and Education (ICE) strategies as a means to develop community responsibility to manage the environment on a sustainable level. These include workshops, preparation and distribution of print materials (in the local languages), meetings, presentations at local forums, durbars etc. Creating public awareness about the value of community resources and the current or potential threats to those resources to motivate community members to take management action is also important.

ii) Enhancing community participation in governance and decision-making: Increased understanding of the local traditional institutions and governance systems, including how they control resource exploitation at the local level, are important in ensuring gender based participation in decision-making. Participatory programmes will be integrated into traditional resource management practices. In creating opportunities for local participation in the natural resource management processes it is important to create equal opportunities for both men and women.

Women’s participation in community organizations that manage natural resources is not only an equity issue, but also affects efficiency and effectiveness. The exclusion of women will marginalise women from valuable assets including physical assets such as the use of dug-out wells, boreholes or forest products; and human assets, such as training, credit or other benefits earmarked only for the group or organization members. Measures will be taken to integrate a gender perspective in the design and implementation of environmentally sound and sustainable resource management mechanisms. Plans developed would be based on engagement with communities and involve the full range of key stakeholders. This will ensure community ownership.

iii) Strengthen and develop local level capacity to participate in the management and governance of natural resources: Community participation in decision-making is fundamental to sustainable development. Strengthening the community’s capability to access funds to support viable and environmentally sustainable socioeconomic projects will ensure their continued interest in the sustainable use of natural resources. In order for communities to have a say in development and investments especially those that will depend on the exploitation of natural resources, it is important that they are assisted to form alliances and organizations which can lobby and negotiate with both Government and private investors. Providing opportunities for community members to gain the skills and knowledge necessary to undertake environmental management initiatives would be a continuous process.

A Community Leadership Program that provides training and education in the sustainable use of natural resources to instill the necessary skills and confidence in community leaders will also be of assistance. Finally “Co-management” of natural resources, which involves local people and other institutions sharing responsibility for decision-making about access to and the use of natural resources, would be encouraged by establishing coordinating structures and also strengthening coordination among Metropolitan, Municipal and District Assemblies (MMDAs) to enforce planning regulations relevant to the environment.

4.2.3.9 Natural Disasters, Risks and Vulnerability

Natural disasters are risk factors, which affect the rate of economic growth, destroy assets and increase vulnerability especially among the already vulnerable groups such as women, the aged and children. Resource mismanagement and environmental degradation can exacerbate the frequency and impact of droughts, floods, bush fires, and other natural hazards. The poor are the most vulnerable to environmental disasters and “shocks” as well as to more gradual processes of environmental degradation – as the majority of the rural poor live in ecologically fragile areas, while the urban poor often live and work in places with high exposure to environmental hazards.

Natural disasters worsen economic deprivation in the short-term and can compromise long-term welfare by forcing affected households to sell assets that would otherwise be used to meet future needs and contingencies. Current issues include the high vulnerability of environmental natural resources to natural disasters; the poor management of the impacts of natural disasters and climate change; earthquakes and minor tremors in Accra district and some coastal areas; occasional droughts – most severe in 1983-with disastrous effects on livelihoods; increasing frequency and impacts of droughts, floods, forest fires; and other natural hazards. Policies will aim at mitigating natural disasters and reducing risks and vulnerability.

i) Mitigating Natural Disasters and Reducing Risks and Vulnerability: The frequency, intensity, and duration of extreme weather events are likely to increase as a result of climate change. These will affect developing countries like Ghana disproportionately. The need to invest in early warning and response systems cannot be overstated. In order to improve adaptation and mitigation, there is the need develop strategies and programmes that create awareness about climate change, its impacts and possible adaptation measures. Dealing with the impact of natural disasters will entail increasing the capacity of NADMO.

As Accra district and some coastal areas have previously experienced earthquakes and continue to experience minor tremors, modern seismological stations will be constructed at Weija, Shai Hills, Kukurantumi and Accra to collect and provide scientific information on seismic activities along the country’s known fault-lines. The impacts of natural disasters are not restricted to any one sector. Hence, to reduce the impacts of natural disasters on natural resources requires a multi-sectoral approach, bringing in various sectors such as the Ministries of Health, Education, Environment, Science and Technology, the Ministry of Finance and Economic Planning and the Ministry of Employment and Social Welfare. Finally, Metropolitan, Municipal and District Assemblies will be required to create and enforce bye-laws restricting the construction of structures in flood-plains, water-ways, wetlands, etc. Other law enforcement bodies such as the police and the judiciary would be sensitised about these issues as well.

4.2.3.10 Climate Variability and Change

The impacts of increased global emissions of greenhouse gases (GHG) are already being felt with evidence that further change will occur. Climate is a development issue. Vulnerability and adaptation assessments have demonstrated that the economy will be adversely affected by climate change since it depends on sectors that are predominantly susceptible to the impacts of climate change. There is a commitment to tackling climate change. However, efforts to ensure a climate change-resistant economy have been unsuccessful due to limited capacity both technically and financially. Key policy objectives to effectively cope with the threats of climate change include: adapting to the impacts of and reduce vulnerability to climate variability and change; mitigating the impacts of climate variability and change; and a low carbon growth (LCG) strategy. Several Development Partners have indicated the need for a Centre of Excellence for Climate to be established, and this can be done within the University of Ghana Institute of Environment and Sanitation Studies.

i) Adapting to the Impacts of and reducing Vulnerability to Climate Variability and Change: Adaptation is the principal way to address the potential impacts of climate change. It is a mechanism that allows the management of risks; adjusts development, including economic, environmental, and socio-cultural activities, to reduce vulnerability of the national economy, population and ecosystems to the impact of climate change in order to achieve national development and economic growth.

Strategies identified to achieve this objective include the following: increase resilience to climate change impacts, identifying and enhancing early warning systems; alternative livelihoods: minimizing impacts of climate change for the poor and vulnerable; enhance national capacity to adapt to climate change through improved land use management; adapt to climate change through enhanced research and awareness creation; development and implementation of environmental sanitation strategies to adapt to climate change; manage water resources as climate change adaptation to enhance productivity and livelihoods; minimize climate change impacts on socio-economic development through agricultural diversification; minimize climate change impacts on human health through improved access to healthcare; demand and supply side measures on adapting the national energy system to impacts of climate change; and adapt to climate change: sustain livelihoods through enhanced fisheries resource management.

ii) Mitigate Impacts of Climate Variability and Change: The Copenhagen Accord entreats member countries to submit a list of National Appropriate Mitigation Actions (NAMAS), which would be implemented to reduce carbon emission levels. With Ghana’s agenda for low carbon development pathway, there is an urgent need to develop effective mitigation policy options to address high levels of GHG emissions.

Strategies identified to achieve this objective include the following: promote energy efficiency in all aspects of life; improve transport services and facilities; promote sustainable forest management and implement forest governance initiatives; promote various mitigation options in the agricultural sector including education and efficient management practices; and improve waste management mechanisms.

iii) Using Low Carbon Growth as a specific Mitigating Approach integrating the nexus between Climate and Development: By slowing its rate of greenhouse gas emissions, Ghana has opportunities to make use of international support for shifting towards a lower carbon economy. Ghana has opportunities to address emissions at low or even negative cost, and meet other development objectives.

To achieve LCG objectives the focus would be: development of a long-term national LCG approach based on a clear assessment of the scientific and economic basis for action; development of a coherent holistic response to climate challenges within the broader context of sustainable development and use of the tri-helix model of linking research, industry and Government sectors; prioritization of technical and systemic innovation initiatives in the most pressing areas and those areas with the most potential for rapid cost-effective results; involvement of a wide range of stakeholders so as to understand and negotiate tradeoffs and to achieve broad consensus for a package of LCG policies for sustainable development; identification of the technical, human and financial capacity needed to achieve long-term Low Carbon Growth; and creation of the knowledge base that would allow the nation to enter international negotiations with a clear understanding of the potential for emission abatement, and the financing needs of the country.

Chapter Five: Oil and Gas Development

5.1 Introduction

The recent discoveries of oil and gas fields offshore Ghana, create tremendous opportunities for stimulating national development. However, the potential for oil and gas to drive the economy positively for the well-being of Ghanaians, as should be the case with other natural resources, will only be realized if this emerging industry is fully integrated into the local economy.

Oil and gas must, therefore, be seen in terms of linkages with other sectors of the economy, generating resources that can be used for the rapid development of national infrastructure, for increasing agricultural productivity, for enabling a paradigm shift in the structure of the economy towards increased industrial value-added production, accelerating job creation and facilitating the building of national capacity to harness advanced technologies. At the same time, there will be a constant focus on protecting the environment to ensure sustainable development.

The key focus areas of the oil and gas sub-sector are: employment creation; protecting the environment; revenue management and transparency; diversification of the economy; and capacity development.

5.2 Oil and Gas Industry Development

The oil and gas industry must not be taken in isolation if it is to propel national development. It must not become another enclave for resource exploitation that is dominated by foreign interests. Having regard to the areas in which these major oil and gas discoveries are located, the sector can provide the impetus to build new growth poles in the economy.

Synergy between the oil and gas industry and the rest of the economy is critical for ensuring that Ghana achieves broad-based development and that the exploitation of its natural resources meets the needs and aspirations of its citizens. The prospect of significant oil and gas production in Ghana creates an urgent need for a planning outlook that locates the development of these resources strategically at the heart of the national development agenda.

In this regard the policy interventions prioritized for the development of the industry are aimed at achieving the following key objectives: strengthening the capacity of local financial institutions to compete with their foreign counterparts for opportunities in the oil and gas industry; building the relevant capacity for the oil and gas industry; and diversifying the economy with emphasis on the processing of raw materials.

5.2.1 Strengthening the Capacity of Local Financial Institutions to Compete with their Foreign Counterparts

The oil and gas industry provides opportunities for local financial institutions. Over the medium-term, policy interventions aimed at strengthening the capacity of local financial institutions will include: accelerating the financial sector reforms and capacity strengthening for financial intermediation; and increase capitalization of the banking sector and insurance industry to expand banks’ risk capacity and their capability to fund investment in the exploration, development, production and utilization of oil and gas.

In addition, capital market institutions will be strengthened to support the effort of mobilizing domestic equity capital for investment in the oil and gas industry. This will entail deepening the incentive system for the Ghana Stock Exchange in order to enhance access to long-term capital.

5.2.2 Building the Relevant Local Capacity for the Oil and Gas Industry

Human capacity for exploitation, development and production of oil and gas resources is inadequate to cover all the specialised areas in the industry. To address this issue, resources from the oil and gas industry will be used to support capacity development at all levels in the country’s technical, vocational and tertiary institutions. The institutions in the industry will link up with educational institutions to monitor and evaluate capacity development, while Government and industry will collaborate to create a national database of Ghanaian experts in the oil and gas industry worldwide.

5.2.3 Diversification of the Economy and National Relevance of Oil and Gas

Ghana’s over-reliance on primary products with very little value addition is one of the challenges that we face as a people. The development of the oil and gas industry will seek to reverse this tendency. Indeed, the linkages of, as well as revenue from the oil and gas industry will facilitate higher value addition in other sectors. Special measures will be implemented to boost agriculture to ensure that it is not undermined by the oil and gas industry.

Sector policy objectives are to: transform the structure of the economy from the production and export of primary products to a diversified industrial economy and to sustain and optimise the exploitation and utilisation of Ghana’s resource endowments for the overall benefit and welfare of all Ghanaians, present and future. However, some challenges can be anticipated in the achievement of these objectives. Public awareness of the potential and impact of the oil and gas resources on the nation’s development prospects is inadequate. There is limited understanding of the opportunities available from the developments in the oil and gas industry. Local entrepreneurs are only beginning to appreciate what can be done in this industry. There is also inadequate capacity of indigenous financial institutions and limited availability of financial resources to support Ghanaian investment in the oil and gas industry.

The oil and gas industry must provide the impetus for the development of the local financial institutions to compete with their foreign counterparts for opportunities. It should also create capacity to improve domestic resource availability to fund further exploration as well as the establishment of other strategic industries. Strategies to drive these objectives are: ensure security for the oil and gas industry as a whole (including installations and operations); and maximise the use of local goods, services, and associated resources in all segments of the oil and gas industry value chain in order to retain the benefits within Ghana. It also includes redevelopment of existing settlements as part of the new urban settlements expected from the developments associated with the exploitation of oil and gas resources.

Owing to the huge investment requirements, attracting requisite investment capital in oil and gas exploration and development will continue to be an important step towards increased benefits to the people of Ghana. Other strategies are: support regional initiatives for integrating energy infrastructure to expand and accelerate cross-border energy trade and investments; promote the supply of cheaper fuels such as natural gas from Ghana’s domestic natural gas resources and the West Africa Gas Pipeline Project for power generation; and maximise the utilisation of natural gas reserves by prohibiting flaring or venting of natural gas produced within Ghana, unless necessary in operations.

5.3 Employment Creation

The level of unemployment and underemployment in the country is of critical concern to Government. Like all the other sectors, there are high expectations on benefits from the oil and gas sector to improve the economy by engaging many Ghanaians in the industry. To help address the problem of unemployment in the country, the oil and gas industry will utilize the opportunities offered by the sector to create jobs especially for the youth. In addition, special precautions will be taken to protect young boys and girls against exploitation and misuse in sex trade in the communities where oil and gas exploitations will be based. Strategies to achieve this policy involves ensuring the utilisation of oil revenue in the priority areas of agriculture, infrastructure, health, water and sanitation, education, rural development, and poverty reduction; and providing incentives to facilitate investments along the oil and gas value chain.

5.4 Protecting the Environment

Environmental protection, particularly against the negative impacts of the industry, constitutes a major concern. A key policy objective is to ensure that the practices of the oil and gas industry are consistent with international standards of environmental sustainability. Natural gas utilisation will become a central part of every oil production project.

The industry is challenged by inadequate information on environmental impacts, inadequate capacity to manage environmental impacts and inadequate public awareness of the potential and impact of the oil and gas resources on the nation’s development prospects. Research will be conducted into environmental impacts associated with the exploration of the oil and gas industry in the Ghanaian context. The regulatory framework for ensuring protection of the environment will be strengthened based on international best practice. A culture of compliance will be promoted on a sustained basis. This will require persistent and stringent monitoring of activities and evaluation of impacts on an ongoing basis.

Another strategy to achieve the policy objective is to manage Ghana’s oil and gas resource endowment to ensure sustainability in reserves and the environment by optimizing resource exploitation while proving up further reserves through accelerating the pace of exploration in the various sedimentary basins that Ghana has. Considering that the discovery of oil and gas already appears to be worsening the haphazard physical planning and land use practices, particularly, in the Western Region, special attention needs to be paid to the development of human settlements near the areas of oil and gas production and other related activities.

5.5 Transparency in Revenue Management

The need for efficient national revenue management is made more urgent by the additional revenue inflows from the oil and gas industry. The revenue collection and management capacities of existing institutions will be oriented to the peculiar needs of the oil and gas industry. Oil and gas revenues will be managed transparently and equitably for the benefit of present and future generations of Ghanaians. It becomes even more necessary to address the challenges of corruption and ensure that these increased resources are channelled productively for national purposes and not appropriated illegitimately for individual benefit.

Chapter Six: Infrastructure and Human Settlements

6.1 Introduction

The critical role of infrastructure in propelling economic growth and sustainable poverty reduction has become more crucial as Ghana aspires to move to become a middle-income country. Accordingly, this thematic area seeks to expand existing social and economic production infrastructure to ensure that services provided are reliable, affordable and efficient.

The key focus areas of policy for the medium-term are: transport infrastructure; energy and energy supply to support industries and households; science, technology and innovation; information and communication technology development; human settlements development; recreational infrastructure; and water, environmental sanitation and hygiene.

6.2 Transportation: Road, Railway, Maritime and Riverine Transport and Aviation

Transportation plays an important role in the economy of Ghana. It facilitates the haulage of goods, movement of people and the general integration of the rural and urban economies. The various modes of transportation within the sector are road, rail, air, sea, inland water, push carts, animal drawn carts. Among these, road is the principal means of transport in the country.

The key challenges that confront the entire transportation sector include: inadequate development of an inter-modal transport system; poor inter-modal facilities; inadequate funding for maintenance, upgrading and rehabilitation of existing infrastructure and management for all modes of transport; poor coordination and cooperation among relevant institutions; inadequate and unfriendly walk ways for Persons With Disabilities (PWDs); and un-integrated approach to transport planning and development. Key policy objectives that will be pursued to address the challenges in the entire transport sector are as follows: establish Ghana as a transportation hub for the West African sub-region; integrate land use, transport planning and development planning and service provision; and ensure sustainable development in the transport sector. Specific challenges and policy interventions for key modes of transportation are presented in the sections below:

6.2.1 Roads and Highways

Ghana’s road network consists of 66,220 kilometres of roads. This is made up of 42,192 km of feeder roads, 12,400km of urban roads and 11,628 km of trunk roads. The network is comprehensive and links all districts and regions, and also provides access to a large number of settlements. Extensive use of road transport in relation to other forms of transport and poor maintenance of roads have however, led to pre-mature deterioration of the road network, congestion on roads and highways, especially in the urban areas, and an increase in road traffic accidents. Currently, 41% of the road network is in good condition, 27% is in fair condition and 32% is in poor condition.

To address these challenges in the medium-term and enhance road transport, the following policy objectives will be pursued: prioritize the maintenance of existing road infrastructure to reduce vehicle operating costs (VOC) and future rehabilitation costs; improve accessibility by determining key centres of population, production and tourism; re-instate labour-based methods of road construction and maintenance to improve rural roads and maximize employment opportunities; implement urban transport projects such as the Ghana Urban Transport Project (GUTP) including the Bus Rapid Transit (BRT) and school bussing schemes; and explore Public-Private Partnerships (PPPs) and concession options for investment in transport infrastructure and services (single and multi-modal options); build capacity of local road contractors and consultants, and ensure their proper classification and use; and develop the institutional and regulatory arrangements for ensuring the most effective and efficient movement of freight and passengers.

6.2.2 Railway Network

Ghana’s existing rail network is confined mostly to the southern part of the country which is economically more advanced and has a higher population density. The total rail track length is 1,300 kilometres. Minerals constitute the main bulk of goods traffic on the network, but cocoa and timber traffic contribute immensely to the earnings of the operating company. Limited passenger train services are provided on the network. The current rail network is characterised by old tracks and inadequate railway terminals and platforms. The existing railway network will be rehabilitated in some cases, and totally re-built in others, modernized and expanded to support the new oil and gas industry as well as to ease pressure and congestion on the roads and highways.

6.2.3 Aviation

The main focus of aviation infrastructure is to modernize airports other than Accra to enable them play their respective roles in meeting the demand for domestic flights. These include the ten airfields/airstrips located in each of the regions of the country and the four domestic airports at Accra, Takoradi, Kumasi and Tamale.

The facilities at the Kotoka International Airport will be sustained and progressively improved to make Accra a West African hub and gateway that will lead to growth in exports and tourism. Domestic air services will be encouraged through tax incentives for locally-based airlines. In terms of strategies, attention will be given to ensuring that Ghana complies with, and sustains international safety and security standards at all its airports.

6.2.4 Lake and Sea Transport

Ghana has two deepwater ports in Tema and Takoradi. There are also a few smaller ports (Akosombo, Buipe, Yapei and Debre) where freight is moved by surfboats and lighters. Most of Ghana’s imports and exports are handled at the two main ports which have had extensive rehabilitation over the years. Although they handle large volumes of cargo, the performance of the ports is constrained by an increasing level of congestion, and longer cargo dwell.

The Volta Lake Transport system on the other hand, spans about 450 kilometres from the south to the north, with major ferry crossings at Yeji, Kete Krachi, Dambai and Kpando. It is responsible for transporting petroleum and agricultural products as well as passengers especially those living across the lake. Periodic drops in the level of the lake, however, inhibit longitudinal movement. There is also the problem of ageing equipment, and underwater obstructions to safe navigation. These problems would be addressed among others, by dredging, removal of tree stumps from the Lake and the procurement of additional boats, ferries etc to transform the Volta Lake Transport system into an effective transport system.

6.3 Science, Technology and Innovation to Support Productivity and Development

Government has prioritized Science, Technology and Innovation (STI) as a principal vehicle to drive Ghana’s development agenda. However, there are issues of concern that must be addressed in the medium-term in order to achieve the goals of the agenda. These include: lack of a national policy to promote the development of appropriate technology to support agriculture and small to medium scale enterprises; lack of a national policy on commercialization of scientific research; weak institutional arrangements to support the development and application of science, technology and innovation; and lack of science and technology culture in all sections of society.

The thrust of the STI policy is to harness the nation’s science and technology capacity to achieve accelerated economic growth and sustained poverty reduction. The medium-term policy objectives are to: promote the application of Science, Technology and Innovation in all sectors of the economy; and strengthen the appropriate institutional framework to promote the development of scientific and technological research. Strategies to achieve these policy objectives include: encourage the diffusion and transfer of technology; promote the establishment of national science and technology theme parks; promote and establish national systems of innovation to address the technology development cycle; establish a Science and Technology Fund to support research activities in tertiary and research institutions (private and public); provide support for businesses to adopt research and development as a critical component of production; and provide incentives to strengthen research and industry linkage and collaboration.

6.4 Information and Communication Technology Development

The Information and Communication Technology sector has emerged globally as the most resilient indicator and a key driver for development, growth and employment. This notwithstanding, the sector continues to face challenges including: inadequate ICT infrastructure-base across the country; unreliable and inadequate access to telephone and low penetration of internet facilities, especially in the rural areas; poor implementation and weak institutional and regulatory framework to support ICT development; and limited deployment of ICT as a tool for enhancing the management and efficiency of businesses.

