Document of The World Bank FOR OFFICIAL USE ONLY Report No. 63286-GH GHANA JOINT IDA-IMF STAFF ADVISORY NOTE ON THE GHANA SHARED GROWTH AND DEVELOPMENT AGENDA July 22, 2011 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. INTERNATIONAL MONETARY FUND AND INTERNATIONAL DEVELOPMENT ASSOCIATION REPUBLIC OF GHANA Joint Staff Advisory Note (JSAN) on the Ghana Shared Growth and Development Agenda (GSGDA) 201 3 Prepared by the Staffs of the International Monetary Fund (IMF) and the International Development Association (IDA) Approved by Michael Atingi-Ego and Dhaneshwar Ghura (IMF) Obiageli Ezekwesili (IDA) July 22, 2011 I. OVERVIEW 1. This Joint Staff Advisory Note (JSAN) reviews the Ghana Shared Growth and Development Agenda (GSGDA) for the period 2010-13. The GSGDA comprises three volumes: the policy framework, the costing framework, and the monitoring and evaluation framework. The first two were published in December 2010 by the National Development Planning Commission (NDPC), while the third is scheduled for publication in 2011.1 The policy framework benefited from consultations in 2009-10 with Ministries, Departments and Agencies (MDAs), private sector representatives, civil society organizations, chieftaincies, and was discussed with Development Partners (DPs) at the Consultative Group Meeting held in September 2010. The “Coordinated Programme of Economic and Social Development Policies, 2010-16�, which forms the basis of the GSGDA, was presented by the President of the Republic of Ghana to the Parliament on December 2010. 2. The GSGDA follows GPRS-I and GPRS-II. The Ghana Poverty Reduction Strategy I (GPRS-I) for the period 2003-05 was prepared as part of the HIPC initiative and aimed at improving macroeconomic stability and basic service delivery. The Growth and Poverty Reduction Strategy II (GPRS-II), building on earlier macroeconomic stabilization and human development achievements, shifted the focus to accelerated growth through private sector development and infrastructure provision. With first oil and the attainment of middle income status with upwards revision of the national accounts in 2010, the GSGDA lays the foundation for the rapid structural transformation of the economy, premised on agricultural modernization and a sustainable exploitation of mineral resources. Building on lessons learned from GPRS-I and GPRS-II, the GSGDA emphasizes the need for continued macroeconomic stability and greater executive efficiency, transparency and accountability to provide the setting for poverty 1 The first two frameworks were transmitted to IMF and World Bank in April 2011. 1 reduction. It also underlines the pivotal role of the MTEF and monitoring and evaluation (M&E) for effective implementation of the GSGDA. Staffs find the GSGDA’s foundations well aligned with the World Bank Strategy for Africa. 3. Staffs find the underlying sector development plans compelling and well considered. However, their shallow emphasis on geographical interventions in deprived areas and the limited monitoring and evaluation capacity could weaken Ghana’s ability to meet the development and poverty reduction objectives of the GSGDA. 4. The Government estimates that US$23.9 billion of services and investment expenditure would be needed over the 4-year period to implement the GSGDA.2 Public expenditure priorities are agriculture, infrastructure (including oil and gas development), and health and education. Of the total, 54 percent of spending would be on infrastructure, and 25 percent on human development. 5. The Government has identified a financing gap of US$12.5 billion. This is assumed to be covered by strengthened taxation, expanded borrowing from a more developed domestic financial sector, scaled up official assistance, and new partnerships with donors and the private sector. In staffs’ view, this projected large financing gap will be difficult to meet, and fall-back approaches based on more modest fiscal resources could be considered. The macroeconomic impact of a substantially scaled up spending could also be reviewed. II. RECENT ECONOMIC AND SOCIAL DEVELOPMENTS 6. New national accounts, published in November 2010 by the Ghana Statistical Services, portray Ghana as a wealthier and faster growing economy than previously thought. These accounts cover the period 2006-10 and represent a major departure from previous national accounts by GSS.3 They entail a major upward revision to nominal GDP averaging around 65 percent for this period, while the average growth rate is about one percentage point higher than earlier estimated. The GSS estimate Ghana’s GDP per capita at US$1,343 in 2010, which moves the country to the lower-middle income group. 7. From an economic perspective, the new accounts underscore the emerging role of the service sector in growth. While agriculture and industry outputs were revised upward by about 30 and 22 percent, respectively, in 2006, service sector GDP was revised upward by 147 percent. This reflects a better statistical coverage of new service categories (such as for information and communication technologies) and the informal sector. 8. Growth has accelerated in recent years, in part due to positive terms of trade. During period 2006-10, real growth averaged 6.5 percent, even after accounting for the temporary slowdown to 4.0 percent in 2009, linked to the global economic crisis and policy tightening. This compares with the 5.1 percent average growth over the previous five-year 2 This excludes wages and allowances (which are to be included in the normal budgetary resources). 3 The difference between old and new national accounts is largely due to (i) the use of additional data sources (population census, households surveys, tax data, industrial and transport surveys, etc.) which allow more accurate coverage of economic activity, and (ii) the adoption of an improved methodology to compute national accounts (SNA93, instead of SNA68 used so far). 2 period. During 2006-10, Ghana benefitted from positive terms of trade for its exports (mainly for cocoa and gold), which helped offset higher import prices (particularly fuel and food). 9. Since 2009, Ghana has been engaged in a stabilization plan. Following the large widening of the fiscal and external deficits in 2008, the Government engaged in 2009 in a stabilization program. Since 2009, the fiscal and current account deficits were significantly reduced, the exchange rate was stabilized and consumer price inflation decelerated to single digit levels, in line with Central Bank inflation targeting objectives. In 2011, a decline in the commitment-basis fiscal deficit to 3.4 percent of GDP is targeted (from 8.4 percent in 2010), and primary surpluses are targeted from 2012. This would lead to lower public debt to GDP ratios and put public finances on a more sustainable path. In addition, the government intends to clear all outstanding payment arrears by 2013 using a mix of cash payments and bonds, and avoid accumulating new payment arrears from 2011. 10. Revenue from emerging oil production would augment the fiscal space. The Government is expected to start receiving revenues from oil in 2011. Reflecting the provisions of the Petroleum Revenue Management Act of 2011, up to 70 percent of oil revenue could be used for the budget and the rest would be allocated to the heritage fund for future generation and to the stabilization fund to provide a cushion against revenue shocks. 11. Ghana has achieved impressive poverty reduction in the recent past. In the absence of a new household consumption survey4 – the last one, Ghana’s fifth Living Standards Survey (GLSS5) having been conducted in 2005/6 - the GSGDA does not devote much space to updating the poverty diagnosis used in previous PRSPs. Between 1998/9 and 2005/6, the proportion of people below the national poverty line5 decreased from 39.5 to 28.5 percent of the population, equivalent to a decline of 850,000 in the number of poor people, while the population grew by 4 million. Non-monetary measures of poverty showed similar positive trends, in particular nutrition and child mortality.6 At current trends, the Millennium Development Goal (MDG) of halving poverty will be met before 2015. 12. Nonetheless, regional imbalances persist.7 As acknowledged in the GSGDA, there is a widening gap between the southern and northern parts of Ghana. While agricultural productivity gains (in the cocoa and forestry sectors in particular) and urbanization have led to significant poverty reduction in the South, similar dynamics have been largely absent from the northern savannah, which cover 40 percent of Ghana’s area and is home to 30 percent of its population. The report describes a lagging North that is isolated economically, vulnerable to climatic shocks and unable to integrate with the more dynamic South, despite adequate connectivity through infrastructure and a convergence in human development indicators. 13. Staffs welcome the GSGDA multi-sectoral approach to poverty reduction. In particular, continued attention to shared growth – through agriculture modernization, 4 The GLSS6 is scheduled to be conducted in 2012. 5 The national poverty line accounts for regional differences as well as household composition. For the year 2010, the annual adult equivalent poverty line was established at US$1.2 per day (at Accra prices). 6 Between 2003 and 2008, the proportion of malnourished under-5 children was reduced from 18 to 14 percent, and under-5 mortality was reduced from 111 deaths per 1,000 births to 80 (source: Demographic and Health Surveys). 7 Tackling Poverty in Northern Ghana, Report No. 53991-GH, March 2011, the World Bank, Washington D.C. 3 competitiveness of the SME sector, infrastructure provision, and human development, all of which are critical for Ghana’s continued development and poverty alleviation. These are recognized by the World Bank poverty report as major ingredients to lift subsistence farmers and urban informal workers out of poverty. 14. But staffs consider that the GSGDA could give more prominence and pay more attention to spatial intervention mechanisms. While education, health and social protection policies have helped reduce geographical disparities in human development outcomes, difference in the returns to human capital has widened suggesting that more is needed to improve economic opportunities in the North and the poverty alleviating impact of migration. Thus, there is a clear case to be made for using geographical targeting mechanisms (growth poles, social protection) much more widely, given the potentially high returns in terms of coverage and cost- effectiveness. The GSGDA expects several institutions, such as the Savannah Accelerated Development Authority, to coordinate spatial interventions. But their funding mandates and coordination mechanisms with central and local governments could be specified in greater detail. III. POVERTY REDUCTION STRATEGY Macroeconomic Framework and Costing 15. While optimistic, GDP growth targets in the GSGDA could be reachable. The GSGDA projects an average real GDP growth rate of 9.2 percent during 2010-13, propelled by the start of oil production in late 2010. Excluding oil, real GDP is projected to grow at 6.9 percent per year during this period, only slightly higher than the average for 2006-10. This will require improved growth performance, as growth in 2006-10 reflected some unique circumstances, including the rapid – and unsustainable – fiscal expansion through 2008, favorable terms of trade, and good weather conditions for agriculture and hydroelectric generation. Ghana’s ability to sustain high non-oil growth will require a strengthened business climate and financial sector, together with steps to address infrastructure bottle-necks through targeted public investments. 16. Staffs consider the GSGDA objective of maintaining inflation in single digits sound and reachable. With strengthened supply performance, the projected economic growth for 2010-13 is seen as compatible with stable, low inflation. However, staffs advise Ghana’s monetary authorities to remain vigilant against inflationary pressures emanating from strengthened domestic activities and ample liquidity as well as in response to rising global energy and food prices. The GSGDA also includes exchange rate stability as an objective. Staffs view Ghana’s flexible exchange rate regime as having allowed timely adjustments to external shocks in recent years, and would recommend continuing flexibility to ensure that the exchange rate remains appropriately valued in the period ahead. 17. The GSGDA identifies the need to reduce Ghana’s fiscal imbalances and maintain fiscal discipline. Staffs would welcome a more comprehensive discussion of what this implies for budget policies in the coming years, including strategies for creating new fiscal space. Although improved revenue mobilization is noted as a challenge, the baseline fiscal framework in the GSGDA shows non-oil tax collections remaining unchanged at about 13½ percent of non- oil GDP during 2010-13, which is very low by peer country standards. With strengthened tax 4 administration and implementation of new tax measures, staffs see scope to increase non-oil tax collections to 16.4 percent of non-oil GDP by 2013. The GSGDA also notes the history of expenditure overruns and need for strengthened expenditure management. This will require not only improved financial management systems, but also efforts to limit spending growth in low priority areas. The GSGDA is largely silent on the latter, and staffs note that in the baseline fiscal framework the public sector wage and salary bill is projected to rise from 7 to 9 percent of GDP between 2010 and 2013, absorbing resources that could otherwise finance investment programs. Staffs would welcome further discussion in the GSGDA of program prioritization and planned savings. 18. At US$3.8 billion per year during 2011-13 (8.6 percent of average GDP), staffs consider that the resource gap will be difficult to fill from external sources. Ghana’s ODA of US$72 per capita in 2009 is already among the highest in Sub-Saharan Africa. With per capita incomes revised up to exceed the threshold for low-middle income countries and donors facing their own fiscal challenges, a further sharp rise in concessional financing seems unlikely. New bilateral official partnerships or public private partnerships could potentially offer an avenue to new resources to finance selected flagship investment programs.8 19. Scaled-up public spending would need to be implemented with macroeconomic stability in mind. In particular, investments would ideally have a high import content, to limit domestic pricing pressures in light of Ghana’s limited absorptive capacity. High economic returns would also be important so that investments generate a supply response over time. 20. Staffs consider other options retained under the GSGDA as more promising to cover a part of the resource gap. Accelerated disbursement rates on existing ODA investment projects, currently low by international standards, and a higher share of budget support in ODA could support GSGDA implementation.9 Selected measures (notably in procurement planning and management and e-government) were identified between the Government and DPs (and reflected in the GSGDA) to accelerate disbursements. Further progress on strengthening public financial management, audits, and the establishment of a clearer link between the budget and GSGDA outcomes (possibly through program based budgeting) would help DPs to respond positively to Government’s expressed interest10 to see budget support (currently at about 30 percent of total ODA) becoming the preferred aid modality. The reduction of tax evasion, such as related to customs revenues, and the alignment of petroleum taxation to regional standards, could provide important additional fiscal resources in the short term, before longer term reforms envisaged in the GSGDA to integrate the large informal sector in the tax net would take hold. 21. Further discussion is required on developing Ghana’s financial markets. Recourse to domestic financing is pictured in the GSGDA as an alternative to external financing for closing the resource gap. Staffs agree that developing long-term debt securities and equity markets in Ghana would be an important objective, which could be implemented over the medium term as needed regulatory and supervisory reforms and higher minimum capital requirements for 8 Flagship programs include the Industrial Minerals Processing initiative, the Deep Sea Port initiative, the Value Added Processing initiative, the Gas-driven fertilizer plant, a new oil refinery, and the Housing Stock Initiative. 9 By end-2010, the stock of committed and undisbursed funds from the World Bank amounted to US$827 million. In 2010, World Bank disbursements accounted for 22% of total Official Development Assistance Disbursements. 10 Ghana Aid Policy and Strategy 2011-15: Towards Middle Income Status, September 2010, MOFEP, Accra. 5 intermediaries are introduced. However, staffs caution against relying too heavily on domestic financing to close the gap since domestic capital markets are unable to absorb the necessary financing volumes, and this could have significant implications for interest rates. In addition, staffs consider it important to tackle a range of issues related to the banking sector, including improving loan quality and addressing weak risk management, accounting, and governance practices, and reducing the dominance of the state-owned banks. 22. The implications for debt sustainability of potentially expanded government borrowing to close the resource gap are not adequately highlighted in the GSGDA. Although the GSGDA highlights the importance of maintaining public debt at manageable levels, the implications of the resource gap for debt policy is not considered. Risks to debt sustainability could arise from a sizeable scaling-up of external debt, particularly if contracted at non-concessional terms. Higher borrowing at non-concessional terms from external sources could also impact ODA donors’ framework to determine concessionality of their financial assistance. Staffs would welcome a discussion of contingency plans for scaling back spending ambitions in the event that the resource gap cannot be closed with revenue and grant resources. Governance, Public Financial Management and Public Sector Reforms 23. The GSGDA emphasizes the critical role of continued good governance for further poverty alleviation. The GSGDA acknowledges in particular the potentially devastating impact of conflict, crime and corruption on poor and vulnerable households, as well as the benefits of deepening local democracy and executive accountability for better service delivery. Staffs welcome in particular the strong emphasis of the GSGDA on strengthening independent governance institutions (e.g. judiciary, external audit) through clearer funding mechanisms and mandates, and on enhancing civil society participation in governance through deeper and more meaningful consultative processes. 24. The GSGDA also states the need to accelerate the decentralization process. While various legislative instruments still need to be harmonized, the GSGDA recognizes the need to raise districts’ capacity to generate internal funds and manage them transparently. Staffs concur with the view that fiscal decentralization instruments only constitute a small share of total district expenditure: the District Assembly Common Fund (DACF) and the District Development Facility (DDF) together funded 10 percent of total district assemblies’ expenditure in 2008. Poorer districts received more than wealthier districts, the latter being better able to generate internally generated funds. With a view to empowering districts in the design and execution of their local development plans, the share of DACF resources currently managed by the center – 41 percent of the Fund in 2008 - could be reduced. Improved incentives and capacity to internally generate funds is another avenue under consideration to raise the amount of resources available to local governments. At the same time, institutional capacity for public finance management at the district level is even weaker than for central government. As a result, the decentralization of expenditure responsibilities should be phased to match progress in upgrading the effectiveness of district-level public finance management to avoid serious risks to overall budget accountability. 25. The effective alignment of public resource allocation with GSGDA priorities will be strengthened through several mechanisms. These include, in particular, a renewed focus on 6 the currently ineffective Medium Term Expenditure Framework (MTEF) to ensure an allocation of recurrent and capital expenditures consistent with the major GSGDA programmes, against the backdrop of budget fragmentation, large budget deviations, and the earmarking of most resources. From 2013, program-based budgeting is expected to become fully rolled out to all MDAs, while the Ghana Integrated Financial Management and Information System - also to be completed in 2014 - will provide the platform for effective budget management. In the meantime, staffs recommend that improved cash management within a Treasury Single Account, expenditure commitment controls, and effective follow up on recommendations contained in audit reports, continue to be taken forward. 26. The GSGDA endorses the “new approach� to public sector reform, aimed in particular at equipping ministers (through greater advisory capacity) to deliver results within clearer incentive frameworks. Staffs consider that this new approach will require, for maximum effectiveness, to be complemented with a strong emphasis on job description, supervision and performance management for the public sector at large, without which the ongoing pay reform – the single spine salary structure - risks inflating the wage bill without commensurate improvements in service delivery. This issue is acknowledged in the GSGDA, but the relationship with the ongoing pay reform is not discussed. Furthermore, oversight and management of subvented agencies (SAs) in Ghana remains a challenge and there is a need to clarify their mandates and ensure better control over their payrolls. The Government initiated a process to migrate the payroll of SAs into the integrated payroll system. However, progress in migrating major SAs (army, police, and universities) has been very slow. Social Sector Reforms 27. The GSGDA intends to address major health and education challenges. Staffs welcome in particular the focus on quality of education, which deteriorated in recent years as access to education - and related MDGs on enrollments and gender parity at school - improved with the abolition of school fees and other mechanisms to raise demand. While training programs for teachers will be instrumental to improve learning outcomes, greater supervision, the development of performance management systems and effective decentralization will be critical to raise the overall quality of education service delivery. As for health, staffs see a risk that the envisaged amendment of the National Health Insurance System (NHIS) act for the one-off payment of premiums could further undermine its financial sustainability without bringing greater equity - currently low with low enrollment rates among bottom quintiles. Staffs would welcome deeper analysis of this in the GSGDA policy and costing frameworks and a more aggressive strategy to enroll the poor now that a common targeting system has been developed. This could help accelerate progress on health MDGs currently off-track. 28. Staffs support the National Social Protection Strategy and in particular the extension of cash transfer programs and the development of public works programs. The strategy also foresees greater harmonization among the various social protection instruments and the implementation of a common targeting mechanism. Staffs nonetheless believe that geographical targeting mechanisms could be used more boldly than currently envisaged in the GSGDA, and that a number of inequitable subsidies could be reformed or eliminated to support the expansion of effective social programs. This could include, for instance, poorly targeted 7 petroleum and water subsidies, whose share accruing to the poor does not exceed 3 and 13 percent respectively. Infrastructure, Natural Resource, Agriculture and Private Sector Development 29. While staffs certainly acknowledge infrastructure needs identified in the GDGDA for development and poverty reduction, they need to be prioritized. The World Bank Africa Infrastructure Country Diagnosis (AICD) in 201011 points to US$2.25 billion per year in infrastructure spending needs for Ghana to meet the average African middle income standards. This compares with a GSGDA figure of US$2.51 billion per year for water and sanitation, transport, ICT and power. The AICD estimates the resource gap at US$1.07 billion, of which almost all could be covered by efficiency gains such as through lower distribution losses and under-pricing. Staffs recommend that more attention be paid in GSGDA to reduce inefficiencies as a sustainable way to finance infrastructure development, and acknowledge the positive steps taken since 2010 in this direction with the closer alignment to costs of the fees for roads and highways, and utilities’ tariffs. Staffs also recommend the development of a prioritization mechanism, based on a solid evaluation of social returns to infrastructure projects and alignment to the MTEF. The Cabinet adoption in December 2010 of procedures for appraisal and selection of public investment projects is an important first step in this respect. 30. Staffs welcome the emphasis put in the GSGDA on sound natural resource institutional and regulatory frameworks. Staffs acknowledge the significant progress made recently to build the legal framework organizing petroleum exploration, production and revenue management, which, if effectively enforced, will improve macroeconomic management of these resources. Progress on gas was however slower, and staffs consider that the absence of an approved commercialization policy is an obstacle to private sector’s participation to the development of the upstream and downstream industry, which could potentially be a important source of economic diversification. As for mining, staffs agree with GSGDA on the priority need to improve coordination among key agencies for better environmental regulation and tax administration. 31. Staffs welcome the continued attention paid in the GSGDA to agricultural modernization. With half of the labor force in agriculture, productivity gains in this sector will be instrumental for poverty reduction and sustained growth. In line with GSGDA, staffs consider that the implementation of the Medium Term Agriculture Sector Investment Plan will improve the coordination of public services in support of rural development. The envisaged expansion of commercial agriculture will also help creating agro-industry linkages, and favor market integration. And notwithstanding continued increases in bean production, sustained efforts are required to secure the long-term competitiveness of the cocoa sector given declining productivity and potential impacts of the oil economy. 32. Building on better infrastructure, human capital and a stable macroeconomic environment, private sector development will benefit from improved regulation of the financial sector and land markets. The GSGDA acknowledges the need for better investment protection and commercial disputes settlement mechanisms, for land notably. In line with 11 Ghana’s Infrastructure: A continental perspective, March 2010, the World Bank, Washington D.C. 8 GSGDA, staff also consider important to strengthen Bank of Ghana supervision capacity and resolution powers, credit enforcement, and competition in the financial sector, in order to improve access to credit, to small and medium enterprises in particular. IV. MONITORING AND EVALUATION 33. 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. Significant progress has been made in its implementation. The time taken to produce key outputs of the national monitoring process, the national Annual Progress Reports, and the quality of the reports continue to improve. Nearly all districts now prepare their own M&E plans as part of the process to institutionalize and decentralize the M&E activity. Several Poverty and Social Impact Analysis reports and citizens’ assessment reports were produced over the period, covering decentralization, agricultural modernization, vulnerability and exclusion, and the NHIS. 34. The Ghana Statistical Service (GSS) continues to generate relevant data and key reports required for national level monitoring, including price index reports, households’ living standards survey reports, population censuses, and more recently quarterly national accounts. In addition, a statistical development plan aimed at improving the National Statistical System over a five year period (2009-13), and aligning the development of the country’s statistical system with the reporting requirements of national development programs have been developed and launched by the GSS. 35. 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. In response, the GSGDA foresees a bottom-up approach to ensure ownership and improve the demand for M&E by stakeholders at all levels, with greater responsibility and resource given to statutory institutions in charge of policy planning and M&E at the sector, regional and district levels respectively. 36. Staffs welcome GSGDA efforts to structurally and sustainably improve M&E capacity. But these efforts will take time to materialize, making the monitoring and evaluation of GSGDA programs challenging. In the shorter run, staffs would like to encourage the NDPC to retain a selected number of indicators to monitor GSGDA implementation from those proposed by MDAs through a bottom-up approach and the Ministry of Finance and Economic Planning to improve its regular reporting on fiscal outturns, with a view to better assess the contribution of actual public expenditure to GSGDA pillars and objectives. V. CONCLUSIONS AND RISKS 37. Through the GSGDA, authorities have set up ambitious development goals for Ghana and consistently outlined sectoral policies to meet them through a strong participatory approach. With oil and access to middle income country status, Ghana seeks to transform its economic structures to support job creation throughout the country, while developing social protection to reduce households’ vulnerability. 9 38. Nevertheless, important risks to implementation remain, which could reduce Ghana’s ability to meet the GSGDA objectives. These reflect limited M&E capacity, insufficient reliance on spatial interventions, and a large resource gap. In these respects, staffs would consider useful to (i) limit the number of GSGDA indicators to monitor while improving fiscal reporting, (ii) accelerate the use of geographically targeted interventions and the development of related coordinating institutions, and (iii) strengthen the capacity of the MTEF to allocate public resource to GSGDA priorities. Furthermore, efforts to encourage public-private partnerships, strengthen tax collection and the revenue base and public finance management, while improving the effectiveness of public spending, will help increase Ghana’s fiscal space. 39. In considering the GSGDA and related JSAN, staffs seek Directors’ views on whether they agree with staffs’ assessment on the GSGDA and the identification of the risks to the implementation of GSGDA’s objectives. 10 Republic of Ghana MEDIUM-TERM NATIONAL DEVELOPMENT POLICY FRAMEWORK: GHANA SHARED GROWTH AND DEVELOPMENT AGENDA (GSGDA), 2010-2013 VOLUME I: POLICY FRAMEWORK GOVERNMENTOF GHANA NATIONAL DEVELOPMENT PLANNING COMMISSION (NDPC) December, 2010 i TABLE OF CONTENTS TABLE OF CONTENTS .................................................................................................................................. I LIST OF TABLES AND FIGURES ..............................................................................................................IV LIST OF ACRONYMS ....................................................................................................................................V EXECUTIVE SUMMARY ............................................................................................................................ XII CHAPTER ONE: INTRODUCTION ............................................................................................................ 1 1.1 PURPOSE.................................................................................................................................................. 1 1.2 BACKGROUND ....................................................................................................................................... 2 1.3 POLICY CONTEXT AND STRATEGIC DIRECTION ........................................................................ 4 CHAPTER TWO: ENSURING AND SUSTAINING MACROECONOMIC STABILITY ................ 6 2.1 INTRODUCTION..................................................................................................................................... 6 2.2 REVIEW OF ECONOMIC PERFORMANCE ....................................................................................... 6 2.3 ACCELERATING GROWTH IN THE MEDIUM-TERM.................................................................. 10 2.4 KEY MACROECONOMIC POLICIES AND STRATEGIES ............................................................ 17 CHAPTER THREE: ENHANCING COMPETITIVENESS OF GHANA’S PRIVATE SECTOR . 22 3.1 INTRODUCTION................................................................................................................................... 22 3.2 PRIVATE SECTOR DEVELOPMENT ................................................................................................ 22 3.3 PROMOTE GOOD CORPORATE GOVERNANCE .......................................................................... 28 3.4 DEVELOP MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMES)...................................... 28 3.5 ACCELERATED INDUSTRIAL DEVELOPMENT .......................................................................... 30 3.6 DEVELOPING THE TOURISM INDUSTRY FOR JOBS AND REVENUE GENERATION ........ 32 3.7 PROMOTE THE CREATIVE INDUSTRY FOR ECONOMIC DEVELOPMENT .......................... 33 CHAPTER FOUR: ACCELERATED AGRICULTURAL MODERNISATION AND SUSTAINABLE NATURAL RESOURCE MANAGEMENT............................. 34 4.1 ACCELERATED AGRICULTURAL MODERNISATION ............................................................... 34 4.2 SUSTAINABLE NATURAL RESOURCE MANAGEMENT ........................................................... 41 CHAPTER FIVE: OIL AND GAS DEVELOPMENT ............................................................................. 52 5.1 INTRODUCTION................................................................................................................................... 52 5.2 OIL AND GAS INDUSTRY DEVELOPMENT .................................................................................. 52 5.3 EMPLOYMENT CREATION ............................................................................................................... 54 5.4 PROTECTING THE ENVIRONMENT ................................................................................................ 54 5.5 TRANSPARENCY IN REVENUE MANAGEMENT ........................................................................ 55 i CHAPTER SIX: INFRASTRUCTURE AND HUMAN SETTLEMENTS ........................................... 56 6.1 INTRODUCTION................................................................................................................................... 56 6.2 TRANSPORTATION: ROAD, RAILWAY, MARITIME AND RIVERINE TRANSPORT AND AVIATION ............................................................................................................................................ 56 6.3 SCIENCE, TECHNOLOGY AND INNOVATION TO SUPPORT PRODUCTIVITY AND DEVELOPMENT.................................................................................................................................. 58 6.4 INFORMATION AND COMMUNICATION TECHNOLOGY DEVELOPMENT ......................... 58 6.5 RECREATIONAL INFRASTRUCTURE ............................................................................................ 59 6.6 ENERGY SUPPLY TO SUPPORT INDUSTRIES AND HOUSEHOLDS........................................ 60 6.7 HUMAN SETTLEMENTS DEVELOPMENT..................................................................................... 66 CHAPTER SEVEN: HUMAN DEVELOPMENT, PRODUCTIVITY AND EMPLOYMENT ........ 74 7.1 INTRODUCTION................................................................................................................................... 74 7.2 EDUCATION .......................................................................................................................................... 74 7.3 HEALTH ................................................................................................................................................. 