To accelerate the development of ICT infrastructure in the country, key policy objectives to be pursued in the medium-term are to:

  • Promote rapid development and deployment of the national ICT infrastructure;

  • Strengthen the institutional and regulatory framework for managing the ICT sector;

  • Promote the use of ICT in all sectors of the economy; and

  • Facilitate the provision of quality meteorological data and forecast in support of weather-sensitive sectors of the economy.

Other areas include promoting e-Government and e-Governance activities for transparency in Government business; promoting and encouraging the expansion of postal services for the social and economic development of the country; investing in, and strengthening the institutional and human resource capacities for quality service delivery; and ensuring that modern information and communication technologies are available and utilised at all levels of society.

The key policy objectives will be achieved through the following strategies: facilitate the development of the ICT sector through the use of local capabilities in STI; provide affordable equipment/accessories to encourage the mass use of ICT; be customer-focused and provide an expanded portfolio of services according to customer demand as well as provide prompt, reliable and secure universal postal services; encourage ICT training at all levels; and ensure that the broadband high speed internet connectivity is available in every district to increase adequate coverage of ICT infrastructure. Other critical strategies are the implementation of the National e-Governance programme by deploying ICT infrastructure in all Government institutions and the periodic review of the existing institutional and legal framework to ensure effective meteorological service delivery and forecasting.

6.5 Recreational Infrastructure

The concept of designating green belts around a city, or certain areas within a city as public open spaces is a deliberate attempt by city authorities to protect the natural environment; improve air quality within urban areas; prevent neighbouring towns from merging into one another; and largely to check the unrestricted sprawl of large built-up areas among others. Usually, the land uses allowed in green belts include farming activities, forestry and recreational activities such as children’s parks, football pitches, golf courses, cycling and boating. Apart from the recreational uses of open spaces, they are also used as protected water-ways, Ramsar and nature conservation sites.

Currently, very few open spaces and green belts exist within the urban areas. Open spaces in Accra, constitute about 5% of the urban land surface area with very little recreational activities. Similarly, Kumasi, the capital city of the Ashanti Region, which was hitherto surrounded by green belts, has been overtaken by developments of all sorts as a result of the influx of rural migrants, urbanization, etc.

To address the challenges posed by the lack of open spaces the following policy objectives will be pursued to: ensure that urban centres incorporate the concept of open spaces and the creation of green belts or green ways within and around urban communities; develop recreational facilities and promote cultural heritage and nature conservation in both urban and rural areas; foster social cohesion; and enhance the participation of people in leisure activities as a way of improving healthy lifestyles.

Strategies identified for achieving the stated objectives are as follows: promote integrated development planning and strengthen capacity and coordination among Metropolitan, Municipal, and District Assemblies (MMDAs) to enforce planning regulations; ensure the creation of green belts to check unrestricted sprawl of urban areas in order to manage and prevent incidence of flooding in urban settlements and also as a climate change adaptation measure; create awareness of the need to preserve historic and cultural heritage for the promotion of tourism, among others; ensure the involvement of land owners and the local community as stakeholders in the design of urban plans and in the management of protected areas; strengthen and equip the Department of Parks and Gardens to enable it maintain green areas; employ the use of artists to raise the aesthetic value of the cities; promote attitudinal change, ownership and responsibility among the citizenry and orientate them on the maintenance of recreational areas/facilities; encourage the use of Science, Technology and Innovation (STI) for the management, preservation and maintenance of the country’s public buildings, including historic buildings and sites; and also encourage, through education and legislation, the greening of human settlements.

6.6 Energy Supply to Support Industries and Households

Fundamentally, energy sector policies will seek to ensure secure and reliable supply of high quality energy products and services for all sectors of the economy as Ghana regains her position as a regional exporter of power and becomes a net exporter of oil. Of the total energy consumed in the country, biomass (fuel wood and charcoal) accounts for about 63%, petroleum accounts for 27% with electricity accounting for the remaining 9%. Although Ghana abounds in renewable energy resources, their exploitation has so far been minimal.

The energy sector is plagued with a number of serious challenges. These include inadequate access to the national electricity grid; over-dependence on a few sources of energy and neglect of potential indigenous sources; inefficiency in the supply and distribution of petroleum products to consumers in a cost effective manner; low adoption of energy efficiency technology among domestic users; absence of renewable energy in the national energy mix; absence of climate change mitigating and adaptation policies for the energy sector; and unreliable and inadequate supply of energy to households and industry.

Over the medium term, priority policy interventions will focus on addressing the critical challenges in the following key areas:

  • Electricity and Thermal Energy;

  • Renewable Energy;

  • Waste-to-Energy;

  • Nuclear and Geo-thermal Energy;

  • Increasing Access to Petroleum Products;

  • Energy Efficiency and Conservation;

  • Transportation of Energy Products;

  • Energy and Environment;

  • Energy and Gender;

  • Regulatory Environment;

  • Mobilization of Investment for Energy Sector Development;

  • Building Human Resource Capacity and R&D; and

  • Human Settlements Development.

6.6.1 Electricity and Thermal Energy

Accounting for 69% of energy use, electricity is the dominant modern energy form used in the Industry and Services sectors of the national economy. The generation and supply of electricity provides employment for a significant number of Ghanaians. It is also an important source of foreign exchange earnings through exports of power to the neighbouring countries, Togo, Benin, and Burkina Faso. Ghana also has a mutual interconnection and supply agreement with Cote d’Ivoire.

The vision of the power sub-sector is to become a major exporter of power in the sub-region. This is expected to be achieved through capacity addition and modernisation of the transmission and distribution infrastructure. In addition to increasing installed power generation capacity from about 2,000 MW at present to 5,000 megawatts (MW) by 2015, access to electricity will be increased from the current level of 66% to universal access by 2020. The power sub-sector is characterised by inadequate power supply infrastructure, inadequate access to electricity, high cost of fuel for electricity generation, inadequate regulatory capacity and enforcement, operational and management difficulties in utility companies and vulnerability to climate change.

The medium-term policy objective is to provide adequate and reliable power to meet the needs of Ghanaians and for export. The strategies for achieving this objective are: complete the implementation of the power sector reforms; develop a non-congested transmission system; sustain power generation capacity expansion; and rehabilitate and reinforce the transmission and distribution infrastructure to meet the projected growth in power demand of 10% per year in the medium-term. Other strategies are to: secure reliable and cheap fuel supplies for the operation of the thermal power plants; increase access to electricity by consumers, especially those in the rural areas; achieve cost recovery for electricity services; and reduce power system losses and waste in electricity supply and consumption. To increase generation to meet the growing accessibility of power supply, the institutions in the sector will seek financing for the rehabilitation and expansion of existing power plants; complete and operationalize on-going power projects; encourage investment in power infrastructure; and ensure the minimization of inefficiencies.

6.6.2 Renewable Energy

There is an abundance of untapped potential in natural renewable sources of energy such as waves, rivers and waterfalls, wind and sun for power generation in Ghana. Other renewable energy resources include: biomass (wood fuels and charcoal), gasohol and bio-fuel. The key policy objective is to increase the proportion of renewable energy, particularly solar, wind, mini-hydro and waste-to-energy in the national energy supply mix; and contribute through the use of alternative sources of energy to mitigate climate change. Strategies to promote the use of renewable energy under the power sector include: switch from the use of biomass to alternative sources of energy and facilitate access to grid for waste-to-energy power plants.

Hydro: The strategies to achieve the policy objectives include: create appropriate fiscal and regulatory framework to encourage renewable energy from mini-hydropower projects; provide pricing incentives for mini-hydropower projects; complete the development of the Bui Hydropower Project on the Black Volta; and support the development of small and medium scale hydro power projects on other rivers, including the Western Rivers (Ankobra, Tano and Pra), River Oti and the White Volta. Though the overall potential of mini-hydro is limited, 21 potential mini-hydro sites that could be developed for power generation have been identified in the country. The generating capacities of these sites range between 4kW and 325kW.

Biomass: Wood fuel and charcoal are Ghana’s dominant energy sources in terms of consumption. Biomass resources cover about 20.8 million hectares of the 23.8 million hectares land mass of Ghana, and is the source of supply of about 60% of the total energy used in the country. In 2008, biomass energy consumption was 11.7 million tonnes, while petroleum products and electricity consumption were 2.01million tonnes and 8,059 GWh respectively.

Strategies to achieve the power sector’s policy objectives, under biomass are to promote the establishment of dedicated woodlots for wood fuels production; promote the production and use of improved and more efficient biomass utilisation technologies; promote the use of alternative fuels such as LPG as substitute for fuel wood and charcoal by addressing the institutional and market constraints that hamper increasing access to LPG in Ghana; and balance bio-fuels development against food security.

Wind and Solar: By virtue of its geographical location, Ghana is well endowed with solar resources which could be exploited for electricity generation and low heat requirements in homes and industries. Solar energy utilisation has, however, been limited owing to its comparatively higher initial investment cost.

The cost of producing energy from renewable sources is very high, owing to the current state of technology. To achieve the power sector’s policy objectives, the strategies for the wind and solar energy component include: continue to develop capacity in the use of wind and solar energy; complete feasibility studies on wind and solar energy technologies; improve the cost-effectiveness of solar and wind technologies; support indigenous research and development to reduce the cost of solar and wind energy technologies; support the use of decentralised off-grid alternative technologies (such as solar PV and wind); and support collaboration between Ghanaian engineers and their foreign counterparts to develop viable and affordable solar and wind energy technologies.

6.6.3 Waste-to-Energy

Waste-to-energy projects have become a very important mechanism for the management of the growing sanitation problems facing urban communities as well as a means of contributing to energy supply and security. Significant amounts of waste are generated in Ghana, including municipal (both solid and liquid), industrial and agricultural wastes. These wastes are improperly managed, while the cost of waste-to-energy technologies is high. A comprehensive waste management approach will enable Ghana generate reasonable amounts of energy from its wastes. The policy objective here is to convert most of the wastes generated in municipal, urban and rural activities and from industrial and agricultural operations to energy. Strategies to achieve the waste-to-energy policy are: maximize energy production from waste, if it is cost effective; and provide access to waste-to-energy technologies for other sectors.

6.6.4 Nuclear and Geo-thermal Energy

Nuclear energy is a good source of power, and so is geo-thermal energy. However, the potentials are yet to be fully explored in Ghana. The overall policy objective is to explore several sources of energy. Strategies to achieve this objective are: assess the development of nuclear power; and continue to explore nuclear and geo-thermal energy as options in the diversification of the country’s energy mix.

6.6.5 Increasing Access to Petroleum Products

Access to petroleum products in Ghana has to be improved on a sustainable basis. To do this, stakeholders in the industry will be encouraged to expand petroleum products storage capacity and bulk distribution infrastructure to all parts of the country.

The cost of transportation and distribution of petroleum products is high. As a response, the policy objective will be to ensure equitable access to, and uniform pricing of petroleum products. Other related strategies will include improvement in efficiency in the electric power industry to drive cost down. Ex-refinery prices of petroleum products will be based on import parity prices or other cost-effective pricing formula.

Furthermore, there is the need to regulate transportation and distribution charges for petroleum products to ensure reasonable profit margins for transporters and distributors, and also apply cross-subsidies among petroleum products to achieve specific national development objectives.

6.6.6 Energy Efficiency and Conservation

Energy production, transportation and utilisation result in losses and wastage. The causes of these losses include poor habits and attitudes towards energy consumption and utilisation; inadequate financing for energy conservation and efficiency; and limited awareness of energy conservation measures. Reducing the losses will lead to significant benefits for the national economy. The energy sub-sector aims to ensure efficient production and transportation as well as end-use efficiency and conservation of energy. To do this, strategies set include: establish appropriate pricing regime for energy services that would reflect the cost of production and supply; provide incentives for domestic and industrial consumers to voluntarily manage their energy consumption; and develop and implement programmes and measures to help consumers optimise their energy use. The institutions in the sub-sector will undertake a sustained and comprehensive public education and awareness creation campaigns on the methods and benefits of energy conservation. Another strategy would be to discourage the importation and use of high-energy-consuming vehicles and appliances.

6.6.7 Transportation of Energy Products

Strategies to ensure efficient transportation of energy sources include: develop and implement measures to reduce petroleum product consumption in transportation; enforce the implementation of the zonal system for lifting of petroleum products from dedicated storage depots; and reduce electricity transmission and distribution losses.

6.6.8 Energy and Environment

The impact of the production and use of energy on the environment is undeniable and varying in its degrees. The uncontrolled exploitation of biomass energy resources results in deforestation and also in Carbon Dioxide (CO2) emissions, while the use of fossil-based fuels also contributes to CO2 emissions. The use of wood fuels exposes users to harmful emissions and also has negative health implications. The production and transportation of crude oil and petroleum products and the flaring of natural gas associated with petroleum production also have associated environmental risks. This notwithstanding, the country’s capacity to adapt to and mitigate the effects of climate change, for example, is inadequate; while the regulation of activities in the energy sector to protect the environment is poor. To mitigate the environmental hazards of energy production, transportation and use, the policy objective is aimed at ensuring that energy is produced and utilised in an environmentally sound manner.

To achieve this policy objective, the sector is expected to: promote the use of environmentally friendly energy supply sources such as renewable energy (solar, wind, waste) in the energy mix of the country; encourage a shift from oil to gas wherever gas is a technically feasible alternative; promote the use of improved wood fuels burning equipment for cooking in households and other commercial activities; and encourage and enable all relevant entities engaged in activities in the energy sector to explore and access international environmental financial mechanisms and markets to overcome investment, technology and other relevant barriers.

The energy, oil and gas sector professionals will: actively participate in international efforts and cooperate with international organisations that seek to ensure sustainable delivery of energy to mitigate negative environmental impacts and climate change; ensure effective disposal of all hazardous substances and materials associated with the production, transportation and use of energy; and facilitate environmental protection awareness programmes.

6.6.9 Energy and Gender

Energy issues are of concern to all. However, women constitute one of the most important actors in the energy sector because of their regular contact with, use and management of renewable energy sources. Statistics show that many people in the rural areas, especially women, lack access to electricity and rely on biomass (primarily wood fuels and charcoal) for cooking. Over 86% of all households in the country use wood fuels or charcoal. Whereas wood is the overwhelming source of fuel in the rural areas, charcoal predominates in the urban areas.

Electricity and gas constitute a very minor source of energy for cooking in both rural and urban centres. The overburdening of women and children with the collection of wood fuels and charcoal; high exposure of women to indoor pollution; limited involvement of women in the planning and management of energy services; and the limited capacity of women in management positions in the energy sector remain critical issues in Ghana’s energy development.

The overall goal for ensuring that the energy sector is gender sensitive is to mainstream gender concerns into the energy sector and align them with proper health, safety and environmental standards. The policy objectives to support this goal are to: promote increased access to modern forms of energy by women in order to reduce the tedium in their activities; and ensure that concerns of women and children are taken into account in all aspects of energy production and utilisation. Policy will be pursued to promote the use of modern forms of energy in households; support the capacity development of women in the energy sector; and ensure participation of women in the formulation and implementation of energy interventions.

6.6.10 Regulatory Environment

The regulatory environment of the energy sector consists of the Ministry of Energy, Energy Commission, National Petroleum Authority (NPA), and Public Utilities and Regulatory Commission (PURC). The Ministry is responsible for formulating, monitoring and evaluating policies, programmes and projects while the Energy Commission is responsible for the technical regulations in the power sector and advises the Minister for Energy on matters relating to energy planning and policy. The Public Utilities and Regulatory Commission, together with the Energy Commission regulates electricity supply, and the NPA is by law, the independent regulatory authority for the downstream oil and gas sector.

This regulatory environment is characterized by inadequate financial resources for operational activities; inadequate human resources; and weak enforcement. To address these issues, the sector policy objective is to build a transparent and effective regulatory environment and strengthen the regulatory institutions to fulfil their mandate effectively. To ensure the achievement of the policy objective, strategies to be embarked on include: streamline regulations and institutional arrangements; strengthen human resource capacity of the regulatory institutions; ensure the independence of the national regulatory agencies; implement administrative and regulatory changes that will enhance the financial independence of regulatory institutions; and strengthen the capacity of regulatory agencies to enforce regulations.

6.6.11 Mobilization of Investment for Energy Sector Development

Energy infrastructure costs are high. As such, the energy, oil and gas sector has set out a policy objective to encourage public and private sector investment in the energy sector. Strategies to achieve this policy objective are to provide a conducive legal, fiscal and regulatory environment to attract investors into the energy sector; encourage capital markets, including the Ghana Stock Exchange, to raise financing for investments in the energy sector; establish transparent and non-discriminatory practices in the implementation of rules and regulations; and ensure efficient and transparent pricing regimes for energy services.

6.6.12 Building Human Resource Capacity and R&D

There is inadequate educational and institutional capacity to support Ghanaian expertise and skills development in the energy sector. The sector therefore aims at building adequate Ghanaian human resource development and training/ capacity for controlling and managing the energy sector and creating an enabling environment for effective Research and Development (R&D).

Institutions in the sector will ensure the achievement of this policy objective through the following strategies: develop a comprehensive Ghanaian local content in all aspects of energy sector operations; ensure maximum ownership and management control of all aspects of the energy sector; support the training of Ghanaians in all fields of energy development and management and build capacity in the indigenous development of energy technologies; increase the allocation of resources for energy R&D activities; give priority to adaptive R&D in energy technology while promoting basic research; support the transformation of Ghanaian energy research institutions into Centres of Excellence for professional training in energy research and development; and collaborate with relevant Government, local and international agencies to develop the capacity of tertiary and allied institutions for training and research in energy.

6.7 Human Settlements Development

The overall goal of human settlements development is to ensure that all organized human activities within our cities, towns and villages are undertaken in a planned and spatially determined manner in order to bring about equity and enhance socio-economic development. Human settlements development policy will focus on spatial/land use planning and management; urban development and management; housing/shelter; slum upgrading and prevention; disaster prevention; institutional arrangements; hierarchy of human settlements; and rural development and management.

6.7.1 Spatial /Land Use Planning and Management

The linkage between spatial/land use planning and socio-economic development in the planning and management of cities, towns and communities in the country is weak at all levels. This could be illustrated with the rush for land in the Western Region with the recent discovery of oil and gas, as has been the case in other parts of the country with new natural resource discoveries, and the consequent haphazard sale of land. Related to this, is the issue of land ownership, which poses a major challenge to land use in the country. Problems associated with this include the general indiscipline in the land market; complicated land tenure system; and cumbersome land title registration procedures all of which impede the efficient use of land for development purposes.

The situation regarding land use however, can be explained, among others, by the absence of a human settlements policy; inadequate spatial policy considerations in our development planning; inefficient spatial/land use plans; poor plan implementation and weak enforcement of planning and building regulations; lack of integration of climate change adaptation and disaster risk reduction into land use planning; and inadequate human resource capacity for land use planning.

To address the challenges the following policy objectives will be pursued in the medium-term: promote sustainable, spatially integrated and orderly development of human settlements to support socio-economic development; review the spatial/land use planning system in Ghana; facilitate ongoing institutional, technological and legal reforms under the Land Administration Project/ Town and Country Planning Department-Land Use Planning and Management Project (LAP/TCPD-LUPMP) in support of land use planning; and enhance the human and institutional capacities for effective land use planning and management through science and technology.

The strategies identified include: formulate a Human Settlements (including land development) policy to guide settlements development; promote a spatially integrated hierarchy of settlements in support of rapid transformation of the country; promote through legislation and education, the greening of human settlements; ensure the use of Geographic Information System (GIS) in spatial/land use planning; integrate climate change adaptation and disaster risk reduction into human settlements and land use planning; ensure the drafting and enactment of a coherent and modernized legal framework for land use planning; and strengthen research and development in urban and regional development.

6.7.2 Urban Development and Management

Increasing population growth, rural-urban migration and the re-classification of settlements from rural to urban have contributed to the rapid urbanization of our towns and cities. At a projected average urban growth rate of around three percent between 2000 and 2030, Ghana’s urban population is expected to increase from about 52 percent of the total population in 2010 to around 65 percent by 2030. The rise in urban population, however, puts a strain on limited social infrastructure resulting in congestion, overcrowding and the emergence of slums. Other related challenges include: haphazard, uncontrolled and uncoordinated urban development; lack of role assignment to towns and cities in the national development framework; and unplanned/uncontrolled rural and peri-urban development.

Another facet of the current urban development and land use management practices is the informalisation of the urban economy, a situation that has arisen partly as a result of the rapid increase in rural-urban migration and other related factors. Seen by many as a spontaneous and creative response to the formal economy’s incapacity to satisfy basic needs, the informal economy contributes significantly to the national economy. Available statistics from GLSS IV indicate that the informal sector’s share of total employment increased from 80.5% in 1987/88 to 88.6% in 2005/06. Weak capacity of Government agencies, particularly the Metropolitan, Municipal and District Assemblies (MMDAs) to provide adequate housing facilities and map out well planned residential and commercial areas, have contributed to the haphazard development of social and economic activities in the cities.

Considering that activities within the urban economy drive physical expansion, there is a need to designate space for them. Furthermore, to ensure that urbanization serves as a catalyst for economic growth and social improvement, the following policy objectives will be pursued: facilitate completion of a comprehensive urban development policy; promote integrated urban planning; promote urban infrastructure development; accelerate provision of basic services; and promote private sector participation in disaster management.

The strategies to be adopted include: guide relevant MMDAs and the private sector to incorporate urban issues in their policies, strategies and work plans; ensure street naming and property addressing system in urban areas; ensure that urban spatial planning plays a critical role in urban management; provide adaptive space in the urban areas for commercialisation; ensure proper linkages between urban and rural areas; institute a nationwide urban renewal programme; and develop the special endowments of towns and cities.

6.7.3 Housing/Shelter

The rapid increase in population has resulted in a large housing deficit, especially in urban areas. This has resulted in overcrowding and the development of slums. Current estimates indicate that the country needs at least 100,000 housing units annually while supply is estimated at 35% of the total need. There are also cumbersome land acquisition procedures; weak enforcement of standards and codes in the design and construction of houses; ineffective rural housing policy; and haphazard land development that need to be addressed. Another major challenge relates to housing finance. This is reflected in inadequate finance to support the construction industry; high cost of mortgages; and low production of, and poor patronage of local building materials.

The policy objectives identified to address these challenges include: increase access to safe, adequate and affordable shelter; provide relevant opportunities for enhanced participation of the private sector; improve institutional and legal frameworks; sensitize the public about the qualities of local building materials and promote their use. Other objectives are to: facilitate sustainable land development; improve and accelerate housing delivery in the rural areas and develop a viable and accessible housing finance system to enable the real estate industry deliver homes at affordable rates.

Strategies for Urban Housing development include: promote the manufacture and use of local building materials and appropriate technologies in housing; establish standards for local construction materials to guarantee the appropriate use of these materials for construction; and ensure the enforcement of standards for architectural designs and building codes. Other strategies are to: establish a legal framework to support the construction of condominiums; streamline the manufacture and distribution of building materials to make them more affordable; promote savings and investments in housing; set standards for engineering infrastructure, i.e. road designs, electricity, water, telephones, fire hydrants etc to suit various localities and income groups; ensure the adequate staffing, training and/or upgrading of relevant skills; and enhance the equipment base of relevant institutions of the sector to render effective and efficient service.

With respect to rural housing, the strategies are to: review and implement existing rural housing policy; foster the growth of settlements which can support the rural economy and transformation; promote self-help building schemes organized along trade associations; and provide technical assistance to communities to support basic house-building skills training programmes.

6.7.4 Slum Upgrading and Prevention

Slum development is a characteristic feature of the urban environment in Ghana. Its emergence is attributed largely to the rapid process of urbanisation in the country and the accompanying attractive pull factor for people from the rural areas to the urban communities. Another major contributory factor is the limited supply of land and lack of regulatory framework to address the needs of the urban poor. The latter includes the absence of a housing policy that addresses the needs of low income earners, and thereby creates a shortage of housing units for the urban poor.

In 2001, the number of people living in slums in Ghanaian cities was estimated at about five million and growing at a rate of 1.8% per annum. This is particularly pronounced in Accra, Kumasi, Tema and Tamale with lower prevalence rates in Cape Coast, Koforidua, Sunyani, Ho and Bolgatanga. Slum dwellers face severe inadequacies in access to water, sanitation, shelter, health, education and in many cases, insecurity of tenure. To address these issues, a new approach is required which entails the identification and implementation of adaptive measures.

Key issues to be addressed include: weak enforcement of planning regulations; absence of human settlements and housing policies; weak coordination across MMDAs; unclear mandate of local authorities to facilitate housing provision, especially for low to very low income earners; lack of participation of communities and key stakeholders in urban planning; and inadequate legal framework (Acts 462, Act 480, Cap 48) on urban development, slum upgrading and prevention programmes.

The broad policy directive in the medium-term is to upgrade existing slums and prevent the occurrence of new ones in towns and cities. The strategies include the following: encourage the participation of the urban poor including women in urban planning and decision-making; strengthen the legal framework on urban development; set out clear guidelines for the planning and development of urban areas through the implementation of a national housing policy; improve upon existing infrastructure and facilities within slum communities; enforce planning laws to prevent the formation of slums; introduce major slum renewal programmes; and clearly establish the roles and responsibilities of MMDAs in the delivery of urban development and slum upgrading and prevention.

6.7.5 Settlement Disaster Prevention

Disasters, whether natural or man-made, are serious development issues that must be factored into the development planning of both urban and rural areas. This is because of the severe damage they cause, resulting in huge economic and human losses. In Ghana, disaster occurrences especially in the urban cities and towns have been brought on largely by the lack of adherence to building code regulations and the weak enforcement of planning laws by the relevant institutions. Other precipitating factors include the high proportion of the population living in poor quality and overcrowded housing facilities within slum settlements with high fire risk; outmoded building codes; building on water-ways and hazardous sites which are at risk from floods, earthquakes etc and poor infrastructure in terms of drainage and road network which inhibit delivery of emergency relief services. These challenges would be addressed through the implementation of the policy objective of minimizing the impact of, as well as the development of adequate response strategies to disasters.

The strategies that have been identified include: proper planning of drainage systems; proper planning and integration of climate change and disaster risk reduction measures into all facets of national development planning; encourage the use of science and technology to minimize the impact of natural disasters; undertake educational and sensitization programmes to make society more conscious of how to prevent and manage disasters; strengthen institutions to enforce building and planning laws within urban settlements and rural areas; and review and modernize building codes.

6.7.6 Hierarchy of Human Settlements

The urban system in Ghana is characterised by an over concentration of towns within the southern areas as compared to fewer towns in the northern part of the country, which has only one metropolitan area (Tamale) and several small and a few intermediate-sized towns. This does not promote an even regional development in the country. This state of affairs is largely attributed to: the absence of effective competition to the grade 1 cities of Accra and Kumasi ; lack of effective intermediate cities between key urban settlements and the rural settlements; uncontrolled urban sprawl in cities and key urban settlements as a result of the attractiveness to rural migrants; inadequate infrastructure to support industrial development; and the need for grade 1 centres to become effective points of interaction between Ghana and the outside world.

The main objectives identified to ensure an integrated hierarchy of settlements are as follows: ensure a balanced development in a spatially integrated hierarchy of human settlements in support of the rapid transformation of the country; create new growth points to serve as counter-magnets to fast growing cities and regions such as Accra in the Greater Accra Region and Kumasi in the Ashanti Region; promote accelerated growth of medium-sized towns to large urban centres; and decongest and reverse the decline in productivity of the primary cities and selected fast growing settlements.

The strategies to be implemented include the establishment of a new hierarchy of urban centres. These will be spatially integrated with each hierarchy having a clearly defined set of functions through the reduction in inter-regional disparities. Over-concentrated growth poles of key urban settlements like Accra and Kumasi will be decongested by establishing new growth centres, especially in the poorer regions of the country. In line with this, the capacity of grade 2 centres will be enhanced to perform increased industrial and commercial functions. Other strategies are: physically integrate all regions and districts, especially their respective capitals; promote accelerated growth of medium-sized towns to large urban centres; expand and upgrade infrastructure, and maintain efficient services especially in the least developed Grade I settlements to attract investment and employment opportunities; collaborate effectively with other cities and political jurisdictions of governance in an increasingly interconnected national and international urban system; and introduce new incentives to direct Public-Private Partnerships (PPPs) in the provision of housing facilities.

6.7.7 Rural Development and Management

The development of the rural areas of Ghana lags behind the urban areas long after independence. This is reflected in the inadequate provision of basic social amenities, infrastructural development and decimation of some rural communities resulting from the high rate of migration of people from the rural to the urban areas. In addition to this is the exploitation of the natural resources of rural communities leaving the people in abject poverty. To arrest this situation the following policy objectives will be pursued: create an enabling environment that would enhance the development of the potential of rural areas as a measure to check out-migration; facilitate the proper utilization of rural and peri-urban lands as well as the sustainable use and management of key natural resources that support the development of rural areas.

The strategies are as follows: improve the supply of a critical mass of social services and infrastructure to meet the basic needs of the people and attract investment for the growth and development of the rural areas; promote alternative livelihood programmes to develop skills among rural dwellers; establish rural service centres to promote agriculture and agro-based industries; and increase mining output without compromising the environmental quality of mining communities.

6.7.8 Institutional Arrangements for Implementing Human Settlements Development

The planning and management of human settlements involve multiple stakeholders with specified management and operational responsibilities. This is due to its cross-cutting nature which embraces the development of shelter, infrastructure, services, amenities and institutions in single and networks of settlements. Notwithstanding this, a number of challenges have been associated with the management of the sector. These include:

  • Lack of clarity in the functions of institutions responsible for housing/human settlements development;

  • Weak coordination among MDAs and institutions with statutory duties to service the housing sector;

  • Functional overlaps of institutional mandates;

  • Uncoordinated implementation of development and action programmes; and

  • Inadequate institutional framework for the preparation and management of a national housing policy or shelter strategy.

To address these challenges the following objectives have been identified for implementation: establish an institutional framework for effective coordination of human settlements development; and enhance the capacities of institutions for effective planning of human settlements.

The strategies in the medium-term include: the setting up of a National Human Settlements Commission or a National Housing Board to coordinate the activities of all institutions involved in housing development; and ensure effective inter-agency collaboration especially among the infrastructure and social service delivery agencies.

6.7.9 Water, Environmental Sanitation and Hygiene

Increased access to safe and portable water, improved environmental sanitation and hygiene education constitute critical components of policy to ensure a favourable state of health of the general population. A healthy population facilitates sustained poverty reduction and socio-economic growth of the country. Access to potable water improves the health status of the population, saves time for other productive activities especially for women, and enhances school attendance. Improved environmental sanitation contributes significantly to the reduction and prevention of water and sanitation-related diseases such as malaria, typhoid and dysentery. Implementation of appropriate health and hygiene promotion activities in communities leads to reduction in communicable diseases.

Critical sector policy interventions have focused mainly on the management of water resources, accelerating the provision of safe water and improved environmental sanitation facilities as well as hygiene education. Although several investments in safe and portable water and environmental sanitation provision have been implemented under previous strategies including GPRS II, most rivers are still being degraded, while over 40% and 85% of Ghanaians do not have access to safe and portable water and basic sanitation respectively. A large number of households in both urban and rural areas continue to rely on natural sources of water (unprotected wells, lakes and rivers). Women and girl children in rural areas spend a lot of time and effort to access and provide needed water to their households.

The key issues confronting the sector include: weak water resources management; inadequate access to quality and affordable water; inadequate access to environmental sanitation facilities; and poor hygiene practices and inadequate hygiene education. These issues arise as a result of: weak sector coordination resulting from fragmented sector approaches and procedures; weak institutional capacities; and inadequate funding.

To address the above issues and challenges, the following policy objectives will be pursued within the medium-term: ensuring efficient management of water resources; accelerating the provision of safe, portable and affordable water; improving environmental sanitation; ensuring the implementation of health education programmes as a component of all water and sanitation programmes; improving sector coordination through a sector-wide approach to water and environmental sanitation delivery; improving sector institutional capacity; and ensuring sustainable, predictable and adequate financing to the sector.

To ensure efficient management of water resources, the following strategies would be pursued: trans-boundary water resources cooperation and management will be enhanced; legislative instruments will be developed and implemented for efficient water resources management; climate change adaptation will be factored into water resources management; mechanisms and measures to support, encourage and promote rainwater harvesting will be developed; management structures for all major river basins will be established and made functional; as well as improve data collection and management for water resources assessment and decision-making.

With respect to the provision of safe water in rural and urban areas, there is the need to provide investments for the construction of new and rehabilitation and expansion of existing water facilities; strengthen public-private and NGO partnerships in water provision as well as improve community-owned and managed water supply systems. Other strategies would include facilitating the extension of distribution networks especially to low income consumers; intensify hygiene education in water services delivery; and encourage public-private partnerships in water services delivery.

Strategies aimed at improving environmental sanitation would include the following: promoting the construction and use of appropriate and affordable domestic latrines; integrating hygiene education into water and sanitation delivery; support public-private-partnerships in solid and liquid waste management; promote cost-effective and innovative technologies for waste management; and also develop disability-friendly sanitation facilities.

In realising the objective of implementing health education as a component of all water and sanitation programmes, the major strategy that will be employed is the incorporation of hygiene education in all water and sanitation programmes. An equally important strategy will be the promotion of change behaviour in relation to ensuring open defecation-free communities. Other strategies will include: the promotion of hand washing with soap at critical times; promotion of hygienic use of water at the household level; and the promotion of hygienic excreta disposal methods.

The policy objective to improve sector coordination would be achieved through the adoption of a sector-wide approach to planning, implementation, monitoring and evaluation of sector activities. The following strategies would be pursued: development and implementation of a Sector Strategic Development Plan; development of a Strategic Environmental Sanitation Investment Plan; development and implementation of a comprehensive M&E for the water and sanitation sector; implementation of the National Environmental Sanitation Strategic and Action Plan; incorporation of cross-cutting issues such as: gender, environment, public sector reform, decentralization and governance in the implementation of the Sanitation and Water Action Plan.

Improving sector institutional capacity is of essence to ensuring efficient water resources management, and water and sanitation services delivery in the country. The Water Directorate and the Environmental Sanitation and Hygiene Directorate will be strengthened with adequately trained number of personnel and other resources to enable them take ownership and lead roles of the sector. Sector agencies such as WRC, GWCL, CWSA, MMDAs and community management structures will also be given the needed capacity to enable them better manage water resources, water and environmental sanitation facilities at the various levels of the communities. Capacity building would be provided as a continuous process.

To ensure sustainable, predictable and adequate financing, economic water charges will be maintained. The SWA (Sanitation and Water for All) Compact will be implemented; and timely releases of approved recurrent budget to the sector will be pursued. The “Polluter Pays Principle” will be operationalised in water resources management and environmental sanitation. Other non-traditional sources of funding will be identified, and pursued, while the sector strategic plans will be well marketed.

Chapter Seven: Human Development, Productivity and Employment

7.1 Introduction

The acquisition and application of knowledge and skills in solving problems in society have remained essential aspects of national development efforts aimed at achieving growth and social equity. This has become even more important for developing countries such as Ghana where the human development indicators in such areas as education and skills acquisition, health, employment, productivity, social protection, poverty reduction are comparatively low and where income inequalities are worsening. Without a well educated, skilled and informed population, the transformation of the key sectors of the economy, and the effort to raise living standards and productivity as the bases for wealth creation and the optimization of the potential of the economy will continue to stall.

This thematic area addresses issues in the education sector; human resource development, productivity and employment; health promotion including HIV/AIDS and STDs; population management, including migration and development; youth and sports development; poverty reduction and social protection.

7.2 Education

7.2.1 Challenges of the Education Sector

Education and skills development underpin any strategy of human development and productivity as it is through education that the necessary skills, knowledge and aptitudes are acquired, and the creative abilities of individuals released, to open the way to a better life and society. However, the education sector comprising Pre-school Education, Primary and Junior High School, Second Cycle Education including Technical and Vocational Education and Training (TVET), Tertiary Education and Non-Formal Education faces problems of access, quality and management. These problems are compounded by disparities at both regional and intra-regional levels, as well as gender disparities, leading to highly unequal outcomes.

In addition, there is low motivation and poor conditions of service for education sector workers; low quality of teaching and learning; lack of supervision and poor management; inadequate educational infrastructure; low access to quality science and technical education; insufficient materials for special schools; and inadequate curricula emphasis on issues of population, environment, life-long learning, gender, health, HIV and AIDS/STI, conflict management and peace, fire safety, road safety, civic responsibility, human trafficking, and human rights to inculcate values and bring about the necessary attitudinal change.

While significant efforts have been made by Government and other agencies over the years to improve access, financing and the provision of infrastructure and facilities at all levels, education quality issues remain a matter of national concern.

In responding to these general sector challenges and the transformation agenda, priority policies and strategies to be implemented will aim at promoting the achievement of structural poverty reduction, facilitating the attainment of the Education For All (EFA) goals and the Millennium Development Goals (MDGs), and contributing towards the attainment of the upper middle-income status, with emphasis on addressing quality issues in education, infrastructure and service conditions of education workers.

Pre-school education: Policy issues relating to pre-school education include inadequate access to quality education, the shortage of trained teachers and attendants, leadership and advocacy for pre-school education, and lack of resources.

Primary and Junior High School education: At the level of Primary and Junior High School education, key policy-related issues to be addressed include the low perception of quality of teaching and learning outcomes; the removal of geographical disparities to support the reduction of overcrowding/providing enough schools for the growing school-age population; addressing the inadequate provision of workshops, laboratories and library facilities in all schools; the poor quality of teachers; low teacher motivation and supervision; and inadequate supply of teachers in classrooms especially in deprived districts.

Second Cycle Level: At the Second Cycle Education level, outstanding critical issues include inadequate access to quality second cycle education and poor placement procedures; poor learning outcomes especially in mathematics and basic sciences; growing inequalities between a few elite schools and the majority of secondary schools in rural and semi-urban areas; inadequately equipped Science Resource Centres; and ineffective guidance and counselling services in schools.

Technical and Vocational Sector: The policy-related issues under the Technical and Vocational Education and Training sub-sector are: severe underfunding; inadequate infrastructure; limited curricula choices and continuing non-responsiveness of skills to labour market demands; severely limited vacancies and inadequate numbers; and poor quality of trainers.

Tertiary education: At the Tertiary Education level, the critical issues relate to limited access to quality tertiary education; high cost of tertiary education to the growing number of young adults who qualify to be admitted and those already admitted in tertiary institutions; need for complementary modes of delivering tertiary education to meet rising demand for tertiary education; and unfavourable and unattractive conditions of service for faculty leading to problems of attracting younger faculty, and resulting in ageing faculty in the institutions. There are also issues of the slow rate of providing infrastructural facilities in Polytechnics, limited teaching and learning facilities for competency-based training in Polytechnics; weak and underfunded regulatory bodies of tertiary institutions as well as a weak linkage between tertiary education and industry, resulting in emerging graduate unemployment.

Prioritised policy interventions of the education sector for achieving the MDGs, which involve promoting accelerated growth, poverty reduction and attaining middle-income status are the following: increase equitable access to and participation in quality education at all levels; improve quality of teaching and learning; bridge the gender gap in access to education; improve access to quality education for persons with disabilities; and promote science and technical education at all levels. Others are: link the content of education and training to the labour market; mainstream issues of population, family life education, gender, health, HIV and AIDS/STI, conflicts, fire safety, road safety, civic responsibility and human trafficking, environment, education for peace and respect for human rights in the school curriculum; and improve the management of education service delivery.

7.2.2 Increasing Equitable Access to, and Participation in Quality Education at all Levels

The required priority policy interventions to address concerns of pre-school education include the provision of infrastructural facilities for pre-school across the country particularly in deprived areas; strengthening of enrolment drives in communities; promoting collaboration with private sector to expand pre-school education within the set guidelines for the establishment of schools; and enhancing teaching and learning in pre-schools through increasing the deployment of trained teachers to pre-schools. Further interventions required are: the inclusion of pre-school curriculum into programmes of colleges of education; improving leadership and advocacy for pre-school education; and increased resource inflows to that level of education.

At the Primary and JHS level, the policy interventions include ensuring the availability of teachers in classrooms through a new teacher development policy and the institutionalization of continuous professional development for teachers. The successes of the Untrained Teachers Diploma in Basic Education (UTTDBE) will be expanded to reduce the number of untrained teachers at the primary level from the current 59.4% to 30% over the plan period, while the institutionalization of the In Service Education and Training (INSET) programme should contribute to enhancing the teaching abilities of primary school teachers to improve teaching and learning outcomes.

In addition, incentives will be provided for teachers working in deprived areas, and measures undertaken to support the involvement of communities and parents in the management of schools. Particularly, in the context of the decentralization policy, Metropolitan, Municipal and District Assemblies would be made to become fully involved in teacher deployment, and to sponsor the training of students who will be made to accept postings back to their sponsoring districts. The provision of quality and relevant education will improve the attractiveness of schooling as a means to a better life and help to increase access and participation in education.

The policy interventions at the second cycle education level include: improving and expanding academic facilities in poorly endowed SHS to bridge equity gaps; improving water and sanitation facilities in Community SHS; and reintroducing well functioning guidance and counselling services. Regarding the Technical and Vocational Education and Training (TVET), the policy interventions include the construction and rehabilitation/upgrading of facilities in all public Technical and Vocational Institutes in each District across the country; repositioning TVET in education and human resource development; and strengthening linkages with industry. It will also involve the re-organisation and expansion of the current national apprenticeship programme; providing opportunities for trainers in Technical and Vocational Institutes to undertake further studies in pedagogy; developing competency-based curriculum for TVET; strengthening career guidance and counselling services; supporting TVET institutions in generating funds internally; and exploring other funding sources to support other TVET institutions not under the Ministry of Education.

A number of policy interventions have been provided to address the issues relating to tertiary education. These include: improving academic and other infrastructural facilities, including ICT in all Public Universities; accelerating the establishment of the universities for Health and Allied Sciences, and Energy and Natural Resources; improving salaries and other forms of remuneration for tertiary level of education staff; providing scholarship /student loan packages to support student education financing; accelerating the programme of expansion of infrastructural facilities in polytechnics; and introducing new and relevant career-oriented occupations into polytechnic education.

To reach the high numbers of persons who are functionally illiterate, strategies will be adopted to re-invigorate the Non-Formal Education (NFE) programme; provide appropriate incentives to volunteers (trainers); and integrate NFE with skills development programmes.

7.2.3 Improving the Quality of Teaching and Learning

The policy measures to improve quality of teaching and learning include upgrading training facilities in the colleges of education; upgrading the qualifications of staff; introducing a national programme of education quality assessment and increasing management capacity to support and implement it; implementing a diversified mix of incentives, including housing, training and professional development; and a clear career structure through the establishment of a Teacher Coordinating and Licensing body for teacher motivation and retention; strengthening of supervision and management in schools to constantly monitor quality with the support of district assemblies, communities and parents; and providing academic counselling services at the JHS and SHS levels.

7.2.4 Bridging the Gender Gap in Access to Education

Strategies to be adopted to bridge the gender gap in access to education include: creating girl-friendly schools by ensuring the provision of adequate toilet facilities and onsite water sources; the availability of female teacher role models especially in deprived areas; enforcing a ‘no tolerance’ policy for sexual harassment and publicized disciplining of recalcitrant teachers; expanding the incentive schemes including take home rations to increase girls’ enrolment, retention and completion particularly in deprived areas; intensifying community mobilization and sensitization to create awareness of the importance of girls’ education; monitoring boys participation and achievement in schools; re-introducing science and technology workshops for girls in second cycle institutions; and an increase in vacation camps for girls from rural/deprived communities.