79 7.4 HIV AND AIDS/STI/TB ........................................................................................................................ 83 7.5 NUTRITION AND FOOD SECURITY ................................................................................................ 83 7.6 SPORTS DEVELOPMENT ................................................................................................................... 84 7.7 PRODUCTIVITY AND EMPLOYMENT............................................................................................ 85 7.8 POPULATION MANAGEMENT ......................................................................................................... 88 7.9 CHILD SURVIVAL, DEVELOPMENT AND PROTECTION .......................................................... 90 7.10 YOUTH DEVELOPMENT .................................................................................................................. 91 7.11 AGEING ................................................................................................................................................ 91 7.12 DISABILITY......................................................................................................................................... 92 7.13 REDUCTION OF POVERTY AND INCOME INEQUALITIES ..................................................... 92 7.14 SPECIAL DEVELOPMENT ZONES ................................................................................................. 95 CHAPTER EIGHT: TRANSPARENT AND ACCOUNTABLE GOVERNANCE ............................. 97 8.1 INTRODUCTION................................................................................................................................... 97 8.2 CHALLENGES TO GOOD GOVERNANCE ...................................................................................... 97 8.3 DEEPENING THE PRACTICE OF DEMOCRACY AND INSTITUTIONAL REFORM............... 97 8.4 STRENGTHENING LOCAL GOVERNANCE AND DECENTRALIZATION ............................... 99 8.5 PUBLIC POLICY MANAGEMENT .................................................................................................. 101 8.6 PUBLIC SECTOR REFORMS ............................................................................................................ 103 8.7 DEVELOPMENT COMMUNICATION ............................................................................................ 106 8.8 WOMEN AND GOVERNANCE ........................................................................................................ 107 8.9 FIGHTING CORRUPTION AND ECONOMIC CRIMES................................................................ 107 8.10 ENHANCING RULE OF LAW & JUSTICE .................................................................................... 108 8.11 ENSURING PUBLIC SAFETY AND SECURITY.......................................................................... 108 8.12 IMPROVING ACCESS TO RIGHTS AND ENTITLEMENTS ..................................................... 109 8.13 PROMOTION OF NATIONAL CULTURE FOR DEVELOPMENT ............................................ 111 8.14 STRENGTHENING DOMESTIC AND INTERNATIONAL RELATIONS (PARTNERSHIP) FOR DEVELOPMENT....................................................................................................................... 111 8.15 PROMOTING EVIDENCE-BASED DECISION-MAKING .......................................................... 112 ii CHAPTER NINE: ENABLING ENVIRONMENT FOR EFFECTIVE PLAN PREPARATION AND IMPLEMENTATION..................................................................................... 113 9.1 INTRODUCTION................................................................................................................................. 113 9.2 RELATIONSHIPS, ROLES AND RESPONSIBILITIES OF KEY PLANNING AGENCIES ...... 114 9.3 COMMUNICATION FOR PLANNING, IMPLEMENTATION, MONITORING AND EVALUATION ................................................................................................................................... 117 9.4 STAKEHOLDER CONSULTATION AND PARTICIPATION ...................................................... 120 9.6 ESTABLISHING CONDITIONS FOR PLAN STABILITY AND NATIONAL OWNERSHIP ... 123 9.7 DEVELOPING CAPACITIES OF KEY PLANNING AGENCIES.................................................. 123 CHAPTER TEN: MONITORING AND EVALUATION ...................................................................... 126 10.1 INTRODUCTION .............................................................................................................................. 126 10.2 REVIEW OF THE M&E UNDER THE GPRS I & II ....................................................................... 126 10.3 M&E CHALLENGES UNDER GPRS I & II .................................................................................... 127 10.4 MONITORING AND EVALUATION UNDER GSDSA................................................................ 127 10.5 M&E INSTITUTIONAL ARRANGEMENTS UNDER THE GSGDA ......................................... 129 APPENDIX 1: SECTORAL GROWTH AND CONTRIBUTION TO GDP, 2010 – 2013................ 130 Appendix table 2.1: GDP Growth Projections, 2010 – 2013............................................................... 130 Appendix table 2.2: Sectoral Distribution of GDP, 2010 – 2013 ........................................................ 131 APPENDIX 2: MATRICES - MEDIUM-TERM DEVELOPMENT POLICY FRAMEWORK, 2010 – 2013.................................................................................................................. 132 Appendix 2.1: Ensuring and sustaining macroeconomic stability.................................................. 132 Appendix 2.2: Enhancing competitiveness in ghana’s private sector............................................. 135 Appendix 2.3: Accelerated agricultural modernisation and sustainable natural resource management ......................................................................................................... 140 Appendix 2.4: Oil and gas development ....................................................................................... 160 Appendix 2.5: Infrastructure and human settlements development ................................................ 163 Appendix 2.6: Human development, productivity and employment................................................ 184 Appendix 2.7: Transparent and accountable governance.............................................................. 193 iii LIST OF TABLES AND FIGURES LIST OF TABLES Table 2.1: Sector and Sub-Sector Real Growth Rates, 1998 – 2009 .......................................................... 7 Table 2.2: Medium-Term Projected Real GDP Growth, 2010-2013....................................................... 10 Table 2.3: GDP Growth Projections, 2010 – 2013.................................................................................. 11 Table 9.1: Roles and Responsibilities of Key Planning Institutions ...................................................... 114 LIST OF FIGURES Figure 2.1: Structure of Ghanaian Economy............................................................................................. 8 Figure 2.1: Annual Consumer Inflation (%) ........................................................................................... 17 Figure 2.2: Trends in Interest Rates (%) ................................................................................................. 18 Figure 2.3: Exchange Rate Movements (%) ........................................................................................... 18 Figure 10.1 Institutional Arrangements under GSGDA ...................................................................... 129 iv LIST OF ACRONYMS AESL Architectural and Engineering Services Limited A-G Attorney-General AGI Association of Ghanaian Industries AGOA Africa Growth and Opportunity Act AIDS Acquired Immunodeficiency Syndrome AMSEC Agriculture Mechanization and Service Centres APR Annual Progress Report ART Anti-Retroviral Therapy ASSI Association of Small-Scale Industries ATAG Aid to Artisans of Ghana BDR Births and Deaths Registry BOG Bank of Ghana BOST Bulk Oil Storage and Transport Limited BPA Bui Power Authority BRIC Brazil, Russia, India and China BRRI Building and Road Research Institute BRT Bus Rapid Transit BTS Blood Transfusion Service CAADP Comprehensive Africa Agriculture Development Programme CAGD Controller and Accountant-General’s Department CBO Community-Based Organisation CBT Competency-Based Training CDD Centre for Democratic Development CEDECOM Central Region Development Commission CEPS Customs Excise and Preventive Service CERSGIS Centre for Remote Sensing and Geographic Information System CET Common External Tariffs CHAG Christian Health Association of Ghana CHASS Conference of Head of Assisted Secondary Schools CHPS Community-Based Health Planning Services CHRAJ Commission on Human Rights and Administrative Justice CICs Community Information Centres CO2 Carbon Dioxide CPI Consumer Price Index CRC Constitutional Review Commission CSIR Centre for Scientific and Industrial Research CSOs Civil Society Organisations C-TPAT Customs-Trade Partnership Against Terrorism CWIQ Core Welfare Indicators Questionnaire CWSA Community Water and Sanitation Agency DA District Assembly DAAS District Agricultural Advisory Services DACF District Assemblies Common Fund DDF District Development Fund v DFR Department of Feeder Roads DHIMS District Health Information Management System DMTDP District Medium-Term Development Plans DOT Directly Observed Therapy DPCU District Planning Coordinating Unit DPD Directorate of Public Defenders DPs Development Partners DRH Doctors for the Right to Health DSDA Danish Support for District Assemblies DSW Department of Social Welfare DUR Department of Urban Roads DVLA Driver Vehicle and Licensing Authority DWSP District Water and Sanitation Plan EC Energy Commission ECG Electricity Company of Ghana ECOWAS Economic Community of West African States ECRAG Entertainment Critics and Reviewers Association of Ghana EDIF Export Development and Investment Fund EEZ Exclusive Economic Zone EFA Education For All EITI Extractive Industries Transparency Initiative EOCO Economic and Organised Crimes Office EPA Environmental Protection Agency ESIA Environmental and Social Impact Assessment ETLS ECOWAS Trade Liberalisation Scheme EXIM Export and Import FAO Food and Agriculture Organisation FASDEP Food and Agriculture Sector Development Programme FBO Farmer Based Organisation FBOs Faith Based Organizations FDI Foreign Direct Investment FINSSP Financial Sector Strategic Plans FLEGT Forest Law Enforcement, Governance and Trade FP Family Planning FWSC Fair Wages and Salaries Commission GACL Ghana Airports Company Limited GAEC Ghana Atomic Energy Commission GAP Good Agricultural Practices GAPI Ghana Association of Phonographic Industries GCAA Ghana Civil Aviation Authority GACC Ghana Anti-Corruption Coalition GDP Gross Domestic Product GEA Ghana Employers Association GEPC Ghana Export Promotion Council GES Ghana Education Service GETFund Ghana Education Trust Fund vi GFD Ghana Federation of the Disabled GHA Ghana Highway Authority GHATOF Ghana Tourism Federation GHS Ghana Health Service GIFMIS Ghana Integrated Financial Management Information System GIMPA Ghana Institute for Management and Public Administration GIPC Ghana Investment Promotion Centre GIS Geographic Information System GLSS Ghana Living Standard Survey GMA Ghana Medical Association GNAT Ghana National Association of Teachers GNFS Ghana National Fire Service GPHA Ghana Ports and Harbours Authority GPRS Ghana Poverty Reduction Strategy GPRTU Ghana Private Road Transport Union GPS Global Positioning System GRA Ghana Revenue Authority GRATIS Ghana Regional Appropriate Technology Industrial Service GRCL Ghana Railway Company Limited GRIDCO Ghana Grid Company GRMA Ghana Registered Midwives Association GSE Ghana Stock Exchange GSGDA Ghana Shared Growth and Development Agenda GSS Ghana Statistical Service GTB Ghana Tourist Board GUTP Ghana Urban Transport Project GWCL Ghana Water Company Limited H1N1 Hemagglutinin1 Neuraminidase1 HACCP Hazard Control and Critical Analysis HELPAGE Help Age Ghana HIPC Highly Indebted Poor Countries HIRD High Rapid Impact Delivery HIV Human Immunodeficiency Virus HOTCATT Hotel Catering and Tourism Training Centre HRD Human Resources Development HSC/A Human Settlements Commission/Authority ICAO International Civil Aviation Organization ICCES Integrated Community Centres for Employable Skills ICD Independent Complaints Directorate ICE Information, Communication and Education ICT Information Communication Technology IDEG Institute for Democratic Governance IEA Institute of Economic Affairs IGF Internally Generated Fund IGFF Inter-Governmental Fiscal Framework ILGS Institute of Local Government Studies vii IMD Institute for Music and Development IMF International Monetary Fund IMO International Maritime Organization IMT Intermediate Means of Transport INSET In-Service Education and Training IPPs Independent Power Producers IRS Indoor Residential Spraying IRS Internal Revenue Service ISD Information Services Department ITN Insecticides Treated Nets ITTU Intermediate Technology Transfer Unit IWRM Integrated Water Resources Management JFFLS Junior Farm Field and Life Schools KIA Kotoka International Airport LAP Land Administration Project LCG Low Carbon Growth LEAP Livelihood Empowerment Against Poverty LI Legislative Instrument LPG Liquified Petroleum Gas LRC Legal Resource Centre LUPMP Land Use Planning and Management Project LUS Lesser Used Species MA Maritime Academy MAB Ministerial Advisory Boards MCC Millennium Challenge Corporation MDAs Ministries, Departments and Agencies MDBS Multi-Donor Budgetary Support MDGs Millennium Development Goals MDPI Multidisciplinary Digital Publishing Institute MEST Ministry of Environment, Science and Technology MESW Ministry of Employment and Social Welfare MFA Ministry of Foreign Affairs MiDA Millennium Development Authority MLGRD Ministry of Local Government and Rural Development MLNR Ministry of Lands and Natural Resources MMDAs Metropolitan, Municipal and District Assemblies MMTL Metro Mass Transit Limited MOC Ministry of Communications MOD Ministry of Defence MoEn Ministry of Energy MOFA Ministry of Food and Agriculture MOFEP Ministry of Finance and Economic Planning MOH Ministry of Health MOI Ministry of Information MINT Ministry of Interior MOJ Ministry of Justice viii MOT Ministry of Tourism MoTr Ministry of Transport MOTI Ministry of Trade and Industry MOWAC Ministry of Women and Children’s Affairs MoYS Ministry of Youth and Sports MRH Ministry of Roads and Highways MSMEs Micro, Small and Medium Enterprises MTTU Motor and Traffic Transport Union MUSIGA Musicians Union of Ghana MWRWH Ministry of Water Resources, Works and Housing NABPTEX National Board for Professional & Technician Examinations NACP National Aids Control Programme NADMO National Disaster and Management Organisation NAGRAT National Association of Graduate Teachers NAMAS National Appropriate Mitigation Actions NBSSI National Board for Small Scale Industries NCA National Communication Authority NCCE National Council for Civic Education NCPD National Council on Persons with Disabilities NCWD National Council on Women and Development NDAP National Decentralization Action Plan NDPC National Development Planning Commission NED National Economic Dialogue NEPAD New Partnership for African Development NFE Non-Formal Education NGO Non-Governmental Organisation NHIA National Health Insurance Authority NHIS National Health Insurance Scheme NIA National Identification Authority NIC National Insurance Commission NLC National Labour Commission NMC National Media Commission NPA National Petroleum Authority NPC National Petroleum Council NRSC National Road Safety Commission NVTI National Vocational and Technical Institute NYC National Youth Council NYEP National Youth Employment Programme OHCS Office of the Head of Civil Service OoP Office of the President PAC Project Advisory Committee PEF Private Enterprise Foundation PHMHB Private Hospitals and Maternity Homes Board PIP Public Investment Programme PLHIV People Living with HIV/AIDs PMU Project Management Unit ix PPA Public Procurement Authority PPAG Planned Parenthood Association of Ghana PPMED Policy Planning, Monitoring and Evaluation Division PPP Public-Private Partnership PPR Pest De Petit Ruminant PROMAG Professional Musicians Association of Ghana PSC Public Services Commission PSDS Private Sector Development Strategy PSIAs Poverty and Social Impact Analysis PSRS Public Sector Reform Secretariat PURC Public Utilities and Regulatory Commission PWDs Persons with Disabilities R&D Research and Development RCC Regional Coordinating Council REDD+ Reducing Emission from Deforestation and Forest Degradation plus RELCs Research Extension Farmer Linkages RPCU Regional Planning Coordination Unit RTTU Regional Technology Transfer Unit RUEAP Rural and Urban Entrepreneurship and Artisan Project SADA Savannah Accelerated Development Authority SBA Small Businesses Association SDZ Special Development Zone SEA Strategic Environment Assessment SFO Serious Fraud Office SIP Strategic Investment Plans SNA System of National Accounts SOE State Owned Enterprise SSNIT Social Security and National Insurance Trust STD Sexually Transmitted Diseases STI Science, Technology and Innovation TCPD Town and Country Planning Department TLM Teaching and Learning Material TOR Tema Oil Refinery TUC Trade Union Congress TVET Technical and Vocational Education and Training TVI Technical and Vocational Institution UG SPH University of Ghana School of Public Health UNFPA United Nations Population Fund Agency UTTDBE Untrained Teachers Diploma in Basic Education VAT Value-Added Tax VLTC Volta Lake Transport Company VOC Vehicle Operating Costs VPA Voluntary Partnership Agreement VRA Volta River Authority WAMZ West Africa Monetary Zone WCO World Customs Organisation x WFCL Worst Forms of Child Labour WIRA Women in Reproductive Ages WRC Water Resources Commission WTO World Trade Organisation xi EXECUTIVE SUMMARY 1.0 Introduction and Strategic Direction In preparing this Medium-Term Development Policy Framework, Ghana Shared Growth and Development Agenda (GSGDA, 2010-2013), Government responds to the constitutional injunction, which requires that policies leading to the establishment of a just and free society are pursued by the state. Government’s Better Ghana Agenda also emphasises the following: expanding access to potable water and sanitation, health, housing and education; reducing 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; and improving transparency and accountability in the use of public funds and other national resources. Since 1957, several policies and programmes to accelerate the growth of the economy and raise the living standards of the people have been pursued with varying degrees of success. These include Ghana Vision 2020: The First Step (1996-2000); the First Medium-Term Plan (1997- 2000); Ghana Poverty Reduction Strategy (2003-2005); and the Growth and Poverty Reduction Strategy (2006-2009). Under these strategic programmes, substantial progress was made towards the realisation of macro-economic stability and the achievement of poverty reduction goals. Structural challenges characterised by large fiscal and balance of payment deficits have, however, remained. In many respects, this medium-term development policy framework seeks to address the challenges and set-backs of the immediate past. It is also programmed to accelerate employment creation and income generation for poverty reduction and shared growth. Within the contexts of the constitutional requirement and the Better Ghana Agenda, the GSGDA is anchored on the following themes: • Ensuring and sustaining macroeconomic stability; • Enhanced competitiveness of Ghana’s private sector; • Accelerated agricultural modernisation and natural resource management; • Oil and gas development; • Infrastructure, energy and human settlements development; • Human development, employment and productivity; and • Transparent and Accountable Governance. 2.0 Ensuring and Sustaining Macroeconomic Stability The overarching goal of the medium-term economic development policy is to achieve and sustain economic 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 2020 while also achieving the Millennium Development Goals (MDGs). xii Towards this end, the focus of the macroeconomic framework emphasises interventions in the following policy areas: • Monetary and financial sectors; • Fiscal policy management; • Economic policy management; • International trade management ; and • Employment, unemployment and wage policies. 2.1 The Medium-Term Macroeconomic Growth Targets and Underlying Assumptions On the base of the old GDP series, the medium-term, 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 7% per annum, and an oil average real GDP growth rate of at least 9%. This is to enable Ghana to achieve and sustain per capita income levels consistent with the long-term objective of a per capita income of at least US$3,000 by the year 2020 without compromising macroeconomic stability. These growth targets assume that the trend of buoyant prices for Ghana’s two main exports, cocoa and gold, will continue and Ghana would take advantage of the favourable world market prices and increase the volumes of exports of these commodities. It is also assumed among others that: • The population growth rate will not exceed 2.2% per annum; • Inflation rate is contained within single digit; and • Stable foreign exchange rates. It is further assumed that in spite of the prospects of increased revenue from oil, Ghana will continue accessing development assistance on account of the existing large deficit in economic and social infrastructure, the need to intensify efforts to achieve the MDGs as well reduce spatial disparities in development. To ensure aid effectiveness and coordination, the Ghana Aid Policy and Strategy provides for aligning external 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. 2.2 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. Over the medium-term, the structure of the economy is projected to change significantly in favour of services and industry sectors. The development of infrastructure , salt-based industry, and petro-chemical industry to support 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 of long-term industrial transformation of the economy. 3.0 Enhancing Competitiveness of Ghana’s Private Sector Ghana’s private sector is dominated by a very large number of Micro, small and medium enterprises (MSMEs) and a few large multinational companies and in spite of several attempts by xiii various Governments to enhance its competitiveness, the sector remains uncompetitive both locally and internationally. This is largely attributed to a number of structural constraints at the policy and institutional levels which hamper its developmental role. The private sector is expected to partner Government and other stakeholders in the transformation of the economy through modernized agriculture, and the exploitation and processing of Ghana’s natural resource endowments. The key strategies for enhancing the competitiveness of the private sector are: private sector development; good corporate governance; development of viable and efficient micro, small and medium enterprises (MSMEs); accelerated industrial development; development of the tourism industry; and the promotion of the Creative Industry. 4.0 Accelerated Agricultural Modernisation and Sustainable Natural Resource Management 4.1 Accelerated Agricultural Modernisation Ghana’s agriculture is dominated by subsistence small holder production units with weak linkages to industry and the services sector. The sector is also characterized by low level of technology and productivity, low income and un-competitiveness in production, processing and distribution. The main focus of agriculture 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. 4.2 Sustainable Natural Resource Management 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 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 appropriate environmental policies to resolve the current challenging issues and emerging national and global environmental problems as and when they occur. The lack of knowledge on environmental issues and capacity to deal with issues on the management of the environment and sanitation are the major drawbacks militating against progress in this direction. These environmental problems are very complex and their solutions necessitate the inclusion of social, economic, and political aspects, in addition to the technical dimensions, especially as several of these issues are trans-boundary in their nature and effects. The funding of a new Institute of Environment and Sanitation Studies at the University of Ghana demonstrates the commitment of Government to address the information and capacity needs in this area. xiv Policy measures will be directed towards improving cross-sectoral environmental management; adapting to the impact of, and reducing vulnerability to climate variability and change; maintaining and enhancing protected areas; addressing loss of bio-diversity; promoting sustainable extraction and use of mineral resources; integrated water resource management; enhancing community participation in environmental governance and natural resource management as well as mitigating the impact of natural disasters, among others. 5.0 Oil and Gas Development The discoveries of oil and gas in Ghana open up an array of opportunities to influence the pace of 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, not be seen as an enclave but in terms of their linkages with other sectors of the economy, capacity to generate resources that can be used for the rapid development of national infrastructure, increasing agricultural productivity, accelerating job creation, facilitating the building of national capacity to harness advanced technologies and for enabling a paradigm shift in the structure of the economy towards increased industrial value-added production. High priority will be given to the application of an environmentally-friendly approach and benefits of best practice in ensuring sustainable development. Having regard to the areas in which these major oil and gas discoveries are located, the sub-sector can also provide the impetus to build new growth poles in the economy. The key areas of policy focus in the medium to long-term for the oil and gas sub-sector are: employment creation; protecting the environment; revenue management and transparency; diversification of the economy; capacity development; and increasing access to petroleum products. 6.0 Infrastructure and Human Settlements 6.1 Infrastructure Development The critical role of infrastructure in propelling economic growth and sustainable poverty reduction has become more crucial as Ghana aspires to become a middle-income country. Accordingly, in the medium-term, priority attention will be given to the expansion of existing social and economic production infrastructure to ensure that services provided are reliable, affordable and efficient. The key areas of policy focus 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. In the medium-term, special emphasis will be placed on the rehabilitation, modernisation and expansion of the railway network to support the new oil and gas industry and also ease the pressure and congestion on the roads and highways network. Similarly, science, technology and xv innovation (STI) will be prioritised as a principal vehicle for driving the medium-term development agenda. The medium-term energy policy aims at ensuring secure and reliable supply of high quality energy products and services for all sectors of the economy. Of the total energy consumed currently, 63% is from biomass (fuel wood and charcoal), with 27% and 9% from petroleum and electricity respectively. Although Ghana abounds in renewable energy resources, their exploitation has so far been minimal. The energy policy focuses mainly on: energy supply to support industries and households; electricity and thermal energy; renewable energy; nuclear and geo-thermal energy; energy efficiency and conservation; regulatory environment; mobilization of investment for energy sector development; building human resource capacity and research &development, among others. 6.2 Human Settlements Development The overall goal of human settlements development is to ensure that all organized human activities are well planned and spatially integrated in line with the strategic direction of national development efforts in the medium to long-term. Essentially, this is to ensure that human settlements developments including other related infrastructure in our cities, towns and villages are undertaken in a planned and spatially determined manner in order to enhance socio-economic development and equity. To effectively address the identified issues, the areas of intervention of the human settlements development policy will focus on spatial/land use planning and management; urban development and management; housing/shelter; slum upgrading and prevention; settlements disaster prevention; institutional arrangements for implementing human settlements development; hierarchy of human settlements and rural development and management ; and water, environmental sanitation and hygiene. 7.0 Human Development, Productivity and Employment 7.1 Human Development The acquisition and application of knowledge and skills in solving problems in society are essential aspects of the national development efforts aimed at achieving growth and social equity. Worsening income inequalities and other human development indicators in areas such as education and skills acquisition, health, employment, productivity, social protection, poverty reduction are indicative of major socio-economic challenges to most developing countries including Ghana. In the medium to long-term, efforts at the structural transformation of the key sectors of the economy to raise living standards and productivity as the bases of wealth creation and the optimization of the potential of the economy will continue to stall in the absence of a well- educated, skilled and informed population. xvi 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; ageing; disability; poverty reduction and social protection. To address the historical imbalances in development, emphasis will be laid on reducing spatial and income inequalities across the country through the establishment of special development zones such as SADA, Western Corridor Authority, and Eastern Corridor Authority, among others. This will be accompanied by intensifying the implementation of the national social protection strategy and reviewing the overall national social protection framework. 7.2 Productivity and employment Enhancing productivity and creating employment opportunities especially for the youth are crucial for achieving the medium-term policy goals. A national productivity measurement framework and capacity enhancement programmes in both formal and informal sectors of the economy will be developed. To address the increasing unemployment especially among the youth, employment issues will be mainstreamed into the development planning process at all levels. In this regard, MMDAs and MDAs will be supported to develop and implement employment creation programmes. In addition, the legal and institutional framework for labour administration will be strengthened and a functional labour market information system will also be designed and implemented. 8.0 Transparent and Accountable Governance The broad goal of transparent and accountable governance is to empower state and non-state bodies to participate in the national development process and collaborate effectively to achieve national development goals and objectives. The collaborative 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. Although Ghana has made significant progress in achieving an appreciable level 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 between and among the arms of government and governance institutions; resource disparity that undermines the role of different arms of government; low participation of civil society organisations in governance; and a high perception of corruption in the public sector. xvii To address these issues, the medium-term development policy framework focuses on: deepening the practice of democracy and institutional reforms; local governance and decentralization; public policy management and public sector reforms; 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. 9.0 Enabling Environment for Effective Plan Preparation and Implementation This Chapter presents the framework for effective preparation and implementation of development plans. Central to this is the need to regulate the decentralized planning system as well as establish conditions for plan stability and state ownership and also strengthen national capacities to enforce rules and regulations as well as social discipline. Other areas covered are: roles, responsibilities and relationships among key planning and implementation agencies; a communication strategy for policy formulation, planning and implementation; stakeholder consultations and participation; streamlining processes and timing of activities of planning institutions; and developing capacities of the key planning agencies and units, namely, NDPC, PPMEDs, RPCUs and DPCUs. 10.0 Monitoring and Evaluation Monitoring and Evaluation (M&E) is an integral part of the policy formulation and implementation process in Ghana. 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. 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 uncoordinated information flow, particularly at the sector level. Technical issues also 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. To address these challenges, the current institutional arrangements will be reinforced with adequate capacity to support and sustain effective monitoring and evaluation, existing M & E mechanisms will be strengthened, harmonized and effectively coordinated. In addition, an efficient system for generating relevant, reliable and timely quantitative and qualitative information as well as an effective feedback mechanism that makes statistical information available in useable form to Government, private sector and civil society organizations will be evolved; and participatory M&E processes will be developed. xviii 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. 1 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 1For the purposes of the foregoing clauses of this article, within two years after assuming office, the President shall present to Parliament a Co-ordinated Programme of Economic and Social Development Policies, including Agricultural and Industrial Programmes at all levels and in all the regions of Ghana. 2 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 3 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 4 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. 5 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). 6 Table 2.1: Sector and Sub-Sector Real Growth Rates, 1998 – 2009 SECTORAL GROWTH RATE (%) Old Series (1993 = 100) Economic Activity By Type 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 REAL GDP GROWTH 4.7 4.4 3.7 4.2 4.5 5.2 5.8 5.9 6.4 5.7 7.3 4.1 1. AGRICULTURE 5.1 3.9 2.1 4.0 4.4 6.1 7.0 4.1 4.5 2.5 5.1 6.1 1.1 Crops and livestock 4.4 4.7 1.1 5.0 5.2 5.3 4.3 3.3 3.5 3.1 5.8 8.2 1.2 Cocoa production and marketing 11.1 -0.5 6.2 -1.0 -0.5 16.4 29.9 13.2 2.0 -3.5 5.0 6.2 1.3 Forestry and logging 10.0 6.8 11.1 4.8 5.0 6.1 4.2 5.6 2.6 2.5 3.5 3.5 1.4 Fishing 1.8 1.0 -1.6 2.0 2.8 3.0 6.2 -1.2 15.0 5.0 3.0 -2.3 2. INDUSTRY 3.2 4.9 3.8 2.9 4.7 5.1 4.8 7.7 9.5 5.1 8.1 1.6 2.1 Mining and quarrying 6.1 3.0 1.5 -1.6 4.5 4.7 3.0 6.3 13.3 13.9 2.1 8.2 2.2 Manufacturing 4.0 4.8 3.8 3.7 4.8 4.6 4.6 5.0 4.2 -2.3 -1.3 2.3 Electricity and water -10.0 7.8 4.5 4.2 4.1 4.2 3.7 12.4 24.4 -17.2 19.4 7.5 2.4 Construction 5.0 5.5 5.1 4.8 5.0 6.1 6.6 10.0 8.2 15.0 12.0 -1.7 3. SERVICES 6.0 5.0 5.4 5.1 4.7 4.7 4.9 6.9 6.7 10.0 9.3 5.8 3.1 Transport, storage and communication 5.5 6.0 6.0 5.5 5.7 5.8 5.2 7.9 7.2 9.8 8.9 7.7 3.2 Wholesale and retail trade, restaurants and hotels 6.0 6.5 4.0 5.1 5.6 5.0 6.0 10.0 7.5 10.6 10.2 2.8 3.3 Finance, insurance, real estate and business services 6.5 4.0 5.0 4.5 5.5 5.2 4.8 7.6 9.0 14.0 9.6 8.7 3.4 Government services 6.2 4.0 6.0 5.0 3.6 4.0 4.4 5.0 5.7 9.2 9.7 6.2 3.5 Community, social and personal services 5.9 5.9 6.9 6.5 4.4 4.1 4.2 4.3 4.2 5.0 4.5 4.5 3.6 Producers of Private Non-Profit Services 5.1 4.1 3.1 3.2 3.1 3.2 3.5 3.6 4.0 5.0 5.0 4.0 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). 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). 7 Figure 2.1: Structure of Ghanaian Economy Source: MOFEP, 2009 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. 8 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. 9 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$1,567 (Table 2.3). The key sector to lead the overall real GDP growth rate is Industry which is projected to grow at an average annual rate of about 14.5%, followed by the Services sector with 8.3% and Agriculture with 6.1% (Table 2.2). Table 2.2: Medium-Term Projected Real GDP Growth, 2010-2013 2010 2011 2012 2013 Growth Path without Oil Agriculture 6.0 6.1 6.0 6.0 Industry 6.6 8.2 8.4 8.4 Services 6.9 7.3 7.1 7.1 GDP (Non-oil) 6.5 7.1 7.0 7.0 Growth Path with Oil Agriculture 6.0 6.2 6.1 6.0 Industry 6.6 25.4 14.1 12.0 Services 6.9 9.9 8.7 7.5 GDP (Oil inclusive) 6.5 12.3 9.3 8.3 Source: GSS and MOFEP Though the global financial crisis has had an adverse impact on the economies of most countries, the effect on Ghana has been relatively moderate. This is partly due to favourable prices for Ghana’s two main exports, cocoa and gold, and partly because of strong agricultural production. Despite the low projected growth rates in the medium-term for the African sub-region due partly to the residual effects of the global financial crisis, it is estimated that the average medium-term real GDP growth rate in Ghana is expected to exceed the sub-regional average, mainly on account of the consolidation of macroeconomic stability, and policies to stimulate growth of the Agriculture, Industry and Services sectors and also of employment generation. It is expected that the impact of the global financial crisis would ease from 2010 with a significant bounce back in global economic activities by 2012. 10 Table 2.3: GDP Growth Projections, 2010 – 2013 Per Capita GDP in Nominal GDP in Nominal GDP (GH¢ Real GDP (GH¢ Real GDP Growth US$ Million US$ Exchange Million) Million) rate Population Exchange New Population Old New Rate Old New Old New Old New Year Old Series Growth Rate Ghana Series in Millions Series Series Depreciation Series Series Series Series Series Series (1993= Rate Cedis/ US$ (2006= (1993= (2006= (%) (1993= (2006= (1993= (2006= (1993= (2006= 100) 100) 100) 100) 100) 100) 100) 100) 100) 100) 2002 310.86 - 19.90 2.6 6,184.81 - 0.79 9.7 4,886 - 560.09 - 4.5 - 2003 372.54 - 20.41 2.6 7,604.60 - 0.87 10.1 6,616 - 589.49 - 5.3 - 2004 423.84 - 20.94 2.6 8,876.67 - 0.9 3.4 7,989 - 623.13 - 5.8 - 2005 497.39 - 21.49 2.6 10,687.91 - 0.91 1.1 9,726 - 659.27 - 5.9 - 2006 576.02 923.10 22.03 2.5 12,686.96 20,331.52 0.92 1.1 11,672.00 18,705 701.238 18,705.10 6.4 - 2007 661.87 1,091.07 22.58 2.5 14,942.34 24,631.91 0.94 2.2 14,045.80 23,154 741.213 19,913.40 5.7 6.5 2008 711.53 1,218.85 23.14 2.5 16,465.05 28,204.67 1.07 13.8 17,617.60 30,179 795.131 21,592.20 7.3 8.4 2009 646.33 1,095.67 23.70 2.4 15,315.35 25,962.68 1.42 32.7 21,747.79 36,867 827.73 22,597.90 4.1 4.7 2010 729.15 1,235.97 24.24 2.3 17,675.18 29,960.81 1.48 4.0 26,159.27 44,342 881.53 24,094 6.5 6.6 2011 891.13 1,384.34 24.80 2.3 22,098.57 34,329.22 1.54 4.0 34,031.80 52,867 990.34 27,560 12.3 14.4 2012 968.73 1,478.10 25.34 2.2 24,551.31 37,460.63 1.6 4.0 39,282.10 59,937 1,082.51 29,827 9.3 8.2 2013 1,035.44 1,567.27 25.88 2.1 26,793.04 40,554.82 1.66 4.0 44,476.44 67,321 1,172.87 32,094 8.3 7.6 Average 906.11 1,416.42 25.06 2.2 22,779.53 35,576.37 1.57 4.0 35,987.40 56,116.75 1,031.81 28,393.75 9.1 9.2 (2010-2013) Source: GSS and MOFEP 11 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. 12 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. 13 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 14 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 15 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. 16 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: Annual Consumer Inflation (%) 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 17 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: Trends in Interest Rates (%) 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: Exchange Rate Movements (%) 20 15 10 5 0 -5 -10 -15 -20 -25 -30 2001 2002 2003 2004 2005 2006 2007 2008 GHS/USD -3.7 -13.2 -17.3 -2.2 -0.9 -1.1 -4.8 -20.1 GHS/Pound -3.8 -20.4 -13 -12.1 11.1 -13.4 -7.2 -16.3 GHS/Euro -2.4 -23.6 -22.5 -10.7 13.8 -10.9 -15.7 8.1 Source: BOG 18 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 19 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 20 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. 21 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 22 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; 23 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 24 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. 25 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. 26 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. 27 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 28 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 29 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 30 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 31 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. 32 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. 33 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. 34 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 35 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. 36 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 37 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 38 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 39 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. 40 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. 41 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 42 • 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 naturalresource 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. 43 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 44 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 45 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 46 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. 47 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. 48 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. 49 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. 50 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. 51 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. 52 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 53 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. 54 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. 55 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 56 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 57 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. 58 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 59 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; 60 • 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 61 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 62 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 63 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. 64 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. 65 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. 66 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. 67 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. 68 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 69 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. 70 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. 71 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. 72 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. 73 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. 74 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 75 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 76 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. 77 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. 78 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. 79 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 80 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 81 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. 82 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 83 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 84 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. 85 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. 86 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. 87 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, 88 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. 89 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 90 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 91 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 92 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. 93 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. 94 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 95 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. 96 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. 97 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 98 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. 99 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 100 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 101 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. 102 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 103 • 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. 104 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. 105 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. 106 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 107 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. 108 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. 109 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. 110 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 111 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. 112 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. 113 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 INSTITUTION/ ROLES AND RESPONSIBILITIES GROUP • Review and approve development policy framework. Parliament and • Approve guidelines and formulae for allocating resources including the District Assembly Cabinet Common Fund (DACF). • Oversee policy planning and implementation. • Act as lead and/ or collaborating agencies for implementation of development plans. • Determine programmes and projects in line with the policy framework and annual budget Ministries guidelines. Departments • Realign on-going projects in favour of promoting growth and poverty reduction activities. And Agencies • Prioritise and cost activities for inclusion in the annual budget and request for release of (MDAs) funds for implementation of approved activities. • Monitor and evaluate output targets and programme outcomes. • Submit periodic reports on implementation progress and challenges to NDPC and MOFEP. • Coordinate preparation of district development plans and budgets. Regional • Coordinate DACF and special programmes to propel growth and respond to poverty. Coordinating • Harmonise district plans. Councils • Monitor the implementation of district plans and submit reports. • Coordinate the activities of decentralized planning departments, development partners, Metropolitan/ NGOs, CBOs, and CSOs and the private sector. Municipal/ • Provide forum for participation of community members, NGOs, CBOs, and traditional District authorities in identifying community needs and setting priorities for planning. Assemblies (MMDAs) • Provide special incentives for the private sector to support local economic development and priority areas in line with the policy framework. 114 INSTITUTION/ ROLES AND RESPONSIBILITIES GROUP • Use DACF and IGF to support priorities. • Put in more effort to increase internally generated revenue and encourage community contribution in cash and in kind. • Identify priorities and cost activities as basis for negotiating support from development partners. • Use participatory and quantitative methods to monitor and evaluate performance. • Develop a system to track the use of resources and output targets. • Prepare and submit quarterly and annual reports to the NDPC and the District Assemblies Common Fund Administrator and organize forums to discuss findings of monitoring and evaluation. • Take active part in annual national budget preparation process. • Participate in the preparation of District Development Plans. • Make sure the policies and priorities of the MDAs and MMDAs promote the private sector and local economic development. • Invest resources in the key development priority areas and / or enter into partnership arrangements with public sector institutions. Private Sector • Provide social services to needy communities and vulnerable groups as part of the private sector’s social responsibilities. • Monitor and evaluate the effects of private sector activities. • Hold discussions with Government on effects of the policy framework on the private sector. • Participate and demand reports of District Assemblies’ performance and compare same to targets in plans. • Take part in the identification of national goals and priorities. • Develop new programmes and projects in support of the policy framework. • Re-shape existing programmes of development partners to support the priority areas. Development • Provide financial and technical support to relevant programmes and projects. Partners • Take active part in reviews on spending and discussions of findings from monitoring and evaluation. • Support independent evaluation of plan implementation. • Ensure inclusion of social priorities in the development plans and annual budgets of MDAs and MMDAs. • Perform watch-dog functions in the implementation and monitoring of plans and use of resources at all levels. Media, • Serve as a means of getting information on the framework to the public and also obtaining CSOs/NGOs ideas from the general public. and CBOs • Provide financial and technical support to relevant programmes and projects. • Monitor activities of MDAs, MMDAs and the private sector. • Review the effects of development policy implementation on the environment and the welfare of children, women and the vulnerable. • Participate in policy reviews and framework for allocation of resources. Training And • Support training and research. Research Organizations • Participate in monitoring and evaluation of performance of MDAs and policy targets and participate in review forums. 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; 115 • 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. 116 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. 117 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. 118 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 119 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/ 120 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. 121 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 122 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 123 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; 124 • 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. 125 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. 126 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 127 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 128 • 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 Institutional Arrangements under GSGDA 129 APPENDIX 1: SECTORAL GROWTH AND CONTRIBUTION TO GDP, 2010 – 2013 Appendix table 2.1: GDP Growth Projections, 2010 – 2013 Source: GSS and MOFEP 130 Appendix table 2.2: Sectoral Distribution of GDP, 2010 – 2013 131 APPENDIX 2: MATRICES - MEDIUM-TERM DEVELOPMENT POLICY FRAMEWORK, 2010 – 2013 APPENDIX 2.1: ENSURING AND SUSTAINING MACROECONOMIC STABILITY IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES 1. Monetary Policy and • High inflation and interest 1. Ensure Price and Exchange 1.1Promote competition in the financial system to Bank of Ghana (BOG), Financial rates; exchange rate Rate Stability reduce high interest rates spread and ensure MOFEP, Office of the Management instability competitive rates President, Parliament, • Increasing levels of 1.2 Improve liquidity management Financial Institutions, speculative capital and 1.3 Strengthen the inter-bank foreign exchange market MSMEs, SEC, NIC, capital flight 1.4 Conduct regular supervision of banks GSE, SSNIT • Low foreign exchange cover 1.5 Introduce measures to guard against speculative capital and capital flight 2. Deepen the capital markets 2.1Implement schemes to increase long-term Bank of Ghana (BOG), savings/funds MOFEP, Office of the 2.2 Encourage the further development of the market President, Parliament, for bonds and other long-term securities Financial Institutions, MSMEs, SEC, NIC, GSE, SSNIT 3. Create a more diversified 3.1 Introduce discounted tax rate to financial Bank of Ghana (BOG), financial sector and improve institutions that lend to priority sectors such as MOFEP, Office of the access to financial services Agriculture, Industry, Micro, Small and Medium President, Parliament, Enterprises (MSMEs) Financial Institutions, 3.2 Strengthen the central securities depository system MSMEs, SEC, NIC, 3.3 Enact long-term savings law for private housing GSE, SSNIT schemes 3.4 Implement the law that will establish a regulatory framework for a three-tier pension system 3.5 Encourage and provide incentives to financial institutions to mobilize resources for priority sectors 3.6 Introduce measures that position Ghana as a major financial hub and centre of excellence in financial services in West Africa 3.7 Support universal banking to enable financial institutions to go into mortgage banking, term and start-up financing, and other activities and tailor their services to grow the economy 132 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES 3.8 Improve the Administrative, Legal, Institutional Strengthening, Monitoring and Supervision as well as the information dissemination frameworks for the Microfinance Sector 3.9 Implement schemes to improve women access to credit 3.10 Review the legal information and the regulatory systems of micro-finance institutions to improve credit availability to women 2. Fiscal Policy • Unsustainable fiscal deficits 1. Improve fiscal resource 1.1 Minimise revenue collection leakages MOFEP, GRA, OoP, Management and poor revenue mobilization 1.2 Institute tax reforms with emphasis on domestic Parliament, BOG, administration taxes, enhancing tax incentives and minimisation Audit Service, CAGD, • Weak capacity of MDAs to of tax expenditures MDAs, Registrar generate and manage Non- 1.3 Pursue the revenue agencies integration and General’s Dept. Tax Revenue modernisation programme GRA / Min. of • Under disbursement of donor 1.4 Computerise direct and indirect tax and non-tax Information funds revenue systems • Poor expenditure 1.5 Reform non-tax mobilisation and management management 1.6 Ensure transparent, efficient and effective oil and • Ineffective debt gas revenue management management 1.7 Mobilise external resources on concessionary • Budget lacks medium-term basis for development perspective 1.8 Ensure expeditious utilisation of all aid inflows • Weak institutional capacity 2. Improve public expenditure 2.1. Introduce budget law MOFEP, GRA, OoP, for fiscal policy management management 2.2. Introduce budget preparation and execution Parliament, BOG, reforms Audit Service, CAGD, • Inability to link resources to 2.3. Adopt measures to manage the wage bill MDAs, Registrar outcomes efficiently General’s Dept. • Inefficient management of 2.4. Develop more effective data collection GRA / Min. of the wage bill mechanisms for monitoring public expenditure Information 2.5. Ensure effective financial oversight over state- owned-enterprises 2.6. Introduce efficient financial management in key sectors of the economy, including energy 2.7. Continue with Treasury Management Reforms 2.8. Implement Asset Management Systems in all MDAs and MMDAs 2.9. Adopt a comprehensive Integrated Financial Management Information System (IFMIS) for effective budget management 133 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES 2.10.Continue with Public Procurement Reforms 3. Promote effective debt 3.1 Maintain public debts at sustainable levels MOFEP, GRA, OoP, management 3.3 Employ appropriate debt instruments to reduce the Parliament, BOG, market and refinancing risks associated with debt Audit Service, CAGD, portfolio MDAs, Registrar 3.4 Develop a well-functioning domestic debt market General’s Dept. as a vibrant and alternative source of financing for GRA / Min. of public investment projects Information 3.6 Build capacity to improve competencies in debt, treasury and risk management 4. Institute mechanisms to 4.1 Maintain stable reserves manage external shocks 3. Economic Policy • Unpredictable sectoral 1. Strengthen economic planning 1.1Monitor and evaluate economic performance to MOFEP; GSS, BoG, Management growth and forecasting to ensure address macroeconomic weaknesses MOTI, Parliament, synergetic development of Association of Ghana strategic sectors Industries, SSNIT, 2. Formulate and implement 2.1 Develop and utilise macroeconomic models NBSSI, PURC, NDPC sound economic policies 2.2 Produce research papers for policy analysis and economic decision-making 4. International • Persistently high 1. Improve export 1.1 Maintain competitive real exchange rates MOFEP, Ministry of Trade Management merchandise trade deficits competitiveness 1.2 Improve the import/export regime Foreign Affairs, Office and ECOWAS • ECOWAS Common 1.3 Establish the Ghana International Trade of the President, Community External Tariffs (CET) is yet Commission to deal with unfair international trade Parliament, BOG, PEF, Development to be implemented practices CEPS, MOTI, & • Difficulty in the application 2. Diversify and increase exports 2.1 Promote new goods and services MMDAs of the ECOWAS Trade and markets 2.2 Continue to take full advantage of Preferential Liberalisation Scheme Access to markets, such as AGOA, etc. (ETLS) 2.3 Continue to engage fully in Multilateral Trade negotiations 2.4 Negotiate the effective implementation of the ETLS with member countries 3. Accelerate economic 3.1 Implement the WAMZ programme integration with other regional 3.2Implement the ECOWAS Community and/or sub-regional states Development Programme 3.3Ensure that National Trade Policy reflects ECOWAS protocols 3.4 Strengthen links between industrial and trade policies 134 APPENDIX 2.2: ENHANCING COMPETITIVENESS IN GHANA’S PRIVATE SECTOR IMPLEMENTING KEY FOCUS AND ISSUES POLICY OBJECTIVES STRATEGIES AREA COLLABORATING AGENCIES 1. Private Sector • Lack of an effective national 1. Improve private sector 1.1 Update the PSDS into an effective national agenda MOTI, GIPC, GEPC, Development strategic agenda for private competitiveness 1.1 Remove obstacles and improve trade and investment climate EDIF, MOFEP, MOJ & sector development domestically and globally 1.2 Reduce cost by removing internal value chain and institutional A-G, BOG, PEF • Non-responsive public constraints Registrar General’s sector 1.3 Invest in science, technology and innovation Department • Unreliable and expensive 1.4 Aggressively invest in modern infrastructure infrastructure 1.5 Invest in available human resources with relevant modern • Unpredictable legal and skills and competences regulatory regimes 1.6 Ensure transparent legal, institutional and regulatory • Inadequate managerial skills environment • Poor entrepreneurial 1.7 Review and harmonize investment laws to ensure orientation competitiveness • Obsolete technology 1.8 Accelerate public sector reform programme 1.9 Improve efficiency of service delivery of MDAs, MMDAs and other public sector institutions • Unpredictable 2. Attract private capital 2.1 Sustain stable and predictable macro-environment over the MOFEP, MOTI, GIPC, macroeconomic conditions from both domestic and medium to long-term GEPC, EDIF, MOJ & • Inadequate capital base international sources 2.2 Deepen financial intermediation and promote inward transfers A-G, BOG, PEF, • Small financial market of capital, including Diaspora sources Judicial Service • Limited domestic instruments 2.3 Expand the space for private sector investment and for resource mobilisation participation • Limited fiscal space for 2.4 Guarantee and protect security of investment as well as investment by government personal security • A weak commercial dispute 2.5 Provide predictable and speedy resolution of commercial resolution system disputes • Limited identification of key 3. Pursue and expand 3.1 Pursue regional economic integration MOTI, GIPC, markets market access 3.2 Promote regional and intra-regional trade GEPC,EDIF, • Lack of Information 3.3 Promote regional infrastructure MOFEP, MOJ & • Inadequate export promotion A-G, BOG, PEF 3.4 Secure emerging market level competitiveness services 3.5 Leverage existing trade and investment partnerships and build new ones 3.6 Complete EPA negotiations, exploit WTO, enhance AGOA and expand trade with Brazil, Russia, India and China, etc 135 IMPLEMENTING KEY FOCUS AND ISSUES POLICY OBJECTIVES STRATEGIES AREA COLLABORATING AGENCIES 4. Make private sector work 4.1 Pursue technology transfer for Ghana, share the 4.2 Protect the environment, mitigate the effects and adapt to benefits of growth and climate change transformation strategy 4.3 Pursue diversity and equity • Poor quality and dangerous 5. Ensure the health, safety 5.1 Formulate consumer protection policy and enact comprehensive MOTI, MOFA, MOH, content of goods and economic interest of consumer protection law FDB, GSB, District • Arbitrary application of consumers 5.2 Establish national agency for consumer protection Assemblies, MOE, weights and measures 5.3 Control the sale of sub-standard goods and prohibit the sale of EPA, Law Enforcement • Lack of legislation for harmful goods on the local market Agencies, CSOs, consumer protection Media, NCCE, MLGRD • Inadequate job creation 6. Expand opportunities for 6.1 Promote labour intensive industries MOTI, GIPC, GEPC, job creation 6.2 Promote increased job creation EDIF, MOFEP, MOJ & 6.3 Promote deeper and wider application of local content law A-G, BOG, PEF 6.4 Identify strategic growth poles and provide adequate Registrar General’s Government support for their growth and development Department, MESW 6.5 Remove rigidities in the labour regulatory environment especially relating to redundancies and wage negotiations 2. Good • Inadequate framework to 1. Promote an enabling 1.1 Ensure that corporations act as good corporate citizens with MOTI, MOFEP, MOJ Corporate regulate the activities of environment and regard to human rights, social responsibility and environmental & A-G, BOG, PEF Governance corporate entities in the area effective regulatory sustainability of protecting stakeholder framework for corporate 1.2 Promote the adoption of codes of good business ethics in rights and social management achieving the objectives of corporations responsibility 1.3 Ensure that corporations treat all their stakeholders in a fair • Weak accountable and just manner mechanism among corporate 1.4 Provide for accountability of corporations and directors entities 3. Develop • Lack of access to finance 1. Improve efficiency and 1.1 Provide training and business development services MOTI, GIPC, GEPC, Micro, Small • Informal nature of businesses competitiveness of 1.2 Enhance access to affordable credit EDIF, MOFEP, PEF and Medium • Limited managerial skills MSMEs 1.3 Make available appropriate but cost-effective technology to NBSSI, EMPRETEC, Enterprises • Limited training improve productivity MEST (MSMEs) • The incentive regime only 1.4 Remove value chain constraints to promote productivity and favours foreign direct efficiency investments to the 1.5 Pursue push-pull arrangements disadvantage of local MSMEs 1.6 Provide incentives to MSMEs in all PPPs and local content arrangements 1.7 Support smaller firms to build capacity 1.8 Promote the establishment of incubators, technology parks and land banks 136 IMPLEMENTING KEY FOCUS AND ISSUES POLICY OBJECTIVES STRATEGIES AREA COLLABORATING AGENCIES 4. Industrial • Limited supply of raw 1. Ensure rapid 1.1 Promote Public-Private Partnerships MOFEP, MOFA, Development materials for local industries industrialisation driven by 1.2 Promote local content in industry including oil and gas GEPC, MOTI , NBSSI, • Inadequate and obsolete strong linkages to industry COCOBOD, ASSI, technologies agriculture and other 1.3 Encourage technology transfer and research and development SBA, AGI, GHANA , • Low productivity natural resource to drive industrial transformation MoEn, CHAMBER OF • Weak linkages between endowments 1.4 Decentralize industrial development to utilize the resource COMMERCE, BOG agriculture and industry endowments of districts • Lack of adequate tourism 1.5 Strongly link industrialization to Ghana’s natural endowments infrastructure – agriculture, oil and gas, minerals, tourism and Creative Arts • Lack of adequate health and 1.6 Transform the extractive industry for economic development safety related services (tourist 1.7 Promote salt production as a strategic industry and link it to police and loss-recovery the oil and gas sector facilities) 1.8 Define and promote priority areas for direct private sector and • Weak institutional framework public sector investments 1.9 Diversify exports • Lack of access to finance 1.10 Pursue spatial and geographic industrialization • Conflicting industry-related 1.11 Improve access to land laws 5. Developing • Limited exploitation of 1. Diversify and expand the 1.1 Market Ghana as a competitive tourist destination MOT, GTB, MOI, the Tourism potentials in the tourism tourism industry for 1.2 Develop new, high-value options in the leisure market, culture, GIPC, Ministry of Industry for sector revenue generation heritage and eco-tourism components of the tourism sector Foreign Affairs, Jobs and • Over-dependence on while enhancing the attractiveness of the existing products GHATOF, MOFEP, Revenue traditional sources of revenue 1.3 Enhance tourism services and standards through inspection, Ghana National Fire Generation for the country licensing and classification of formal and informal tourism Service, MMDAs, • Lack of appreciation of the establishments HOTCATT, MESW, contribution of tourism to the 1.4 Enhance human resource capacity of skilled and unskilled MOH, MCC, NCC, national account personnel in the hospitality industry Council for Creative • Low resource mobilization 1.5 Design programmes to reduce the credit constraint of operators Industry for the development of in the tourism sector with a particular focus on women tourism within communities entrepreneurs • Poor tourism services and 1.6 Attract health care entrepreneurs to establish medical facilities low quality standards in the offering clinical and surgical services to promote wellness industry facilities, i.e. natural Spas, to ensure long-term stay of • Lack of professionalism to convalescents at selected tourism attraction sites enhance the productivity of 1.7 Accord export status to hotels by granting them the benefits and the industry concessions enjoyed under EDIF 1.8 Promote the development of more high value accommodation and condominiums by private investors 1.9 Enhance capacity and strengthen the legal and institutional framework to support tourism industry 1.10 Support the development of national parks and other high rated 137 IMPLEMENTING KEY FOCUS AND ISSUES POLICY OBJECTIVES STRATEGIES AREA COLLABORATING AGENCIES natural attractions • Inadequate promotion of 2. Promote domestic tourism 2.1 Vigorously promote domestic tourism to encourage Ghanaians MOT, GTB, GHATOF, domestic tourism to foster national cohesion to appreciate and preserve their national heritage and create MDAs, MMDAs, as well as redistribution of wealth in the communities MOE, Ministry of income Youth and Sports, Council for Creative Industry • Increasing adulteration of our 3. Promote sustainable and 3.1 Develop sustainable ecotourism, culture and historical sites MOT, NCC, MMDAs, culture and degradation of the responsible tourism in 3.2 Ensure the reduction of sex abuse and spread of sexually GHATOF, NCRC, environment such a way to preserve transmitted diseases and HIV/Aids associated with tourism GTB, MES, MWH, historical, cultural and MDAs, MOH, PPAG, natural heritage GAC, MOWAC, GHANA AIDS COMMISSION, MOI, MOE, NCCE, ISD, Council for Creative Industry 6. Promoting the • Weak institutional framework 1. Develop and strengthen 1.1 Provide appropriate legal and regulatory framework for MOTI, MOJ&A-G, Creative for the development of the Ghana’s Creative promoting the Creative Arts and for protecting intellectual MCC, MOT, MFA, Industry for Creative Industry economy in ways that property rights MOI, ISD, Copy Right Economic • Weak sector-related laws would enable the nation to 1.2 Facilitate the establishment of appropriate and effective Office, Financial Development which do not conform with actively engage in the Collection Society sector Institutions, NBSSI, the five column models which world trade in Creative 1.3 Facilitate the establishment of a National Commission on ASSI, National are copyright law, copyright goods and services Films Commission on contract, neighboring rights, 1.4 Develop and promote the implementation of programmes and Culture, Development collecting societies and activities that would increase awareness of intellectual partners, Institutions enforcement, to conform to property rights representing the global standards 1.5 Effectively enforce and supervise laws and regulations Creative Industry • Lack of access to long-term pertaining to intellectual property rights including Council for financing for the sector 1.6 Support the use of multimedia technology in the Creative the Creative Industry, • Lack of appropriate collection Industry, with the creation of opportunities for the MUSIGA, ATAG, society development of the relevant human resources FIPA, INTEPRA, • Weak enforcement of copy 1.7 Promote coordination among key MDAs on the development National Music right laws of the Creative Industry Council, IMD, GAPI, • Weak coordination 1.8 Facilitate access to finance and the export market for products and PROMAG. mechanism among the MDAs of Ghanaian Creative Industry on issues related to the 1.9 Promote the use of more local content on all relevant Creative Industry electronic networks • Lack of designated unit 1.10 Promote the establishment of a Culture and Business desk in within the relevant MDAs to Ghanaian Missions Abroad 138 IMPLEMENTING KEY FOCUS AND ISSUES POLICY OBJECTIVES STRATEGIES AREA COLLABORATING AGENCIES facilitate the growth of the 1.11 Promote regular policy dialogue and advocacy with actors in Creative Industry the sector • None existence of a Council 1.12 Facilitate the establishment of a designated unit within the for the Creative Industry to relevant MDAs to facilitate the growth of the Creative oversee the growth of the economy Creative economy 1.13 Promote research into the industry and access to data to inform evidence-based policy making 1.14 Build a Creative Industry Centre in Accra to serve as creative space and enclave for SMEs in the Creative Industry 1.15 Review and ratify all international conventions on Culture and the Creative Industry 1.16 Promote the development of capacity of the actors in the sector including human resource capacity 1.17 Facilitate the establishment of a Council for the Creative Industry. 