7.2.5 Improving Access to Quality Education for Persons with Disabilities

Strategies to address the issue of access to quality education for persons with disabilities include: ensuring that rehabilitated/new infrastructure are disability-friendly to students; enhancing the pedagogical skills of teachers of special education; improving the supply of logistics for special education on a regular basis; strengthening the capacity of institutions responsible for PWDs e.g. specialist teachers, resource assessment centres and rehabilitation centres; designing action plans to implement education-related provisions of the Disability Act; and supporting private institutions (Non profit) providing education to PWDs.

7.2.6 Promoting Science and Technical Education at all Levels

To promote science and technical education at all levels, efforts will include providing incentives for science, mathematics, technical and vocational teachers; supporting science and research development by increasing funding for research and technology development; upgrading tools and equipment for teaching science, technical and vocational subjects; providing incentives to attract students to study science; and encouraging the private sector to support initiatives in science education.

7.2.7 Strengthening the Linkages between Tertiary Education and Industry

Strengthening linkages between tertiary education and industry will be supported by strategies relating to establishing industry/university collaborative programmes to increase opportunities for practical training/internship and human resource planning; determining the skills and human resources requirements necessary to achieve middle-income status; the creation of opportunities for students to study and work; strengthening collaboration between polytechnics and industry; and creating opportunities for industry to participate in curriculum development in the polytechnics and other related tertiary institutions.

7.2.8 Integrating Essential Knowledge and Life Skills into School Curriculum

The strategy seeks to ensure respect for human rights, human survival and safety, and better life choices for improved well-being. Strategies to be adopted to integrate essential knowledge and life skills into school curriculum to ensure respect for human rights, human survival and safety, and better life choices for improved well-being include introducing attitudinal change regarding population, family life education, good health, HIV and AIDS, gender, human rights, fire safety, road safety, conflict prevention and management, civic education, environmental concerns, human trafficking and religious and moral education into the curricula of schools and institutions of higher learning.

It will also involve encouraging the setting up of anti-trafficking clubs in schools in endemic areas; and identifying and promoting programmes that will assist in the prevention and management of HIV and AIDS/STIs/STDs. It will also include the promotion of vigorous public education on human rights, including the rights of children.

7.2.9 Improving the Management of Education Service Delivery

To improve management of education service delivery and in line with the National Decentralization Policy, strategies will focus on aligning the management aspects of the Education Act, 2008 with the Local Government Service Act, 2003 to ensure the establishment of fully decentralized structures to better manage the education sector in each district or sub/metropolitan area. This will involve local determination, in consultation with the central education authorities, of the required staff numbers, responsibilities, functions, deployment and resources, to address neglected problems in educational planning and delivery.

Other measures include strengthening institutional arrangements for enhancing the roles of CBOs and CSOs in advocacy; monitoring and evaluation of education delivery at the local level; introducing school and district report cards in all public basic schools and districts; and training education sector managers/leaders in management and leadership skills.

7.3 Health

7.3.1 Challenges to the Health Sector

Even though the health status of Ghanaians has generally improved over the years, there are persistent policy-related issues that need to be addressed. These include: large gaps in access to health care between urban and rural as well as the rich and poor; gender gaps in access to health care due to poverty, deprivation and ignorance; absence of an appropriate legal framework for the health sector; high infant and maternal mortality; high morbidity and mortality from communicable diseases such as HIV and tuberculosis; increasing prevalence of non-communicable diseases with high disability and mortality e.g. cancers, cardiovascular diseases; threats of epidemic-prone diseases and diseases of pandemic potential such as influenza; and low level of overall health expenditure and inadequate social protection.

Others are: inadequate and unequal distribution of health infrastructure; limited access to health facilities especially by deprived communities; inequitable distribution of workers at different levels of services delivery; inadequate staff numbers; low morale and motivation of health workers; inadequate support /facilitative supervision; high attrition rate of health workers; weak performance management systems; limited training capacity to meet increasing admissions into the training institutions; inadequate collaboration between MOH and Ministry of Education training institutions; lack of integration of traditional medicine practice into the existing healthcare system; and inadequate mental health service; as well as weak governance and accountability.

To improve access to quality health care, the policy objectives will be to: bridge equity gaps in access to health care and nutrition services; improve governance and strengthen efficiency in health service delivery, including medical emergencies; improve access to quality maternal and child health services; intensify prevention and control of non-communicable and communicable diseases (malaria, HIV and AIDS/STI/TB); promote healthy lifestyles as well as strengthen Mental Health service delivery; and make health services youth-friendly at all levels.

7.3.2 Bridging Equity Gaps in Access to Health Care and Nutrition Services

Strategies to address equity gaps in access to health care and nutrition services between urban and rural as well as rich and poor are anchored under issues relating to legal and regulatory framework, human resource, infrastructure and sustainable financing arrangements that protect the poor.

7.3.3 Health Care Legislation

The intervention relating to health care legislation is to pass new/outstanding bills intended to meet current policy challenges of the health sector such as Health Service, Teaching Hospital Authority, National Ambulance Service, Mental Health, and amend the NHIS Act to allow for investment to enable Government implement the one-off premium payment as well as the Traditional Medicine Practice Act, 575.

7.3.4 Human Resources Development for the Health Sector

Strategies to address human resource concerns in bridging equity gaps in access to health care and nutrition services between urban and rural communities, between males and females, as well as between rich and poor include: building managerial capacity at all levels of the health sector with emphasis on the lower levels; continuing the development and implementation of structured verifiable incentive system for under-served areas; expanding training and education of midwives, medical assistants, laboratory technicians, orthotics, prosthetics and core auxiliary staff; deploying requisite human resource skills mix in the areas of midwifery, obstetric care, and child and adolescent health; deploying qualified specialists to Regional and District hospitals; continuing accreditation of training institutions; continuing development of performance management systems, including performance contracting and appraisal; and motivating and retaining medical professionals.

7.3.5 Sustainable financing arrangements that protect the poor

Policy interventions with respect to sustainable financing arrangements that protect the poor include: improving funding of NHIS institutions; evaluating the activities of the NHIS; scaling up NHIS registration of the very poor; ensuring speedy access to NHIS services; reviewing and implementing a comprehensive health financing strategy; strengthening institutional capacity for Internally Generated Funds (IGF) generation and management; advocating for ‘sin’ taxes as part of health revenue generation; amending the NHIS Act for the one-off payment of premiums; and fully integrating private medical practice into the operations of the NHIS.

7.3.6 Health Infrastructure

Health infrastructure will be improved in order to bridge equity gaps in access to health care and nutrition services between urban and rural as well as rich and poor. Strategies in this direction include accelerating community-based health planning and services (CHPS) expansion in under-served areas; establishing new district hospitals in districts without such facilities; upgrading, equipping and staffing existing district hospitals; constructing new health facilities in underserved areas; scaling-up the implementation of the medical waste management programme; establishing infectious diseases management centres; establishing intensive care units in regional and district hospitals; carrying out major rehabilitation and Planned Preventive Maintenance (PPM) of existing health infrastructure and improving equipment management systems; expanding facilities for pre-service health training institutions; and expanding infrastructure and equipment to support effective and efficient maternal and child delivery services.

Others are: implementing the Integrated Capital Investment Planning model focusing on filling service and capacity gaps in deprived and hard to reach areas; scaling up transport replacement programme and implementing PPM plan for fleet management; collaborating with private sector and other relevant MDAs in the provision of health service and health facilities; providing adequate health infrastructure; and providing equipment that will enhance the localization of medical treatment. Government remains committed to the phased construction of a regional hospital in each of the regions currently without the facility as well as the construction of teaching hospitals in Tamale and Cape Coast.

7.3.7 Improving governance and strengthening efficiency in health service delivery

Strategies to be implemented to strengthen efficiency in public health service delivery are: improve financial management systems e.g. budget, procurement and audit; strengthen intra and inter-sector processes for policy dialogue, review, collaboration, coordination, planning and accountability; review and align data collection tools and link districts health management information system (DHIMS) to the regional/headquarters essential data depositories for effective action e.g. MOH, GHS (ICD, PHD, PPME etc); and monitor and evaluate the performance of the health sector. Other strategies are: strengthen data management, documentation, and reporting systems within the MOH and its agencies; bring up health facilities to meet accreditation requirements and accredit them; continually update essential drug list for traditional practitioners; advocate for provision of intellectual property rights for traditional medicines; enhance systems for continuous monitoring and assurance of the quality, efficacy and safety of medicines including traditional medicines; and integrate traditional medical practice into existing health care systems.

The rest of the strategies are: increase support to research and cultivation of plant medicines; increase resources to centres for research into plant medicine; promote local production of key health commodities including pharmaceuticals and traditional medicines; improve customer services and develop a comprehensive District Rotation Program for Ghanaian and non-Ghanaian Medical Professionals in the Diaspora involving those who express interest in using their leave/ holiday periods to offer service; streamline and accelerate accreditation and practice in the private health sector; encourage private health sector operators in rural communities to attract qualified medical professionals including specialists; and support capacity building of private health sector professionals operating in rural communities.

7.3.8 Improving access to quality Maternal, Child and Adolescent Health Services

Access to quality maternal, child and adolescent health services will be improved by the following policy measures: re-introducing certificate midwifery training and ensuring midwifery service in CHPS compounds; providing comprehensive emergency obstetric care (including blood transfusion, ambulances) at the district level; providing basic emergency obstetric care at all health centers; scaling up community case management and strengthening High Impact Rapid Delivery (HIRD) for the under-5-mortality (U5M) & maternal mortality (MM) and malnutrition; and instituting essential newborn care.

Other policy measures are: ensuring safe blood and blood products transfusion; intensifying the implementation of strategies to reduce maternal mortality; continuing the implementation of the free health care for pregnant women including deliveries; continuing training and upgrading of skills of people engaged in traditional maternal health service delivery in deprived areas; sensitizing the public on entrenched negative cultural beliefs associated with maternal health; increasing coverage of community-based management of childhood diseases and nutrition; and scaling up implementation of essential nutrition actions. The remaining measures are: strengthening community/facility growth promotion including school feeding programme; supplementary feeding for malnourished children under five years of age and pregnant and lactating women; equipping district hospitals and health centers to handle obstetric emergencies; strengthening referral services for childhood and maternal emergencies and other essential services; and strengthening adolescent health service programmes at school, clinic and community levels.

7.3.9 Intensifying prevention and control of non-communicable and communicable diseases

To prevent and control the growth of non-communicable and communicable diseases, efforts will be made to establish screening and management programmes (for diabetes, hypertension, cancers, sickle cell, and asthma), develop capacity for research into communicable and non-communicable diseases and adolescent health programming, and strengthen co-ordination and accountability of agencies involved in attaining goal 6 of the MDGs.

Other strategies are: improve surveillance, epidemic preparedness and response to cholera, meningitis, yellow fever and address issues of emerging and other zoonotic diseases (e.g. H1N1, anthrax, rabies, avian flu etc); attain universal access for the following interventions: ITNs, IPTP, ART, DOTS; address issues of neglected tropical diseases (Guinea Worm, Buruli Ulcer, Filariasis, Lymphatic Leishmaniasis, Onchocerciasis, Schistosomiasis, etc); strengthen surveillance and provide adequate funding for achieving objectives set for diseases targeted for eradication (Guinea Worm, Polio) and elimination (Leprosy, Measles, Yaws, Blinding Trachoma, maternal and neonatal tetanus); address issues of other endemic communicable diseases (e.g. Typhoid, Hepatitis); institutionalize Rapid Diagnostic Test and Microscopy in all health facilities; scale up Indoor Residual Spraying (IRS) coverage by extending coverage to selected districts (with at least 90% of all structures in each district sprayed); improve malaria data management; and scale up home management of malaria.

The rest of the strategies are: improve household ownership and use of insecticide treated bed nets; advocate and work with District Assemblies to provide safe water and sanitary facilities in rural communities; implement National Behaviourial Change Communication strategy for lifestyles and integrate healthy lifestyles and regenerative health into curricula of schools and health institutions; promote chemoprophylaxis for pregnant women; increase funding for research; and improve dissemination and utilization of research results.

7.3.10 Strengthening Mental Health service delivery

The following strategies will be applied to strengthen Mental Health service delivery: pass the mental health bill and implement the mental health law; promote community-based services and ensure stakeholder collaboration; train and deploy more mental health personnel; scale up mental health promotion; establish services for treatment and rehabilitation of alcohol and drug addiction and other psychiatric conditions in all age groups, especially young people; establish and upgrade mental health facilities and infrastructure; and establish stress management centres at all levels. Other strategies are: embark on research on mental health and baseline surveys; develop and implement strategic framework for medical rehabilitation of the physically and mentally challenged in response to the Disability Act; and exempt mental health patients from the payment of premiums under the NHIS.

7.4 HIV and AIDS/STI/TB

The HIV and AIDS national prevalence rate of 2.9% among the general population poses a bleak future if strenuous effort is not made to check the pandemic. HIV, AIDS and Sexually Transmitted Infections (STI) and tuberculosis continue to have negative impact on productivity with respect to loss of productive assets, high treatment costs and a break in the transfer of valuable livelihood knowledge from one generation to the next.

The main prioritized policy-related issues are: adverse effect of HIV and AIDS/STIS/TB on quality of life and life expectancy of the people; high pressure on health care services and other scarce resources; and loss of quality human and material resources and high stigmatization. The policy objectives that will be adopted to address the adverse effect of HIV and AIDS/STI/TB and other related issues to promote healthy lifestyles are to: ensure the reduction of new HIV and AIDS/STI/TB transmission; ensure reduction of the impact of HIV and AIDS-related morbidity and mortality; and mitigate the negative socio-cultural effect of HIV and AIDS, and enhance their proper management.

7.5 Nutrition and Food Security

Nutrition and food security is an essential cross-cutting issue in addressing overall human resource development. Currently, there is a persistent high malnutrition rate among children, especially male children in rural areas and in northern Ghana. However coverage of nutrition programmes is limited geographically and there is a general lack of national nutrition and food security policy.

The following policy objectives would be adopted to address the issues relating to nutrition and food security: reducing malnutrition-related disorders and deaths among infants and young children and Women in their Reproductive Ages (WIRA); promoting the consumption of locally available and nutritionally adequate food including the consumption of micro-nutrient rich foods among children and WIRA; advocating for increased food security and social protection for vulnerable households including smallholder farmer households; developing a comprehensive national nutrition and food security policy; and mitigating the impacts of rising food prices as well as climate change on food security of the poor and vulnerable households.

7.6 Sports Development

Besides the contribution of sports to improved public health, unity, social cohesion, enhancement of an individual’s personal abilities, general health, self-esteem and professionalism, sports at a global level has attracted huge investments and earnings. This is in addition to fostering national and international friendship, cooperation and understanding.

Nonetheless, some of the main policy-related issues confronting sports development are: disparity in sports development especially of the lesser known sports; inadequate sports activities in schools; absence of a sports department in the schools systems for the sole purpose of organizing and coaching sports; absence of formal sports fixtures for various sports in schools; low funding of school sports; and low appreciation of the impact of sports on the development of persons.

Other issues are: untapped potential in sports development; lack of attention to foundational development; and imbalance between academic and physical activity on the one hand, and Physical Education and sports on the other. The rest include: lowered productivity of youth: unhealthy living, and lowered sport skills at the elite level; inadequate and poor quality of existing infrastructure; delay in passage of the new sports bill; over-centralization of sports management; misdirection of opportunities and funding; and deployment of lower level staff with multiple duties, as well as inertia among existing personnel.

The policy objectives to be pursued to promote sports development include developing comprehensive sports policy and legislation; promoting academicals/juvenile/school sports; and improving sports infrastructure and management.

7.6.1 Developing Comprehensive Sports Policy and Legislation

Measures to develop comprehensive sports policy and legislation include strengthening the legislation that regulates and guides sports development in Ghana; passing the new Sports Bill; and reviewing and implementing a comprehensive sports policy.

7.6.2 Promoting Juvenile/School/University sports

Policies to promote sporting activities, especially among the youth, focus on the re-introduction of juvenile/school /university sports. The strategies include reviving the concept of Academicals; vigorously support sports competitions among schools and universities from district to national levels; ensure availability and affordability of sports equipment; promote local production of sports equipment; build the capacity of community sports, amateur, professional and fitness clubs; promote the establishment of sports academies across the country; strengthen the capacities of the National Sports Council, National Sports Associations, National Sports institutions and colleges and sports-oriented NGOs; enhance the involvement of corporate bodies and individuals in sports promotion and development; promote national integration and unity through sports; promote international friendship, solidarity and cooperation; and enforce compulsory Physical Education (PE) in schools.

7.6.3 Improving Sports Infrastructure

Strategies to handle sports infrastructure include: providing adequate and appropriate sports and recreational facilities at local, district, regional and national levels; rehabilitating deteriorated facilities; enhancing mass participation in sports infrastructure development; and generating employment and revenue from sports facilities.

7.6.4 Improving Sports Management

Sports management will be addressed by: providing quality personnel at all levels; motivating personnel at both national and district levels; adopting a bottom-up approach to sports development; strengthening co-ordination mechanisms between the Ministries of Education, and Youth and Sports; and promoting democratic culture among sports institutions. Other management strategies will entail: fully decentralizing sports management; recruiting new staff and offering in-service training; coordinating bilateral support opportunities; and instituting exchange programmes to match national needs.

7.7 Productivity and Employment

7.7.1 Productivity

Productivity acts as a fundamental pivot around which all national development strategies revolve. It has an impact on economic and social development and is the ideal tool for balancing the country’s economic, social, technical and environmental objectives. A country’s ability to improve its standard of living over time depends on its ability to raise its output per worker. Productivity improvement is crucial to alleviate poverty and promote employment through increased competition among industries in the economy.

Higher productivity attracts foreign direct investment with related technology which in turn creates better jobs for domestic workers and can lead to job security, and higher wages as workers prove themselves capable of performing more sophisticated, higher value-added jobs in a low inflation economy. In Ghana, productivity improvement has been a challenge at the national, sectoral and enterprise levels in both the public and private sectors.

Productivity-related issues include: lack of a nationally agreed productivity-measurement framework; inadequate labour productivity management system, improper pricing of labour leading to low labour productivity and income; low prospects for career advancement, training or skills enhancement; and the existence of skills and entrepreneurial gap in the labour market. Gender gaps in access to various productive resources such as land, labour, capital, and entrepreneurship information also limit overall productivity.

The principal policy instrument relating to productivity includes adopting a national policy for enhancing productivity and income in both formal and informal sectors. Issues relating to productivity will be addressed by the following strategies: developing and implementing productivity measurement and enhancement programmes for the formal and informal sectors of the economy, supporting the development and implementation of capacity enhancement programmes that take into consideration the specific needs of men and women at both formal and informal levels; supporting the establishment of participatory and cooperative mechanisms to enhance income and job security in the informal sector; and adopting measures to integrate formal and informal sectors of the economy.

7.7.2. Employment opportunities in formal and informal sectors

Employment is a cross-cutting issue, and is therefore treated in of all the other thematic areas of this policy framework. This section therefore does not deal with everything as other areas also deal with their employment-related issues.

A number of guiding principles and actions are needed in productive employment within the framework of national employment policy. Inter-sectoral policies will be pursued to ensure sustainable employment, sensitive to economic growth and driven by enterprise creation, trade and investment activities, trainings/skills development and education and appropriate labour laws. However, employment promotion is confronted by a weak macroeconomic framework that is unable to translate decades of relative stability into employment gains, especially for the youth.

It is also characterised by limited job opportunities for graduate employment in the country; increasing vulnerability of the unemployed men and women aged between 15–35 years; underemployment, low productivity and low income earnings in agriculture, making it unattractive to young people; existence of skills and entrepreneurial gap in the labour market; inadequacy of targeting for skills training and other support services for men and women aged between 15–35years; negative effect of child labour; and lack of opportunities to gain and retain skills, through innovative means.

Others are: inadequate apprenticeship and entrepreneurial development; inadequate labour market opportunities; untapped potentials of ICT; inadequate recognition of innovation and creativity; and a public procurement regime that cannot be used as leverage for employment generation even though about 70% of the national budget (after personal emoluments) is spent on it. It is further constrained by poor enforcement of rules and regulations protecting private sector employment and inability of the Public Procurement Act, 2003 (ACT 633) to adequately generate employment as envisaged. Yet another constraint is a relatively small domestic market which is not able to absorb the increasing job-seekers.

Employment-centred cross-sectoral policy objectives to be pursued include: mainstreaming gender and employment issues in national and decentralized development planning processes; promoting employment opportunities in all sectors of the economy; promoting decent work in all industries; promoting skills and entrepreneurship development; strengthening the legal and institutional framework for labour administration; and employment management.

7.7.3 Mainstreaming employment issues in national development planning

Policy interventions relating to mainstreaming employment issues in national development planning include: maintain prudent macroeconomic management to promote growth with employment; review planning, budgeting and procurement guidelines to reflect employment generation as a requirement; support MMDAs to develop and implement employment generation programmes within the national employment framework; formulate and implement employment policy; and review existing private sector development strategies and programmes in line with Government’s employment policy.

7.7.4 Promoting decent work in formal and informal sectors

Strategies for promoting more and better jobs in both the formal and informal sectors include supporting selected industrial products to be produced domestically in labour-intensive environment (e.g. construction and building materials, agricultural equipment, motor vehicles, etc); expanding technical and vocational education and training systems like Integrated Community Centres for Employable Skills (ICCES) and Competency-Based Training (CBT) to provide resources (inputs); and offering technical support for SMEs.

Other strategies are aimed at: promoting entrepreneurial development; supporting skills and entrepreneurial training institutions to operate production units to offer practical training; developing and implementing a Rural and Urban Entrepreneurship and Artisan Project (RUEAP) to provide capital and technical support to potential businesses; developing and implementing a labour-based housing and public works scheme to reduce unemployment; instituting labour-based constructional projects in urban and rural roads, drainage and environmental sanitation systems; reviewing and enhancing the job creation capacities of previous and current employment strategies like the Youth In Agriculture Programme and the NYEP, to generate more productive jobs; establishing an ICT trainers programme to train SHS graduates in ICT applications (e. g. repair of mobile phones and other related gadgets); promoting Ghana as a major destination for ICT Business outsourcing by establishing ICT parks of international grade in selected locations; mainstreaming ICT in the curricula of public service training institutions.

The rest of the strategies include: supporting artisans and other professionals including mechanics, carpenters and electricians, hairdressers and beauticians to form strong district, regional and national associations to enable them qualify for Government support; training of unemployed graduates in fields where their skills will be needed; motivating graduates to take-up employment with the district assemblies and other sectors like education, where their services will be useful; expanding nursing and midwifery colleges and increase new students intake for health-care-related jobs; removing production and distribution bottlenecks in all sectors of the economy. Other programmes will focus on: providing adequate support for the growth and development of micro, small and medium enterprises (MSMEs); developing a comprehensive programme to improve the capacity of the informal sector; building the capacity of local publishing and printing industries to generate employment; and establishing a system to identify, promote and reward innovation and creativity at all levels.

7.7.5 Strengthening the Legal and Institutional Framework for Labour Administration

Policy interventions that will be adopted to strengthen the legal and institutional framework for labour administration and employment management include strengthening the capacity of labour institutions; enforcing rules and regulations governing labour administration including international standards, conventions and instruments; and ensuring adequate employment generation provisions in national laws and regulations.

7.7.6 Implementing a functional Labour Market Information System

There is inadequate labour market information system for a coherent and improved labour and employment management. In addition, institutional capacity for employment policy implementation is inadequate. Government will therefore continue to implement a functional labour market information system to support evidence-based decision-making in this direction.

The strategies to achieve the policy objective include: continuing the design and implementation of a labour market information system; supporting organization and dissemination of labour market information for informed decision-making; strengthening the research and gender analysis capacity of the Ministry of Employment and Social Welfare; promoting collaboration among users of labour market information; and restructuring and developing the institutional capacity of the Ministry of Employment and Social Welfare and its departments and agencies for the effective management of labour and employment policy issues.

7.7.7 Implementing policies and strategies to promote Workers Rights, Social Dialogue and Social Protection

Policies will be implemented to strengthen tri-partism, social dialogue and social protection, especially women and the vulnerable. The strategies to be implemented will include strengthening institutions for social dialogue and social protection; building the capacity of tripartite partners; and facilitating the enforcement of labour laws which protect the security, health and welfare of workers; and stemming the tide of casualisation of employment. The capacity of both public and private sector agencies, including the Factories Inspectorate Unit of the Ministry of Employment and Social Welfare will be enhanced to facilitate work-place occupational safety and health standards.

The Social Security and National Insurance Trust (SSNIT) will be supported to expand the Informal Sector Fund to cover the risks and pension requirements of informal sector workers, with focus on women. The implementation of these initiatives will be monitored to ascertain the progress of coverage for the informal sector.

7.8 Population Management

Maintaining population growth rate at a level capable of supporting and sustaining economic growth and social development is indispensable as the three are intrinsically linked. Furthermore, the current population structure, with a youthful population and a high dependency ratio, adversely affects the economic growth rate of the country. Weak population management structures and processes and inadequate population data for planning constrain effective population management.

Population management and provision of population data for planning will be targeted by the following policy objectives: integration of population variables into all aspects of development planning at all levels; repositioning of family planning (FP) as a priority in our national development efforts including making men partners in reproductive health; updating demographic database on population and development; creating awareness on the implications of population on development; and supporting the development of programmes on key emerging issues like urbanization, migration, the aged, the youth and persons with disabilities.

7.8.1 Ensure integration of population variables into all aspects of development planning

The relevant policy measures are to intensify education on population and development issues; and strengthen capacity of relevant stakeholders to integrate population issues into development planning processes.

7.8.2 Reposition family planning as a priority in national development

The re-positioning of FP will focus on measures to reinstate FP, including making men partners in reproductive health, as a top priority and integrate it into the plans and activities of MDAs and MMDAs; strengthen partnerships among stakeholders including the private sector to promote the family planning agenda; integrate sexual and reproductive health including FP, HIV and AIDS policies, programmes and activities; ensure access to relevant policy documents, guidelines and targets for population programmes; develop and implement coordinated and integrated advocacy plans; expand the pool of trained FP providers; provide support to guide and improve performance; increase availability and expand access to quality reproductive health (RH) including FP information and services; create awareness on the importance of investing in FP; and strengthen capacities for research, monitoring and evaluation.

7.8.3 Update demographic database on population and development

Strategies to be implemented include the following: ensuring timely collection, processing, analysis and dissemination of sex-disaggregated data to policy-makers, planners and the general public; strengthening the capacity of relevant institutions to collect, analyze and disseminate population and other relevant statistical data; and expanding births and deaths registration coverage. Conscious efforts will be made to integrate gender analysis in population information.

7.8.4 Create awareness on implication of rapid population growth on development

The required policy measures are: population policy research; analysis and dissemination of identified and emerging population issues such as urbanization, maternal health, gender, fertility, mortality, migration, the aged, youth and persons with disabilities; and assign them to appropriate programmes and activities.

7.8.5 Minimizing the negative impact and optimizing the potential impact of migration

There is an absence of a comprehensive policy, institutional and regulatory framework for effective management of migration in Ghana’s development. Currently, there is no structured mechanism for the management of internal migration in the face of increasing rural-urban migration and internal displacements due to large scale infrastructure development and extreme environmental events. The mobilization of human, technical, and financial resources from the Diaspora for national development has been minimal. There is also an increasing trend of irregular migration resulting in the loss of lives.

The major policy thrust for migration will be to minimize the negative impact and optimize the potential impact of both internal and international migration for Ghana’s development through the creation of a migration and development policy; establish a comprehensive institutional framework for the management of migration; harmonize legislation on migration; create a comprehensive database on migration, ensure policy coherence in migration and development; and manage/mainstream migration into the national development policy framework, sector and district plans; build the human, technical and logistical capacity of migration institutions for better migration management; and streamline/enhance the management of internal migration, including formulation of rural and urban development policies.

7.9 Child Survival, Development and Protection

Ghana’s population is very young with the 2000 Census indicating that children under 15 years of age constituted 44% of the population with those above 65 accounting for only 5% of the population. Children in Ghana are confronted with several challenges. These include neo-natal deaths; U5 mortality and child malnutrition; late detection of disability, mother to child transmission of HIV and AIDS; detention of children in health facilities for non-payment for health care; 30% of children are out of school; spatial disparities in child care; child poverty, children’s care crisis, increasing incidence of childhood cancers; 30% of children not staying with parents; child marriage, orphaned and vulnerable children; child headed families; weak enforcement of children’s rights; child abuse/violence against children; child trafficking; child labour; extremely poor household with orphans and vulnerable children (OVC) etc; child prostitution/pornography; streetism and children in conflict with the law; and child slavery.

Other challenges are; voicelessness; lack of counselling facilities for children and young persons; weak policy analysis, research and monitoring on children’s issues; ineffective policy, legal and institutional environment; inadequate focus on children’s issues; weak institutional framework for coordination and implementation of child policies; and underfunding of children’s programmes. Some of the remaining challenges include: weak sectoral coordination of children’s issues; weak district level planning on children’s issues; overlapping mandates and weak coordination among sectors; weak enforcement of legal provisions; inadequate budgets; and weak institutional capacity for monitoring and evaluation.

Several policies have been formulated and legislations passed to confront challenges children face in Ghana – the Children’s policy, under-five child health policy, early childhood development policy, the Domestic Violence and Human Trafficking Acts and their corresponding national action plans, a national action plan on child labour, and several social protection initiatives such as the National Health Insurance Scheme, capitation grant for public schools, free school uniforms, free bus-rides for school children, school feeding programme, and LEAP social grants to households with children involved in child labour. The implementation of these initiatives however continue to be plagued with bottlenecks such as overlapping mandates and weak coordination among sectors; weak enforcement of legal provisions; inadequate budgets; and weak institutional capacity for monitoring and evaluation among others.

The policy objectives to address concerns of children include: promotion of effective child survival and development; protecting children from physical, emotional and psychological abuse and securing their rights; promoting child participation in decision-making; and strengthening of the policy, legal and institutional framework for child survival, development, protection and participation.

7.10 Youth Development

Systematic development and mobilization of youth for sustainable national development deserves focus. The main policy related issues include: uncoordinated policy and institutional framework for youth development; inadequate vocational and skills training facilities; fusion of vocational/apprenticeship training with formal education thereby nullifying job training objectives; persistent growth of unemployment for both school completers, school drop-outs, and those who never attended; increasing street children phenomenon and crime; under-mobilization and utilization of youth talents; continuing growth of youth unemployment; and channelling of youth energies into anti-social activities.

Policy objectives to address the concerns of youth development include mainstreaming youth development into national development policy framework; ensure the implementation of the recently formulated youth policy; equip youth with employable skills; and introduce new initiatives for youth development.

7.11 Ageing

The aged constitute 5% of Ghana’s population. The new pension scheme will go a long way in providing social insurance for the aged in the informal sector and thus, reduce poverty among this group of the aged. There are many issues requiring policy attention with respect to ageing which include discrimination, abuse, neglect, violence, chronic health conditions and lack of access to nutritionally safe food and clean water resulting in nutrition deficiencies; lack of public support and institutional care systems; lack of geriatric specialists in the health sector; high cost of assistive devices; and lack of involvement in decision-making. All of these derive from the absence of a comprehensive policy on ageing.

Strategies for addressing the concerns of the aged include developing a national policy on ageing, which will ensure among others, active participation of older persons in society and development; protect rights of the aged; strengthen the family and community to provide adequate support to older persons; reduce poverty among older persons; improve health, nutrition and well-being of older persons; improve income security and enhanced social welfare for older persons; ensure adequate attention to gender variations in ageing; strengthen research, information gathering and processing, and co-ordination and management of data on older persons; strengthen capacity to formulate, implement, monitor and evaluate policies on ageing; and improve funding of programmes on older persons to ensure sustainability of policy implementation.

7.12 Disability

The prevention of disability and the care of PWDs as productive citizens is an important aspect of the development of the nation’s human resources. In recent times, disability has achieved a significant milestone with the enactment of the Disability Act and the establishment of the Disability Council.

Among the issues for urgent attention are the lack of a legislative instrument and time table to drive the implementation of the Disability Act; high incidence of poverty among PWDs due to very low levels/lack of formal education; inaccessible public transport for PWDs; inadequate and unfriendly walk ways for PWDs as pedestrians; inaccessible and unfriendly environmental, water and sanitation facilities such as uncovered drains/gutters; inadequate appropriate software for PWDs; lack of research on disability issues; and inappropriate agricultural extension services for PWDs.

The policy thrust for the medium-term will be the development and implementation of an action plan to enforce and fulfill the provisions of the Persons with Disability Act, Act 715, and the development of targeted social interventions for PWDs.

7.13 Reduction of Poverty and Income Inequalities

Ghana has made great strides towards reducing poverty over the past two decades. Economic growth initiatives have been largely pro-poor with a steady rise in pro-poor spending. Accelerated growth, debt relief and budget support provided the fiscal space that has allowed the country to make significant progress towards achieving the Millennium Development Goals (MDGs). Thus, Ghana is on track to meeting the MDGs for income poverty, hunger, primary school completion, gender parity at school and access to water. However challenges still exist with respect to the health MDGs and the goal on access to improved sanitation is not likely to be met by 2015 if the current trend continues. High levels of poverty among women due to lower literacy rates, heavier time burdens, and lower access to productive resources and weak communication strategies for Government policies on women’s issues still persist.

Other policy issues include: income inequalities; rural and slum poverty; and slow poverty reduction in the northern savannah and among women. Bridging the development gap between the north and the south and reducing income inequalities and rural poverty are critical with respect to different ecological zones especially the northern savannah and among different socio-economic groups especially women, the vulnerable and the excluded. The policy objectives in this regard are to reduce spatial and income inequalities across the country and among different socio-economic groups; strengthen the development planning system to integrate spatial/human settlement planning and socio-economic planning; and enhance access of the poor and vulnerable, especially women to comprehensive social protection systems and other economic opportunities. This development framework isolates these policy objectives for the purposes of ensuring that they receive considerable attention. The following section discusses the policy objectives identified, the current development challenges that informed them and their corresponding strategies.

7.13.1 Reducing Poverty among Women

Strategies aimed at slowing the increasing level of poverty among women will include promoting the economic empowerment of women through access to land, labour, credit, markets, information, technology, business services and networks, and social protection including property rights; promoting the social empowerment of women through access to education (especially secondary, vocational/ technical and tertiary education; non-formal education, opportunities for continuing education for school drop-outs; and scholarships), creating access to health/reproductive health services and rights, legal aid, social safety nets, social networks; and ensure adoption of affirmative action policy/law to increase participation of women in areas of leadership and decision-making with the target of attaining a minimum of 40% women representation in political and public service appointments.

Further measures include encouraging artisans and other tradesmen and women including farmers to form strong district, regional and national associations; facilitate institutional strengthening, capacity building for public educational institutions to mount consistent country-wide sensitization on harmful customary practices (NCCE, CHRAJ, Ministry of Information); passing the Spousal Property Rights Bill, and the Interstate Succession Bill; starting processes and facilitating multi-sectoral consultative meetings with critical stakeholders (Political parties, CSOs, Women’s Advocacy groups, MPs etc); drafting policy or law (considering possible constitutional amendment, and feed into the amendment process); reducing chronic poverty and its associated issues of vulnerability and exclusion; promoting the political empowerment of women through decision-making at the household, community and in public life; access to rights and entitlements, and management of self-imposed risks; extend the coverage of existing social protection programmes to vulnerable women and create new ones; mainstream special women’s social protection policies and programmes in the national development process; adopting and implementing information dissemination through partnerships with NGOs, CSOs and CBOs; ensuring women’s access, participation and benefits in all labour-related issues (employment, training, social security for both formal and informal sectors, promoting women’s business, credit, etc); expanding special employment schemes for the youth, women and PWDs; and ensuring constant communication and information dissemination of Government policies on gender equality and women empowerment.

7.13.2 Reducing poverty among food crop farmers and other vulnerable groups

Food crop farmers and other vulnerable groups such as persons with disabilities are among the poorest socio-economic groups in Ghana. Strategies to be implemented under this objective are: develop and implement a programme to expand access of extremely poor farmers to complementary farm inputs and services; engage banks and alternative micro-finance institutions to deliver flexible packages to meet women’s needs and constraints; and enhance income generating opportunities for food crop farmers, and PWDs.

7.13.3 Implementing preventive, promotional, protection and empowerment interventions

Certain categories of Ghana’s population are faced with multiple vulnerabilities due to chronic poverty, negative impacts of policies (especially macroeconomic), health, environmental, idiosyncratic shocks as well as denial of rights due to socio-cultural belief systems and practices. This group includes women and children in difficult circumstances, such as abused women and children, poor women heads of households, some categories of people with disabilities including children, people living with HIV and AIDS, unemployed youths and those in vulnerable employment without social protection.

Some preventive, promotional, protection and empowerment strategies have been adopted to ensure the full inclusion of these populations into national development. These include the national action plan on child labour; disability policy and action plan; policy on the aged and action plan; the women’s development fund; the domestic violence act and plan of action; the national health insurance scheme; and the free maternal health scheme.

Implementation of the policies and programmes in the National Social Protection Strategy, the LEAP programme, a conditional cash transfer programme targeting the extreme poor, the aged people with severe disabilities, and households with child labourers will be scaled up.

The medium-term objectives will be to develop a common targeting mechanism to ensure efficiency and complementarities between the LEAP and other social protection programmes. The coordination of the provision of complementary services by other sectors will also be pursued to ensure a multi-pronged approach in dealing with poverty in a sustainable manner.

While Ghana has a number of policies on social protection, these have not been harmonised and are not coordinated within a comprehensive guiding vision. Lack of a comprehensive vision of social development and weak institutional capacities have led to gaps in the delivery of social services and entitlements. Thus while educational and health policies exist among others to ensure productive human resources, social safety nets for the poor, including tax redistribution in favour of the poor and increased pro-poor spending, specific policies dealing with the vulnerable and excluded, are absent. The responsibilities of social reproduction and care, which are basically left to women and go unremunerated and undervalued, and which hold down women’s ability to earn sustainable incomes and compound their structural disadvantages, will be reviewed and supported with appropriate policy interventions.

7.13.4 Reviewing the National Social Protection Framework

The existing National Social Protection Strategy will be reviewed to provide a vision of social development for the country and address policy gaps in the areas of reproduction and home-based care, redistribution, social protection, and social integration. It will also ensure mainstreaming of a human rights framework into development, streamline overlapping mandates and strengthen institutions in the social sector, especially in neglected areas as well as the introduction and implementation of social budgeting and enhanced monitoring and evaluation.

7.13.5 Strengthening the Family and the Provision of Care

The care economy or social reproduction is critical for the regeneration of the country’s labour force, and fundamental human rights. It is however one of the neglected areas of social policy. Weakening traditional care systems in the face of social change and the inertia of the state in responding to these has led to a care crisis, compounded further by the HIV and AIDS pandemic, migration, and chronic poverty, among others. The provision of care largely by women (as unpaid work), has implications for their labour force participation and economic development at large. Although the rules of the System of National Accounts (SNA) admit that the care economy is a sub-system of production, it is excluded from the calculation of the Gross Domestic Product (GDP).

The objectives are to develop a comprehensive policy on care work, including a family policy. Strategies include strengthening and resourcing the institutions and caregivers already involved in providing care for orphans and aged persons with severe disabilities; promoting a national discourse on the provision of care, and its gendered dimensions; and ensuring equal participation of men and women in the care economy. Strengthening the family as a basic unit of society, transmission of its core values through integration into school curricula as well as training of more social workers to work with families will also be pursued.

7.13.6 Livelihood Empowerment against Poverty Programme

The Livelihood Empowerment Against Poverty (LEAP), a social grants programme, which is in its fourth year of implementation will be reviewed and scaled-up as part of a national social protection strategy targeting households with out of school children, households with children as heads, people with severe disabilities, lepers, and the aged poor.

7.14 Special Development Zones

7.14.1 Geographical Disparities in Development

Bridging the development gap between the northern and southern parts of the country has been a long-term goal of most post-independence Governments of Ghana. The establishment of the Savannah Accelerated Development Authority (SADA) with the passage of the enabling law by Parliament and the assent to same by the President provide a new special purpose vehicle to address the historical imbalance in social and economic development between the Northern

Savannah, which includes the northern parts of the Volta and Brong Ahafo Regions and other parts of the country. Other special purpose vehicles that are expected to address peculiar social and economic problems are the Millennium Development Authority (MiDA) and Bui Dam Authority. All the three Authorities operate directly under the Office of the President.

The policy initiative to reduce spatial and income inequalities has necessitated the establishment of the Western Corridor Development Authority, the Eastern Corridor Development Authority, the Capital City Development Authority and the Forest Belt Development Authority. These Authorities are programmed to address the development gaps in their target areas with emphasis on addressing the problems of the poverty-endemic areas of the country.

For effective and efficient implementation of accelerated development programmes, CEDECOM will be subsumed by the Western Corridor Development Authority, whose mandate will cover the Western and Central Regions. The proposed Keta Basin Development Authority will be subsumed by the Eastern Corridor Development Authority whose mandate will cover the southern and middle belts of the Volta Region and the Accra and Afram Plains. The Forest Belt Development Authority will cover the forest zones in the Eastern, Ashanti and Brong Ahafo Regions while the Capital City Development Authority will be a special Development Zone covering the metropolitan, municipal and district assemblies within Accra and Tema general areas.

Chapter Eight: Transparent and Accountable Governance

8.1 Introduction

The broad goal of transparent and accountable governance is to empower state and non-state organisation and institutions as well as the general public to participate in the national development process and to collaborate effectively to achieve the national development goals and objectives. The participatory process is to ensure that political, economic and administrative authority is exercised in a manner that ensures that public resources are managed efficiently and with integrity in response to the problems and critical needs of the people.

Good governance places emphasis on the principles and tenets of transparency and accountability in the exercise of political, economic and administrative authority for ensuring peace, stability and national cohesion.

8.2 Challenges to Good Governance

Although Ghana has made significant progress in achieving a system of good governance compared to the other countries in the sub-region and the continent at large, there still remain a number of critical challenges that require urgent resolution to deepen and sustain the progress made. These include: conflict of roles between and among the arms of government and governance institutions; resource disparity undermining the role of different arms of government; inadequate participation of civil society in governance processes; little interest of citizens in the democratic processes; and a perception of corruption in the public sector.

In view of this, the key areas of policy focus of governance for the medium-term are: deepening the practice of democracy and institutional reforms; local governance and decentralization; public policy management and public sector reform; enhancing development communication; participation of women in governance; corruption and economic crimes; rule of law and justice; public safety and security; access to rights and entitlements; national culture for development; domestic and international relations; migration for development; and evidence-based decision-making.

8.3 Deepening the Practice of Democracy and Institutional Reform

Key policy objectives that have been identified include: Strengthening Arms of Governance and Independent Governance Institutions; Enhancing Civil Society Participation in Governance; Promoting Coordination, Harmonization and Ownership of the Development Process; Promoting the participation of State and Non-State Institutions in governance processes.

Strengthening Arms of Governance and Independent Governance Institutions: The three arms of Government represented by the Executive, the Judiciary and the Legislature perform critical roles in the democratization processes of the state. Currently however, there are still grey areas and inadequate definition of functions resulting in periodic conflicts between and among them. Resource disparity undermines the role of these different arms of governance; in particular independent governance institutions are generally under-resourced. There are also inadequate transition regulation arrangements in place to effectively manage the transition process during changes in administration.