139 APPENDIX 2.3: ACCELERATED AGRICULTURAL MODERNISATION AND SUSTAINABLE NATURAL RESOURCE MANAGEMENT IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES A. AGRICULTURAL MODERNISATION 1. Accelerated • Low level of technology 1. Improve Promote Agricultural Mechanisation MOFA, CSIR, Universities, Modernization of • Low level of agricultural agricultural 1.1. Collaborate with the private sector to build capacity of MOTI, MRH, MoTr, GEPC, Agriculture mechanization productivity individuals and companies to produce and/ or assemble GIPC, AGI, NBSSI, • High cost of agricultural appropriate agricultural machinery, tools, and other equipment MOFEP, GRATIS, Private machinery and equipment locally Sector MMDAs, MiDA, • High rate of drudgery in 1.2. Facilitate the establishment of mechanization services NGOs, Ghana Standards farming activities provision centres, and machinery hire purchase and lease Board, Food and Drugs • Inadequate technical know- schemes with backup spare parts for all machinery and Board, etc how in agricultural equipment mechanization 1.3. Develop human capacity in agricultural machinery • Inadequate post-production management, operation and maintenance within the public infrastructure (i.e. storage, and private sectors processing, transport etc) 1.4. Promote the production and use of small-scale multi-purpose • Earnings in the agricultural machinery along the value chain, including farm level storage facilities, appropriate agro-processing machinery/ equipment sector are generally lower in comparison to other sectors and Intermediate Means of Transport (IMT) • Low uptake of research Improve Science and Technology Application MOFA, CSIR, Universities, findings by stakeholders 1.5. Apply appropriate agricultural research and technology to MOTI, MRH, MoTr, GEPC, • Duplication of research efforts introduce economies of scale in agricultural production GIPC, AGI, NBSSI, • Inadequate funding and 1.6. Promote demand-driven research MOFEP, GRATIS, Private commitment to agricultural 1.7. Improve the effectiveness of Research-Extension-Farmer Sector MMDAs, MiDA, research Linkages (RELCs) and integrate the concept into the NGOs, Ghana Standards • Limited application of agricultural research system to increase participation of end Board, Food and Drugs biotechnology and its benefits users in technology development Board, etc • Limited agricultural policy 1.8. Promote coordination and collaboration between research research institutions, locally and abroad, to improve cost- • Limited research on industrial effectiveness of research uses of indigenous crops and 1.9. Ensure sustained funding of research by partnering with the livestock private sector (including farmer groups) and NGOs to • Absence of up-to-date data identify and adopt innovative approaches to agricultural research funding and commercialisation /statistics on women farmers, 1.10. Facilitate the passage of the bio-safety bill, to improve food particularly poor women farmers, to inform policy safety and to pave the way for use of biotechnology tools in making and programming crop and livestock improvement research 140 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES • Poor coordination of 1.11. Intensify agricultural policy research and advocate increased agricultural research efforts capacity for socioeconomic research by research especially in the public sector organisations 1.12. Promote research in the development and industrial use of indigenous staples and livestock • Limited availability of Promote Seed Development MOFA, CSIR, Universities, improved technological 1.13. Support the development and introduction of climate MOTI, MRH, Ministry of packages, especially planting resilient, high-yielding, disease and pest-resistant, short Transportation, GEPC, materials and certified seeds duration crop varieties taking into account consumer health GIPC, AGI, NBSSI, and safety MOFEP, GRATIS, Private 1.14. Support production of certified seeds and improved planting Sector MMDAs, MiDA, materials for both staple and industrial crops NGOs, Ghana Standards 1.15. Intensify dissemination of updated crop production Board, Food and Drugs technological packages Board, etc 1.16. Build capacity to develop more breeders • Limited participation of Increase Access to Extension Services and Agricultural beneficiaries in extension Education programme planning and 1.17. Formulate agricultural education syllabus that promotes implementation agriculture as a business • Limited access to extension 1.18. Equip and enable the Agriculture Award winners and FBOs services, especially by women to serve as sources of extension training and markets to small agricultural operators scale farmers within their localities to help transform • Under-funding of Research subsistence farming into commercial farming Extension Liaison Committees 1.19. In addition to the RELCs, identify other participatory (RELCs) methods of extension programming and delivery • Undeveloped capacity of 1.20. Improve allocation of resources to districts for extension FBOs to access or deliver service delivery backed by enhanced efficiency and cost- services effectiveness • Lack of special programme for 1.21. Build capacity of FBOs and Community-Based training agricultural Organisations (CBOs) to facilitate delivery of extension manpower requirement services to their members • Poor rural road infrastructure 1.22. Emphasize the use of mass extension methods e.g. farmer • Weak systems for disaster field schools, nucleus-farmer out-growers, extension fields in the districts through mass education via radio, TV, prevention, preparedness and communication vans, for knowledge dissemination response (gaps in legal and 1.23. Establish Junior Farm Field and Life School (JFFLS) in the policy frameworks) districts 1.24. Promote the adoption of GAP (Good Agricultural Practices) by farmers • Inadequate product cluster 2. Increase Improve Post-production Management development agricultural 2.1 Establish a National Buffer Stock Agency MOFA, CSIR, Universities 141 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES • Low, poor quality and competitiveness 2.2 Improve supply chain management for developing product MOTI, MRH, Ministry of irregular supplies of raw and enhance clusters Transport, GEPC, GIPC, materials to agro-processing integration into 2.3 Promote the patronage of locally processed products AGI, NBSSI, MOFEP, enterprises domestic and through the production of quality and well packaged GRATIS, Private Sector, • Low patronage of locally international products MMDAs, MiDA, NGOs, processed products markets 2.4 Strengthen collaboration between public and private sector Ghana Standards Board, • Inadequate institutional institutions to promote agro-processing Food and Drugs Board arrangement to support 2.5 Provide tax incentives to the private sector to enable commercial-scale agro- operators to provide efficient agro-processing and processing marketing services 2.6 Promote cottage level agro-processing industries with interventions to enhance access to machinery and quality of products 2.7 Develop standards to be at par with those of competing imports, and advocate for their enforcement 2.8 Promote grading, processing and storage to increase value- addition and stabilise farm prices 2.9 Develop institutional capacity to support commercial scale agro-processing and buffer stock management 2.10 Promote the development of post-harvest management infrastructure through direct private sector investment and partnerships 2.11 Develop effective post-harvest management strategies, particularly storage facilities, at individual and community levels 2.12 Promote Public-Private Partnerships (PPPs) in the Agric sector • Inadequate market information Development of domestic market • Low standardisation and 2.13 Promote the accelerated development of feeder roads and product differentiation in rural infrastructure domestic markets (weights and 2.14 Encourage partnership between private sector and District measures; grades and Assemblies to develop trade in local and regional markets standards) 2.15 Improve market infrastructure and sanitary conditions • Uncongenial environment for 2.16 Set up Ghana Commodities Exchange trading in local markets 2.17 Create awareness of processes on GAP/HACCP. • Limited marketing extension 2.18 Strengthen capacity of Ministry of Food and Agriculture for producers, traders and to provide marketing extension exporters 2.19 Develop standards and promote good agricultural practices along the value chain (including hygiene, proper use of pesticides, grading, packaging, standardisation) 2.20 Promote formation of viable farmer groups and Farmer- 142 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES Based Organisations to enhance their knowledge, skills, and access to resources along the value chain, and for stronger bargaining power in marketing 2.21 Intensify the use of ICT and media to disseminate agricultural information to farmers • Majority of agricultural Development of agricultural exports operators do not have the 2.22 Provide comprehensive support for improved access of skills and knowledge in the operators to market information and intelligence requirements of external 2.23 Provide relevant technology, market infrastructure (cold markets, contributing to high chain), and financing to enable operators to respond to rate of rejection of exports the changing needs of markets • Inadequate access to market 2.24 Support operators to identify market niches for new information and lack of products capacity to access market 2.25 Promote GAP, particularly for meeting sanitary and intelligence phytosanitary requirements of importing countries • Inadequate and poor 2.26 Advocate a legal environment that supports agricultural management of logistics in production and trade contracts commodity marketing 2.27 Collaborate with relevant MDAs to improve road access • Limited capacity of exporters to link production centres to air and sea ports to meet export volumes • Weak legal environment does not encourage contract relationships in production and marketing • Seasonal variability in food 3. Reduce Promote Irrigation Development MOFA, CSIR, Universities, supply and prices production and 3.1 Develop appropriate and affordable irrigation schemes, GRATIS, Private Sector, • Low agricultural productivity distribution risks/ dams, boreholes, and other water harvesting techniques for NGOs, Meteorological and output bottlenecks in different categories of farmers and ecological zones Agency, MiDA, CERSGIS, • Generally low access of agriculture and 3.2 Promote the efficient utilisation of existing irrigation SADA, FBOs, GRIDCO, women to land including industry facilities especially in drought prone areas MOE, ECG irrigated land 3.3 Rehabilitate viable irrigation infrastructure • High cost of production 3.4 Promote land reforms that ensures equal access to irrigated land by men, women and persons with disabilities 3.5 Promote the use of early warning meteorological information system in agriculture at the district levels by the Meteorological Agency and other agencies 3.6 Explore appropriate and affordable irrigation schemes since electricity-powered ones are beyond the reach of many farmers • Inadequate credit facilities Improve Agricultural Financing • Low levels of economies of 3.7 Provide appropriate framework to ensure adequate flow of 143 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES scale in agricultural financial resources to the agricultural sector production systems 3.8 Establish Agricultural Development Fund to accelerate the provision of agriculture and fishing inputs and agriculture- related infrastructure and services 3.9 Target implementation of NEPAD’s recommendations for a minimum of 10% of GOG discretionary budget to be committed to strategic areas to improve agricultural productivity 3.10 Provide support to projects and establishments which support the Youth in Agriculture programme 3.11 Provide improved rural infrastructure (transport and communication), and appropriate regulatory environment to enhance private sector investments and participation in delivery of services, including extension 3.12 Provide selective subsidies for the procurement of improved technologies for poor peasant farmers and women 3.13 Initiate special pension scheme for farmers 3.14 Initiate agriculture insurance scheme to cover agricultural risks 3.15 Provide incentives for the Youth in Agriculture to become more commercial minded as agriculture is made more profitable • Lack of national agricultural Promote Sustainable management of land and environment land use policy 3.16 Resolve land acquisition and security of title problems • Lack of integration of through the establishment of a system of land banks sustainable land and water 3.17 Promote the development of community land use plans and management scheme into enforce their use, particularly in urban and peri-urban agriculture extension services agriculture • High levels of environmental 3.18 Support land tenure arrangement that yield win-win degradation outcomes for both tenants and land holders • Ineffective collaborative 3.19 Mainstream sustainable land and environmental management framework for the practices in agricultural sector planning and implementation management of environmental 3.20 Create awareness about environmental issues among all issues stakeholders and develop an effective and efficient framework for collaboration with appropriate agencies to ensure environmental compliance 3.21 Improve incentives and other measures to encourage users of the environment to adopt less exploitative and non-degrading practices in agriculture 3.22 Promote joint planning and implementation of programmes with relevant institutions to address environmental issues in 144 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES food and agriculture 3.23 Integrate/mainstream impact of climate change into sectoral and district plans • Lack of diversification and 4. Promote selected Staple and Horticulture Crop Development MOFA, CSIR, Universities competitiveness in staples and crop development 4.1 Promote the development of selected staple crops in each Private Sector, Financial cash crops for food security, ecological zone Institutions, MOTI, Ministry • Multiplicity of stakeholders export and 4.2 Promote the development of selected traditional and exotic of Transport, MRH, AGI, with various interests in the oil industry vegetables for exports PEF, NGOs, Cocoa palm value chain making the 4.3 Promote small-holder productivity in transition to large scale Research Institute (CRI, management of the industry production COCOBOD) cumbersome 4.4 Extend the concept of nucleus-outgrower and block farming • Ineffective cultural practices schemes and contract farming to cover staple and cash crops among small holder farmers to bridge the gap between large and small scale producers leading to comparatively 4.5 Promote linkage of smallholder production (including lower yields indigenous and industrial crops, livestock, and fisheries) to industry 4.6 Facilitate the training of out-grower farmers in all the processes required under GAP with emphasis on the harvesting and handling of horticultural crops and exotic vegetables 4.7 Provide legal backing for the major associations in the oil palm industry to ensure a unified representation of all players • Low commercial utilisation of Cash Crop Development research results for cocoa and Cocoa its by-products 4.8 Encourage the promotion of organic cocoa for strategic • Inadequate investment in buyers processing and value addition 4.9 Intensify and extend the mass spraying exercise to include to cocoa beans brushing, pest and disease control, shade management, • Inadequate raw materials to pollination and fertilization meet increasing demand by 4.10 Promote the commercialization of research in the utilization local industries of sub-standard cocoa and cocoa waste • Inadequate development of, 4.11 Strengthen the internal marketing of cocoa through improved and investment in processing competition and value addition of the 4.12 Provide equal access to warehousing facilities and crop traditional cash crops financing facilities including Shea nuts and 4.13 Rehabilitate the road network in cocoa-growing areas to Dawadawa facilitate the evacuation of the crop 4.14 Maintain the quality control responsibility within the relevant public institutions 4.15 Introduce special incentives to stimulate investments in the 145 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES processing of cocoa by local and foreign entrepreneurs Dawadawa 4.16 Set up a Task Force to encourage large scale dawadawa tree development, processing and utilization Shea nut 4.17 Support the establishment of shea butter processing factories in the three Northern regions for both local and international markets 4.18 Use part of oil and gas revenue to develop oil palm in the south, bast fiber in the transitional zone, cotton and shea nut in the north 4.19 Establish and operationalise a Shea nut Development Board to be responsible for the introduction of effective production, post-production, research and marketing initiatives Cotton 4.20 Revive the existing processing infrastructure in the cotton industry to support poverty reduction and improvement in the economies of the three northern regions 4.21 Promote cotton research and development for Ghana to be a market leader 4.22 Increase support for cotton farmers to produce adequate volumes for the underutilised capacities existing in cotton ginneries • Low quality genetic material of 5. Promote livestock 5.1 Enhance performance of indigenous breeds of livestock/ MOFA, CSIR, Universities, livestock species and poultry poultry through a programme of selection Private Sector, Financial • Poor management practices development for 5.2 Strengthen research into large scale breeding and production Institutions, MOTI, Ministry (feeding and health care) and food security and of guinea fowls, cattle, sheep, and goats especially in the of Transport, MRH, AGI, low productivity income northern regions PEF, NGOs, FBOs, FDB, • Inadequate availability of 5.3 Establish additional training facilities in animal health GSB, etc quality feed 5.4 Create an enabling environment for intensive • Lack of competitiveness of livestock/poultry farming in urban and peri-urban areas local livestock/poultry industry 5.5 Support large scale cultivation of maize and soyabeans for • Improper practices in the the formulation of animal feed production and handling of 5.6 Improve access of operators to technology and appropriate livestock/poultry and their financial instruments to enhance their competitiveness with products imports • Inadequate and poor quality 5.7 Prioritize the development of integrated commercial data and lack of proper livestock/poultry for improving meat supply in the short to monitoring system medium-term • Poor surveillance of livestock 5.8 Introduce policies to transform smallholder production into viable enterprises diseases 146 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES 5.9 Design interventions to address processing, packaging and marketing of livestock/poultry 5.10 Increase the awareness on food safety and public health 5.11 Strengthen the institutional collaboration for livestock/poultry statistics and monitoring 5.12 Promote integrated crop-livestock farming 5.13 Enhance the development of feed and watering resources for livestock/ poultry 5.14 Strengthen livestock mechanisation (e.g. incubation, straw bailers, rice straw choppers, etc) 5.15 Strengthen traceability mechanism in livestock/ poultry 5.16 Intensify disease control and surveillance especially for zoonotic and scheduled diseases • High level of annual fish 6. Promote fisheries Marine MOFA, Private Sector, production deficit development for 6.1 Promote the gathering of data for fisheries management CSIR, Universities, • Inadequate data for fisheries food security and 6.2 Establish a Fisheries College to train professionals and Research Institutions, MOH management (inland and income extension officers for marine and inland fisheries marine) 6.3 Prevent the degradation of the resources of the sea and the • Insufficient monitoring and lagoons caused by inefficient and destructive fishing control to ensure compliance methods through bio-diversity restoration with laws and regulations on 6.4 Ensure compliance with maximum allowable fish catches fisheries that will enable the marine and inland resources to renew • Weak collaboration with themselves communities towards the 6.5 Review all existing agreements on fishing within Ghana’s management of fisheries territorial waters to ensure sustained livelihoods and long- resources term interests of fishing communities • Over-exploitation of fisheries 6.6 Establish effective monitoring controls and surveillance resources systems and ensure compliance with laws and regulations on • Unsafe and unhygienic working fisheries resources conditions at landing beaches 6.7 Establish and strengthen co-management mechanisms with • Lack of alternative livelihood local communities for fisheries resource management 6.8 Promote the integrated development of artisanal fisheries and opportunities for coastal/ create alternative livelihoods fishing communities 6.9 Promote inter-sectoral cooperation in fisheries management • The application of inappropriate 6.10 Improve existing fish landing sites and develop related and unorthodox fishing infrastructure for storage, processing and exports methods and techniques 6.11 Revamp the current fleet of fishing crafts with modern ones • Inadequate fishing equipped with appropriate storage and processing facilities infrastructure including the use 6.12 Improve the regulatory and legal framework and ensure the of outmoded/over-aged fishing enforcement of the relevant provisions for the sustainable crafts management of fisheries resources 147 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES 6.13 Improve and diversify livelihood opportunities for men and women in post-harvest fishing sector Inland and Aquaculture development 6.14 Support the formation of “Fish Farmers Associations� to train members to become service providers 6.15 Develop aquaculture infrastructure including fish hatcheries 6.16 Promote private investment in aquaculture 6.17 Utilize irrigation systems and other impounded reservoirs for aquaculture 6.18 Develop and multiply breeding stock through research 6.19 Promote the improvement in fish husbandry practices and fish health management • Weak framework for 7. Improve 7.1 Strengthen the intra-sectoral and inter-ministerial MOFA, MDAs, MMDAs, collaboration with other MDAs institutional coordination through a platform for joint planning Private Sector on agriculture development coordination for 7.2 Develop framework for synergy among projects, and • Limited public-private sector agriculture strengthen framework for coordinating activities among engagement in agriculture sector development diverse stakeholders in the sector 7.3 Create District Agricultural Advisory Services (DAAS) to provide advice on productivity enhancing technologies B. SUSTAINABLE NATURAL RESOURCE MANAGEMENT 1. Natural resource • Inefficient industrial waste 1. Promote 1.1 Provide a platform for transparent engagement of major MLNR, Minerals management and management sustainable stakeholders in the mining sector to increase harmony within Commission, Forestry mineral extraction • Negative impact of some extraction and use the sector Commission, Environmental farm practices and mining of mineral 1.2 Prepare and present LI on regulations for the payment of Protection Agency, MEST, technologies resources compensations and guidelines for communities’ use of MoEn, Ghana Bar • Depletion of some unused mining concession to parliament and facilitate Association, Parliament, endangered species speedy enactment Ghana Chamber of Mines, • Lack of efficient ecosystem 1.3 Issue directive for the enforcement of the regulation on Research institutions such as management maximum period for renewal of mineral rights and a status Universities, CSIR, The • Negative impact of mining on report of all mineral properties in the country within three Geological Survey host communities months. Department, MMDAs, • Conflict between mining and 1.4 Review guidelines on mining in forest reserves and re- GNFS, NADMO, CSOs forest resource conservation negotiate Government’s position with stakeholders • Duplication of functions 1.5 Ensure content of new mining policy and subsequent review of Mining and Minerals Act have provisions including fiscal within the land sector incentives that promote increased local content in mining agencies projects • Lack of compensation to 1.6 Review appropriate policies, legislation, investment land owners agreements and carry out financial evaluation and audit of • Minimum local content in 148 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES (particularly local mining sector revenues to ensure increased realisation of technology) in the mining mining revenues sector. 1.7 Diversify the mineral production base of the nation to reduce • Inadequate realisation of over-dependence on the few traditional minerals mining sector revenue 1.8 Encourage investment and design domestic salt works to meet • Lack of viable and efficient West African market demand industries which utilize 1.9 Preparation of Salt Land Use Plan for the Volta Region primary products 1.10 Promotion and policy initiative to redesign salt works in • Inadequate exploration of Ghana to recover gypsum mineral resources within the 1.11Demarcation of areas for mining of spodumene if economic country 1.12 Demarcation and promotion of mining of kaolin for local • Over-dependence on the few industry and export traditional minerals currently 1.13 Detailed geological mapping of mineralized targets mined in the country 1.14 Detailed airborne geophysical survey in selected gold targets • Degradation of land, 1.15 Detailed geological investigations of selected mineralized pollution of water and air and targets high incidence of mining 1.16 Improve the environmental and natural resources accidents management for health and safety, and increased sustainable production in collaboration with key stakeholders 1.17 Remediation of arsenic pollution in heavily identified polluted areas 1.18 Guidelines for environmental reporting for mining companies 1.19 Drafting of guidelines for environmental rehabilitation and decommissioning of mine sites 1.20 Practical guidelines for the Occupational Health and Safety of the mining sector in Ghana 1.21 Promote actively the country’s involvement in the Extractive Industries Transparency Initiative (EITI), which seeks to ensure transparency in the payment, receipts, disbursement and utilization of extractive sector revenues 1.22 Develop the salt industry with emphasis on petrochemical industry utilizing national salt reserves and petroleum products from the country’s petroleum resources 1.23 Provide fiscal and related incentives that would encourage value-added downstream mining activities such as refining, smelting etc 1.24 Promotion of lapidary industry in Ghana 1.25 Strengthen the mining fiscal regime to ensure that the state and mining communities derive maximum benefit from the resource 149 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES 1.26 Enforce localization and integration such that more local benefits accrue to Ghanaian businesses 1.27 Improve the capacity and the operations of the small-scale mining sector, and reduce illegal artisanal mining (galamsey) 1.28 Strengthen human and institutional capacity having the responsibility for regulating the mining sector 1.29 Reduce social conflict issues in mining communities by ensuring the equitable distribution of mining revenues through the passage of the MDF Bill. 1.30 Improve support to small scale miners and explore mechanisms to encourage increased regularization of small scale mining (especially legally registered) 1.31 Production of new processing equipment (Sika Bukyia) and education of small scale miners in use of new method 1.32 Enhance international and regional co-operation • Degradation of the nation’s 2. Ensure the 2.1Control the negative effects of mining(especially illegal Environmental Protection forest restoration of mining) Agency, Ministry of • Over reliance on major degraded natural 2.2 Vigorously pursue reclamation and plantation development in Environment, Science and species like mahogany, resources areas mined-out by illegal miners Technology, Ministry of odom, sapale, etc 2.3 Introduce and enforce economic instruments for mining Energy, Ghana Bar • Fast depletion of the nation’s environmental management Association, MLNR biomass without replacement • Inefficient use and management of natural resources • Lack of awareness on climate change and its impact • Destruction of the environment, pollution by illegal miners • Presence of conflicting 3. Build institutional 3.1 Enhance policy and regulatory framework and effective co- Government Policies across frameworks for ordination among key Government agencies to improve the sectors without resolution of sustainable performance of the mining sector environmental impacts extractive and 3.2 Strengthen and enforce existing environmental laws and • Illegal felling of trees for natural resources regulations including passage of regulations under the energy which destroy wildlife management current Minerals and Mining Act 2006 (Act 703) population 3.3 Develop clear economic instruments for environmental • Weak institutional and management regulatory framework for 3.4 Ensure Sustainable Forest Management (SFM) through natural resource management enforcement of existing Forest Law 150 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES and environmental 3.5 Enforce the legality assurance scheme under the Validation of governance Legal Timber Programme (VLTP) • Poor enforcement of 3.6 Develop multi-agency approach to enhance resource regulations and laws management and the environment governing the environment 3.7 Co-ordinate and harmonize policies and programmes with and for the management of regional, international bodies and other member states of natural resources ECOWAS • Legal framework of the 3.8 Exchange information on the prospection, mapping, Forestry Commission has production and processing of mineral resources and weaknesses in ensuring that exploration, and distribution of water resources among there is a proper balance member countries between the long-term 3.9 Develop a system of transfer of expertise and exchange of conservation and sustainable scientific, technical and economic remote sensing data use of forest and wildlife among member states of ECOWAS resources and pressures to 3.10 Review the provisions of the Forestry Commission Act, maximize profits 1999, Act 571, to re-align it with the other Commissions dealing with natural resources 3.11 Re-organize community tenure and rights of farmers to trees outside reserves 3.12 Build capacity of professional foresters and District Assemblies to support and network community level enterprises and develop processing and markets for wide range of forest products in external markets 3.13 Review the Timber Resources Management (Amendment) Regulations, 2003, L.I. 1721, to provide for forestation and reforestation and to remove the element of gambling from the competitive bidding process in the allocation of TUC’s 3.14 Introduce and enforce economic instruments for mining environmental management 3.15 Accelerate the formulation of a National Mining Policy and ensure the review of the Minerals Development Fund to address concerns of communities, chiefs and District Assemblies on percentage of royalties allocated to them 3.16 Develop the mechanisms to encourage increased regularization of small-scale mining, including a review of procedures for obtaining small scale mining license. 3.17 Promote the conduct of better economic, social and environmental assessments prior to designation of mining areas 3.18 Promote an increase in local content in mining sector procurement 151 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES 3.19 Build capacity in application of Strategic Environmental Assessment (SEA) tool in the planning process 3.20 Provide legislation in application of SEA in the planning process 3.21 Deployment of Fibre Optics and Information Management System (IMS) database 3.22 Maintenance of databases 3.23 Ensure up-to-date mining portal to attract investment 2. Biodiversity • Weak integration of 1. Reduce the loss of 1.1 Facilitate the development of relevant sector biodiversity MEST, MLNR, MOFA, Management biodiversity issues especially biodiversity policies MOH, MLGRD, MOFEP, at the local level, including 1.2 Promote research, public education and awareness on ME, MOTI, Ministry of the implementation of biodiversity and ecosystem services Chieftaincy Affairs activities established for in- 1.3 Facilitate the collaboration and harmonization of biodiversity (Commission on Culture), situ, invasive alien species, in related agreements Ministry of Education agricultural biodiversity, 1.4 Establish monitoring mechanism for biodiversity activities Universities traditional knowledge 1.5 Establishment of a Steering Committee to mainstream • Lack of a complete biodiversity issues into sector programmes biodiversity assessment of Ghana • Encroachment on biodiversity hot spots • Lack of financial resources for all biodiversity-related activities including climate- related conventions 3. Protected Areas • Annual incidence of bush fires 1. Maintain and 1.1 Implement national buffer zone policies for rivers and DAs, Ministry of Local Management • Poor working conditions for enhance the protected areas incorporating education of potential users on Government and Rural protected areas field staff protected area dangers their activities pose to wildlife and water bodies Development, Ministry of • Agricultural encroachment system 1.2 Expedite action on the poverty alleviation agenda by pursuing Justice, Ghana Fire Service, and livestock grazing more vigorously national strategies like Youth in Agriculture, Ministry of Finance and • Pressure from adjacent land Savanna Accelerated Development Authority (SADA) and Economic Planning, use CEDECOM to benefit communities near protected areas and Forestry Commission, • Poaching and illegal local communities to benefit from revenues earned from the NGOs, Development harvesting due to mining operation of protected areas Partners, activities 1.3 Identify river basins and corridors best suited for connectivity Ghana Chamber of Mines, • Extreme poverty in most and acquire lands that could possibly serve as landscape MEST, NDPC, MOFA, nearby communities corridors EPA • Absence of connectivity of 1.4 Ensure local participation is an integral component of forest protected areas and wildlife policy by promoting more effective local commitment as partners in protected area management where 152 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES • Limited local involvement in local people are involved in all stages of management process protected area management 1.5 Provide alternative livelihood for local people to reduce • National policy on forest and pressure on lands adjacent to protected areas and water bodies wildlife outmoded 1.6 Ensure adequate accommodation, logistics and remuneration • Lack of / outmoded protected for protected area staff by creating a financial framework that area management plans in would ensure adequate motivation for protected area field some cases staff 2. Strengthen the 2.1 Promulgate strict national legislation on initiation of bush legal framework on fires which would enable District Assemblies to enforce protected areas bye-laws on bush fires and empower local authorities to prosecute bush fire offenders 2.2 Create specialized courts to adjudicate protected area offences, with intensified community education to promote partnerships 2.3 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 2.4 Institute national legislation to prevent mining activities in all protected areas 2.5 Constitute a multi-sectoral body to upgrade and possibly separate wildlife policy from forest policy as in the 1994 policy 4. Restoration of • Increasing trends in 1. Reverse forest and 1.1 Encourage reforestation of degraded forest and off-reserve degraded Forest deforestation, degradation and land degradation areas through the Plantations Development and afforestation and Land biodiversity loss with adverse programmes Management consequences for agriculture 1.2 Assist investors, under the Forestry Plantation Project, to go • Illegal and indiscriminate into industrial-scale tree farming in specific depleted forest harvesting of natural resources reserves and on degraded land and decimated wildlife 1.3 Encourage private investment in commercial forestry outside population forest reserves and along dried-up and flowing streams and • Over reliance on known species rivers like mahogany, odum, sapale, 1.4 Encourage utilization of non-traditional tree species such as etc rubber wood, coconut and bamboo to supplement raw • Reduced fallow length in material supply from natural forests response to population 1.5 Promote plantation/woodlot development among dynamics communities to meet the needs of society • Inappropriate use of 1.6 Facilitate logs importation from exporting African countries agrochemicals to improve resource availability for the timber industry • Cultivation along steep slopes 1.7 Manage and enhance Ghana's land and permanent estate of forest and wildlife protected areas • Forest destruction by chainsaw operators 1.8 Apply appropriate agricultural intensification techniques to 153 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES • Intensification of charcoal trade reduce forest land clearance to meet urban energy demands 1.9 Encourage and promote the use of Lesser Used Species • Over reliance on revenue from (LUS), and facilitate logs importation from exporting timbers exports African countries 1.10 Continue to implement national policy on replanting and rehabilitation by timber companies 1.11 Enforce ban on illegal chainsaw operation and constitute a monitoring team to ensure that appropriate timber species are replanted on degraded lands 1.12 Promote and facilitate the use of LPG as a cheaper and cleaner alternative fuel and promote manufacturing of simple and cheap gas burners • General indiscipline on the land 2. Encourage 2.1 Promote technological and legal reforms under the Land market appropriate land Administration Project/ Town & Country Planning • Complicated land tenure system use and Department/ Land Use Planning & Management Project • Cumbersome land registration management (LAP/TCPD-LUPMP) in support of land use planning procedures 2.2 Promote the use of geographical information system (GIS) in • Inefficient spatial/land use spatial/land use planning plans 2.3 Promote human resource development for effective land use • Indiscriminate sand winning planning and management. • Surface mining by both 2.4 Facilitate vigorous education on appropriate land use registered companies and illegal 2.5 Enforce national policy to prohibit farming along steep miners slopes 2.6 Continue national policy on replanting of degraded lands by mining companies 2.7 Identify appropriate locations for sand mining and enact national legislation to regulate sand winning 5. Marine and • Poor domestic sanitation and 1. Improve 1.1 Direct investment in control structures, e.g. Keta Sea defence MEST, EPA, Coastal improper disposal of municipal investment in project MLGRD, Ministry of Ecosystems solid and liquid waste control structures 1.2 Gabions and boulder revetments to arrest erosion Transport, Ghana Ports and Management • Fisheries degradation and technologies Harbours Authority 1.3 Mangrove replanting and planting of other vegetative cover to • Wetlands and mangrove Fisheries Commission, delay erosion, e.g. at Winneba degradation Ghana Navy 1.4 Investments in upgrading and maintaining waste treatment • Industrial water pollution and small scale waste collection facilities • Coastal erosion 1.5 Promote recycling, recovery, re-use and reduction of waste 2. Institute 2.1 Implement regulations and fines for illegal mining, appropriate indiscriminate bush burning, mangrove and wetlands regulatory degradation, sand and gravel mining framework and 2.2 Monitor and enforce regulations against inappropriate fishing economic methods, such as light fishing and use of small mesh size incentives for 2.3 Strengthen enforcement against illegal fishing by trawlers 154 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES effective coastal 2.4 Strengthen institutional capacity for research, monitoring and resource enforcement of legislation and bye-laws management 2.5 Ensure proper siting of industries in developing coastal towns 2.6 Encourage the use of alternative building materials 2.7 Provision of fishery infrastructure to reduce post harvest losses 2.8 Establish a Coastal Zone Commission with strong stakeholder participation 3. Improve 3.1 Community participation in safe disposal of sewage and knowledge and garbage awareness on 3.2 Create public awareness and education to avoid unwise appropriate coastal exploitation and pollution of sensitive habitats resources 3.3 Encourage coastal communities to generate income from management coastal resources, e.g. tourism 3.4. Strengthen cooperation and coordination of various institutions for effective management 6. Wetlands and • Water loss through 1. Sustainable use of 1.1. Promote decentralization and participatory wetlands FC WRC, DAs, MAs, Water Resources construction of drains and wetlands and management NGOs, FC, Bar Association, Management channels resulting in increased water resources 1.2. Ensure national capacity building and appropriate legal and Parliament, Ghana Chamber surface run-off institutional framework are in place of Mines, Minerals • Increasing conversion of 1.3. Carry out comprehensive wetlands inventory, supported by Commission, wetlands to other forms of research and monitoring Research institutions such as land use 1.4. Restore and rehabilitate degraded and badly altered Universities, CSIR, EPA, • Regulating of water supply wetlands Geological Survey through impoundments 1.5. Ensure long-term sustainability of wetlands Department, • Salt water intrusion in the 1.6. Promote communication, education and public awareness of MMDAs, Ministry of Lands coastal areas resulting from wetlands and Natural Resources, reduction in upstream water 1.7. Establish sustainable local livelihood strategies so as to MEST sources enhance poverty reduction • Degradation of wetlands soils 1.8. Networking and international cooperation due to increasing exposure 1.9. Develop sustainable financial mechanism through • Pollution of wetlands due to cooperation with development partners and other indiscriminate waste disposal stakeholders for financing wetlands restoration activities • Over exploitation of wetlands • Deforestation in wetlands catchments • Sediment and nutrient diversion by impoundments • Disruption of stable climate conditions 155 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES • Invasion of water weeds 2. Adopt integrated 2.1. Adopt water resources planning as a cross-cutting basic • Inadequacy of water to restore water resources component of national economic planning and preserve the natural management 2.2. Ensure preparation of IWRM strategies using the various character and functions of river basins as the planning units ecosystems 2.3. Establish appropriate institutional structures and enhance • Water quality deterioration capacity building • Long-term impacts of human 2.4. Ensure water resources planning to be made with due activities on water resources recognition of “environmental flow� requirements • Inadequate institutional 2.5. Adopt sustainable practices that avoid damage to critical arrangements and human natural capital and irreversible ecological processes resources 2.6. Promote partnerships between the public and private sectors for the protection and conservation of water resources 2.7. Ensure cost recovery and sustainability of water projects 2.8. Promote equity taking into account the specific needs and preferences of the poor 7. Waste • Lack of awareness of the 1. Manage waste, 1.1. Promote the education of the public on the outcome of GES, MOH, MMDAs, EPA, Management, negative impact of improper reduce pollution improper disposal of waste MEST, Security Services Pollution and disposal of waste i.e. solid, and noise 1.2. Provision of waste collection bins at vintage places in the such as GPS, Environmental Noise Reduction liquid, e-waste on the communities and these bins should be emptied regularly and Health Inspectors, EPA environment 1.3. Enforcement of all sanitation laws • Inadequate waste collection 1.4. Set up new/renovate all old waste recycling plants points, bins, vehicles etc. 1.5. Encourage the setting up of incentive packages for • Poor enforcement of existing sanitation workers sanitation laws 1.6. Set up of special courts to deal with persons or industries • Inadequate waste recycling that do not comply with sanitation bye – laws plants 1.7. Enlighten Judges on the impact of waste and noise pollution • Lack of motivation among so that they will deal with culprits instead of passing sanitation workers inappropriate sentences • Attitude of Judges in passing 1.8. Promote the education of the public on the effects of noise judgments on sanitation and pollution on the health of citizens noise pollution cases brought before them • Lack of awareness of the negative impact of noise pollution on the health of citizens 8. Community • Lack of interest and awareness 1. Enhance 1.1. Develop initiatives to increase awareness of the conditions MLNR, EPA, MEST, Participation in in local natural resource community of natural resources among local communities MLGRD, District natural resource management initiatives participation in 1.2. Promote Information, Communication and Education (ICE) Assemblies management • Lack of strategies that environmental and plans as a means to develop community responsibility to natural resources manage the environment on a sustainable basis 156 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES encourage the participation of management by 1.3. Create public awareness about the value of community all key stakeholders in the awareness raising resources and the current or potential threats to those sustainable management of resources to motivate community members to take natural resources management action • Lack of trust between local 1.4. Encourage local communities to develop a sense of communities and the authorities stewardship over natural resources by soliciting the support • Insufficient community leaders and cooperation of local and traditional leaders to increase actively involved in local awareness about environmental degradation and environmental decision-making management issues • Weak institutional and legal 2. Enhance 2.1. Provide opportunities for local participation that involves framework for encouraging community men and women making decisions and taking action using local communities in natural participation in the natural resource management process resource management governance and 2.2. Ensure equal opportunities for all stakeholders including • Poor coordination between decision-making women to participate in environmental decision-making at all communities and MDAs levels • Distrust of political authorities 2.3. Take measures to integrate a gender perspective in the design and implementation of environmentally sound and sustainable resource management mechanisms • Earthquakes and minor tremors 2.4. Develop plans that are based on engagement with in Accra district and some communities and involve the full range of key stakeholders coastal areas 2.5. Effectively disseminate information on legislation on the environment especially in the local languages 2.6. Strengthen existing governance structures such as unit committees by increasing their awareness of environmental issues 3. Strengthen and 3.1. Strengthen the community’s capability to access funds to develop local level support viable and environmentally sustainable capacity to socioeconomic projects participate in the 3.2. Encourage the community to form alliances and management and organizations to lobby and negotiate with the Government, governance of among others natural resources 3.3. Provide opportunities for community members to gain the skills and knowledge necessary to undertake environmental management initiatives 3.4. Establish a Community Leadership Programme that provides training and education in coastal zone management to instil the necessary skills and confidence in community leaders 3.5. Strengthen coordination among Metropolitan, Municipal, and District Assemblies (MMDAs) to enforce planning regulations relevant to the environment 3.6. Establish coordinating structures (based on an understanding 157 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES and current profile of the range of stakeholders, community groups) in resource management and have access to both MDAs and local communities 3.7. Increase capacity of NADMO to deal with the impacts of natural disasters 9. Climate • Lack of awareness on climate 1. Adapt to the 1.1 Increase resilience to climate change impacts through early impacts and reduce warning systems MEST, NDPC, Regional Variability and change and its impact vulnerability to 1.2 Alternative livelihoods: minimize impacts of climate change Planning & Coordinating Change • Variability in ecological zones Units, Cross Sectoral that make predictions of climate Climate Variability for the poor and vulnerable and Change 1.3 Enhance national capacity to respond to climate change Planning Groups (CSPGs), change impacts complicated through creation of a Climate Centre at the Institute of District Planning & • High dependence on natural Coordinating Units, resources Environment and Sanitation Studies, Legon 1.4 Adapt to climate change through enhanced research and Universities • Poor and inadequate infrastructure to cope with the awareness creation impacts of climate change 1.5 Develop and implement environmental sanitation strategies • Limited human resource to adapt to climate change capacity 1.6 Manage water resources as a climate change adaptation • Weak sub-regional network strategy to enhance productivity and livelihoods • Inadequate financial 1.7 Minimize climate change impacts on socio-economic development through agricultural diversification resources/low budgetary 1.8 Minimize climate change impacts on human health through allocations improved access to healthcare • Poor control of water level for 1.9 Adopt demand- and supply-side measures for adapting the the generation of hydropower national energy system to impacts of climate change 1.10 Adapt to climate change: sustain livelihoods through enhanced fisheries resource management 2. Mitigate the 2.1 Promote energy efficiency in all aspects of social and impacts of Climate economic life Variability and 2.2 Promote energy efficient transport services and facilities Change 2.3 Promote sustainable forest management and implement forest governance initiatives 2.4 Promote various mitigation options in the agricultural sector including education and efficient management practices 2.5 Improve waste management mechanisms 3. Use Low Carbon 3.1 Develop a long-term national LCG approach based on a clear Growth (LCG) as a scientific and economic assessment specific approach 3.2 Develop an appropriate response to climate challenges to integrate the link through linkages between and among research, industry and between climate the Government machinery and development 3.4 Prioritize technical and systemic innovation initiatives in the most pressing areas and those areas with the most potential 158 IMPLEMENTING AND KEY FOCUS POLICY ISSUES STRATEGIES COLLABORATIVE AREA OBJECTIVE AGENCIES for rapid cost-effective results 3.5 Involve a wide range of stakeholders so as to understand and negotiate tradeoffs and achieve broad consensus for a package of LCG policies for sustainable development 3.6 Identify the technical, human and financial capacity needed to achieve long-term Low Carbon Growth 3.7 Create 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 10. Natural • High vulnerability of 1. Mitigate and 1.1 Invest in early warning and response systems MWRWH, MLGRD, Disasters, Risks environmental natural resources reduce natural 1.2 Create awareness on climate change, its impacts and MMDAs, TCPD, and Vulnerability to natural disasters disasters and adaptation NADMO, Private • Poor management of the reduce risks and 1.3 Increase capacity of NADMO to deal with the impacts of Sector, NGOs impacts of natural disasters and vulnerability natural disasters climate change 1.4 Equip the key seismological monitoring stations in Ghana • Earthquakes and minor tremors 1.5 Reduce impacts of natural disasters on natural resources in Accra district and some using a multi-sectoral approach coastal areas 1.6 Introduce education programmes to create public awareness • Occasional droughts – most 1.7 Integrate watershed management to combat desertification severe in 1982/3 with disastrous 1.8 Enforce bye-laws restricting structures in flood-plains, effects on livelihoods water-ways, wetlands, etc • Increasing frequency and impact of droughts, floods, forest fires, and other natural hazards 159 APPENDIX 2.4: OIL AND GAS DEVELOPMENT IMPLEMENTING KEY AREAS OF AND ISSUES POLICY OBJECTIVES STRATEGIES FOCUS COORDINATING AGENCY 1. Oil and gas industry • Develop the oil and gas Industry 1. Ensure the development 1.1 Design a comprehensive framework for the development MoEn development, and its with optimal local content and of oil and gas industry of the oil and gas industry effective linkage to participation 1.2 Incorporate lessons from best practices and set standards the rest of the • Integrate oil and gas development for the industry economy into the broad national economy 1.3 Ensure that the oil and gas sector aligns its programmes • Avoid over-concentration on the oil with all other sectors for collaborative implementation of and gas sector to the detriment of development plans other sectors of the economy 1.4 Use opportunities arising from the oil and gas discoveries as a catalyst for diversifying the economy 1.5 Open up the oil and gas industry to Independent Power Producers (IPPs) and the private sector 1.6 Expand the national oil refinery capacity in collaboration with the private sector 1.7 Ensure the establishment of a minimum of ninety days strategic stocks of crude oil and oil products 1.8 Ensure competitive procurement of crude oil • Economy’s over-reliance on primary 2. Diversify the economy 2.1 Ensure value addition to local goods and services, and MMDAs, MOTI, products with very little value with emphasis on the maximise their use in oil and gas industry MLNR, EPA, MEST, addition processing of raw 2.2 Build the capacity of Ghanaians for participation in all MOFEP, MFA, MOD, • The potential for the oil and gas materials segments of the oil and gas industry MOI, MOWAC, CSOs, industry to become a replacement 2.3 Ensure security for the oil and gas industry as a whole NDPC for other sectors of the economy (including installations and operations) particularly agriculture 2.4 Facilitate the utilisation of natural gas for the development of industrial sector 2.5 Secure reliable supplies of natural gas for power generation 2.6 Establish industries to produce petroleum and gas-based products 160 IMPLEMENTING KEY AREAS OF AND ISSUES POLICY OBJECTIVES STRATEGIES FOCUS COORDINATING AGENCY • Low exploration, development and 3. Sustain and optimise the 3.1 Manage Ghana’s oil and gas resource endowment to production of oil and gas exploration, exploitation ensure sustainability in reserves and the environment • Lack of petrochemical industry to and utilisation of oil and 3.2 Enact legislation on transparent legal and fiscal regimes support the new oil and gas industry gas endowment 3.3 Develop the petrochemical industry to utilize local oil and • Challenges of internal and external imported natural gas and Ghana’s salt resources migration and their consequences 3.4 Support regional initiatives for integrating energy infrastructure to expand and accelerate cross-border energy trade and investments 3.5 Include re-development of existing settlements as part of the “growth poles� of the new urban settlements expected from the oil and gas industry • Inadequate local participation in the 4. Strengthen the capacity 4.1 Maximise the participation of Ghanaians in the exploration, development and of local financial exploration, development, production and utilisation of oil production of oil and gas resources institutions to compete and gas with their foreign counterparts for opportunities in the oil and gas industry • Limited availability of financial 5. Facilitate financial 5.1 Actively support institutions that provide adequate resources to support Ghanaian sector development for funding for technical training and scientific research and investment in oil and gas long-term funding/ development industrial development capacity-building to 5.2 Attract requisite investment capital in oil and gas • Limited capacity of indigenous provide domestic exploration and development as well as ensure maximum financial institutions to participate resource availability to benefits to the people of Ghana in the oil and gas sector fund investment in oil 5.3 Provide adequate investment for physical and social and gas infrastructure in communities in the oil and gas production areas • Inadequate public awareness of the 6. Ensure that domestic 6.1 Aim at zero flaring of gas and total utilisation of gas for potential and impact of the oil and gas utilisation becomes power generation, household and industrial use gas resources on the nation’s a central part of every 6.2 Create awareness on the prospects and impact of oil and development prospects oil and gas production gas resources on the nation’s development arrangement • Inadequate local capacity 7. Build the relevant 7.1 Link up with the educational institutions to build capacity capacity for the oil and in relevant areas gas industry 7.2 Create a human resource database of Ghanaian capacities in the oil and gas industry 7.3 Assess and build local capacity of Ghanaians both within and outside the country 161 IMPLEMENTING KEY AREAS OF AND ISSUES POLICY OBJECTIVES STRATEGIES FOCUS COORDINATING AGENCY 2. Employment • High national unemployment levels 1. Convert the 1.1 Ensure utilisation of oil revenue in the priority areas of Creation • Very high expectations of benefits opportunities offered by education, health, agriculture, rural development, from the oil and gas Industry the oil and gas industry infrastructure, water and sanitation for accelerated to create decent jobs poverty reduction 1.2 Provide incentives to facilitate investments along the oil and gas value chain 1.3 Ensure that Independent Power Producers comply with the local content policy in labour recruitment 1.4 Ensure that natural gas finds are prioritised for domestic industrial value creation 3. Protection of the • Inadequate baseline information on 1. Ensure that the practices 1.1 Build capacity of EPA and related institutions to monitor MEST, EPA, GNPC Environment environmental impact of oil and gas of the oil and gas and undertake environmental impact assessments in the • Lack of capacity to manage industry are consistent oil and gas industry environmental impacts with international 1.2 Research into environmental impacts associated with the • Challenges of ensuring standards of operations of the oil and gas industry environmental sustainability in the environmental 1.3 Ensure persistent and stringent monitoring and evaluation oil and gas industry sustainability 1.4 Develop and enforce the use of spatial plans especially in • Major land use challenges especially the Western Region in the Western Region • Inconsistency of waste management regulations with international standards 4. Transparency in • Potential distortions in the economy 1. Effectively and 1.1 Develop appropriate guidelines for revenue collection MOFEP, DAs Revenue • Limited revenue management transparently manage 1.2 Monitor and scrutinise revenue from the industry Management capacity potential revenues from 1.3 Strengthen monitoring, evaluation and reporting systems • Corruption oil and gas in the industry production 1.4 Develop guidelines to allocate royalties from the oil and gas industry 162 APPENDIX 2.5: INFRASTRUCTURE AND HUMAN SETTLEMENTS DEVELOPMENT IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES A. INFRASTRUCTURE DEVELOPMENT 1. Transport • Poor quality of routes 1. Establish Ghana as a 1.1. Improve the physical infrastructure at KIA and other MRH, Ministry of Infrastructure: through land surface transportation hub for the regional airports Transport, Private Road, Rail, Water corridors West African Sub-Region 1.2. Improve safety and security conditions at KIA and other Sector, GRC, and Air Transport • Insufficient and poor transit airports, aiming for compliance with latest global GHAPOHA, GHA, facilities standards to avoid exclusion from key international DFR, VLTC, GRC, • Inability to sustain safety and markets MMDAs, Road security standards within and 1.3. Develop maintenance and other aviation service facilities Contractors Association, beyond the sub-region 1.4. Promote general aviation as a catalyst for development and MMDAs, BRRI, GHA, • Over-stringent operating growth DFR, DUR, MOFEP, conditions hindering the 1.5. Explore the feasibility of establishing other international VLTC, GRC development of new services airports in Ghana Parliament, Ghana • Poor co-ordination and 1.6. Encourage open competition for airport and port handling Airports Company delays among service services Limited (GACL), providers due to poor 1.7. Improve equipment and facilities in ports to reduce cost for GCAA, MOE information users and make transport services through the ports more • Inadequate domestic aviation competitive in the West Africa sub-region infrastructure 1.8. Improve information management to make it available and • Lack of aviation master plan accessible to users to aid predictability of ship movements • Inadequate human resources 1.9. Maximize access to international markets and transport to meet the demands of the networks, facilitate port owners, shippers and service aviation sector providers to meet standards set by the Customs-Trade • Limited and poor rail Partnership against Terrorism (C-TPAT) initiative, World network Customs Organisation (WCO) framework, International • Inadequate development of Maritime Organisation (IMO) and International Civil inter-modal transport system Aviation Organization (ICAO) requirements by • Poor inter-modal facilities incorporating requirements into national laws • Inadequate funds to develop 1.10. Harmonize Transport and Traffic laws and standards inter-modal links with Ghana’s neighbours to reduce non-physical barriers to trade 1.11. Introduce an integrated truck staging and management system including truck staging areas, cargo and truck tracking systems and axle loading stations to reduce congestion at the ports, ensure security, and prioritization of goods and minimize damage on major transport corridors 1.12. Ghana Airport Company Limited (GACL) to develop 163 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES master plan in collaboration with GCAA • Uneven access to 2. Create and sustain an 2.1. Prioritise the maintenance of existing road infrastructure MRH, MoTr, MMTL, transportation leading to efficient transport system to reduce vehicle operating costs (VOC) and future National Disability post-harvest losses that meets user needs rehabilitation costs Council, MESW, • Pre-mature deterioration of 2.2. Improve accessibility by determining key centres of MMDAs, GPRTU, road network due to population, production and tourism, identifying strategic MTTU, DVLA, extensive use areas of development and necessary expansion including National Road Safety • Lack of effective regulation accessibility indicators Commission, MOJ & A- on inland waterways leading 2.3. Develop and use decision-making tools to ensure that G, Judiciary, Law to poor service and safety development investments satisfy strategic gaps in the Enforcement Agencies, • The physically challenged transport network Private Sector, Financial are not adequately provided 2.4. Reinstate labour-based methods of road construction and Institutions, BRRI, for in the current transport maintenance to improve rural roads and maximise Local consultants, GHA, system employment opportunities DFR, DUR, MOFEP, • Inadequate and unfriendly 2.5. Implement urban transport projects such as the Ghana VLTC, GRC walk ways for PWDs Urban Transport Project (GUTP) including Bus Rapid EPA, Maritime • Insufficient facilities for Transit (BRT) and school bussing scheme Academy, Parliament, inland, air and water 2.6. Develop rail-based mass transport system in: Accra- Ghana Airports transport development Tema, Kumasi-Ejisu, Accra-Nsawam, and Takoradi- Company Limited • Congestion of roads in urban Kojokrom as part of an integrated transport plan (GACL), GCAA areas 2.7. Develop, rehabilitate and modernize road access routes • Inadequate facilities for to ferry stations Non-Motorized Transport 2.8. Improve safety on inland waterways to fully exploit (NMT) potential • Lack of appropriate 2.9. Establish regular, scheduled services on Volta Lake legislation for NMT 2.10. Facilitate the efficient and safe use of Non-Motorised operators Transport facilities such as bicycle lanes and pedestrian • Congestion at the major walkways in congested central business districts ports and harbours 2.11. Remove tree stumps in the Volta Lake 2.12. Establish a disability awareness training programme for public transport providers 2.13. Ratify UN convention on PWDs 2.14. Submit an LI for enforcing transport actions under PWD Act 715 • Poor linkages between land 3. Integrate land use, 3.1 Establish consultation mechanisms between Transport MRH, MoTr, MMDAs, use and transport planning transport planning, Sector MDAs, with MLGRD, MMDAs and other Sector GPRTU, MTTU, development planning and Ministries DVLA, National Road • Poor co-ordination and co- service provision 3.2 Implement integrated land use and spatial planning Safety Commission, operation among relevant 3.3 Decentralise Management, Financing and Maintenance of MOJ & A-G, Judiciary, institutions local transport infrastructure and services Law Enforcement 164 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES 3.4 Develop Urban Transport Policy agencies • Over-reliance on public 4. Create a vibrant 4.1. Explore PPPs and Concession options for investment in Office of the President, funding for road investment and transport infrastructure and services (single and multi- Private Sector, Financial infrastructure performance-based modal options) Institutions, BRRI, • Inadequate funding for management environment 4.2. Apply the principles of market regulation to transport Local Consultants, maintenance, upgrading that maximise benefits for services by an independent body MOTI, GHA, DFR, and rehabilitation of public and private sector 4.3. Promote foreign direct investment in the aviation DUR, MOFEP, VLTC, existing infrastructure, and investors industry GRC management for all modes 4.4. Manage the fuel levy efficiently to ensure adequate GHAPOHA, CEPS, of transport revenue is made available to cover all road maintenance Maritime University, • Poor and inadequate and associated administrative costs Parliament, GIPC, development of intermodal 4.5. Build capacity of local contractors and consultants and GACL , GCAA facilities ensure their proper classification and use • Poor and inadequate 4.6. Develop a sustainable maintenance management system regulatory framework for for transport infrastructure developing PPPs 4.7. Develop indicators to monitor and evaluate sector performance in pursuit of strategic objectives 4.8. Ensure collection of transport statistical data to support planning, monitoring, evaluation, and reporting • Un-integrated approach to 5. Develop and implement 5.1. Enhance policy formulation and coordination capacity to transport planning and comprehensive and embrace the wider policy framework development (lack of integrated policy, 5.2. Implement existing recommendations for institutional effective interfaces governance and reform and strengthening in the Transport Sector between road, rail and institutional frameworks 5.3. Implement existing recommendations for institutional ports) reform in the Railways sub-sector 5.4. Implement existing recommendations for institutional reform in the Maritime and Inland-Waterways sub-sector 5.5. Develop the institutional and regulatory arrangements for ensuring the most effective and efficient movement of freight and passengers to and within Ghana. 5.6. Ensure the planning of intermodal facilities into our transport development strategy • Inadequate evidence-based 6. Ensure sustainable 6.1. Establish institutional capacity to carry out SEA of MRH, MoTr, Private analysis and comparison of development in the transport sector policies, plans and programmes Sector, GRC, social, environmental and transport sector 6.2. Ensure that EIA and health and safety requirements are GHAPOHA, GHA, economic impacts of modal included in contracts documentation for infrastructure DFR, VLTC, GRC, solutions projects MMDAs, Road • Failure to apply EIA to all 6.3. Develop and enforce safety standards in constructing Contractors Association, projects irrespective of transportation services MMDAs, BRRI, GHA, funding agency 6.4. Develop standards for boat construction and operations DFR, DUR, MOFEP, 165 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES • Inadequate attention to on inland waterways VLTC, GRC health and safety issues at 6.5. Apply navigational aids to improve safety on inland Parliament, Ghana construction sites waterways Airports Company • Increase in road traffic 6.8 Implement modernisation to improve safety standards in Limited (GACL), accidents areas such as construction site safety, occupational health, GCAA, MOE, • Inadequate enforcement of standards of training and certification of seafarers Maritime University road transport regulations 6.9 Develop framework for emergency response to handle • Inadequate response to oil spills and other hazards arising from maritime traffic accidents and poor transport operations trauma care facilities 6.10 Refurbish and modernise the western line for efficient • Inadequate maintenance of transportation of minerals ores, cocoa, timber and oil rail transport (archaic products railway tracks and rolling 6.11 Link the south to the north via the Volta Lake to facilitate stocks) the haulage of agricultural produce to the south 6.12 Develop a functional railway master plan for the entire country • Inadequate personnel with 7. Develop adequate human 7.1 Develop a multi-disciplinary Transport-Sector Human MRH, Ministry of requisite technical skills resources and apply new Resources Development (HRD) strategy and Transport, MMTL, needed for infrastructure technology implementation plan National Disability construction and 7.2 Promote the role of women in the Transport Sector as Council, MESW, maintenance providers of services, professionals and managers MMDAs, GPRTU, • Inadequate personnel for the 7.3 Encourage improvements in existing driver training and MTTU, DVLA, NRFC, monitoring of policies and testing schools and encourage the establishment of driver MOJ & A-G, Judiciary, programmes training for heavy goods and public service vehicles Law Enforcement • Lack of requisite equipment 7.4 Invest in ICT and appropriate training for public sector Agencies, Private and technology for personnel and private sector service providers to improve Sector, Financial operations efficiency Institutions, BRRI, • Inadequate attention to 7.5 Develop a comprehensive research strategy for the Local Consultants, research into transport Transport Sector to aid policy formulation, infrastructure GHA, DFR, DUR operations design and management and transport services • Need for expansion and management modernisation of maritime training education 2. Science, • Low level of Science, 1. Promote the application 1.1 Promote Science, Technology and Innovation MEST, CSIR, Private Technology and Technology and Innovation of Science, Technology development at all levels of production Sector, MOTI, MOE, Innovation to culture in all aspects of the and Innovation in all 1.2 Facilitate the development of appropriate technologies to NBSSI, ITTU, GAEC, Support society sectors of the economy support agriculture and small and medium scale University, MOFA Productivity and • Ineffective implementation enterprises Development of national policy to promote 1.3 Actively encourage the diffusion and transfer of the development of technology 166 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES appropriate technology to 1.4 Promote the establishment of national Science and support agriculture and small Technology Theme Parks to provide world-class facilities to medium scale enterprises for electronics, precision engineering, ICT and bio- • Weak commercialization of technology. scientific research results • Inadequate knowledge and information for end-users on available science and technological innovations • Inadequate S&T facilities • Weak support for STI 2. Strengthen the 2.1 Revamp Science and Technology Endowment Fund to MEST, CSIR, Private infrastructure (R&D appropriate institutional support research activities in tertiary institutions (private Sector, MOTI, MOEs, institutions) framework to promote the and public) and research institutions NBSSI, RTTU, GAEC, • Inadequate funding for R&D development of science 2.2 Provide support for business to adopt Research and Academic Institutions, activities and technology research Development as critical component of production MOFA, MOFEP, MOC • Low recognition of STI and 2.3 Build appropriate linkages between research and R&D production to ensure that research outputs are adequately • Weak institutional utilized framework to promote the 2.4 Establish a National Award Scheme for STI activities development and application 2.5 Institute an Annual “Ghana Science Congress� to focus of science and technology in attention on science and technology development the country 2.6 Provide incentives for research institutions to collaborate • Weak linkage between the research institutions and industry 3. Information • Low ICT infrastructure base 1. Promote rapid 1.1 Provide affordable equipment to encourage the mass use MOC, NCA, MOE, Communication across the country development and of ICT MOI, MOTI, Service Technology • High cost of providing ICT deployment of the 1.2 Promote the establishment of a reliable national backbone Providers Development for services national ICT with capacity to carry high-speed voice, video, data, and growth • Lack of ICT infrastructure to infrastructure internet facilities to all districts of the country carry high speed voice, 1.3 Increase coverage of ICT infrastructure particularly in video and data rural and peri-urban communities • Low accessibility to 1.4 Improve the quality of telephone service telephone facilities, 1.5 Facilitate the development of Community Information especially in rural areas Centres (CICs) nationwide • Poor quality of telephone 1.6 Facilitate the connection of all universities, polytechnics, services colleges and secondary schools to the internet • Poor and inadequate 1.7 Facilitate the connection of scientific and research internet infrastructure institutions to the internet and link them up to form a national ICT hub 167 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES • Limited deployment of ICT 1.8 Implement National ICT strategy in health infrastructure in educational 1.9 Ensure that the broadband high speed internet institutions connectivity is available in every district 1.10 Promote the use of science and technology to ensure that modern information and communication technologies are available and utilised at all levels of society 1.11 Facilitate the development of the ICT through the use of local capabilities in STI 1.12 Deploy ICT infrastructure in all Government institutions • Inefficient institutional and 2. Strengthen the 2.1 Revise the legislation on the National Communications MOC, MDAs, Office of regulatory framework to institutional and Authority to bring it in line with modern trends the President, NCA, support ICT development regulatory framework