Strategies identified to achieve this objective include the following: review constitutional provisions to ensure clarity of roles and responsibilities of governance institutions and arms of Government; build capacity of governance institutions and Parliament to draft laws and perform oversight responsibilities; establish relative resource parity; and ensure enactment of the Transition Bill. Special attention is to be paid to the work of the Constitutional Review Commission which is tasked with the responsibility of collating views on amendments to the Constitution among other things.

Enhancing Civil Society Participation in Governance: The role of civil society as key stakeholders/ partners in the development process is very crucial to achieving transparency and accountability. Civil Society Organisations (CSOs) have not been actively involved in the decision-making process in the country for various reasons. This is attributed to either lack of interest or that they are not well informed on the democratic process to enable them participate. Their active participation in the governance process would enhance grass-root participation, as well as a “bottom-up” approach to governance, as most civil society organisations are located within communities and are well placed to articulate the views of the local citizenry on governance issues. Their participation also ensures accountability and transparency in governance processes. Strategies identified to achieve this objective include the following: review the legal and institutional framework for the management and operations of civil society organisations; facilitate coordination among CSOs; and identify clear and specific roles of civil society groups.

Promoting Coordination, Harmonization and Ownership of the Development Process: The coordination, harmonization and participation of the general public or ordinary citizens in the policy formulation and dialogue processes are very central to the issue of ownership. There is however the need to coordinate and harmonise the participatory process effectively. Strategies identified to achieve the needed outcomes include: undertake in-depth consultations between and among stakeholders and institutionalize a mutually agreed framework for development dialogue. The Meet the Press series, “Peoples Assemblies”, Town Hall Meetings and “Policy Fairs” at all levels are very useful instruments in this regard.

Promoting the Participation of State and Non-State Institutions in Governance: Over the years, the participation and involvement of state and non-state institutions in governance have not been adequate. This state of affairs has been generally attributed either to lack of interest or discrimination on the part of the key players and drivers of the process. In order to ensure effective participation of all stakeholders there is the need to make deliberate effort to involve all interest groups in policy processes. Government will continue to organise and expand public policy fairs to engage the citizenry in policy formulation, implementation and evaluation. The main focus of the strategy is to identify, institutionalize and entrench the participation of all institutions and stakeholders, both state and non-state, in the governance process.

8.4 Strengthening Local Governance and Decentralization

Promoting citizen’s participation in local governance will necessarily require accelerating the process of devolution of political power to the district and sub-district structures. Strengthening local governance within the concept of democratic principles implies getting the people involved in decision-making, especially grassroots participation to ensure a bottom-up approach to governance. This is necessary to nurture, uphold and entrench the principles of transparency and accountability in governance processes. This additionally implies the need for an effective coordination, communication and harmonization between and of the different levels of Government i.e. national, regional, and district, in terms of development planning, implementation, monitoring and evaluation, and funding. This will ensure that the elected representatives of the people are both visible and audible.

The policies to strengthen local governance and decentralization are organized under three broad categories, namely: administrative, political and fiscal decentralization.

8.4.1 Administrative Decentralization

Ensure Commitment to the Implementation of Local Government Service Act: The major identifiable challenge facing the implementation of Local Government Service Act, 2003, Act 656, is its inconsistency with parts of the Local Government Act, 1993, Act 462, the unclear relationship established between the Ministry of Local Government and Rural Development, and the Local Government Service and the lack of clarity of roles and administrative coordination at district and sub-district levels. To address these issues, strategies identified include the following: review Acts 656 and 462 and ensure their consistency and harmonization; and finalise and implement the National Decentralization Policy and Plan derived from the decentralization consultations and the National Stakeholders Conference on Decentralization.

Mainstreaming Employment into District Economic Development Plans: National macroeconomic policies have not been able to translate relative macroeconomic stability into employment gains successfully. This is aggravated by the inability of district assemblies to mainstream employment issues in their development plans. Strategies identified to ensure creation of employment opportunities especially for the youth at the local level include: provide support to District Assemblies to facilitate, develop and implement employment creation programmes based on their natural resource endowments and competitive advantage.

8.4.2 Political Decentralization

Promote the Growth and Maturity of Democracy: The most prominent challenge facing the growth and maturity of democracy is the lethargic attitude of citizens in the democratic process. The principal focus of the main strategy identified would therefore seek to institutionalize democratic practices in local government structures.

Strengthen Functional Relationship between District Assembly Members and Citizens: The lack of interest of citizens in the democratic process has brought about the existence of a communication gap between district assembly members and the citizenry at the district level. To bridge this information gap, identified strategies to be adopted include the following: fully operationalize the Local Government Act 1993, Act 462 and institute attractive incentives for Assembly members to enable them perform the duties assigned to them under the Act effectively.

Operationalize and Strengthen the Sub-District Structures: The process of transferring authority from central government to the decentralised structures has not permeated down to the sub-district level. This has adversely affected the process and the pace of implementation of decentralisation. The focus of the strategy identified to address this is to review and restructure the numbers and composition of the unit committees and ensure that the unit committees perform the functions assigned to them under LI 1589 of 1994.

Establish Member of Parliament Constituency Development fund: Numerous conflicts have emerged in recent times between Metropolitan, Municipal and District Chief Executives and Members of Parliament over the use of financial resources allocated to the MPs Common Fund. This state of affairs is undesirable and has implications for peace, stability and socio-economic development at the district level. To address this bottleneck, there is the need to de-link the “MPs Common Fund” from the District Assemblies’ Common Fund and set up a separate “Constituency Development Fund” for the MPs to be resourced from the Consolidated Fund.

Ensure Harmony as well as Synergy Necessary for Expeditious Actions by Ensuring Clarity in Local Government Laws: Inconsistencies in local government laws have been a major source of conflict and confusion that continue to hamper progress in accelerating the pace of the decentralization process. To improve the clarity and issues of interpretation including gaps, strategies identified include: review, streamline and harmonize laws governing decentralization and local governance to remove inconsistencies; sensitize all MMDAs, institutions, agencies and the range of stakeholders on the revised laws.

8.4.3 Fiscal Decentralization

Efficient Internal Revenue Generation Leading to Financial Autonomy of the Districts: Development at the district level has been negatively affected by the problem of non-viable districts and inadequate resources resulting from weak internal revenue generation and mobilization. This has resulted in over-dependence on the District Assemblies Common Fund (DACF) and other external grants. The situation has further been exacerbated by the lack of effective inter-district revenue sharing arrangements. Strategies identified to address these include: a review of district demarcations and the IGF sources; implementation of the Danish Support for District Assemblies (DSDA II) and other best practice database initiatives replicated in all districts; and develop the capacity of the MMDAs for effective revenue mobilisation.

Ensure transparency in management of districts and local fiscal resources: Transparency is essential for efficient management and utilisation of scarce financial resources at all levels of Government. District Assemblies need to be held accountable for the utilisation of public funds allocated to them. Unfortunately, however, the problem of weak financial management practices is rampant and there is a general lack of accountability and transparency in the utilisation of the District Assemblies Common Fund and other resources at the district level. Strategies identified to address these bottlenecks include: strengthening the collection mechanism and dissemination of relevant information to the public and other stakeholders on regular basis; and the revaluation of properties and review of other sources of revenue as well as prompt auditing of District Assembly accounts.

Ensure regular annual external auditing of Assemblies’ Accounts: Many of the Districts do not have an office of the Ghana Audit Service in their area of jurisdiction. Even those in the neighbouring Districts are so busy that many of the Districts have many years of unaudited Annual Accounts. The strategy therefore is to ensure that District Assembly Accounts are externally audited annually without any arrears on regular and continuous basis.

8.5 Public Policy Management

Attempts at addressing the challenges of public policy management have been on-going for some time. Consensus building, improved participation and consultations among the range of stakeholders constitute an integral part of the policy formulation process right from the conceptualisation phase to the drafting of the policy. Further deepening of the process of ensuring participation of stakeholders including political parties, state and non-state actors, and traditional authorities in the design and implementation of the national development agenda is an effective mechanism for promoting and achieving broad national consensus and ownership. The outcome of efforts to date however, points to the existence of critical bottlenecks that require immediate attention.

Accordingly, the broad objective of policy will be to seek to promote and strengthen national ownership and achieve national consensus to ensure policy sustainability. The thrust of the policy interventions will be to accelerate the process through increased attention to the improvement of the operational mechanisms with emphasis on the capacity of the available human resources. To effectively address the identified challenges the focus will be on the following key interventions:

Strengthen the Coordination of Development Planning System for Equitable and Balanced Spatial and Socio-economic Development: The generally poor commitment to development planning in Ghana has resulted in the failure to integrate spatial and human settlement planning, and uneven and unplanned spatial development in many parts of the country, especially in the major urban centres. This policy objective seeks to improve efficiency in the development process and ensure focused development and judicious use of limited resources at all levels. The following strategies would be pursued: strengthen the coordinating function of the NDPC to enhance evidence-based decision-making and resource allocation at all levels; enact a Legislative Instrument (LI) to guarantee effective execution of NDPC’s mandate on planning functions and processes; clarify the roles and relationships between NDPC, MOFEP, MDAs, RCCs and MMDAs for effective development planning; strengthen capacity of NDPC, MDAs, RCCs, and MMDAs in development planning including monitoring and evaluation; institute a training programme for all MDAs and MMDAs in gender sensitive policy making and gender responsive budgeting; develop management information systems for tracking spatial investments to facilitate resource allocation and investment decision-making; and enforce planning laws and regulations at all levels.

Upgrade the Capacity of the Public and Civil Service for Transparent, Accountable, Efficient, Timely, Effective Performance and Service Delivery: The need to formulate a comprehensive human resource development policy for the civil and public services is rather overdue. This is essential to effectively develop their capacities to optimize output. Also worth mentioning is the need to provide a remuneration structure that will make civil servants more effective and efficient. Ineffective supervision is another hindrance to productivity. Strategies identified to address these include: review the current status of the on-going public sector reform programmes to enhance accelerated implementation; and develop a comprehensive human resource development policy for the public sector to include reasonable remuneration.

Rationalize and Define Structures, Roles and Procedures for State and Non-State Actors: The functions of MDAs are very often not clearly defined. This creates a situation where there is duplication and overlap of functions among the MDAs resulting in misuse and waste of resources. In order to address this, efforts will be made to undertake a comprehensive review and clarify the mandate and functions of state and non-state actors.

Institutionalization and mainstreaming of Sustainable Development Principles: Due to the improper integration of environmental issues into public policy processes, the efficient exploitation, use and management of natural resources have attracted decreasing attention at the policy level. The need for the judicious exploitation and use of the world’s natural resources has been at the core of the current global agenda for sustainable development in line with MDG 7 i.e. mainstreaming of sustainable development principles into national policies and programmes. The absence of an appropriate framework to regulate environmental impact in the sectors has been identified as one of the root causes. The focus of the strategy is to ensure that sustainable development principles are institutionalised and mainstreamed by demanding the mandatory use of Strategic Environmental Assessment (SEA) in public policy processes.

Provision of an efficient e-Governance structure to ensure good practices: Inadequate infrastructure to ensure effective networking among the various Government institutions has contributed to weak collaboration among these sectors. The absence of an effective e-Governance structure provides an excellent environment for cyber crimes. To address these lapses, increased attention will be devoted to the implementation of the following measures: integration of institutional networks within public sector and shared resources; make automation and networking compulsory as a tool to reduce fraud; initiate network design for the whole country taking into account all institutions within public sector and the e-Governance set-up; re-engineer operations of CEPS, IRS, VAT Service, MOFEP, Controller and Accountant General’s Department (CAGD) and the Bank of Ghana. These and other vital sectors of the economy have to be fully automated, networked, interfaced and interconnected.

8.6 Public Sector Reforms

Past attempts at Public Sector Reforms (PSRs) have been assessed as having achieved limited impact. To a large extent, the past failures came about because reform activities were detached from the mainstream of ministerial responsibilities and accountability for the management of the sectors of the economy. To get back on track with reforms a “new approach” to Public Sector reforms will be adopted. Under the new approach, leadership activities in public sector reforms will be located at the Office of the President. This measure is justified by the cross-sectoral nature of Public Sector Reforms which requires that a higher authority other than a Minister coordinates the reform agenda.

This new approach to Public Sector Reform aims to use the reforms as a tool for accelerated and sustainable development, by breaking existing barriers and challenges to the achievement of two major objectives of the “Better Ghana” Agenda, namely (a) putting food on peoples’ tables; and (b) providing citizens with secure and sustainable jobs.

Currently on-going programmes for improvements in the implementation of MDBS, FASDEP and DDF will be continued as doing otherwise will be too disruptive and financially counterproductive. By the new job creation and food production initiatives, Government believes that it will be extracting higher productivity from various sectors of the economy as the expected output will be additional. On-going work on subvented agencies and the Single Spine Pay Policy as well as the re-tooling of the Ghana Civil Service will be continued.

The “New Approach to Public Sector Reform” is geared towards having Sector Ministers assume responsibility for, and become pro-active in tapping resources for public sector reform and for their sector programmes. The approach is therefore sector-driven and answers the question: “reform for what?”

Public sector reforms is, consequently, being positioned to be of direct assistance to Ministers, along with other forms of assistance, to bring about verifiable changes in their sectors for the benefit of the people of Ghana. The new approach also calls for the strengthening of Ministerial organizations and hence, the Civil Service, and the need to make the leadership of the Civil Service real partners to the political leadership.

The approach emphasizes the use of Ministerial Advisory Boards (MAB), including private sector and civil society representatives as a principal mechanism for Public-Private-Partnerships (PPPs) in optimizing the deployment of resources in each sector of the economy. Through this mechanism, the Ministry of Food and Agriculture, for instance, will be expected to use mostly private sector resources in funding their programmes. The Ministry of Defence will fund their job creation proposals through private sector financing. Programmes and projects spearheading the reforms are being processed into a Coordinated National Programme on Job Creation and a Coordinated National Programme on Public Sector Reform. The Public Sector Reforms will be underpinned by the following interventions:

  • Leadership orientation;

  • Institutional Change (structure and processes);

  • Optimum Capacity deployment; and

  • Provision of other resources.

8.6.1 Leadership orientation

The new approach to reform is demand-driven and results-oriented in nature. It requires a mindset change away from business as usual especially for those leading the change. The focus of the reforms will be reflected in institutional changes that will be required to enable the development outcomes to be achieved within the prescribed timeframes.

This will also be premised on inter-sectoral consultation to ensure that there is interaction among ministries in executing key reform interventions. The achievement of the new approach depends on the coordination and measured interaction of the different sectors and areas of development. Thus, the discussion and agreement of interventions at the Cabinet level will ensure improved clarity of complementarities among sectors and integration of programmes and project interventions. An effective accountability framework for the leadership is expected to create the necessary incentives to drive performance throughout the MDAs and their complementary private sector organizations to achieve the desired development outcomes.

8.6.2 Structures and Processes

Enhanced institutional structures and processes are required to facilitate effective execution of the programmed interventions in a focused way. The following institutional structures will hence play critical roles in the reform process:

Policy Evaluation and Oversight Wing of the Policy Unit at the Presidency: The Unit will directly support Sector Ministers by providing advice, where required, to ensure that various programmes and interventions developed to meet the planned development outcomes, are in line with the national policy priorities. These would be reviewed and the appropriate levels of reporting provided to the President.

Ministerial Advisory Boards (MABs): With the introduction of the MABs (as defined in Section 39 (1) of the Civil Service Law, PNDC Law 327) a mechanism is in place for the Ministers to gain a good understanding of the problems and potential resources of their particular sector. The MABs inter-sectoral representation constitutes a very effective platform for the Ministers to discuss and establish initiatives to ensure the reform interventions are executed in an effective and efficient manner. Given their private sector representation, the MABs are to facilitate the effective engagement of the private sector to ensure the reform interventions are driven through Public-Private Partnerships (PPPs).

Project Advisory Committees (PACs): PACs are to be established to provide technical support to the MAB’s. The PACs will be made up of a cross section of technical experts from different Departments and Agencies who support the work or operate under the Ministry. The PACs will act as technical sounding boards for the Ministry in the development and execution of initiatives. The PACs will be tasked with providing technical inputs to support the planning, programming and execution of the ‘job creation’ and ‘food production, processing and distribution’ reform interventions.

Project Management Unit (PMU): Every Ministry is to set up as a matter of urgency a Project Management Unit dedicated not only to the implementation of the various Job Creation and Food Production reform initiatives but also other projects under the Ministry.

Cabinet and the Cabinet Secretariat: Public Sector Reforms are to be part of sector-based programmes and will have to receive Cabinet approval as state policy and conveyed to sector Ministers as Cabinet decisions to be implemented in consultation with and assistance from the PSR Secretariat.

Public Sector Reform Secretariat (PSRS): The integrity of the new approach to public service reform is safeguarded by the caliber and performance of a highly specialized technical secretariat. The PSRS will be responsible for the overall administration, technical coordination, financial management, monitoring, and evaluation of reform activities carried out by the MDAs/MMDAs.

8.6.3 Optimum Capacity Deployment

A key aspect of the new approach is the deployment of immediate expertise required to implement specific reform initiatives in all the targeted sectors. The PSRS will work in conjunction with the PACs and PMUs to undertake a capacity needs assessment to identify all the competency gaps related to the reform interventions. This will include sectoral and cross-sectoral expertise requirements. Ministers will be expected to:

  • Deploy public servants where they have the requisite expertise;

  • Where public servants can be given short-term training in a period that suits the project implementation schedule, this will be done;

  • In cases where there are deadline pressures, a local consultant can be engaged to fill a position in the MDA on a short-term assignment while the public servant undergoes training and/or understudies the consultant to take over as soon as possible; and

  • In the situation where the required skills cannot be identified locally, an international consultant (retired public servant) will be engaged to perform the immediate tasks in the MDA as well as mentor local public servants.

The new approach to immediate skills deployment stems from the urgent need for Ghana to considerably raise its project implementation capacity and by so doing, improve the absorption capacity with respect to resources made available by Ghana’s Development Partners. Currently, the capacity is unacceptably low. Mindful of this low project implementation capacity, general training will be stepped up across-the-board in the following disciplines:

  • Project planning and design;

  • Project management;

  • Financial management;

  • Procurement planning and management;

  • Evaluation and impact assessment of projects; and

  • Problem-solving-oriented Human Resource Management, particularly in support of the activities of the Fair Wages and Salaries Commission in the implementation of the Single Spine Pay Policy.

8.6.4 Provision of other resources

The PSRS will facilitate the provision of the requisite resources to support the execution of the reforms. This will be focused on ensuring that the PMUs, PACs and MABs are fully operational. Resource support will be demand-driven to address the peculiar needs of each sector Ministry and reform intervention. The PSRS will work with each Ministry to develop a resource support plan. Although the PSRS will not provide the actual funds for the specific reform resource intervention, it will support the Ministry to seek requisite funds from Government, Development Partners and the Private Sector.

8.7 Development Communication

The overarching goal of Development Communication under the medium term framework is to create a dynamic communication system that enables all stakeholders to have a voice in decision-making, and consensus building for development effectiveness. It is expected to initiate and mainstream a strategic framework for institutionalizing inclusion, voice and social accountability in public policy formulation, implementation and monitoring, as well as securing ownership and sustainability of sector-wide programmes. The following objectives will be pursued within the medium term:

Improve transparency and access of the public to information: The passage of the Right to Information Law will ensure transparency in Government’s activities, and expand the communication functions of public sector institutions. An Access to Information Implementation Plan will be developed, and the capacities of Ministries, Departments and Agencies as well as Metropolitan, Municipal and District communication units built around their renewed mandates and information management.

Mainstream development communication across the public sector and policy cycle: Participation of the citizenry, especially vulnerable groups in policy and other decision-making processes will be enhanced through continuation of mainstreaming development communications across the policy cycle; formulation of a Development Communication Strategy; review of the development communication function within the Planning Systems Law (Act 480); expansion of the current public relations mandate of the Ministry of Information to include Development Communication; and coordination of cross-sectoral communication and rolling out of communication structures at all levels.

Promote Social Accountability in the public policy cycle: Even though participation is the cornerstone of Ghana’s decentralized planning system, and policy space have been provided for the participation of civil society in policy formulation, planning and monitoring and evaluation, civil society has not fully utilized available space for better accountability in the public cycle. A social accountability framework will be established through the review of existing participatory processes within the policy cycle; effective communication channels will be established between Government and the Civil society; information asymmetry between the public sector and civil society will be addressed to promoting better engagement with the policy process; and the capacity of civil society built to promote greater social accountability within the policy process.

Enhance the capacity of the Media for Enhanced Development Communication, Accountability and Press Freedom: The media is strategic to the development communication agenda and will thus be positioned to play this pivotal role. The existing legal and regulatory framework within which media houses operate will be reviewed and enhanced to make the media more relevant to the developmental needs of the country. The enactment of a Broadcast Law, review of legislations on the National Media Commission and the National Communications Authority are expected to boost press freedom and media accountability.

8.8 Women and Governance

Over the years, Ghana has made significant strides in reducing disparities in the representation and participation of men and women in public life. Women in Ghana contribute immensely to national development. However, there is still inadequate representation and participation of women in political and public service appointments. There is therefore a need to encourage and support women to actively involve themselves in public life and governance by implementing a policy of affirmative action and also strengthening institutions dealing with women and children. The following policy objectives have been identified in the endeavour to include women in all spheres of governance.

Empower Women and Mainstream Gender into Socio-Economic Development: Gender has not been effectively mainstreamed into the formulation and implementation of public policies. It is important for the pace of the implementation of the policy of affirmative action to be increased in order to empower women for accelerated socio-economic development along with the strengthening of institutions dealing with women and children’s issues.