for 2.2 Review existing regulatory bodies in order to improve NMC, Private Sector, managing the ICT sector functionality Ghana Association of 2.3 Create an environment conducive for ICT Internet Providers 2.4 Facilitate the partnership between Government and small and large businesses in the private sector in the areas of technology development 2.5 Support and provide services and technology to tenant companies 2.6 Provide R&D and innovation facilities to the Private Sector 2.7 Invest and strengthen the institutional and human resource capacities for quality service delivery 2.8 Facilitate the development of the ICT sector through the use of local capabilities in STI 2.9 Lay the foundation for a national ICT export base 2.10 Establish a digitized content development bureau • Loss of man-hours spent on 3. Promote the use of ICT in 3.1 Encourage ICT training at all levels and ensure that the MOC, MDAs, Office of paper work in public all sectors of the economy broadband high speed internet connectivity is available in the President (OoP), institutions every district NCA, NMC, Private • Lack of access to public 3.2 Implement National E-Governance programme Sector, Ghana information 3.3 Support SMEs to make use of services/assets made Association of Internet • Difficulties associated with available by national internet backbone Providers, MMDAs application for official 3.4 Provide telephone coverage to all public schools and documents including communities in Ghana passport, driving license and 3.5 Implement National Electronic Security system and vehicle registration promote and support E-commerce system • Lack of ICT skilled human 3.6 Promote e-Government and e-Governance activities for resources transparency in Government business • Limited use of ICT as a tool 3.7 Ensure the existence of better educated workforce with 168 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES to enhance the management well developed skills that meet the hi-tech employment and efficiency of businesses opportunities of the country • Limited development of ICT 3.8 Develop a critical mass of ICT personnel to satisfy both programmes in schools domestic and external demands • Unsecured data management 3.9 Facilitate the establishment of outsourced ICT businesses system in the country • Low level of appreciation of 3.10 Promote and encourage the expansion of postal services ICT culture for the social and economic development of the country 3.11 Provide prompt, reliable and secure universal postal services 3.12 Ensure that modern information and communication technologies are available and utilized at all levels of society • Poor dissemination of 4. Facilitate the provision of 4.1 Restructure the existing institutional framework for an MOC (GMA), MOFA, meteorological data and quality meteorological effective meteorological service delivery and forecasting WRC, FAO, GCCA forecast to support economic data and forecast in 4.2 Enhance the institutional capacity of the Meteorological development support of weather Agency to meet the minimum global requirement for sensitive sectors of the monitoring the climate and the environment economy 4.3 Enhance human resource capacity through training in modern technology 4.4 Promote global collaboration for an effective data collection management, and forecasting 4. Recreational • Lack of effective 1. Urban centres incorporate 1.1 Promote integrated development planning and strengthen MoCC, Town and infrastructure enforcement of planning the concept of open capacity and coordination among Metropolitan, Country Planning Dept, regulations spaces, and the creation of Municipal, and District Assemblies (MMDAs) to enforce MMDAs • Unauthorised sale of land green belts or green ways planning regulations Local Chiefs/Land designated as open spaces in and around urban 1.2 Ensure the involvement of land owners, the local owners, Ghana Heritage by land owners for housing communities community as stakeholders in the preparation of urban Trust, Corporate and other developments plans and in the management of protected areas Institutions, Department 1.3 Ensure proper regulation of land acquisition in inner of Parks and Gardens, urban cities MMDAs 1.4 Ensure the creation of green belts to check unrestricted sprawl of urban areas; and also as a means of climate change adaptation measure to manage and prevent incidence of flooding in urban settlements • Inadequate 2. Develop recreational 2.1 Promote historic cultural heritage, and ensure the community/social centres facilities and promote preservation of forest and natural reserves as a way of especially in the urban areas cultural heritage and promoting tourism • Low level of awareness of nature conservation in 2.2 Encourage the use of Science, Technology and the importance and the need both urban and rural areas Innovation(STI) for the management, preservation and 169 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES to maintain historical and maintenance of the country’s public buildings, including cultural heritage historic buildings and sites • Encroachment on 2.3 Create awareness on the importance and need to preserve waterways, natural reserve historic and cultural heritage areas • Under-utilized and neglected 3. Foster social cohesion and 3.1 Promote attitudinal change, ownership and responsibility parks and green areas in the enhance the participation among the citizenry and orientate them on the maintenance city of people in leisure of recreational areas/facilities • Low level of appreciation of activities as a way of 3.2 Strengthen and equip the Department of Parks and recreational activities improving healthy Gardens to enable it maintain green areas • Poor conservation awareness lifestyles 3.3 Strengthen local authorities to enforce planning regulations /mentality among populace regarding use of open spaces 3.4 Encourage corporate organisations to invest in recreational activities 5. Energy Supply to • Inadequate energy 1. Provide adequate and Electricity and Thermal Energy MoEn, Energy Support Industries infrastructure to support the reliable power to meet the 1.1 Complete the implementation of the power sector reforms Commission, VRA, and Households delivery of modern energy needs of Ghanaians and 1.2 Develop a non-congested transmission system BPA, IPPs, GRIDCo, services for export 1.3 Sustain power generation capacity expansion, as well as ECG, NED, TOR, • High cost of fuel for rehabilitate and reinforce the transmission and distribution BOST electricity generation infrastructure to meet the projected growth in power • Inadequate regulatory demand of 10% per year in the medium-term capacity and enforcement 1.4 Open up the electricity sub-sector to Independent Power • Operational and management Producers (IPPs) and private sector participants in the difficulties in utility distribution sector companies 1.5 Secure long-term reliable gas supplies for the operation of • Potential vulnerability to the thermal power plants climate change 1.6 Increase access to modern forms of energy to the poor and • Decreasing reliability of vulnerable especially in the rural areas through the power supply extension of national electricity grid • Inadequate grid electricity 1.7 Achieve cost recovery for electricity services 1.8 Reduce power system losses and waste in electricity network supply and consumption • Low adoption of energy 1.9 Source funding for the rehabilitation and expansion of efficiency technology existing power plants among domestic users 1.10 Complete and operationalise on-going power projects • Low involvement of private 1.11 Encourage investment in power infrastructure capital in the energy sector 1.12 Ensure the minimisation of inefficiencies • Uninterrupted supply of petroleum products to consumers in a cost effective manner 170 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES • Untapped potential of natural 2. Increase the proportion of Renewable Energy (Hydro, Biomass, and Wind & Solar) PURC, ECG, MoEn, renewal elements such as renewable energy, 2.1 Create appropriate fiscal and regulatory framework for the VRA, BPA, IPPs, waves, rivers and waterfalls, particularly solar, wind, renewable energy sub-sector GRIDCo, ECG, NED wind and sun for power mini-hydro and waste-to- 2.2 Contribute to the mitigation of climate change. generation energy in the national 2.3 Complete the development of the Bui Hydropower Project • Bio-fuels production energy supply mix on the Black Volta competing with agriculture 2.4 Support the development of small and medium scale hydro for land. power projects on other rivers, including the Western • Very high cost of energy Rivers (Ankobra, Tano and Pra), River Oti, and the White produced from renewable Volta sources owing to the current 2.5 Switch from the use of biomass (fuel wood and charcoal) state of the technologies to alternative sources of energy • Deforestation and 2.6 Promote the establishment of dedicated woodlots for wood environmental degradation fuels production due to indiscriminate felling 2.7 Promote the production and use of improved and more of trees for wood fuels efficient biomass utilisation technologies • Over-dependence on few 2.8 Balance bio-fuels development against food security sources of energy and the 2.9 Complete feasibility studies on wind and solar energy neglect of potential technologies indigenous sources of 2.10 Improve the cost-effectiveness of solar and wind energy technologies 2.11 Support indigenous research and development to reduce the cost of solar and wind energy technologies 2.12 Support the use of decentralised off-grid alternative technologies (such as solar PV and wind) where they are competitive with conventional electricity supply 2.13 Support Ghanaian engineers and scientists to cooperate with international experts on cost-effective technologies 2.14 Provide incentives for real estate developers and other construction designers to incorporate energy conservation and renewable energy sources in their designs • Improper management of 3. Convert most of the waste Waste-to-Energy waste generated in municipal 3.1 Provide access to waste-to-energy technologies for energy • High cost of waste-to-energy activities, industrial and production technologies agricultural operations to 3.2 Maximise energy production from waste if cost effective energy 3.3 Facilitate access to grid for waste-to-energy power plants 171 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES • High initial infrastructural 4. Explore the options for Other Energy Sources, including Nuclear and Geo-thermal development cost nuclear and geo-thermal 4.1 Assess the implications of the development of nuclear • Management of the energy power radioactive waste 4.2 Continue to explore nuclear energy as an option in the diversification of the country’s energy mix 4.3 Research into and develop geothermal power • Low accessibility to 5. Ensure equitable access to Access to Petroleum products petroleum products and uniform pricing of 5.1 Expand petroleum product storage capacity, and extend • Irregular supply of petroleum products petroleum products bulk distribution infrastructure to all petroleum products to parts of the country consumers 5.2 Support expansion of the supply and reach of LPG to • High cost of homes and small businesses transportation and 5.3 Improve efficiency in the power industry to drive cost distribution of petroleum down products 5.4 Base ex-refinery prices of petroleum products on import parity prices of petroleum products or other cost-effective pricing formula 5.5 Regulate transportation and distribution charges for petroleum products to ensure reasonable profit margins for transporters and distributors 5.6 Apply cross-subsidies among petroleum products to achieve specific national development objectives 5.7 Undertake regular review of the pricing mechanism • Poor habits and attitudes 6. Ensure efficient Energy Efficiency and Conservation towards energy consumption production and 6.1 Establish appropriate pricing regime for energy services and utilisation transportation as well as that would provide incentives to domestic and industrial • Inadequate financing for end-use efficiency and consumers to voluntarily manage their energy energy conservation and conservation of energy consumption efficiency projects 6.2 Develop and implement programmes and measures to • Limited awareness of energy help consumers optimise their energy use conservation measures 6.3 Support a sustained and comprehensive public education and awareness creation campaign on the methods and benefits of energy conservation 6.4 Explore how energy intensive sectors can be incentivised to improve energy efficiency 6.5 Discourage the importation and use of high energy consuming vehicles 6.6 Build awareness and knowledge on economically attractive energy efficiency measures Transportation of Energy Products MOT, DRH, 172 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES 6.7 Develop and implement measures to reduce petroleum EPA product consumption in transportation 6.8 Enforce the implementation of the zonal system for lifting of petroleum products from dedicated storage depots 6.9 Encourage the use of fuel enhancing additives 6.10 Reduce electricity transmission and distribution losses 6.11 Explore minimum standards and energy labels for appliances 6.12 Encourage the use of public mass transport facilities • Mitigate the 7. Ensure that energy is Energy and Environment EC, EPA, FC environmental hazards of produced and utilised in an 7.1 Promote the use of environmentally friendly energy energy production, environmentally-sound supply sources such as renewable energy (solar, wind, transportation and use manner waste) in the energy supply mix of the country • Inadequate capacity to 7.2 Encourage a shift from oil to gas wherever gas is a adapt and mitigate the technically feasible alternative effects of climate change 7.3 Promote the use of improved wood fuels burning • Poor regulation of equipment for cooking in households and other activities in the energy commercial activities sector to protect the 7.4 Support and actively participate in international efforts environment and cooperate with international organisations that seek to ensure sustainable delivery of energy to mitigate negative environmental impacts and climate change 7.5 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 7.6 Ensure effective disposal of all hazardous substances and materials associated with the production, transportation and use of energy 7.7 Facilitate environmental protection awareness programmes 173 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES • Limited involvement of 8. Mainstream Gender into Gender and Energy MOWAC, CSOs, IPPs women in the planning and the energy sector 8.1 Support the capacity development of women in the energy management of energy sector services 8.2 Ensure participation of women in the formulation and • Limited capacity of women implementation of energy interventions in management positions in 8.3 Ensure that concerns of women and children are taken the energy sector into account in every aspect of energy production and • Overburdening of women distribution and children with the 8.4 Promote the use of modern forms of energy in households collection and use of fuel wood and charcoal • High exposure of women to indoor pollution • Inadequate financial 9. Build a transparent and Regulatory Environment EC, PURC, NPA resources for operational effective regulatory 9.1 Harmonise the legal, regulatory and institutional regimes activities environment as well as in conformity with ECOWAS Energy Protocols • Inadequate human resources strengthen the regulatory 9.2 Streamline regulations and institutional arrangements • Inadequate enforcement institutions to fulfil their 9.3 Strengthen human resource capacity of the regulatory mandate effectively institutions 9.4 Ensure the independence of the national regulatory agencies 9.5 Implement administrative and regulatory changes that will enhance the financial independence of regulatory institutions 9.6 Strengthen the capacity of regulatory agencies to enforce regulations • High cost of energy 10. Encourage public and Mobilisation of Investment for Energy Sector Development infrastructure private sector 10.1 Provide conducive legal, fiscal, and regulatory investments in the energy environment to attract investments into the energy sector sector 10.2 Encourage the capital markets, including the Ghana Stock Exchange, to raise financing for investments in the energy sector 10.3 Expand capital & risk capacity of financial system to support energy-driven and oil and gas-based industries 10.4 Establish transparent and non-discriminatory practices in the implementation of rules and regulations 10.5 Ensure efficient and transparent pricing regime for energy services • Inadequate educational and 11. Build adequate Ghanaian Building Human Resource Capacity and R&D institutional capacity to human resource capacity 11.1 Develop a comprehensive local content policy in all 174 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES support Ghanaian expertise in the control and aspects of energy sector operations and skills development in the management of the 11.2 Ensure maximum ownership and management control of energy sector energy sector, and create all aspects of the energy sector an enabling environment 11.3 Support the training of Ghanaians in all fields of energy for effective R&D development and management and build capacity in indigenous manufacture of energy technologies 11.4 Increase the allocation of resources for energy R&D activities 11.5 Give priority to adaptive R&D in energy technologies while promoting basic research 11.6 Support the transformation of Ghanaian energy research institutions into Centres of Excellence for energy Research and Development 11.7 Collaborate with relevant Government, local and international agencies to develop capacity of tertiary and allied institutions for Training, Research and Development A. HUMAN SETTLEMENT 2 Human Settlements Spatial/Land Use Planning and Management MDAs, MLGRD, Development • Absence of a Human 1. Promote a sustainable, MEST, TCPD, NDPC, Settlements Policy to guide spatially integrated and 1.1 Formulate a Human Settlements (including Urban and MLNR, MOFEP, the comprehensive growth orderly development of Land Development) Policy to guide settlements MMDAs, Private and development of human human settlements for development Sector/NGOs, settlements in Ghana socio-economic 1.2 Ensure a spatially integrated hierarchy of settlements in Traditional Authorities, development support of rapid transformation of the country Media, Academic and 1.3 Promote through legislation and education the greening of Research Institutions, human settlements • Ineffective and inefficient 2. Restore spatial/land use 2.1 Develop appropriate planning models, simplified MDAs, MLGRD, spatial/land use planning planning system in operational procedures and planning standards for land MEST, TCPD, NDPC, and implementation Ghana use planning MLNR, MFEP, • Lack of spatial land use 2.2 Integrate land use planning into the Medium-Term MMDAs, Private plans outside major cities Development Plans at all levels Sector/NGOs 2.3 Ensure the use of Geographic Information System (GIS) in spatial/land use planning at all levels • Weak enforcement of 3. Facilitate ongoing 3.1 Enact coherent legal framework for land use planning MDAs, MLGRD, planning and building institutional, 3.5 Adopt new and innovative means of promoting MEST, TCPD, NDPC, regulations technological and legal development control and enforcement of planning and MLNR, MOFEP, reforms under the building regulations MMDAs LAP/TCPD-LUPMP in 3.6 Strengthen research and development in urban and 175 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES support of land use regional development planning • Inadequate human and 4. Strengthen the human and 4.1 Undertake a series of capacity building measures to MDAs, MLGRD, institutional capacities for institutional capacities for upgrade human settlements and land use planning MEST, TCPD, NDPC, land use planning effective land use competencies across the country, e.g. training, MLNR, MOFEP, planning and recruitment, etc MMDAs, Private management through 4.2 Create Regional Mobile Planning Teams as a stop-gap Sector/NGOs, science and technology measure to address critical shortage of professional staff Traditional Authorities, 4.3 Establish a National Human Settlements Media, Academic and Commission/Authority (HSC/A) as a multi-sectoral and Research Institutions multi-disciplinary agency • Non-existence of a 5. Promote well structured Urban Development and Management MLGRD, MMDAs, comprehensive urban and integrated urban 5.1 Provide a framework for a well coordinated approach TCPD, MOFEP, Private development policy development towards urban development Sector • Rapid, haphazard, 5.2 Provide MMDAs with guidance on urban development uncontrolled and issues uncoordinated urban 5.4 Promote an integrated hierarchy of urban settlements growth throughout the country • Low level of 5.5 Encourage mixed use development and densification Government’s capacity to policy in urban areas provide housing units 5.7 Decongest and reverse decline in productivity of primary cities and selected fast growing settlements 5.9 Promote urbanisation as a catalyst for economic growth, social improvement, and environmental sustainability 5.10 Provide adaptive space in the urban areas for commercialisation 5.11 Encourage, through education and legislation, the greening of human settlements • Weak linkages between 6. Promote functional 6.1 Facilitate suitable linkages between urban and rural areas MWRH, MLNR, TCPD, urban and rural areas relationship among 6.1 Support the development of special endowments of towns MEST, Private Sector, • Lack of role assignment to towns, cities and rural and cities NGOs, Association of towns and cities in the communities Building & Civil national development 7. Promote the construction, 7.1 Upgrade low-income residential structures under Engineer Contractors of framework upgrading and development control guidelines Ghana, GhIE, GIA, maintenance of new 7.2 Enforce development control measures to consolidate on- Banks, MLGRD, mixed commercial/ going reforms in conversion of residential properties into MMDAs, TCPD, residential housing units mixed commercial uses MOFEP, Ghana Institute 7.3 Upgrade Depressed Residential Areas of Surveyors 7.4 Redevelop Low Density Inner City Areas 7.5 Ensure a continuing supply of serviced urban plots to a 176 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES standard related to peoples’ need and ability to pay • Limited urban 8. Promote resilient urban 8.1 Institute a nationwide urban renewal programme MWRH, MLNR, TCPD, infrastructure to support infrastructure 8.2 Provide and implement strategic development plans for MEST, Private Sector, development in a planned, development, urban centres NGOs, Association of controlled manner maintenance and 8.3 Ensure and enforce the implementation of the dictates of Building & Civil provision of basic land use plans Engineer Contractors of services 8.4 Facilitate Public-Private Partnerships in the development Ghana, MMDAs of urban infrastructure and the provision of basic services 8.5 Extend infrastructure to service new areas, in line with expected growth and affordable standards 8.6 Maintain and improve existing community facilities and services 8.7 Provide a continuing programme of community development and the construction of social facilities • Inefficient management of 9. Promote and facilitate 9.1 Implement efficient and effective disaster management MWRWH, MLGRD, natural and man-made private sector plans and programmes including flood controls and MMDAs, TCPD, disasters (flood controls participation in disaster drainage systems in collaboration with private sector NADMO, Private and drainage systems) management (e.g. flood 9.2 Develop a policy on early warning systems Sector, NGOs control systems and 9.3 Integrate climate change adaptation structures such as open coastal protection) spaces in urban settlements and create impoundments along non-perennial stream/river channels • Dwindling or the 10. Create an enabling Rural Development And Management MWRWH, MLGRD, decimation of rural environment that will 10.1 Improve the qualitative supply of a critical mass of social MMDAs, TCPD, Private communities stemming ensure the development services and infrastructure to meet the basic needs of the Sector, NGOs from high rate of rural- of the potential of rural people, and also attract investment for the growth and urban migration and the areas development of the rural areas lack of basic infrastructure 10.2 Promote alternative livelihood programmes to develop and services in the skills among rural dwellers majority of rural 10.3 Facilitate the proper utilization of rural and peri-urban communities lands by improving land use and land management • Uncontrolled/haphazard schemes rural and peri-urban 10.4 Introduce regulations to ensure that people benefit from development the use of national resources 10.5 Encourage development partners to channel royalties into socio-economic and infrastructure development • Wanton exploitation of 11. Facilitate the sustainable 11.1 Establish rural service centres to promote agriculture and MWRWH, MLGRD, rural economic resources use and management of agro-based industries MMDAs, TCPD, Private leaving the populace in key natural resources that 11.3 Promote community-based development adjacent to Sector, NGOs abject poverty support the development forest zones and wild life sanctuaries of rural areas 11.4 Provide incentives to attract direct private investments 177 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES into rural areas 3 Housing/Shelter • Large housing deficit 1. Increase access to safe, Urban Housing MWRWH, MLGRD, particularly in the urban adequate and affordable 1.1 Create Land Banks which will ensure the availability of MMDAs, TCPD, Private areas shelter serviced lands for housing development at affordable Sector, NGOs, Ghana • Cumbersome and insecure prices Standards Board land acquisition 1.2 Streamline and improve land acquisition procedures procedures 1.3 Support mortgage financing institutions to provide varied • Inadequate incentives and lending and savings services to house owners, would-be capacity support for house owners and estate developers private sector involvement 1.4 Promote the manufacture and use of local building in housing delivery materials and appropriate technologies in housing • Limited use of local 1.5 Set standards for local construction materials to guarantee building materials for the use of the appropriate materials for construction housing construction 1.6 Secure support for private sector involvement in the • Weak enforcement of delivery of housing and provision of rental accommodation standards and codes in the in urban centres design and construction of 1.7 Enforce building codes houses 1.8 Set standards for engineering infrastructure, i.e. road designs, electricity, water, telephones, fire hydrants etc to suit various localities 1.9 Ensure the adequate staffing, training and/or upgrading of relevant skills and enhance the equipment base of institutions 1.10 Support technical education institutions and other professional bodies to train more human resources required for planning and the construction sector • Lack of an effective rural 2. Improve and accelerate Rural Housing MWRWH, MLGRD, housing policy housing delivery in the 2.1 Review and implement existing rural housing policy MMDAs, TCPD, Private • Haphazard land rural areas 2.2 Promote orderly growth of settlements through effective Sector, NGOs development land use planning and management • Poor quality of rural 2.3 Foster the growth of settlements which can support the housing transformation of the rural economy 2.4 Promote improvements in housing standards, design, financing and construction 2.5 Promote self-help building schemes organized along communal themes, co-operative societies, and crop and trade associations 2.6 Promote the establishment of public-sponsored site and services schemes through which suitable tracks of land will be made available for housing in collaboration with 178 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES traditional landowners 2.7 Provide technical assistance to communities to support basic house-building skills training programmes, technical information service and low cost house design and building competitions • Proliferation of slum 3. Upgrade existing slums Slum upgrading MWRWH, MLGRD, development and prevent the 3.1 Introduce major slum renewal programmes MEST, TCPD, Private • Weak enforcement of occurrence of new ones 3.2 Encourage the participation of slum dwellers/urban poor Sector, NGOs planning laws including women in urban planning and decision-making • Weak legal framework 3.3 Strengthen the legal framework on urban development (Acts 462, Acts 480 chap 3.4 Improve infrastructure facilities in slum areas 48) on slum development and slum upgrading and prevention • Susceptibility and lack of appropriate land and regulatory framework to address the needs of the urban poor • Unclear mandate of local authorities to facilitate housing provision 4 Settlement Disaster • Outmoded building codes 1. Minimize the impact of 1.1Proper planning of drainage systems MLGRD, MMDAs, Prevention • Lack of adherence to and develop adequate 1.2Promote planning and integration of climate change and NADMO, Ghana Health building code regulations response strategies to disaster risk reduction measures into all facets of national Service, Ghana Fire • Inadequate enforcement of disasters. development planning Service, TCPD, planning laws 1.4 Strengthen institutions to enforce building and planning MWRWH, MEST, • Building on waterways and laws within urban settlements and rural areas EPA, Private Sector hazardous sites 1.5 Promote the use of science and technology to minimize the • Poor infrastructure in impact of natural disasters terms of drainage and 1.6 Review and modernise building codes roads network 179 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES 5 Hierarchy of • Uncontrolled urban sprawl 1. Ensure new growth 1.1 Design a framework for the establishment of a new MWRWH, MLGRD, human settlements in cities and key urban centres to serve as hierarchy of urban centers MMDAs, TCPD, Private settlements counter-magnets to fast 1.2 Introduce new incentives to direct Public-Private Sector, NGOs • Absence of effective growing cities and Partnerships (PPPs) in the provision of housing facilities competition to the grade 1 regions 1.3 Decongest over-concentrated growth points of the key cities of Accra and Kumasi urban settlements by establishing new growth centres • Lack of effective especially in the poorer regions intermediate cities 1.4 Promote accelerated growth of medium-sized towns to between key urban large urban centres settlements and the rural 1.5 Engineer physical integration of all regions and districts, settlements especially their respective capitals • Inadequate infrastructure 2. Decongest and reverse 2.1. Enhance the capacity of grade 2 centres to perform MWRWH, MLGRD, to support industrial the decline in increased industrial and commercial functions MMDAs, TCPD, Private development productivity of the 2.2. Expand and upgrade infrastructure, and maintain efficient Sector, NGOs primary cities and services especially in the least developed Grade I selected fast growing settlements settlements 6 Institutional • Lack of role clarity of 1. Establish an institutional 1.1.Set up a National Human Settlements Commission or a MWRWH, MLGRD, Arrangement for institutions responsible for framework for effective National Housing Board to coordinate the activities of all MMDAs, TCPD, Private Implementing housing/human settlements coordination of human institutions involved in housing development Sector, NGOs Human Settlements development settlements development 1.2.Promote effective inter-agency collaboration between Development • Weak coordination among relevant infrastructure and social service delivery MDAs and institutions with agencies statutory duties to service 1.3.Enhance the capacities of institutions for effective the housing sector planning of human settlements • Uncoordinated implementation of development and action programmes 7 Water, • Weak water resource 1. Ensure efficient 1.1 Support relevant state agencies, District Assemblies and MWRWH, Environmental management management of water local communities to undertake reforestation programme MLGRD, MMDAs, Sanitation and resources for water sheds protection Ghana Water Hygiene 1.2 Prepare and implement a comprehensive Coastal Zone Company, PURC, Management Strategy that addresses the protection, Community Water management, and sustainable use of wetlands and other and Sanitation coastal resources Agency, NGOs, 1.3 Set up mechanisms and measures to support , encourage Public Health 180 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES and promote rainwater harvesting. Services, CSOs, 1.4 Promote re-use/recycling of water through the use of Private Sector, Water effective waste water treatment systems Resources 1.5 Assess and identify ground water resources to enhance Commission water availability 1.6 Establish functional management structures for all major river basins 1.7 Promote climate change adaptation in water resources management 1.8 Enhance trans-boundary water resources cooperation and management 1.9 Improve data collection for water resources assessment and decision-making 1.10 Prepare Legislative Instruments for efficient water resources management • Inadequate access to quality 2. Accelerate the provision Rural Water Provision MWRWH, and affordable water of affordable and safe 2.1 Provide new investments across the country MLGRD, MMDAs, water 2.2 Develop and manage alternative sources of water, Ghana Water including rain water harvesting Company, PURC, 2.3 Adopt cost effective borehole drilling mechanisms Community Water and 2.4 Establish and operationalize mechanisms for water Sanitation quality monitoring Agency, NGOs, 2.5 Strengthen Public-Private and NGO Partnerships in water Public Health provision Services, CSOs, 2.6 Implement measures for effective operation and Private Sector, Water maintenance, system upgrading, and replacement of Resources water facilities Commission • Lack of sustainability of Urban Water Supply MWRWH, systems and service delivery 2.7 Mobilize investments for the construction of new, and MLGRD, MMDAs, rehabilitation and expansion of existing water treatment Ghana Water plants Company, PURC, 2.8 Ensure efficient management of assets, including water Community Water and sources Sanitation 2.9 Implement demand management measures for efficient Agency, NGOs, water use Public Health 2.10 Encourage Private-Partner Partnerships in water services Services, CSOs, delivery Private Sector, Water 2.11 Strengthen the sub-sector management systems for Resources efficient service delivery Commission • Inadequate access to 3. Accelerate the provision 3.1 Promote the construction and use of appropriate and low MLGRD, MMDAs, 181 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES environmental sanitation and improve cost domestic latrines NGOs, Public Health facilities environmental sanitation 3.2 Provide disability friendly sanitation facilities Services, CSOs, 3.3 Improve the treatment and disposal of wastewater in Private Sector, Water major towns and cities (MMDAs) Resources 3.4 Promote widespread use of simplified sewerage systems Commission, EPA, in poor areas Town & Country 3.5 Improve the state and management of urban sewerage Planning Department systems 3.6 Adopt CLTS for the promotion of household sanitation 3.7 Review and enforce MMDAs bye-laws on sanitation 3.8 Acquire and develop land/sites for the treatment and disposal of solid waste in major towns and cities 3.9 Strengthen Public-Private Partnerships in waste management 3.10 Promote cost-effective and innovative technologies for waste management 3.11 Develop M&E system for effective monitoring of environmental sanitation services. 3.12 Implement the Sanitation and Water for All (SWA) Ghana Compact • Poor hygiene practices and 4. Ensure the development 4.1 Incorporate hygiene education in all water and sanitation MEST, Private Sector, inadequate hygiene education and implementation of delivery programmes NGO’s health education as a component of all water 4.2 Promote behavioural change for ensuring Open and sanitation programmes Defecation-Free Communities 4.3 Promote hand washing with soap at critical times 4.4 Promote hygienic use of water at household level 4.5 Promote hygienic means of excreta disposal • Weak sector coordination due 5. Adopt a sector-wide 5.1 Develop and implement a Strategic Sector Development to fragmentation of sector approach to water and Plan approaches and procedures environmental sanitation 5.2 Develop a Strategic Environmental Sanitation Investment delivery to ensure Plan effective sector 5.3 Develop and implement a comprehensive M&E for the coordination water and sanitation sector 5.4 Implement the National Environmental Sanitation Strategy and Action plan 5.5 Incorporate cross-cutting themes such as: gender, environment, public sector reform, decentralization and governance in the implementation of SWAp • Weak institutional capacities 6. Improve sector 6.1 Strengthen the capacity of the Water Directorate 182 IMPLEMENTING KEY FOCUS AREA ISSUES POLICY OBJECTIVES STRATEGIES AND COLLABORATIVE AGENCIES institutional capacity 6.2 Strengthen the capacity of the Environmental Sanitation and Hygiene Directorate 6.3 Build the capacity of district assemblies to better manage water resources as well as water and environmental sanitation facilities 6.4 Enhance the mandate and capacity of lead sector agencies (WRC, GWCL, and CWSA) 6.5 Strengthen the capacity of community level management structures • Inadequate funding 7. Ensure sustainable, 7.1 Implement measures to secure adequate GoG annual MOFEP, MWRWH, predictable and adequate budgetary allocation for the sector MLGRD,GWCL, financing 7.2 Implement measures to ensure timely release of approved CWSA, MMDAs, WRC, budget CSOs, AGs Department 7.3 Institute appropriate water charges/tariffs 7.4 Adopt appropriate strategies for marketing sector strategic plans 7.5 Harness additional funding from non-traditional donor sources 7.6 Operationalize the Polluter Pays Principle 7.7 Implement measures to increase financial and investment absorptive capacity of the sector 183 APPENDIX 2.6: HUMAN DEVELOPMENT, PRODUCTIVITY AND EMPLOYMENT IMPLEMENTATION POLICY AND KEY FOCUS AREA ISSUES STRATEGIES OBJECTIVE COLLABORATING AGENCIES 1. Education • Inadequate access 1. Increase equitable 1.1 Provide infrastructure facilities for schools at all levels across the GNAT, MOE, GES • Inadequate infrastructure access to and country particularly in deprived areas MOFEP, MMDAs, • Poor management and participation in 1.2 Promote increased private sector participation in the establishment of CHASS Private Sector , supervision education at all schools within set guidelines, especially in deprived areas The NABPTEX, NGOs , levels 1.3 Accelerate integration of pre-school education into the FCUBE DSW, TCPD, GWC, programme CWSA, MWRWH, 1.4 Provide uniforms in public schools in deprived communities MLGRD, NIA 1.5 Establish basic schools in all underserved communities 1.6 Accelerate the rehabilitation /development of basic school infrastructure especially schools under trees 1.7 Expand school feeding programme progressively to cover all deprived communities and link it to the local economies 1.8 Improve water and sanitation facilities in educational institutions at all levels 1.9 Re-introduce well functioning guidance and counseling services 1.10 Promote the achievement of universal basic education 1.11 Rehabilitate and expand science resource centres in selected SHS 1.12 Mainstream Mathematics, Science and Technical education at all levels • TVET sub-sector is severely Technical and Vocational Education and Training underfunded 1.13 Strengthen the linkage of TVET with industry • Training in TVET 1.14 Re-organize and expand the current national apprenticeship institutions is rigid and non- system responsive to demands on 1.15 Provide opportunities for teachers of TVIs to take studies to labour market improve pedagogical skills • Weak linkage between 1.16 Develop competency-based curriculum for TVET TVET institutions and 1.17 Increase funding levels for TVET industry 1.18 Re-integrate TVET into mainstream education at tertiary level • Limited teaching and Tertiary Education MOE, GES, MOFEP, learning facilities for 1.19 Accelerate the establishment of the University for Health and MMDAs, CHASS, competency-based training Allied Sciences and the University of Energy and Natural Private Sector, in Polytechnics Resources GNAT, NABPTEX, 1.20 Provide incentives to encourage more private sector participation NGOs, DSW, TCPD, in providing hostels for university students at reduced cost MOFA, Scholarship 1.21 Provide supportive infrastructure and facilities for distance Secretariat learning GETFund, NIA, OHCS, 1.22 Diversify and increase sources of funding for the loan scheme for Academia 184 IMPLEMENTATION POLICY AND KEY FOCUS AREA ISSUES STRATEGIES OBJECTIVE COLLABORATING AGENCIES students in tertiary institutions 1.23 Expand and diversify post-graduate programmes, especially in the applied sciences 1.24 Introduce new and relevant career-oriented occupations into polytechnic education in response to changing national development requirements • Low national adult literacy Non Formal education rate 1.25 Re-invigorate the Non-Formal Education programme • Lack of commitment to NFE 1.26 Link NFE with strategic socio-economic development challenges • Absence of appropriate linkage between current NFE programmes and national development requirements • Poor quality education 2. Improve quality 2.1. Introduce programme of national education quality assessment MOE, GES, MOFEP, • Low emphasis on reading, of teaching and 2.2. Promote the acquisition of literacy and ICT skills and knowledge at MMDAs, CHASS, writing and comprehension learning all levels The Private Sector, • Inadequate teacher housing 2.3. Increase the number of trained teachers, trainers, instructors and GNAT, NIA, NABPTEX facilities in deprived attendants at all levels NGOs, NACP, MEST, communities 2.4. Promote local production and distribution of TLMs GAC, MOC, MOH, • Absence of coordination and 2.5. Improve the teaching of science, technology and mathematics in all PPAG, NCCE, GNFS, licensing authority for the basic schools Road Safety teaching profession 2.6. Provide distance learning opportunities for serving teachers Commission, EPA, 2.7. Establish Coordination and Licensing body for the teaching MLGRD, MOWAC, MOI, profession Ghana Fire Service, 2.8. Integrate essential knowledge and life skills into school curriculum to ensure civic responsibility • Persistent gender disparities 3. Bridge gender 3.1 Expand incentive schemes for increased enrolment, retention and MOE, GES, MOWAC, in school enrolment and gap in access to completion for girls particularly in deprived areas MESW, MMDAs, retention education 3.2 Intensify awareness creation on the importance of girls’ education, CHASS, especially in underserved areas Private Sector, GNAT, 3.3 Monitor boys’ participation and achievement in schools NABPTEX, NIA NGOs, 3.4 Re-introduce science and technology workshops for girls in second DSW, Ministry of cycle institutions Information, MOWAC 3.5 Expand vacation camp for girls from rural/deprived communities • Inadequate access to quality 4. Improve access to 4.1 Ensure that rehabilitated/new infrastructure are friendly to students MOE, GES, MOFEP, education for persons with quality education with disabilities MESW, MMDAs, The disabilities for persons with 4.2 Enhance the pedagogical skills of teachers of special education Private Sector, • Very low funding for disabilities 4.3 Improve the supply of logistics for special education on a regular GNAT, NABPTEX, special schools basis NGOs, NIA, DSW, • Poor infrastructural 4.4 Strengthen the capacity of institutions responsible for PWDs e.g. TCPD, CSOs. 185 IMPLEMENTATION POLICY AND KEY FOCUS AREA ISSUES STRATEGIES OBJECTIVE COLLABORATING AGENCIES facilities and specialist teachers, Resource Assessment Centres, and Rehabilitation DSW, NGOs, Ghana insufficient materials in the Centres Federation of the special schools 4.5 Design action plan to implement education-related provisions of the Disabled, AESL, Town Disability Act and Country Planning, 4.6 Support private institutions (Non-profit) providing education to CHASS PWDs • Poor management for 5. Improve 5.1. Strengthen and improve education planning and management MMDAs, MOE, GES, education delivery management of 5.2. Strengthen monitoring and evaluation and reporting channels MLGRD, NGOs, GNAT, • Inadequate transparency and education service 5.3. Undertake more efficient teacher development, deployment and NAGRAT, NIA accountability in education delivery supervision management systems 5.4. Promote CSO advocacy of monitoring and evaluation of education • Infrequent and ineffective outcomes supervision of teaching and 5.5. Train education managers/leaders in management and leadership learning in education skills institutions 5.6. Streamline education delivery supervision at all levels 2. Human Resource • Lack of a comprehensive 1. Develop and 1.1 Undertake Human Resource capacity survey at all levels Private Sector, NGOs, Development National Human Resource retain human 1.2 Prepare Human Resources Development Plan at all levels MESW, PEF, MDAs, Development Policy resource capacity 1.3 Improve remuneration structure for public sector employees MMDAs, GEA, NIA at national, 1.4 Provide adequate resources and incentives for human resource regional and capacity development district levels 1.5 Improve and produce labour market and human resources statistics including the care economy 3. Health • Large gaps in access to 1. Bridge the equity 1.1. Accelerate implementation of CHPS strategy in under-served areas MOH, GHS, CHAG, health care between urban gaps in access to 1.2. Expand access to primary health care NHIA, Teaching Hospitals and rural as well as rich and health care and 1.3. Implement the Human Resource Strategy (TH), Blood Transfusion poor nutrition services 1.4. Scale up NHIS registration of the very poor through strengthening Service (BTS), Health • Inadequate and uneven and ensure linkages with other MDAs, notably MESW and the national social Training Institutions (TI), distribution of health sustainable protection strategy MMDAs, MOFEP, infrastructure financing 1.5. Develop and implement a comprehensive health financing strategy MLGRD, MOWAC, • Limited access to health arrangements that 1.6. Review the Capital Investment Plan and implement a sector-wide MOE, GES, MESW, NIA facilities especially in protect the poor infrastructure development plan targeting under-served groups MWRWH, GSS, NMC, deprived communities 1.7. Strengthen and expand projects and programmes that emphasize GRMA, PHMHB, NGOs, • Persistent high malnutrition healthy lifestyles and dietary practices DPs, Parliament, UG SPH, rates among children, 1.8. Target areas at the greatest risks of malnutrition and replicate best Private Sector particularly in rural areas and practice and expand coverage northern Ghana 1.9. Promote the consumption of balanced diet among the general • Increasing lifestyle and diet- population especially in deprived communities related diseases • Limited geographical coverage of nutrition 186 IMPLEMENTATION POLICY AND KEY FOCUS AREA ISSUES STRATEGIES OBJECTIVE COLLABORATING AGENCIES programmes • Weak governance and 2. Improve 2.1. Strengthen the policy and regulatory framework governing the MOH, GHS, CHAG, accountability governance and sector NHIA, Regulatory Bodies, • Inadequate public capacity strengthen 2.2. Improve financial management in the health sector Attorney-General’s and resources to provide full efficiency and 2.3. Strengthen intra- and inter-sectoral processes for policy dialogue, Office, Ghana Audit coverage of health care effectiveness in review, collaboration, coordination, planning and accountability Service, Procurement • Weak monitoring and health service 2.4. Introduce a comprehensive framework for research, monitoring, and Board, MMDAs, Private evaluation systems delivery evaluation of the health system Sector, NIA, DPs, • Lack of integration of 2.5. Strengthen systems for continuous monitoring and assurance of the MOFEP, NGOs, TH, traditional medicine into the availability, quality, efficacy, use and safety of medicines including NMC, Ghana School existing health care system traditional medicines Feeding Programme 2.6. Enhance Public-Private Partnerships at all levels 2.7. Integrate traditional medicine into existing health services 2.8. Improve the quality of health sector governance • High infant and maternal 3. Improve access to 3.1 Increase access to maternal, newborn, child health (MNCH) and GRMA, National mortality quality maternal, adolescent health services Ambulance Service, BTS, neonatal, child 3.2 Strengthen the health system to deliver quality MNCH services MLGRD, GES, MOWAC, and adolescent NGOs, CSOs, DPs, health services Private Sector, Parliament, • High morbidity and mortality 4. Prevent and 4.1. Strengthen health promotion, prevention and rehabilitation MOH, GHS, CHAG, TH, from communicable diseases control the spread 4.2. Improve case detection and management at health facility level TI, Regulatory Bodies, such as HIV & AIDS and of communicable 4.3. Scale-up vector control strategies MMDAs, MLGRD, tuberculosis and non- 4.4. Scale-up community- and home-based management of selected MOFEP, MOFA, MOI, • Increasing prevalence of communicable diseases MOWAC MOE, GES, non-communicable diseases diseases and 4.5. Strengthen surveillance, reporting and emergency response DPs, NGOs, CSOs, with high disability and promote healthy Private Sector, Anglo- mortality, e.g. cancers, lifestyles Gold Ashanti, Noguchi cardio-vascular diseases MIMR, UG SPH • Threats of epidemic-prone diseases and diseases of pandemic potential such as influenza • Inadequate mental health 5. Expand access to 5.1. Strengthen institutional care Psychiatric Hospitals, services and improve the 5.2. Strengthen referral care MOH, GH, TH, CHAG, • Over-stretched institutional quality of 5.3. Introduce appropriate mental health legislation regulatory bodies, A-G’s care services institutional care, 5.4. Develop appropriate mental health services for the promotion, Office, Parliament, MOE, including mental prevention, treatment and rehabilitation of mental health conditions GES, NIA, MOWAC health service 5.5. Expand and improve community and primary level mental health delivery services 5.6. Strengthen research, surveillance, monitoring and evaluation of 187 IMPLEMENTATION POLICY AND KEY FOCUS AREA ISSUES STRATEGIES OBJECTIVE COLLABORATING AGENCIES psychiatric conditions 4. HIV, AIDS, STIs, • Adverse effect of HIV and 1. Ensure the 1.1. Intensify behavioural change strategies especially for high risk MOH, NGOs, GHS, and TB AIDS/STIs/TB on quality of reduction of new groups Ghana AIDS Commission, life and life expectancy of HIV and 1.2. Intensify advocacy to reduce infection and impact of HIV, AIDS GHS, National AIDS the people AIDS/STIs/TB and TB Control Programme • High pressure on health care transmission 1.3. Prevent mother-to- child transmission (NACP), MCP, Red services and other scarce 1.4. Ensure safe blood and blood products transfusion Cross, NPC, CBOs, resources 1.5. Promote safe sex practices PPAG, All MDAs, FBOs, • Loss of quality human and 1.6. Improve access to counselling and testing, male and female National TB Programme, material resources condoms, and integrated youth-friendly services NHIA, GEA, Business • High stigmatization 1.7. Develop and implement national behavioural change Coalition communication strategy against HIV 1.8. Address gender-based vulnerability including violence and coercion and marginalization of PLHIV 1.9. Strengthen link between HIV and AIDS/TB prevention programmes and reproductive health and information services 1.10. Develop and implement National HIV and AIDS Strategic Plan 1.11. Develop and implement workplace HIV and AIDS policy 5. Sports • Disparity in sports 1. Develop 1.1. Promote the development of sports with emphasis on the lesser MoYS, Parliament, Development development especially comprehensive known sports MOFEP, NDPC, Sports lesser known sports sports policy 1.2. Promote schools sports Council, GFA, GBA, • Absence of disability- 1.3. Promote the establishment of community sports facilities Academia, Sports friendly facilities 1.4. Encourage private sector participation in sports development, Organisations • Inadequate sports facilities in especially at the community level MOE, GES schools 1.5. Set up a sports development fund with support from diverse sources • Lack of early sports 1.6. Expand opportunities for the participation of PWDs in sports development opportunities in 1.7. Rehabilitate existing and construct new sports infrastructure communities and schools • Low funding for sports development • Inadequate and poor quality of existing infrastructure 6. Productivity and • Inadequate productivity 1. Adopt a national Productivity GEA, TUC, MESW, Employment management system policy for 1.1 Develop and implement productivity measurement and enhancement FWSC ,MOFEP, NDPC, • Improper pricing of labour enhancing programmes for the formal and informal sectors of the economy PPA leading to low labour productivity and 1.2 Create awareness of the need for increased productivity productivity and income income in both 1.3 Support the development and implementation of capacity • Low prospects for career formal and enhancement programmes that take into consideration the specific advancement, training or informal needs of men and women, in both the formal and the informal sectors skills enhancement economies of the economy 188 IMPLEMENTATION POLICY AND KEY FOCUS AREA ISSUES STRATEGIES OBJECTIVE COLLABORATING AGENCIES 1.4 Develop and adopt a national income policy 1.5 Support establishment of participatory and cooperative mechanisms to enhance income and job security in the informal economy 1.6 Strengthen linkages between informal and formal economies 7. Social Policy • Absence of a comprehensive 1. Develop a 1.1. Streamline overlapping mandates in the social sector MESW, GEA, Organised social policy comprehensive 1.2. Strengthen coordination of social sector policies and programmes Labour, NLC, Private • Weak coordination of social social policy 1.3. Enhance generation of data on social issues for policy impact Sector, MDA, NIA NGOs, policies, programmes and assessment CSOs, FBOs, Department projects 1.4. Provide adequate resources for social policy formulation, of Social Welfare • Inadequate data for planning implementation and evaluation social policy interventions 8. Social Protection • Limited coverage of social 1. Progressively 1.5. Improve targeting of existing social protection programmes MESW, GEA, Organised protection interventions expand social 1.6. Mainstream social protection into sector and district planning Labour, NLC, Private protection 1.7. Strengthen monitoring of social protection programmes Sector, MDA, NIA NGOs, interventions to CSOs, FBOs, Department cover the poor of Social Welfare 9. Population • High rate of rural-urban 1. Integrate 1.1. Introduce measures that can improve livelihoods in places of origin GSS, NDPC, NPC, NIA, Management migration population 1.2. Strengthen capacity of relevant stakeholders to integrate population MLGRD, MMDAs, NYC, • Inadequate population data variables into all issues into development planning PPAG, MOH/GHS, for planning aspects of GRMA, MDAs, development Population Association of planning at all Ghana, BDR, NCCE, Min. levels of Information 10. Managing • Absence of institutional 1. Minimise the 1.1. Formulate and promote national migration and development policy Migration for regulatory framework for negative impact 1.2. Mainstream migration into national development frameworks National effective management of and optimise the 1.3. Establish a national institution for the management of migration for Development migration for development potential impact development • Inadequate mobilisation and of migration for 1.4. Establish a database on Ghanaians in the Diaspora utilisation of Diaspora Ghana’s resources development • Increasing trend of irregular migration which results in the loss of lives • Low coverage of 2. Re-position 2.1 Integrate family planning (FP) into plans and activities of MDAs and reproductive health and family planning as MMDAs family planning (FP) a priority 2.2 Strengthen partnerships among stakeholders including the private services sector to promote FP 2.3 Integrate Sexual and Reproductive Health and HIV and AIDS 2.4Increase the number of trained professionals in reproductive health and family planning services delivery 189 IMPLEMENTATION POLICY AND KEY FOCUS AREA ISSUES STRATEGIES OBJECTIVE COLLABORATING AGENCIES 2.5 Strengthen capacities for research, monitoring and evaluation 3. Update 3.1 Strengthen the capacity of institutions to collect, analyze, coordinate demographic and disseminate population and other relevant statistical data database on 3.2 Build capacity to effectively coordinate population management population and 3.3 Establish a regulatory body for effective migration management development 11. Child • Disparities in child care and 1. Promote effective 1.1. Enhance the implementation of the Early Childhood care and Development and maintenance child development policy Protection • Weakening social support development in all 1.2. Create equal opportunities for all children systems communities, 1.3. Improve resource allocation for child development, survival and • Inadequate funding for child especially protection development programmes deprived areas 1.4. Mainstream children’s issues in development planning at all levels • Low awareness of and 2. Children’s 2.1. Create public awareness on children’s rights violation of child rights physical, social, 2.2. Facilitate the implementation of the national plan of action (NPA) MESW, MOWAC (DOC), • Prevalence of worst forms of emotional and on child labour, especially WFCL MOFEP, NDPC, MOJ & child labour (WFCL) psychological 2.3. Formulate key policies and appropriate programmes to enhance A-G • Growing number of development child protection and development orphaned and vulnerable enhanced children • Poor infrastructure for the protection of children • Weak sectoral coordination 3. Institutional 1.1 Create appropriate platforms for institutional collaboration on child and collaboration on arrangements for survival, development and protection MDAs, MMDAs children’s issues enhanced inter 1.2 Strengthen the capacity of oversight institutions for children • Poor data/research and and intra sectoral 1.3 Enhance implementation and reporting of international conventions statistics on children collaboration and protocols 12. Youth • Inadequate integration of 1. Ensure co- 1.1. Mainstream youth development issues into national development MoYS, MDAs, NDPC, Development youth development ordinated policy frameworks at all levels MOWAC, MDAs, concerns into national implementation of 1.2. Promote effective and efficient implementation of the new national MESW, MOE, NDYAG, development planning new youth policy youth policy UNFPA, NYEP, NGOs process 1.3. Equip youth with employable skills • High level of youth 1.4. Introduce new initiatives for youth employment unemployment 13. The Aged • Lack of comprehensive 1. Integrate issues on 1.1. Promote the development and effective implementation of a MESW, HEP AGE, CSOs, policy on ageing ageing in the comprehensive ageing policy NGOs, Department of • Discrimination against older development 1.2. Improve funding of programmes for older persons Social Welfare, FBOs persons planning process • Neglect, abuse and violence against older persons 190 IMPLEMENTATION POLICY AND KEY FOCUS AREA ISSUES STRATEGIES OBJECTIVE COLLABORATING AGENCIES • Chronic age-related health conditions 14. Disability • Lack of reliable and 1. Ensure a more 1.1. Mainstream issues of disability into the development planning MESW, Help Age, CSOs, adequate data effective process at all levels NGOs, Department of • Lack of appreciation of appreciation of 1.2. Promote continuous collection of data on PWDs Social Welfare, FBOs, issues relating to disability and inclusion of 1.3. Promote the implementation of the provisions of the Disability Act MLGRD, GFD, NCPD, • Lack of universal access to disability issues 1.4. Promote universal access to infrastructure MMDAs infrastructure both within the formal decision- making process and in the society at large 15. Poverty and • High incidence of poverty 1. Develop targeted 1.1. Implement fully and effectively the PWDs Act 715 MESW, HEP AGE, CSOs, Income among disadvantaged social 1.2. Coordinate and redistribute development projects and programmes NGOs, Department of Inequalities groups especially PWDs interventions for in a manner that ensures fair and balanced allocation of national Social Welfare, FBOs Reduction and food crop farmers vulnerable and resources across ecological zones, gender, income groups including • A high level of poverty marginalized groups of PWDs among women due to lower groups 1.3. Designate a Special Development Area for the coastal savannah literacy rates, heavier time region of Ghana burdens and lower access to 1.4. Build the capacity of district and regional planning units to promote productive resources growth, employment creation and social protection 1.5. Implement local economic development activities to generate employment and social protection strategies 1.6. Develop district infrastructure plans and improve business development services to facilitate local economic growth and private sector engagement 1.7. Develop harmonized regional infrastructure and investment plans and provide opportunities for private sector participation, especially in the tourism industry 1.8. Ensure accelerated development of social and economic infrastructure and services in rural areas and poor urban communities including education and training, health, roads, good housing, water and sanitation 1.9. Make the rural environment more attractive and reduce rural-urban migration 1.10. Improve agricultural productivity and incomes, and transform rural agriculture management and practices into viable business ventures 1.11. Empower rural populations by reducing structural poverty, exclusion and vulnerability 191 IMPLEMENTATION POLICY AND KEY FOCUS AREA ISSUES STRATEGIES OBJECTIVE COLLABORATING AGENCIES 2. Enhanced public • Weak communication awareness on 2.1Promote the economic empowerment of women through access to strategy for Government women’s issues land, labour, credit, markets, information, technology, business policies on women’s issues services and networks, and social protection including property rights 2.2 Promote 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 3. Reduce poverty • High incidence of poverty among food crop 3.1Link food crop farmers to the Ghana School Feeding Programme, among food crop farmers and farmers and other second cycle institutions, Prisons Service to serve as a ready market other vulnerable groups, vulnerable groups, for their produce and also promote made in Ghana goods including PWDs including PWDs 3.2Develop and implement a programme to expand access of extremely poor farmers to complimentary farm inputs and services 3.3Provide comprehensive business support to farmers benefiting from credit schemes, especially training 3.4Enhance income generating opportunities for the poor and vulnerable, including women and food crop farmers 4. Establishment of OoP, NDPC, Parliament, • Growing income disparities special purpose 4.1Create special development zones including the Western Corridor MMDAs, MDAs between and within regions development Development Authority, the Eastern Corridor Development Authority vehicle and the Forest Belt Development Authority. 192 APPENDIX 2.7: TRANSPARENT AND ACCOUNTABLE GOVERNANCE IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES 1. Deepening the • Inadequate transition 1. Strengthen arms of 1.1 Ensure enactment of the Transition Bill OoP, Parliament, Practice of regulations Government and 1.2 Review constitutional provisions to streamline the Parliamentary Service, Democracy and • Too much power conferred independent Governance roles and responsibilities of arms of Government and EC, MOJ & A-G, CRC, Institutional Reform on the Executive institutions independent Governance institutions CDD, IDEG, IEA, • Weak and ineffective 1.3 Build capacity of Governance institutions and NGOs &CBOs, NDPC, execution of Parliament to perform their respective mandates and CHRAJ, EOCO, NCCE, Parliamentary over-sight functions MOI, Political Parties, responsibilities 1.4 Ensure equitable distribution of resources to achieve National Identification • Resource disparity relative resource parity Authority, CSOs, FBOs, undermining the role of 1.5 Ensure closure of Constitutional Review process MDAs, DAs, different arms of within stipulated timeframe Information Service Government 1.6 Review the structure and functions of the various Department etc arms of Government as appropriate • Inadequate participation of 2. Enhance civil society and 2.1 Institute regular dialogue between CSOs, private civil society and private private sector participation sector and Government agencies/ state institutions at sector in governance in governance national and decentralised levels 2.2 Ensure clarity in the roles and responsibilities of civil society organisations 2.3 Develop feedback system between Government, CSOs and private sector 2.4 Facilitate CSO access to resources and decision- making structures at all levels of governance 2.5 Develop real and concrete avenues for citizens engagement with Government at all levels so that they can demand responsiveness and accountability from all duty bearers • Insufficient public 3. Promote coordination, 3.1 Promote in-depth consultation between stakeholders ownership and harmonization and 3.2 Institutionalize mutually agreed framework for harmonization of the ownership of the development dialogue development process development process 3.3 Engage the public/ media on Government policies regularly 3.4 Create an open and receptive avenue for Ghanaians to participate in debates on all the critical national issues that affect their lives and livelihoods as part of a process of building citizenship. 193 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES • Low interaction between 4. Encourage Public-Private 4.1 Institutionalise Public-Private dialogue in the Public and Private sectors Participation in socio- development process in governance economic development 4.2 Improve Private Sector access to resources through partnership with the Public Sector • Low quality assurance 5. Ensure transparency and 5.1 Introduce electoral reforms and integrity of the improved integrity of the 5.2 Enforce legal, operational and financial standards for electoral process electoral process party organization 5.3 Strengthen existing mechanisms for inter-party coordination in the electoral process 5.4 Establish election fund with transparent and accountable requirements 5.5 Encourage political parties to facilitate the candidature of females in elections • Limited public awareness 6. Foster civic advocacy to 6.1. Strengthen interaction between assembly members and advocacy on rights nurture the culture of rights and citizens and responsibilities and responsibilities 6.2. Integrate and institutionalize district level planning • Low level of and budgeting through participatory process at all understanding and levels appreciation of the 6.3 Facilitate the broadcasting of DA proceedings and decentralisation activities on local FM stations processes 6.4 Institutionalize democratic practices in local Government structures 2. Local Governance (a) Administrative 1. Ensure effective 1.1 Review and implement the National MLGRD, MOFEP, and • Weak capacity of MMDAs implementation of the Decentralization Policy and Strategic Plan OHCS, Local Decentralization to ensure improved Local Government Service 1.2 Review Acts 656 and 462 to ensure consistency in Government Service, performance and service Act the decentralisation law ILGS, NDPC MMDAs, delivery 1.3 Strengthen existing sub-district structures to ensure Parliament, MOJ, • Inconsistencies amongst effective operation RCCs, RPCUs, PSC, local Government laws 1.4 Strengthen the capacity of MMDAs for accountable, DPCUs, CAGD, NCCE, as a major source of effective performance and service delivery DACF, Private Sector, Audit Service. 