Review and enforce existing Laws Protecting Women’s rights: Despite the many efforts to incorporate an effective women’s rights policy in all spheres of political life, the prevalence and practice of many outmoded customs detrimental to these efforts still abound. There is still inadequate support for victims of violence. Interventions to address these include: review and strengthen on-going awareness campaign on existing laws and practices; enhance capacity of appropriate enforcement and related agencies; expand coverage of the institutions dealing with women’s rights; and enhance the implementation of the Domestic Violence law and institute deterrent sanctions for perpetrators.

8.9 Fighting Corruption and Economic Crimes

Although institutions such as the CHRAJ, EOCO (formerly SFO), and the Audit Service exist to check malfeasance in public administration, corruption and economic crimes still pose a challenge to good governance. The broad policy area of fighting corruption and economic crimes focuses on the following policy interventions in order to address the issue:

Promote Transparency and Accountability and Reduce Opportunities for Rent Seeking: Transparency and accountability continue to remain a challenge for the nation. In this regard there is the need to address the challenge particularly as it affects the public sector. Strategies to be adopted therefore seek to enforce the implementation of the Public Procurement Act 2003, Act 663; Internal Audit Agency Act 2003, Act 658; and other Public Financial Management laws, implement the Whistleblower’ s Act and enforce existing laws on bribery and corruption, extortion, wilful oppression, and wilfully causing financial loss to the state.

Strengthen and empower anti-corruption institutions: A strong institutional foundation is needed to fight against corruption. Unfortunately, the existing anti-corruption institutions are weak in terms of capacity, coordination and collaboration. There is the need for them to form a united front to effectively check corrupt practices. Strategies to be adopted include the following: enforcement of legal, operational and financial standards and enactment of the Freedom of Information Bill.

8.10 Enhancing Rule of law & Justice

Increase the capacity of the legal system to Enhance Speedy and Affordable access to Justice for all: More often than not, there is delay in resolution of cases within the judiciary. Besides, the cost of legal processes is high and often unaffordable to the poor. These constitute major setbacks to the judicial process in promoting law and justice. The capacity of the legal sector to enhance speedy and affordable justice needs to be increased to support the quick disposal of cases. The identified strategies to address these include: improve case management systems of the courts including scaling-up mechanisms; enhance human resource levels; expand infrastructure and revise and implement rules of procedure; effectively mainstream alternative dispute resolution (ADR) mechanism; review the Legal Aid Act, 1997, Act 542, and create under the Legal Aid Scheme a Directorate of Public Defenders (DPD) analogous to the Directorate of Public Prosecutions at the Attorney General’s Department as well as Citizens’ Advisory Bureaux to give free legal advice to citizens; and broaden access of the poor to legal aid.

Strengthen the capacity of judges, lawyers, the police and Para-legal staff in both public and private sectors to promote the rule of law: Currently, there are conflicting Acts which pose challenges to implementation, the compliance with and enforcement of rules, regulations and procedures. These challenges affect compliance with the law and delivery of justice. The capacity of judges, lawyers, the police and para-legal staff in both the public and private sectors will be upgraded regularly to carry out these tasks.

8.11 Ensuring Public Safety and Security

Improve the capacity of security agencies to provide internal security for human safety and protection: Fighting crime continues to pose a challenge to the law enforcement capacity of the country. Violent crimes including armed robbery, proliferation of small arms, drug abuse and narcotic drugs trafficking among others put huge pressure on institutions and agencies responsible for fighting crime. The strategies to address the issues are to: strengthen institutional capacity of the security agencies, including the Police, Immigration Service, Prisons and Narcotic Control Board; enhance and institutionalize early warning systems; sensitize the public on the existing legislative provisions including sanctions; and intensify the fight against drug use and small arms proliferation.

Strengthen the intelligence agencies to fight ICT-related crimes: Internet fraud and other ICT-related economic crimes have become a concern in recent times. There is therefore the need to stem the trend in order to improve the attractiveness of Ghana as a preferred investment and tourism destination. Strategic interventions to be adopted will seek to: provide identification codes to internet service providers; enforce the regulation on the registration of mobile telephone numbers; monitor and regulate the operations of internet service providers as well as strengthen and support intelligence agencies.

Increase national capacity to ensure safety of life and property: Disasters are unpredictable. Therefore the appropriate institutions such as the police service, fire service, NADMO and others concerned with rescue and disaster management must develop adequate capacity to improve response time and ensure safety of life and property. Proposed interventions include: increase safety awareness of citizens; revive neighbourhood watchdog committees; review and enforce existing planning laws and regulations on spatial and infrastructure development; and build capacity of national institutions responsible for disaster management.

Forestall external aggression, safeguard territorial integrity and contribute to international peace keeping efforts: Within the medium-term, the development agenda also aims at forestalling external aggression, safeguarding territorial integrity and contributing to international peace keeping efforts. These have become paramount due to the incidents of instability in the sub-region and the likely influx of refugees and combatants into the country.

The strategies for addressing the policy objective include: forestalling civil strife and external aggression in order to secure the country for growth and poverty reduction; build operational, human resource and logistics capacity of the security agencies; and continue participation of Ghana in external peacekeeping missions.

8.12 Improving Access to Rights and Entitlements

Identify and equip the vulnerable and excluded with employable skills: There is urgent need to address the peculiar concerns of the vulnerable and excluded in Ghanaian society such as abused children, children in difficult circumstances, single parents, the disabled, the unemployed youth and the poor and voiceless. The high level of unemployment among this group aggravates their predicament and further reduces their ability to assert their rights and access basic social services. The situation has serious implications for social cohesion and overall national development. Strategies identified to address the issues include: identify and categorize the various kinds of vulnerability and exclusion; and develop and design special capacity building programmes for unemployed graduates, the vulnerable and excluded.

Facilitate equitable access to good quality and Affordable Social Services: Social services exist for the benefit of everyone. It is the right of all Ghanaians to access these services. The current situation could be best described as discriminatory as it does not offer adequate access to these services by all. The high cost of social services further exacerbates this problem. As a remedial measure, efforts will be made to increase the provision and quality of social services. The strategy is to increase the provision and quality of social services.

Protect Children from Direct and Indirect Physical and Emotional Harm: The survival, prosperity and the well being of a nation lie in the development of the potential of its children. Unfortunately, the persistence of archaic and harmful traditional practices continue to present a threat to the rights of children as contained in various legislative and policy instruments and conventions at international, regional, sub-regional and domestic levels. Children are often abused both at home and in institutions. Worse still, countless cases go unnoticed by the authorities and the practices go unchecked. Appropriate actions will be taken to enforce existing laws on children’s rights. Strategies include research into cases of child abuse for effective management of children’s rights and development of policies to protect children.

Eliminate Child Trafficking: Child trafficking is a challenge and despite the existence of the Human Trafficking Act and the Children’s Act. The provisions in these and other relevant laws are not being effectively enforced. Interventions earmarked will focus on the following strategies: reduce incidence of poverty in affected districts to stem trafficking; develop integrated child development policy; and launch a public education programme on children’s rights and the dangers of child trafficking.

Recognize and strengthen Children’s Department to promulgate the rights of Children: The merging of the women and children’s sectors into MOWAC has led to marginalization of the children’s sector, thus relegating children’s issues to the background. In order to ensure that children’s issues are given their due prominence, the following strategies will be pursued: review the rationale and mandate of MOWAC with emphasis on separate sector responsibilities for women and children; restructure the present Departments of Children and Women into their respective sector institutions and provide the necessary support to decentralize the two departments at the district level to ensure efficient sector monitoring and coordination.

Establish a holistic National Social Protection Framework to ensure harmonization of various schemes: There is no comprehensive national social protection system in existence. Current systems are being implemented as separate schemes without reaping the synergistic benefits that should accrue to a properly planned social protection programme. To ensure a harmonization of social protection schemes, the proposed strategies include the following: develop programmes that aim at harmonizing various schemes under the National Social Protection Framework; expand the LEAP programme and ensure that it appropriately targets the extremely poor, vulnerable and excluded; and strengthen the institutional arrangements for managing social protection policies and programmes.

Undertake relevant legislation & institutional Land Reforms: Access to land for industry and private sector development has been constantly hampered by conflicting claims of ownership, bureaucracy and outmoded disposal procedures. Multiple sale of lands by traditional authorities and heads of families continues to undermine national security and access to land for socio-economic development. There is also excessive use and abuse of discretion and poor application of the land laws by public/civil servants. Strategies to be adopted seek to: examine all laws affecting land acquisition process with the view to amending them to foster efficiency and justice; and establish specialized Land Courts.

8.13 Promotion of National Culture for Development

Strengthen the regulatory and institutional framework for the development of national culture: Policy and institutional framework on culture and development need to be improved. Attention should be given to the documentation of chieftaincy and cultural history. All over the regions, there are abandoned or incomplete centres of national culture. Interventions identified include: assist less endowed traditional authorities to document their culture and history and also complete the development of abandoned and incomplete Centres for National Culture and establish appropriate centres in the districts.

Strengthen the National House of Chiefs and regional Houses of Chiefs: The support mechanism for the chieftaincy institution is not very strong. Government will strengthen the National House of Chiefs and all Regional Houses of Chiefs. This will involve: improvement in the incentive package paid to traditional authorities; and adequate resourcing for the Chieftaincy Secretariat, the National and Regional Houses of Chiefs.

Develop a comprehensive legal framework for the tourism sector: With Ghana’s rich cultural heritage and history, the potential of the tourism sector is tremendous and needs to be harnessed to develop and ensure consistent inflow of revenue from tourism. The sector however is handicapped by inadequate legal and regulatory framework, and also the need for a review of its laws, bye-laws and regulations in order to strengthen tourism in Ghana and transform it into a revenue generating industry. To address both, the focus of policy interventions will seek to contract and guide sector experts to review and expand existing laws, bye-laws and regulations of the sector.

8.14 Strengthening Domestic and International Relations (Partnership) for Development

Accelerate economic and social integration with regional and/or sub-regional states: There exist several bottlenecks in the free movement of goods and services within the ECOWAS region, hindering the progress of social and economic integration in the sub-region. To accelerate economic and social integration, at regional and sub-regional levels, the focus of strategies to be adopted will seek to: work towards establishing a common customs union; ensure that national trade policies incorporate ECOWAS protocols; and strengthen links between industrial and trade policies.

Sustain Government’s commitment to international peace and security, adherence to international protocols and conventions, and incorporate them into national laws: There has been ineffective integration and implementation of international protocols and conventions into national laws. To ensure adherence to existing protocols and conventions, there is the need to effectively integrate and mainstream them into national laws.

Institute mechanism to manage external economic shocks: Unpredictable international economic downturns including the global financial crisis and the record price of oil on the world market have underscored the vulnerability of the economy to external shocks. To effectively limit Ghana’s vulnerability to external shocks the following strategies will be implemented: maintain stable reserves; diversify the export-base of the economy to increase foreign exchange earnings; and support industries to increase their access to external markets by becoming more competitive in both domestic and external markets.

Promotion of domestic trade and effective enforcement of standards and regulations: Domestic trade suffers from poor enforcement of trade standards and regulations. There is also poor patronage of goods produced locally and a tendency of customers to patronise imported goods. Interventions to address these will among others seek to: promote a buy Ghana national campaign; enforce standards/regulations; and facilitate the passage of the Local Content Bill.

8.15 Promoting Evidence-Based Decision-Making

Improve database for policy formulation, analysis and decision-making: The timely generation and proper management of reliable, consistent data are imperative to ensure effective evidence-based decision-making. Unfortunately, there is a lack of an efficient data collection, storage and distribution system to underpin vital decision-making processes. This is compounded by the fact that there is no national economic model for planning and budgeting. These are required to improve accountability and transparency of Government’s decision-making process. Strategies to address the current shortcomings include: develop a national economic planning model; rationalize the production of data within the statistical system; streamline the roles and mandates of the various data producing institutions; adopt common definitions, methods and classifications; review the Statistical Service Law and fully implement the Statistical Master Plan; adopt international standards and good practices system-wide, including the United Nations Principles for Official Statistics and the IMF’s General Data Dissemination Standards; support MDAs to generate data for effective planning and budgeting; and build the capacity of MDAs in electronic data analysis and management.

Chapter Nine: Enabling Environment for Effective Plan Preparation and Implementation

9.1 Introduction

The history of development planning in Ghana goes back to the early 1920s with the preparation of the first Ten-Year Development Plan (1920–1930) by the then colonial Governor, Sir Gordon Guggisberg. The tradition of planning continued in the post colonial-era with the preparation of several plans including the 7-Year Development Plan (1963–1970) in the Nkrumah era. In all, more than ten plans were prepared between 1940 and 1986. All those plans were centrally prepared by Government bureaucrats with little or no consultation and participation of the stakeholders, beneficiaries or the public at large.

In 1994 a new decentralized development planning system was established by Acts of Parliament namely the “National Development Planning (System) Act”, 1994 (Act 480) and the accompanying “National Development Planning Commission Act,” 1994 (Act 479). These Acts sought to democratize the development process by creating space for stakeholders to participate in the decision-making process. The primary aim for establishing the new system was therefore to put in place a mechanism that would allow for broad participation in the development planning process at all levels of society.

Basically, Ghana’s decentralized planning system operates at the district, regional and national levels with MMDAs, RCCs, sector MDAs and NDPC playing well defined roles. While MMDAs and MDAs are mandated by law to prepare and implement as well as monitor and evaluate development plans, the NDPC is responsible for the coordination of the planning system and for issuing guidelines for all planning activities undertaken by all planning authorities. The Commission has additional responsibility for the preparation of the National Development Policy Framework to guide the MMDAs and MDAs in preparing their respective plans and facilitates for the translation of national development policies into implementable programmes and projects.

The first national development policy framework under the decentralized planning system was the Vision 2020: The First Step (1996–2000). This was followed by the Ghana Poverty Reduction Strategy (GPRS I), 2003–2005 and the Growth and Poverty Reduction Strategy (GPRS II), 2006–2009.

In spite of the obvious benefits and advantages over central planning, the smooth operation of the decentralized planning system has faced several challenges. Foremost among these are the enforcement of compliance with the requirements specified in the law; streamlining the roles, responsibilities and functional relationships between the key players and stakeholders such as the Central Management Agencies (CMAs), private sector, NGOs and CSOs as well as the media; defining the relationship between the development plan and the budget; and securing popular participation in the planning process especially at the grassroots.

This Chapter presents the framework for effective preparation and implementation of development plans. Central to this is the need for a Legislative Instrument to regulate the decentralized planning system (Act 479) as well as establish conditions for plan stability and state ownership and strengthen national capacities to enforce rules and regulations as well as social discipline. Other areas covered are: roles and responsibilities and relationships among key planning and implementation actors; communication strategy for policy formulation; plan preparation and implementation; stakeholder consultations and participation; streamlining processes and timing of activities of planning institutions; and developing capacities of key actors.

9.2 Relationships, Roles and Responsibilities of Key Planning Agencies

The key Central Management Agencies involved in the preparation, budget implementation, monitoring and evaluation of Government policies and programmes are the National Development Planning Commission (NDPC), the Ghana Statistical Service (GSS), the Ministry of Finance and Economic Planning (MOFEP) and the Ministry of Local Government and Rural Development (MLGRD). Although the mandate of these institutions are derived primarily from the 1992 Constitution and other enabling legislations, roles and responsibilities of some of these institutions tend to overlap. The relationships between some of these institutions, especially between NDPC and MOFEP are not clearly defined leading to overlaps and conflicts. Table 9.1 provides the key stakeholders/institutions and their respective roles and responsibilities in the planning process.

Table 9.1:

Roles and Responsibilities of Key Planning Institutions

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To improve effectiveness and efficiency in the planning, budgeting and implementation of development policies, projects and programmes at all levels, the strategies to be implemented will be aimed at the following:

  • Clearly define and streamline the roles and responsibilities of key Central Management Agencies including Office of the President (OoP), NDPC and MOFEP in the development planning process;

  • Establish functional relationships among the stakeholders and ensure that the system is recognized and accepted by all; and

  • Expand opportunities for popular participation in the planning process.

9.2.1 Legislative Instrument for Regulating Planning Activities

The National Development Planning (Systems), Act 1994 (Act 480) defines and regulates national development planning procedure and related matters. The NDPC, however, is yet to prepare the appropriate Legislative Instrument(LI) that will enforce compliance with planning requirements as specified under Section 1 (3), (4), Section 2 (a), Sections 4,10, 11 and 19-Regulations of the Act. In recognition of the limitations imposed on the planning system due to the absence of an LI, priority and timely attention will be given to the preparation of a Legislative Instrument to make regulations to give effect to the provisions of Act 480.

9.2.2 Streamlining Processes and Timing of Planning Activities

The National Development Planning (Systems) Act, 1994 (Act 480)) provides the details of the national planning systems. Respective roles and responsibilities, functional relationships including structures are clearly spelt out. However, the proper timing of plan preparation activities including the submission of these plans and the proper linkage with the budgeting process continue to be a challenge. As a result, the planning and budgeting processes are treated as separate functions performed by separate institutions and the link between the development plans and the national budget is weak. This is further complicated by the absence of the necessary Legislation Instrument (LI) with a sanctions regime for non-compliance. Contingent to these are the direct capacity issues affecting the routine operations of stakeholder institutions.

Specific issues of immediate concern include the following:

  • Inadequate institutional, legal and regulatory framework;

  • Lag in the completion of the medium-term development policy framework;

  • Delay in the preparation of sector and district medium-term development plans;

  • Lack of adequate resources including basic logistics for plan preparation;

  • Inadequate capacity of NDPC, PPMEDs, RPCUs and DPCUs; and

  • Weak response of MDAs to planning initiatives.

To address these challenges the following strategies will be adopted:

  • NDPC to collaborate with OoP and MOFEP to prepare an LI to regulate the timing of the planning and budgeting processes;

  • MOFEP to ensure timely release of adequate funds for planning activities and plan implementation;

  • Strengthen capacity of NDPC, PPMEDs, RPCUs and DPCUs to prepare plans on time; and

  • Processes for the implementation of plans should start as early as possible.

9.3 Communication for Planning, Implementation, Monitoring and Evaluation

The decentralization of Ghana’s planning system was to ensure that citizens participate in the decision-making process to influence policy priorities, programmes, projects and budgets and also in the implementation and monitoring of development activities. Communication represents an important tool for mobilizing and engaging the citizenry in national decision-making processes, ensuring transparency, accountability, improved national ownership and management of expectations in national development processes.

A Communication Strategy was developed as part of the GPRS process based on an initial communications needs assessment to ensure coordination of communication activities which had hitherto been done on an ad hoc basis. The specific objectives were to promote information dissemination around the GPRS, its annual progress reports and other related documents and promote continuous dialogue among Ghanaians in order to generate feedback for the planning process. The main strategies were to enhance vertical communication channels among NDPC, RCCs and MMDAs and among the NDPC, MDAs and the media at the national level.

9.3.1 Mainstreaming Communication into the Development Planning System

A major thrust of the GPRS Communication Strategy was to mainstream development communication into the national planning system to ensure the participation of civil society organizations in policy formulation, planning, budgeting, monitoring and evaluation. This was to be done through the development of national, regional and district communication structures and teams to mobilize the citizenry to take advantage of the spaces in the planning system.

The Communication Strategy provided for the establishment of Communication teams at the national, regional and district levels, under the coordination of the Ministry of Information whose public relations role would be broadened to cover development communication. A national development communication team was established at the NDPC comprising frontline public sector institutions with communication mandates, with CSO representation. Regional and District communication teams were to be established and equipped to support the communication agenda at their respective levels to ensure the participation of citizens in the planning and implementation processes. Sector and District Planning Guidelines provided for the formulation of development communication plans with clear budget lines for implementation.

9.3.2 Challenges to the implementation of the GPRS Communication Strategy

A critical challenge that needs to be tackled in the quest to mainstream development communication into the national planning system is knowledge of the country’s planning architecture, opportunities for citizens’ engagement and calendar for engagement with the National Development Planning Commission, Ministries, Departments and Agencies and Metropolitan, Municipal and District Assemblies to ensure the participation of the citizenry in plan development and implementation.

Whereas Act 480 prescribes the procedures for the formulation of the national development policy framework and the planning guidelines provide guidance on public consultations by MMDAs in the planning process, it is silent on engagement with MDAs. In addition, citizens are constrained by the lack of an empowering legislation to seek to participate in communication around the development planning processes. The passage of the Freedom of Information Bill is critical for providing the enabling environment for effective citizens engagement. The NDPC’s Legislative Instrument needs to provide comprehensive guidelines on communication in the planning process.

Other remaining challenges include: inadequate awareness about the importance of development communication among public sector institutions, especially among decision-makers; inadequate budgetary allocation for development communication; bottlenecks in utilizing the immense potential of the media to support the development communication agenda, including inadequate strategic engagement with the media; inadequate capacity for development communication within the public sector; weak internal communication challenges impacting on the effective engagement of the public sector with the citizenry; and lack of legal framework/agreed communication channels with the media, especially the private media leading to high cost of utilizing both the print and electronic media for development communication.

9.3.3 Creating an Enabling Environment for Citizens’ Engagement in the Planning Process

The most important step in promoting communication around planning and plan implementation has to do with creating an enabling environment for active participation by citizens in the planning process through accelerating the passage of important legislation such as the Freedom of Information Law, the Broadcasting Law and the incorporation of development communication architecture within the NDPC’s Legislative Instrument. There is also the need to earmark funding to support development communication at all levels, such as a percentage of the DACF to promote sustainability of the agenda.

9.3.4 Information Dissemination, Development Dialogue and Management of Expectations

Information dissemination on the medium-term development agenda and its related documents, such as its Annual Progress Reports (APRs) as well as MDG reports will be used as the basis for development dialogue targeting specialized interest groups such as professional associations, civil society organizations and the general public to ensure continuous dialogue on Ghana’s development agenda. Information dissemination is important for sensitizing citizens about Government programmes and modalities for accessing them, and constitutes the basis for informed dialogue and management of expectations from the public.

One area requiring urgent attention is the management of expectations around emerging opportunities such as Ghana’s oil and gas industry and communication around results of impact assessments and progress of implementation of mitigating actions to forestall conflicts and ensure smooth implementation of Government programmes. These sensitive emerging issues will be given attention in the communication plans of sectors and districts to ensure sustainability of Government interventions.

9.3.5 Promotion of Development Dialogue around National, Sector and District Plans

The National Development Planning Commission provides guidelines for the development of Sector and District APRs. The dissemination of Sector and District Plans and progress reports will form the basis for development dialogue around specific sector and district issues. The public must however be aware of the planning, budgeting and auditing cycles of the NDPC, MOFEP, MDAs, MMDAs and CAGD and their calendars for effective engagement by the public.

9.3.6 Establishment of Mechanisms for Managing Feedback

Feedback from the public is very critical for successful implementation of Government policies, programmes and projects. Although the voices of citizens are becoming clearer with the development of a pluralistic media environment, management of feedback is important for the credibility of the planning process. Secondly, due to the lack of mechanism for the management of feedback, monitoring policy responses to feedback and reporting back to the public is weak. The objective therefore is to establish such a mechanism using existing vertical and horizontal communication channels, and channels with CSOs including the media in order to manage the transmission of feedback and their responses.

9.3.7 Behavioural Change Communication

A critical development challenge facing the country is the non-alignment of citizens’ lifestyles with the demands of modernization, due largely to ignorance, and resulting in self-inflicted vulnerabilities, and therefore the spending of scarce public resources on preventable expenditures. Negative attitudes towards time, work, care of public property, health, education, human rights, safety, reproductive rights, disability, etc need to be tackled head-on to ensure the alignment of the national psyche to the development vision of the country. Effective behaviour change communication models will be developed and implemented to promote behaviour change on a variety of issues to enhance plan implementation.

9.3.8 Development of a Comprehensive Development Communication Strategy

A comprehensive Development Communication Strategy will be developed to drive communication around the Ghana’s Shared Growth and Development Agenda and other important national development communication objectives. The Strategy will take into consideration lessons learnt from the implementation of the GPRS Communication Strategy and other important development communication programmes. It will provide a set of prioritized objectives to be pursued over the medium-term, identify critical stakeholders to be engaged to promote dialogue around important national policy objectives, specific messages and content as well as effective communication channels to be employed for the achievement of the set objectives.

The Development Communication Strategy will also serve as the basis for auditing sector and district communication plans to ensure coherence and synergy in the delivery of identified objectives. The NDPC will coordinate the auditing of these plans and budget allocations, build the capacity of communication teams and monitor their effectiveness in ensuring ownership of the development agenda by citizens.

9.4 Stakeholder Consultation and Participation

National ownership of the development policy framework is critical and contributes significantly to ensure continuity and stability of national development plans beyond the tenure of any one particular administration. The situation where Government is perceived to be the sole owner of all socio-economic policies and strategies, more often than not, results in successive Governments not continuing with programmes started by previous Governments. This deprives the nation of the needed consistency and continuity in the implementation of development policies, programmes and projects.

It is therefore imperative to institute procedures and relationships to promote national ownership and shared vision as a mechanism to enhance the prospects of ensuring the stability and continuity of national development plans. This is achievable through a number of ways, but perhaps the most effective being Ghanaians themselves (the state) owning and driving forward the development processes.

9.4.1 The Cross-Sectoral Planning Groups (CSPGs)

The preparation of the framework involves broad participation of a cross section of the Ghanaian population to ensure that diverse shades of opinion and experiences are reflected at all stages of the process and ultimately in the final product. The policy formulation aspect which represents the first step in the planning process begins with the formation of technical working teams, known as Cross-Sectoral Planning Groups (CSPGs) organized around the relevant thematic areas of the development framework.

Given the strategic nature and responsibilities of the CSPGs, its composition comprises both state and non-state actors drawn from the Ministries, Departments and Agencies (MDAs), Professional Bodies, Tertiary Institutions, Research Institutions and Think Tanks, Non-Governmental Organizations (NGOs), Community-Based Organizations (CBOs), Private Sector, Organised labour, identifiable Groups and Associations (Federation for the Blind & Disabled etc), Specialized Institutions, outstanding individuals with expertise in relevant fields as well as Development Partners. The activities of the CSPGs are coordinated by the technical staff of the National Development Planning Commission.

9.4.2 The Public Consultation Process

Public consultation constitutes an integral part of the development planning process right from the policy formulation stage through implementation to monitoring and evaluation. This strategy is aimed at broadening the involvement of stakeholders to make up for the limitations of the participatory process at the level of the CSPGs. More importantly, it provides the opportunity for improved engagement and solicitation of views and inputs from a larger stakeholder group. The approach consolidates the gains made in previous frameworks /plans by distributing/ disseminating findings of the Annual Progress Reports (APRs) to help achieve the twin objectives of creating awareness about the policy framework and soliciting the views of a large segment of the population as input into the GSGDA.

The issue of engagement and participation of political parties in the consultative process is critical given the pluralistic nature of multi-party democracy. For this single most important reason, mechanisms must be put in place to ensure full and consistent engagement with all identified political leaders and their representatives in the plan preparation and implementation processes. State ownership and stability of the policy framework is likely to be achieved through such engagement.

In spite of the progress made there are still challenges to ensuring consistent institutional participation in the consultative process of development policy framework/ plan preparation and implementation including the seeming political polarisation on almost every issue of national development. To address these challenges, the following strategies will be adopted:

  • Initiate formal dialogue with political parties in respect of development policy formulation and implementation and seek to encourage more fixed/ planned interactions rather than ad-hoc good-will sessions;

  • Membership of experts appointed to NDPC should not be affected by changes in Government to ensure continuity, consistency and stability of development policies, programmes and projects;

  • Appoint representatives of registered political parties to the NDPC to deepen national ownership; and

  • Ensure active participation of women and gender advocates in public consultation processes.

9.5 Strengthening National Capacity to Enforce Rules and Regulations and Discipline

The state has the primary responsibility to create the enabling environment including the necessary institutional, legal and regulatory regimes to define and protect the rights of her citizens particularly the vulnerable and excluded in line with the Constitution.

The capacity of the state to enforce appropriate rules and regulations and to maintain the right level of general social discipline is a necessary condition for development. In this connection, the state is expected to play a fundamental role in the establishment of a foundation law and related legislations, maintaining a stable policy environment, investment in basic services and infrastructure, protection of the vulnerable and excluded, and the protection of the environment. Non-compliance with and the lack of enforcement of rules could be attributed to a number of factors. These include ignorance, extended social networks, and absence of appropriate Legislative Instruments (LIs) to back the various laws, bureaucratic interference and the capacity of enforcement agencies among others.

There is therefore an urgent need to first and foremost strengthen the national capacity to enforce rules and regulations. The capacity of the justice delivery system to enhance fair, speedy and affordable justice is a serious challenge.

The on-going reforms within the judicial system are primarily aimed at enhancing the capacity of the legal system to play its developmental role. The reforms entail the promotion and protection of the statutory rights of citizens as enshrined in the Constitution and also to preserve and enforce all regional and international human rights instruments to which Ghana is a signatory.

In the medium-term, policy interventions will be directed towards addressing the complexities and challenges of the current state of affairs to ensure the total independence of national institutions and agencies, devoid of any political interferences and machinations in the exercise of their mandate. It is also important to strengthen the capacity of judges, lawyers and para-legal staff in both public and private sectors and to re-orient them to appreciate and champion the rule of law.

Enhancing the national capacity to enforce rules and regulations and to improve general social discipline, will also entail strengthening the legal Aid System including making some services free through the support of Alternative Dispute Resolution to avoid costly and delayed litigation. Efforts will also be made to separate the Office of the Attorney-General from the Ministry of Justice to ensure efficiency and transparency. Finally, relevant judicial reforms will be undertaken to improve all levels of the justice system.

To enhance general social discipline based on a strengthened national capacity to enforce rules and regulations, the policy areas of focus in the medium-term include the public administration system; access to rights and entitlements; justice for national development; and human safety and security. Of these areas, the public administration is handled below while the other focus areas have been treated in the preceding chapter under governance.

9.5.1 Public Administration system

The conduct of the public administration and affairs of state is characterized by a displaced sense of purpose, an urban bias, an elite mentality, nepotism, distrust, paternalism, centralization, disregard for time and an absence of organizational loyalty. Citizens spend time talking about these deficiencies and live with them admitting that ‘it is the normal way of doing things’. The object here is to challenge such resignation by opening up for discussions and debate on some of the value implications that arise from the accepted ‘normal way of doing things’, in the belief that the consequences of administrative action and behaviour should be the concern of all. Attitudinal reforms in the public sector should result in a public administration which will serve the public rather than the interest of public servants and officials.

At the operational level, clear and unambiguous rules and regulations including organizational codes of ethics will be developed to instill the need to build trust as a civic responsibility and do away with all forms of honour systems including condoning wrongdoing and rather pay more attention to: respect for the property of the state, improving our level of commitment to the public good, inculcating the spirit of hard work and eliminating work-to-rule, civil disobedience and corruption, improving customer service.

9.6 Establishing Conditions for Plan Stability and National Ownership

The slow pace of Ghana’s development may be attributed, among others, to inability of our policy makers to engage stakeholders fully in the formulation and implementation of national development plans. Sitting Governments have claimed sole ownership of economic policies and strategies, which, more often than not results in successive Governments wanting to abandon policies and projects started by previous Governments. This has cost the stability, consistency and continuity of our development policies, programmes and projects and engendered poor development results.

The need for governance to embrace diversity of thought from all stakeholders with cautious recognition of political parties could not be over-emphasized. The process should be viewed as systems thinking which sees all actors as interrelated rather than as separate entities. This approach which calls for an ongoing formal dialogue among the stakeholders and was initiated by NDPC must be continued to generate the kind of ownership that is very much desired.

In this regard, Government will ensure the representation of Political Parties on the NDPC and dialogue at policy-formulation and operational level and encourage more regular dialogue, to exhibit the representative and participatory nature of thought. Accordingly, stakeholders who participate in the dialogue will be trained in dialogue procedures for the process to be effective. For continuity, the Chairman and Vice-Chairman of the Commission must be made co-opted members upon leaving office irrespective of the change in the country’s political leadership. This thinking together may be the beginning of a formal recognition of political parties as partners in development planning and implementation to ensure continuity, consistency and stability of the country’s development agenda.

The Monitoring and Evaluation Division of the NDPC will be strengthened to coordinate with all relevant stakeholders and ensure that citizens’ participation in monitoring, evaluation and national accountability is enhanced. The Division will continue to work closely with citizens’ groups, Civil Society Organisations and NGOs to assess the effectiveness of Government policies and programmes at all levels of the political and administrative authority.

9.7 Developing Capacities of Key Planning Agencies

The Planning function in the country is carried out by the National Development Planning Commission, the Ministries, Departments and Agencies, the Regional Coordinating Councils (RCCs) and the District Planning Coordinating Units (DPCUs). These represent the national, ministries, departments and agencies, the regional and the district levels. The functions of these institutions are principally challenged by weak capacities. These include but are not limited to capacities in the areas of human skills, knowledge, financial resources and other logistics including modern equipment to ensure effective and efficient operations.

9.7.1 National Development Planning Commission (NDPC)

There exist high levels of attrition due to inadequate administrative/technical and logistical support. Unattractive incentive packages and lack of motivation by way of promotions have remained a major challenge. Currently, at the technical /professional level, the NDPC is grossly understaffed making it extremely difficult to comprehensively and adequately carry out its full mandate. In the medium to long-term the following strategies will be adopted:

  • Review of the composition of the Commission to make it non-partisan, professionally astute and strategically-oriented to enhance its strategic advisory role to the President and Parliament;

  • Review and operationalize the full mandate of NDPC within the legal framework that established the Commission and its operations including the issue of necessary Legal Instruments (LIs);

  • On the basis of its Constitutional mandate, the NDPC will act in a more proactive manner, establish its place and authority and make itself more visible on national development planning issues;

  • Improve and maintain a systematized mechanism that ensures closer functional relationships with the various Ministries, Departments and Agencies (MDAs), Regional Planning Co-ordinating Units (RPCUs) and Metropolitan, Municipal and District Assemblies (MMDAs) and the District Planning Co-ordinating Units (DPCUs) on all planning and related issues;

  • Recognition of NDPCs co-ordinating and leadership role in national development planning with co-operation from all MDAs;

  • Demonstrate professionalism and visibility on spatial and environmental development issues, including human settlement management and the role of the built environment in strategic national development perspectives; and

  • Maintain credibility and cordial relationships with development partners.

9.7.2 Policy Planning, Monitoring and Evaluation Divisions (PPMEDs) and Regional Planning Coordinating Units (RPCUs)

In addition to the inadequate role clarification between the PPMEDs and RCCs, the decentralised agencies have not been properly integrated into the sub-national structures. This has resulted in divided loyalties of staff and other difficulties. Also, due to high personnel turn-over there is difficulty in providing adequately experienced planning staff to MMDAs. The sub-national institutions are generally constrained by the unavailability of office equipment, vehicles, etc to carry out their work effectively. The following strategies will be adopted to address these challenges:

  • Clearly define functions, responsibilities and competencies of the staff of PPMEDs and RPCUs;

  • Empower the PPMEDs and RPCUs to carry out their administrative, planning, and service delivery responsibilities;

  • Provide essential equipment and logistics to the sub-national planning agencies to improve their efficiency; and

  • Develop structures and mechanisms to promote and enhance probity, accountability and transparency in administration at sub-national level.

9.7.3 District Planning Coordinating Units (DPCUs)

A major challenge at the DPCUs is the low level of competence of their staff. Many districts especially the newly created ones, lack the requisite technical departments and professional staff to carry out the necessary planning functions. In addition, inadequacy of logistics, such as vehicles and modern office equipment with internet connection result in inefficiencies in the DPCUs. The following strategies will be adopted to address these issues:

  • Due to the additional roles assigned them by the Local Government Service Act 2006 (Act 652), capacity building, training workshops and sessions will be organised for District Assembly (DA) Members to enable them upgrade their skills. In addition, conditions of service for the DA members will be improved (i.e. honoraria, ex-gratia, mobility, capacity);

  • Suitable persons will be recruited to work in the MMDAs; and

  • Job schedules for planning and budgeting personnel will be streamlined to remove conflict of roles.

Chapter Ten: Monitoring and Evaluation

10.1 Introduction

Monitoring and Evaluation (M&E) has become an integral part of the policy formulation and implementation process in Ghana, especially since the implementation of the GPRS I in 2003. The output of the M&E process is used for informing national development planning; supporting sector policy and programme design; informing the budget allocation process; enhancing transparency and accountability in the management of national resources; encouraging continuous improvement in public policy management; as well as policy dialogue within Government and with Civil Society Organisations and Development Partners. Given the varied expectations from M&E, an efficient M&E system is required to respond to these needs adequately.

10.2 REVIEW OF THE M&E UNDER THE GPRS I & II

As part of the process of implementing the GPRS I&II, a comprehensive Monitoring and Evaluation (M&E) Plan was adopted with the goal of facilitating the tracking of progress of policy implementation and effectiveness, as well as identifying bottlenecks associated with the implementation of the strategies for early resolution. The key elements were:

  • Developing institutional arrangements that can support sustainable monitoring and evaluation processes;

  • Establishment of special indicators to facilitate tracking of the Millennium Development Goals (MDGs) and GPRS II;

  • Studies to enhance the knowledge and database for the conduct of objective impact analysis (i.e. PSIA) ; and

  • Ensuring a holistic and participatory approach to M&E.

Significant progress has been made after several years of implementing the GPRS M&E Plan. The time taken to produce key outputs of the national monitoring process, the national Annual Progress Reports (APRs), and the quality of the reports continue to improve. The APRs which used to be released in September is now released in June, while the indicators reported on have improved systematically from 62% in 2005 to 70% in 2006 and 87% in 2007.

Also nearly all the then 138 districts subsequently prepared their own M&E plans as part of the process to institutionalize and decentralize the M&E manual based on their M&E plans. About 65% of district assemblies now prepare an Annual Progress Report (APR) on the implementation of their District Medium-Term Development Plans (DMTDPs) based on their own M&E Plans. The district APRs also include results against selected indicators and targets as well as financial data. However serious challenges exist at the sector level where so far only one MDA has prepared an M&E plan and continues to prepare an Annual Progress Report (APR) on a regular basis.

In addition, several Poverty and Social Impact Analysis (PSIA) reports as well as citizens’ assessment reports have been produced over the period. The areas covered include decentralisation, modernised agriculture, vulnerability and exclusion. The last citizens’ assessment report which covered the national health insurance scheme was launched earlier in 2010.

The Ghana Statistical Service (GSS) continues to generate relevant data and key reports required for national level monitoring, including the monthly Consumer Price Index (CPI), Producer Price Index (PPI), as well as GLSS and CWIQ survey reports. In addition, a Corporate Plan and the Ghana Statistical Development Plan (GSDP) aimed at improving the National Statistical System over a five year period (2009 -2013), and aligning the development of the country’s statistical system with the reporting requirements of national development programmes have been developed and launched by the GSS.

These notwithstanding, the national M&E system continues to be challenged by severe financial constraints in addition to institutional, operational and technical capacity constraints as well as a fragmented set of uncoordinated information, particularly at the sector level. The technical issues revolve around the difficulties in getting MDAs to prepare their respective Sector Medium-Term Plans while operational issues include weaknesses in the budget preparation and implementation mechanism.

10.3 M&E Challenges Under GPRS I & II

The existing M&E plan for enhancing governance and public service delivery has not led to the complete development and institutionalisation of the necessary M&E and statistics functions in the public sector. This section presents some of the key challenges which will be addressed in the medium-term. These include:

  • Weak demand for and utilization of M&E results;

  • Weak institutional capacity;

  • Weak linkage between planning, budgeting and M&E;

  • Limited resources and budgetary allocations for statistics and M&E;

  • Non-compliance with planning and M&E guidelines;

  • Poor data quality, data gaps and inconsistencies; and

  • Absence of a comprehensive national database management system.

10.4 Monitoring and Evaluation Under GSDSA

To overcome the constraints and strengthen the capacity of the M&E system to achieve its objectives, the M&E system developed under the GPRS I & II will be strengthened and sustained under the GSGDA. A comprehensive National M&E Plan that addresses the key challenges facing the system and provides both policy and strategic directions for M&E will be developed. The National M&E Plan will aim at establishing a robust, comprehensive, fully integrated, harmonised and well coordinated system to monitor the implementation of national development initiatives and evaluate their impacts. A bottom-up approach will be used to ensure ownership and improve the demand for M&E by stakeholders at all levels.

The National M&E institutional arrangements will therefore be strengthened and greater responsibility given to the Policy, Planning, Monitoring and Evaluation Directorates (PPMEDs), the Regional Planning Coordinating Units (RPCUs) and the District Planning Coordinating Units (DPCUs) which are the statutory institutions with direct responsibilities for policy planning and M&E at the sector, regional and district levels respectively.

The GSS will continue to roll out The Ghana Statistical Development Plan (GSDP) in order to strengthen national statistics. The aim of the GSDP is to: improve the national statistics system, policy, regulatory and institutional framework; expand statistical infrastructure; revamp data development and management; and invest in physical infrastructure and equipment.

The systems approach to M&E will be based on a combination of monitoring and evaluation activities, as well as thematic studies. Monitoring will consist of the periodic or continuous assessment of performance based on selected indicators, while evaluation will rely on a wider variety of methods to examine the implementation of programmes and/or policies more closely, gain a better understanding of their nuances, and produce sound assessments of their consequences. Thematic studies will also be conducted to assess the intended and unintended consequences of policy interventions and/or policy reforms on the well-being of stakeholders.

Effective functioning of this system will require the support of the political leadership at all levels, based on a commitment to transparency, accountability and evidence-based decision-making, including resource allocation. It also demands that development partners assist the relevant agencies to develop an efficient national M&E system which they can use and support rather than their own separate systems. Furthermore, dedicated resources should be made available through the annual budget to support monitoring and evaluation as it is an essential requirement. The roles and responsibilities of these bodies and their respective stakeholders will be elaborated in the National M&E Plan.

The following strategies will be adopted in the medium-term to enhance the M&E system:

  • Reinforce the institutional arrangements with adequate capacity to support and sustain effective monitoring and evaluation;

  • Strengthen, harmonize and effectively coordinate existing mechanisms for monitoring and evaluating the effectiveness of public sector service delivery;

  • Evolve an efficient system for generating relevant, reliable and timely quantitative and qualitative gender disaggregated information;

  • Manage an effective feedback mechanism that makes statistical information available in useable form to Government, private sector and civil society;

  • Ensure a holistic approach to M&E that would include monitoring of inputs (including resource allocation and use), as well as processes and outputs, in addition to evaluating the outcomes;

  • Foster participatory M&E;

  • Improve coordination between Central Management Agencies (CMAs) and MDAs to strengthen demand for M&E; and

  • Build the technical capacity for M&E at all levels.

10.5 M&E Institutional Arrangements Under The GSGDA

Reinforcing institutional arrangement is key to the attainment of the long-term objective to institutionalize M&E and statistics for effective public policy management at all levels. NDPC is the institution with the legal mandate to coordinate the decentralized M&E system (NDPC Act 1994, Act 480) while the Ghana Statistical Service is responsible for the production of statistics. Figure 10.1 presents the national M&E system as prescribed by the National Development Planning Systems Act, 1994, Act 480. The Act clearly defines and regulates the planning process and specifies the M&E functions of NDPC, PPMEDs, RPCUs and DPCUs.

Figure 10.1.
Figure 10.1.

Institutional Arrangements under GSGDA

Citation: IMF Staff Country Reports 2012, 203; 10.5089/9781475506594.002.A001

Appendix 1: Sectoral Growth and Contribution to GDP, 2010 – 2013

Appendix table 2.1:

GDP Growth Projections, 2010 – 2013

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Source: GSS and MOFEP