194 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES conflict and confusion in MLGRD, MOFEP, accelerating OHCS, Local decentralization Government Service, • Lack of political interest ILGS, NDPC MMDAs, across MDAs in Parliament, MOJ, decentralisation RCCs, RPCUs, PSC, • Dysfunctional sub-district DPCUs, CAGD, NCCE, structures DACF, Private Sector, • Lack of clarity of roles and Audit Service coordination at district and sub-district levels • Weak employment 2. Mainstream the concept of 2.1 Provide support to district assemblies to facilitate, generation capacities at local economic develop and implement employment programmes the district level development into planning based on natural resource endowments and at the district level competitive advantage • Poor linkage between 3. Integrate and institutionalize 3.1. Enact LI to enforce compliance with the National planning and budgeting at district level planning and Development Planning System Act 1994, Act 480 national, regional and budgeting through 3.2. Strengthen institutions responsible for coordinating district levels participatory process at all planning at all levels and ensure their effective • Limited ownership and levels linkage with the budgeting process lack of implementation of 3.3. Ensure consistency between the budgetary process composite budgeting at both local and national levels 3.4. Implement District Composite Budgeting 3.5. Incorporate ICT in accounting processes at all levels 3.6. Build the capacity of MMDAs to implement the public expenditure management framework (b) Political 4. Strengthen functional 4.1 Institute attractive incentives for Assembly members • Existence of relationship between 4.2 Institutionalise regular meet-the-citizens session for communication gap assembly members and all Assembly members between assembly citizens members and citizens 195 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES • Conflict between DCEs 5. Strengthen and 5.1 Review laws governing decentralization and local and MPs over the operationalise the sub- Government to remove inconsistencies utilization of the MPs district structures and 5.2 Establish member of Parliament Constituency Common Fund ensure consistency with Development Fund local Government laws 5.3 Enact a formula for the allocation of MPs Constituency Development Fund 6.4 Ensure strict adherence to guidelines for the operationalisation of the MPs Constituency Development Fund (c) Fiscal 6. Ensure efficient internal 6.1. Ensure the replication of DSDA II and other best • Weak internal revenue revenue generation and practice database initiatives in all districts mobilisation transparency in local 6.2. Develop the capacity of the MMDAs towards • Over-dependence on resource management effective revenue mobilisation DACF and other external 6.3. Review District demarcations grants 6.4. Revisit IGF Sources • Ineffective inter- 6.5. Review DACF Act 455 governmental revenue 6.6. Formulate a comprehensive and a clearly articulated sharing arrangement policy framework to provide effective sources of • Weak capacity of personnel revenue mobilization and financial management and logistics shortfall 6.7. Develop an intergovernmental fiscal framework • Rigidity in procedure for (IGFF) contracting loans and 6.8. Strengthen mechanisms for accountability overdrafts and low 6.9. Strengthen the revenue bases of the DAs threshold levels for loans 6.10. Review procedures and raise loan thresholds • Weak financial 6.11. Strengthen collection and dissemination of management practices information on major investment expenditure • Inadequate accountability items including contracts to the public and other stakeholders of DACF 6.12. Revaluation of property rates and strengthening of • Unaudited Accounts of tax collection system District Assemblies by 6.13. Ensure that District Assembly Accounts are external Auditors externally audited 6.14. Develop financial management guidelines and manuals 6.15. Institutionalize annual auditing of all District Assembly Accounts • Lack of integration of 7. Integrate gender concerns 1.1. Ensure that the policy and institutional gender concerns in the into the National arrangements for operationalising and implementing NDAP Decentralization Action the NDAP duly recognise gender dimensions 196 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES Plan (Policy and 1.2. Ensure improved access of women to the district Institutional development funds Arrangements) 3. Creation/ • Increased income and 1.1 Ensure improved coordination of development MESW, LEAP, Establishment of 1. Reduce spatial and income projects and programmes in a manner that ensures MOWAC, Labour spatial disparities between Special inequalities across the fair and balanced allocation of national resources Commission, Fair rural and urban areas and Development Areas country and among across ecological zones, gender and income groups Wages Commission, across different socio- different socio-economic to Reduce Poverty/ economic classes 1.2 Ensure accelerated rural development at the district SSNIT, MMDAs, Inequalities classes level aimed at improving rural infrastructure and NDPC • Inadequate basic infrastructure and social increasing access to social services EPA, NDPC, GNPC, services in selected areas 1.3 Improve rural environment to reduce rural-urban Ministry of Energy, • Uncoordinated demands migration Office of the President, for special development 1.4 Improve agricultural productivity and incomes, and MOFEP and DTCP, areas transform rural agriculture management and MIDA, SADA, , TCPD, • Lack of coordination of on- practices into viable business ventures CERSGIS, Lands going and emerging 1.5 Empower rural populations by reducing poverty, Commission, MOFEP national development exclusion and vulnerability opportunities and 1.6 Enhance planning and coordination of the challenges development of Ghana’s oil basin, and other special development areas including SADA, MIDA, CEDECOM/Coastal Savannah, Bui City, etc 1.7 Review legislative frameworks for special development areas to conform to the national development planning system 1.8 Enhance monitoring and evaluation of special development areas and programmes 1.9 Coordinate and harmonise the selection and development of special development areas by aligning all on-going and special programmes in line with NDPC’s mandate 197 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES 4. Public Policy 1. Strengthen the 1.1. Strengthen the coordinating function of NDPC to MOJ, DTCP, NDPC, Management • Uneven and unplanned coordination of ensure enhanced evidence-based decision-making at MLGRD, DACF, spatial development development planning all levels CAGD, MOFEP, • Inequitable resource system for equitable and 1.2. Enact LI to ensure effective execution of NDPC’s Parliament, MOWAC, allocation /socially balanced spatial and socio- mandate on planning functions and resource MMDAs responsive budgeting economic development allocation processes 1.3. Harmonize and strengthen social criteria for • Lack of spatial allocation of the DACF integration/human settlement 1.4. Build capacity of MDAs and MMDAs on gender planning and women’s empowerment, monitoring, evaluation and Gender Responsive Budgeting 1.5. Re-establish and strengthen spatial planning at the NDPC 1.6. Develop management information systems for tracking spatial investments to facilitate resource allocation/investment decision-making • Absence of human resource 2. Upgrade the capacity of the 2.1 Review current status of the on- going public sector Public Sector Reforms development policy for public and civil service for reform programme to enhance accelerated Secretariat, OoP, Civil Civil and Public Servants. transparent, accountable, implementation Servants Association, • Unattractive conditions of efficient, timely, effective 2.2 Develop human resource development policy for the FWSC, PEF, AGI, service performance and service public sector GEA, TUC, PSC, • Ineffective supervision; delivery 2.3 Mainstream gender into public sector and human Parliament, Political ineffective wage and salary resource reforms Parties, National House structure 2.4 Review Wage and Salary Administration of Chiefs, MoI • Lack of conducive working 2.5 Provide conducive working environment for civil environment for civil servants servants • Duplication and overlap of 3. Rationalize and define 3.1 Review and clarify the mandate, functions and terms Office of the President, functions of MDAs structures, roles and of reference for institutions Public Sector Reforms • Absence of structured and procedures for state and 3.2 Review public accountability and transparency in Secretariat, Civil formalized Public-Civic non-state actors official processes Servant Association, interface 3.3 Establish participatory and consultative systems for PEF, AGI, GEA, Public • Weak transparent and policymaking, regulation and management of Services Commission, accountability systems in resources Parliament, All Political public policy formulation 3.4 Undertake national consultation and dialogue on Parties, National House process the number and appropriateness of ministries of Chief, The 198 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES • Low demand and 4. Deepen on-going 4.1. Improve coordination of National Development Governance feedback on M&E institutionalization and Policy and strategy formulation processes Programme, information internalization of policy 4.2. Facilitate development planning and plan NDPC, MOFEP, formulation, planning, and implementation MDAs, MMDAs, M&E system at all levels 4.3. Strengthen policy formulation and planning capacity CSOs, NGOs, PSC, at all levels Constitutional Review 4.4. Strengthen M&E capacity and coordination at all Commission levels 4.5. Enhance public dissemination of M& E information • Weak capacity of 5. Strengthen institutions to 5.1. Strengthen and facilitate the work of the inter- institutions – National, offer support to ensure agency task force to oversee the harmonisation of Decentralised Structures social cohesion at all levels policies and programmes to support the vulnerable and communities of society and excluded groups • Inadequate commitment to 5.2. Encourage and support decentralised agencies to issues on vulnerability incorporate programmes for the vulnerable and • Weak coordination and excluded groups in district development plans harmonisation of 5.3. Strengthen capacity development in social work and stakeholder initiatives volunteerism • Limited information on 5.4. Prepare and adopt a national social policy rights and responsibilities framework among both state and non- 5.5. Strengthen on-going efforts to harmonise concepts state actors and definitions relating to vulnerability and exclusion among state and non-state actors • Lack of recognition of 6. Mainstream gender into 6.1. Review the national gender and children’s policy gender equity in the public Public Sector Reforms and 6.2. Build the capacity and upgrade the level of GDOs Sector Reform Strategy capacity development to effectively influence change at all levels Document (“Towards A programme for CSOs 6.3. Expand the policy space to encourage civil society New Public Service for inputs Ghana –A Working Document�, 2004 • Lack of gender analytical capacity in public policy making 199 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES • Inadequate level of 7.Strengthen monitoring and 7.1 Develop local policies and enforce laws on MEST, EPA, CSOs, compliance with enforcement mechanism of environmental issues Parliament environmental quality environmental legislation 7.2 Develop and enforce appropriate environmental standards and practices standards • Improper integration of 7.3 Demand the use of SEA as a mandatory requirement environmental and climate in public policy processes change issues 7.4 Mainstream climate and disaster risk issues into development planning processes • Weak inter-sectoral 8. Enhance policy and 8.1Increase EPA presence in the districts linkages regulatory framework and 8.2 Create platform for grass roots participation in • Inadequate commitment to effective coordination environmental decision-making mainstreaming and among key Government 8.3 Improve inter-sectoral co-ordination on implementing agencies to improve the environmental issues environmental policy performance of the across sectors environment sector • Weak e-Governance 9. Facilitate the development 9.1 Integrate institutional networks within public sector Ministry of Information, structure of technology-based public and share resources Ministry of policy making process` 9.2 Ensure compulsory automation and networking as a Communications, tool to reduce fraud CEPS, IRS, VAT, 9.3 Start network design for whole country, account for MOFEP, Controller & institutions within public sector and e-Governance Accountant General’s 9.4 Re-engineer operations of CEPS, IRS, VAT Department, BOG, Service, MOFEP, Controller and Accountant Banks, NIA, EC General’s Department, Bank of Ghana to be fully automated, networked, interfaced and interconnected 5. Public Sector • Limited success of 1. Adopt a development 1.1 Orientation of the leadership of the sector ministries Office of the President, Reform previous initiatives outcome approach to to avoid pursuing business-as-usual and instead step MOFA, MOTI, MEST, • Previous reform reforms driven by the up deployment of private sector financing in the MOFEP, MLNR, MRH, activities were leadership of sector spirit of improving PPPs including involvement of MoTr, MFA, MLGRD, detached from the ministries civil society in the planning and implementation of MOD, MOT, MOI, mainstream of programmes and projects MOE, MOC, OHCS, ministerial 1.2 Implement institutional changes (structure and PSC, Local Government responsibilities and processes) to get MABs, PACs and PMUs to Service, MMDAs, accountability for the achieve well defined goals and targets CSOs, Private Sector management of the 1.3 Upgrade Public Sector Reform Secretariat Organizations and sectors of the 1.4 Implement capacity development interventions Development Partners economy 1.5 Design ministerial resource plans to support job • Reforms not development creation and food production, processing and outcome oriented distribution projects 200 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES 1.6 Monitor and evaluate implementation of job creation and food production, processing and distribution projects 6. Development • Lack of access to public 1. Improve transparency and 1.1 Enact Law on Right to Information MOI, NDPC, NMC, Communication information by media, civil public access to information 1.2 Design an Action Plan to implement the Right to MOJ, PRAAD, Media society and general public Information Law across MDAs and MMDAs Houses, NCCE, Media- • Lack of legal regime to 1.3 Modernize the structures of the PRAAD to function related NGOs back demand to access effectively in the collation, storage and retrieval of public information information • Poor record-keeping 1.4 Set up an independent body (with a strong civil culture: public information society presence) to monitor the implementation of scattered in documents; not the Law collated, not coded and 1.5 Educate and sensitize public and civil servants, stored for quick and easy media, civil society and general public on the Rights retrieval to Information Law • Inadequate participation of 2. Mainstream development 2.1 Formulate a Development Communication Strategy MOI, NDPC, NMC, citizens especially communication across the and Action Plan MOJ, PRAAD, Media vulnerable groups in public sector and policy 2.2 Review and expand the development communication Houses, NCCE, Media- decision-making and policy cycle provisions within the Planning law (Act 480) related NGOs, MDAs, implementation 2.3 Develop implement and monitor Development MMDAs • Weak linkages and poor Communication Plans across MDAs and MMDAs coordination within and 2.4 Strengthen the formation and operationalisation of between government Sector and District Development Communication information agencies Teams to facilitate coordination of Communication • Inadequate communication activities at all levels flow between government 2.5 Expand public relations mandate of ISD to include and public including development communication and coordination of absence of established Development Communication activities at all levels feedback mechanisms 2.6 Strengthen Communication offices within sectors and • Rural-urban gap in districts to carry their renewed mandates Communication 2.7 Promote cross-sectoral coordination and • Marginalisation of decentralisation of communications within the public Communications officers sector in the policy process 2.8 Create awareness of opportunities for engagement leading to weak with governance structures with particular attention communication outcomes to socially disadvantaged groups 2.9 Monitor implementation of Development communications activities across sectors at all levels 201 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES 2.10 Build Capacity for Development Communications across the public sector and Civil Society 2.11 Improve coordination of information between information agencies 2.12 Develop a mechanism for collating and monitoring feedback to influence re-planning processes, including budgeting 2.13 Improve government information dissemination and management machinery Expand opportunities for community and public ownership of radio 2.14 Maintain regular interaction with media to ensure free flow of information 2.15 Institutionalize and support community initiated Town Hall meetings 2.16 Strengthen the capacity of the state/public media, the ISD and the NCCE to play their public education role effectively 2.17 Strengthen and utilize the decentralized infrastructure of ISD to drive development communication at the local level 2.18 Strengthen and utilize the decentralized infrastructure of ISD to drive development communication at the local level • Weak engagement of 3. Promote Social 3.1 Promote participatory budgeting, expenditure MOFEP, MOI, NDPC, Government by Civil Accountability in the tracking and M/E across sectors and districts NMC, MOJ, PRAAD, Society public policy cycle 3.2 Establish communication channels between Media Houses, NCCE, • Weak capacity for policy Government and the Civil society to address Media-related NGOs dialogue among CSOs information asymmetry • Absence of established 3.3 Build the capacity of civil society to promote greater feedback mechanisms social accountability within the policy process • Information asymmetry 3.4 Create communications platforms for civil society to leading to weak enhance participation in the policy process engagement of CSOs in the especially in budget and policy monitoring Policy process 3.5 Develop feedback mechanism for policy review • Weak communications 3.6 Use communication as a tool for participatory M&E around the budget and and social accountability expenditure tracking 3.7 Ensure publication and dissemination of M&E results 202 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES • Absence of legal regime to 4. Enhance the capacity of the 4.1 Enact a broadcasting law OoP, Parliament, regulate operations of Media for Enhanced 4.2 Review legislation on NMC to give it the power of MDAs, MOC, GBC, broadcasting Development enforcement NCCE, MOI, NMC, • National Media Communication, 4.3 Review NCA Law and harmonize it with NMC Law MOJ-AG’s, ISD, GJA, Commission under- Accountability and Press 4.4 Strengthen the financial and legislative capacity of PRINPAG resourced and lacks Freedom the NMC capacity to enforce its 4.5 Increased partnership with the media based on a authority mutual principled relationship of fairness, • Weak media capacity to objectivity and truthfulness to promote national engage development cohesion and sustainable development process 4.6 Organise regular press/media briefings/ media encounters 4.7 Identify key authorities/professionals to speak to issues on behalf of government 7. Women • Inadequate women 1. Empower women and 1.1. Develop and implement affirmative policy action OoP, Parliament, Empowerment representation and mainstream gender into for women NGOs, MMDAs, participation in public life socio-economic 1.2. Create a special fund to support the participation of MDAs, Political Parties, and governance development women in national and district level elections MOWAC, NDPC • Managing multiple roles, 1.3. Institute measures to ensure increasing proportion of socio-cultural, time and women Government appointees in District mobility limitations of Assemblies female members 1.4. Sustain public education, advocacy and sensitization • Perceived discrimination on the need to reform outmoded socio-cultural and harassments in practices, beliefs and perceptions that promote election campaigns gender discrimination processes for female 1.5. Develop leadership training programmes for women candidates to enable , especially young women, to manage public offices and exercise responsibilities at all levels 1.6. Strengthen institutions dealing with women and children’s issues 203 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES • Prevalence and practice 2. Review and enforce existing 2.1 Review and strengthen on-going awareness campaign MDAs, MMDAs, CBOs of outmoded customs laws protecting women’s on existing laws and practices Households, NGOs, inimical to women’s rights and introduce 2.2 Build capacity on gender mainstreaming for all DSW, NCCE, CHRAJ, rights amendments to take care MMDAs, and MDAs e.g. gender desk officers DACF, LRC, MOJ • Inadequate support for of existing gaps 2.3 Build capacity and expand geographical coverage of victims of violence the institutions dealing with women’s rights including the implementation of the Domestic Violence Act 2.5 Develop community-based response to violence on women using traditional leaders, FBOs and ADR 2.6 Include gender and human rights studies in curriculum of law enforcement agencies and social work institutions 2.7 Ensure commitment by MMDAs and MDAs to gender mainstreaming 2.8 Provide shelter and support for victims of violence 2.9 Expand targeting of the LEAP to include victims of domestic violence 2.10 Identify customary practices which dehumanize or are injurious to physical and mental well being of citizens, and abolish or proscribe them after extensive public education 2.11 Reform discriminatory provisions on the rights and duties of parties to a marriage including grounds of divorce under customary and religious laws • Inadequate access to 3. Enhance women’s access to 3.1 Expansion of sustained micro-finance schemes for economic resources economic resources women 3.2 Institute or intensify existing capacity building and mentoring programmes to ensure the elevation of female businesses to the small and medium scale level 3.3 Institute measures to ensure access to credit for women 204 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES • Lack of gender budgeting 4. Introduce and strengthen 4.1 Strengthen gender analysis in the policy formulation MOWAC, MESW, gender budgeting process NCCE, DOVVSU, 4.2 Integrate gender budgeting in all MDAs and DSW, MOI, Legal Aid MMDAs Board, NCWD, MCC 4.3 Build capacity of MDAs, MMDAs and gender- MOH, MOJ & A-G, based organizations (MOWAC) on gender and CBOs, NGOs, FBOs, women’s empowerment, monitoring, evaluation, Traditional Authorities, gender sensitive policy making and Gender Other Micro-Finance Responsive Budgeting (GRB) institutions, National 4.4 MOWAC will ensure the adoption of gender Peace Council policies in all sectors, workplaces, political parties as part of its gender mainstreaming mandate 4.5 Liaise with sectors and other organizations to adopt gender policies • Inadequate analysis of 5. Enhance women’s 5.1 Ensure analysis of gender mainstreaming in peace gender dimension in the participation in the processes in conflict areas incidence of conflicts prevention and management of peace operations in existing conflict areas 8. Corruption and • High perception of 1. Promote transparency and 1.1 Enforce the implementation of the Public MOWAC, MESW, Economic Crimes corruption in the public accountability and reduce Procurement Act, Internal Audit Agency Act and DOVVSU, DSW, Legal sector opportunities for rent other Public Financial Management regulations Aid Board, NCWD, seeking 1.2 Implement the Whistleblower’s Act MOH, MOJ & A-G, • Weak Institutional capacity 2. Promote effective and 2.1 Enforce legal, operational and financial standards CBOs, NGOs, FBOs, to fight corruption efficient anti-corruption 2.3 Pass the Right to Information Bill Traditional Authorities, • Weak collaboration among systems 2.4 Finalize and implement a fair wage policy Other Micro-Finance institutions charged with 2.5 Ensure the implementation of the national anti- Institutions, Ghana the responsibility of corruption action plan Police Service, CHRAJ, fighting corruption 2.6 Transform the SFO into an Economic and Organized Parliament, NCCE Crime Agency with the leadership and capacity to do intelligence gathering in the area of economic and organized crime, and generally provide support in the prevention of crime 2.7 Strengthen and empower anti-corruption institutions 205 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES 9. Rule of Law and • Delays in the resolution of 1. Increase the capacity of the 1.1 Improve case management systems of the courts CHRAJ, MESW, AGI, access to Justice cases by the judiciary legal system to ensure including scaling- up mechanisms, enhance human SSNIT, GEA, • High and unaffordable speedy and affordable resource levels, expand infrastructure and Organised Labour, legal processes access to justice for all adequately resource state and non-state agencies MOFEP, Auditor • Inaccessibility of justice providing legal aid and other essential legal services General, PAC of • Lack of confidence in the 1.2 Effectively mainstream Alternative Dispute Parliament, Judicial judiciary Resolution (ADR) mechanism into justice delivery Services, EOCO, CID, • Poor compliance with system MOI, MOC, rules, regulations and 1.3 Create a firm basis and direction for the NCA,CSOs, The Media, procedures operationalisation of the constitutional powers of Internal Audit Service, • Weak enforcement of rules, parliamentary standing committees Ghana Anti-Corruption regulations and procedures 1.4 Reaffirm Parliament’s autonomy by giving it greater Coalition , AG’s • Weak appreciation of and legislative (including financial legislation) and Department demand for basic social oversight powers services 1.5 Improve the management of executive power so that it does not become dysfunctional 1.6 Review Legal Aid Scheme and establish Citizens Advocacy Bureau 1.7 Strengthen collaboration between all criminal justice sector agencies at the national, regional and district levels 1.8 Institute penal reform measures and introduce alternatives to custodial sentences, such as community service 1.9 Expand access to legal aid services to all communities 1.10 Engage in intensive legal literacy and rights awareness and education for all sectors of the populace 1.11 Empower traditional authorities and community legal literacy volunteers to assist in the resolution of minor disputes 1.12 Enhance the capacity of investigative agencies to expatiate actions on reported cases 1.13 Strengthen AG’s Department to facilitate and ensure speedy prosecution of cases 206 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES • Poor compliance with 2. Strengthen the capacity of 2.1 Enforce compliance with laws, regulations and CHRAJ, MESW, AGI, laws, regulations and judges, lawyers, the police procedures SSNIT, GEA, procedures and para-legal staff in both 2.2 Minimize the abuse of judicial power in the Organised Labour, • Weak enforcement of laws, public and private sectors administration of criminal justice MOFEP, Auditor regulations and procedures to promote the rule of law 2.3 Align justice sector and related institutions and General, PAC of agencies to enhance inter-agency cooperation Parliament, Judicial 3. Increase national capacity to 3.1 Increase safety awareness of citizens Services, EOCO, CID, ensure safety of life and 3.2 Institute regular training on emergency drills in MOI, MOC, property schools and among the general populace NCA,CSOs, The Media, 3.3 Enhance institutional capacity of the Ghana National Internal Audit Service, Fire Service, the NADMO and other similar agencies Ghana Anti-Corruption 3.4 Develop comprehensive national plan for early Coalition , AG’s warning risk management Department • Skewed concept of justice 4. Ensure affirmative 4.1 Review the Legal Aid Scheme Act to reflect current denying the poor of real intervention to produce trends and provide an adequate framework for LAS to justice preferential justice options operate, to take care of the legal needs of the poor for all 4.2 Provision of legal aid offices in all the regions and in some districts that effectively utilize ADR and mandate outreach to those in need of legal services 4.3 Development of effective collaborations between the Legal Aid Scheme and the offices of CHRAJ and NCCE and NGOs in the legal and social services domains 10. Public Safety and • High level of violent 1. Improve the capacity of 1.1 Improve institutional capacity of the security MOI, MOD, GAF, Security crimes including armed security agencies to provide agencies, including the Police, Immigration Service, Ghana Police Service, robbery internal security for human Prisons and Narcotic Control Board National Security, • Proliferation of small arms safety and protection 1.2 Strengthen and institutionalise early warning systems Ghana Immigration • Increasing numbers of 1.3 Sensitize the public on the exiting legislative Service, MOWAC, private security agencies provisions including sanctions and the dangers of DOVVSU, DSW, • High rate of drug abuse drug use and small arms NGOs, NCCE, Private and incidence of trafficking 1.4 Monitor private sector involvement in the provision Sector, Ghana Air of narcotic drugs of internal security Force, Ghana Navy and • Weak enforcement of 1.5 Ensure strict compliance of immigration laws Traditional Authorities, migration laws 1.6 Review programmes to rehabilitate and reform Anti-Trafficking Unit of • High rate of road traffic prisoners Ghana Police accidents and associated 1.7 Ensure strict enforcement and compliance with road fatalities traffic laws and regulations 207 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES • Increasing rate of internet 2. Strengthen the intelligence 2.1 Provide identification codes to internet service MOJ, CHRAJ, NCCE, fraud agencies to fight social and providers NIA, LEGAL AID, • Increase in organised and economic crimes 2.3 Monitor and regulate the operations of internet MOWAC, DOVVSU, economic crimes service providers DSW, CBOs, MESW, 2.4 Support capacity building in ICT for security GIS, MMDAs, Ghana personnel Police 2.5 Decriminalize some offences 2.6 Regulate the arrest and detention powers, especially of the police • Risks associated with fire, 3. Increase national capacity to 3.1 Increase safety awareness of citizens NADMO, MOH, Town floods and other natural ensure safety of life and 3.2 Review existing laws and regulations on spatial and & Country Planning disasters to life and property infrastructural development Dept., MMDAs, Fire property 3.3 Build capacity of national institutions responsible for Service disaster management • Instability in the sub-region 4. Forestall external 4.1 Forestall civil strife and external aggression in order MOD, GAF, Ghana Air • Need to deter potential aggression, safeguard to secure the country for growth and poverty force, Ghana Navy, incidents of external territorial integrity and reduction Ghana Police Service, aggression contribute to international 4.2 Build operational, human resource and logistics Ghana Prison Service • Need to redeploy peace keeping efforts capacity of the security agencies redundant manpower 4.3 Enhance the capacity of Ghana in external permanently into other peacekeeping productive and strategic 4.4 Strengthen the relationship between civil society and national engagements security agencies 4.5 Constitute excess manpower and skills in areas of the security agencies into special work gangs to undertake special national assignments 11. Access to Rights • High level of 1. Identify and equip the 1.1 Identify and categorize the various kinds of MOJ, CHRAJ, NCCE, and Entitlement unemployment among the unemployed graduates, vulnerability and exclusion EC, LEGAL AID, vulnerable and excluded vulnerable and excluded 1.2 Develop and design special capacity building MOWAC, DOVVSU, • High level of graduate with employable skills programmes for the unemployed graduates, the DSW, CBOs, MESW, unemployment vulnerable and excluded Ghana Federation of the Disabled, GIS, MMDAs • Inadequate access to and 2. Facilitate equitable access 2.1 Increase the provision and quality of social services Rights-Based NGOs high cost of social services to good quality and MESW, MOWAC, affordable social services MOJ, CHRAJ, NCCE, • Frequent abuse of children 3. Protect children from direct 3.1 Conduct research to track cases of child abuse for Legal Aid, DSW, and harmful traditional and indirect physical and proper resolution DOVSU, Ghana practices emotional harm 3.2 Develop policies to protect children Federation of the 208 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES • Inadequate enforcement of 4. Eliminate human 4.1 Reduce poverty in affected communities to stem Disabled, GIS, policies on Human trafficking trafficking MMDAs, NGOs, Trafficking Act and 4.2 Develop integrated child development policy Ministry of Children’s Act (1998) 4. 3 Launch public education programme on children’s Employment and Social rights and the dangers of child trafficking Welfare, Media • Merging the Women and 5. Strengthen the Children’s 5.1 Restructure present Depts. of Children and Women MOWAC, Department Children’s sectors Department to promote the into their respective sector institutions, decentralize of Children, CSOs, lead to marginalization of rights of children. them and build capacity of their staff to do sectoral DOVVSU, AG’s either sector, particularly monitoring and coordination of policy Department the children’s sector 5.2 Provide specific budgetary support for these initiatives • Limited capacity for 6. Effective public awareness 6.1 Strengthen capacity for public education and effective education and creation on laws for the dissemination of information on rights and enforcement of rights and protection of the vulnerable entitlements entitlements and excluded • Limited awareness, 7. Create an enabling 7.1 Introduce explicit affirmative action initiatives for dissemination and environment to ensure the persons with disabilities with due consideration for implementation of the active involvement of gender Disability Act PWDs in mainstream 7.2 Design action plan to implement the Disability Act societies • Weak capacity and 8. Strengthen institutions 8.1 Collect and document data on rights and entitlements inadequate budgetary responsible for enforcement of children allocations to institutions of children’s rights 8.2 Develop capacity building programmes for responsible for children’s institutions responsible for children’s rights rights • The denial of rights, and 9. Improve Government 9.1 Enhance the capacity of relevant agencies to inadequate access to commitment to international adequately enforce laws on family life (Domestic services, absence of protocols and conventions, Violence etc) information dissemination and their incorporation into 9.2 Intensify advocacy for ratification of charters and and mainstreaming of national agenda domestication of international conventions, e.g. child rights labour (ILO Convention 182) 9.3 Mainstream Human Rights perspective into National Development 9.4 Promote human rights education at all levels 209 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES • Inadequate policy 10. Protect the rights and 10.1 Strengthen the capacities of the relevant institutions implementation entitlements of women for the passage of bills and implementation, • Slow passage of legislation and children monitoring & evaluation of policies 10.2 Implement National Disability Act, Early Childhood Care and Development Policy, Children’s Act, Gender and Children’s Policy and Human Trafficking Act, Juvenile Justice Act 10.3 Review and implement the Gender and Children’s Policy • Conflicting claims to land 11. Undertake relevant 11.1 Examine all laws affecting land with the view to Ministry of Lands and ownership, bureaucracy and legislation & institutional amending them to foster efficiency and justice in the Natural Resources, outmoded disposal Land Reforms land acquisition process MEST, LAP, Lands procedures 11.2 Establish exclusive specialised Land Tribunals Commission, • Excessive use and abuse of combining both technical and legal expertise Traditional Authorities, discretion; poor application 11.3 Promote public education on land acquisition Judicial Service, CSOs of the land laws by procedures public/civil servants 11.4 Develop a comprehensive policy on the • Conflict of interests among establishment of land banks to facilitate access for Land Owning Groups investments (LOGs) • Absence of a Land Banks Policy to facilitate access to land for investors and/or industry 12. National Culture • Weak national culture 1. Strengthen the regulatory 1.1 Review the National Culture Policy to ensure it CHRAJ, MOWAC, for Development policy and institutional framework takes into account the strategic role of culture in DOVVSU, MMDAs, • Limited attention on issues for the development of development NGOs, Parliament, of culture in national national culture 1.2 Mainstream culture in the nation’s social and Judicial Service, NCCE, development economic development agenda MCC, National and • Limited documentation on 1.3 Promote the implementation of a dynamic culture Regional Houses of Ghanaian culture and development programme Chiefs history 1.4 Assist less endowed traditional authorities to • Inadequate well-equipped document their culture and history cultural centres across the 1.5 Complete the development of fully-functional regions and districts for the Centres for National Culture in all regional and district capitals 210 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES development of culture 1.6 Develop the capacity of Centres of National Culture ECRAG, MUSIGA, to effectively promote cultural activities across the MOI country 1.7 Create spaces within the National Culture Centres for exhibition works • Inadequate recognition of 2. Strengthen the National 2.1. Develop modalities to harness the inherent potential MCC, MOT, National the developmental role of House of Chiefs and all of the chieftaincy institution in national Commission on Culture the chieftaincy institution Regional Houses of Chiefs development (NCC), Academia, in national planning 2.2. Improve the incentive package paid to traditional Council for Creative • Weak support mechanism authorities Industry, House of for the chieftaincy 2.3. Adequately resource Chieftaincy Secretariat, Chiefs, MMDAs, institution National House of Chiefs and Regional Houses of • Chieftaincy disputes and Chiefs communal conflicts 2.4. Ensure that constitutional provisions for chieftaincy institution are upheld 2.5. Mainstream ADR into chieftaincy institutions 13. International • Bottlenecks in the free 1. Accelerate economic and 1.1 Work towards establishing a common customs union MCC, MOT, GTB, Relations movement of goods and social integration with 1.2 Ensure that national trade policies incorporate MOI, GIPC, MOFEP, (Partnership) for services among ECOWAS regional and/or sub-regional ECOWAS protocols GHATOF, NCC, MFA Development member states states 1.3 Strengthen links between industrial and trade policies • Low compliance with 2. Sustain Government’s 2.1. Mainstream international protocols into national laws international protocols and commitment to international for the promotion of international peace and conventions peace and security, sustainable development • Increasing trend in adherence to international 2.2. Strengthen Sub-Regional, Regional and Global transnational crimes protocols and conventions collaboration for the promotion of international • Threats to international and incorporate them into peace, security and sustainable development peace and security national laws 2.3. Act in concert with other countries to address threats to international peace and security • Low exploitation of 3. Strengthen Ghana’s 3.1 Leverage Ghana’s democratic and governance MCC, MOT, GTB, opportunities to promote bilateral diplomacy credentials to promote its political and economic MOI, GIPC, MOFEP, Ghana’s interests abroad interests abroad GHATOF, NCC, MFA • Vulnerability of the 4. Institute mechanisms to 5.1 Maintain stable reserves MCC, MOT, GTB, economy to external manage external economic 5.2 Support industries to increase production and add MOI, GIPC, MOFEP, economic shocks shocks value to their products to the domestic market for GHATOF, NCC, MFA exports • Poor enforcement of trade 5. Promotion of domestic 5.1 Promote a-buy-Ghana national campaign MCC, MOT, GTB, standards and regulations trade and effective 5.2 Enforce standards and regulations MOI, GIPC, MOFEP, enforcement for standards 5.3 Facilitate passage of the Local Content Bill GHATOF, NCC, MFA and regulations 211 IMPLEMENTING AND KEY FOCUS AREA ISSUES POLICY OBJECTIVE STRATEGIES COLLABORATIVE AGENCIES 14. Evidence-Based • Lack of adequate and 1. Improve accessibility and 1.1 Rationalize the production of data within the NDPC, GSS, CSOs, Decision-making reliable database to inform use of existing database for statistical system MOI, MMDAs, Office decision-making policy formulation, analysis 1.2 Define the roles and mandates of the various data of the President, NGOs, • Inadequate collection and and decision-making producing institutions NCCE, MDAs, use of existing data to 1.3 Adopt common definitions, methods and MOFEP, BOG, inform decision-making classifications Research Institutions, 1.4 Review the Statistical Service law, develop and Governance adopt a statistical master plan Programme, CERSGIS 1.5 Adopt international standards and good practices system-wide, including the United Nations Principles for Official Statistics and the IMF’s General Data Dissemination Standards 1.6 Support MDAs to generate data for effective planning and budgeting 1.7 Build capacity of MDAs in electronic data analysis and management 1.8 Re-engineer and fully automate the operations of Government’s strategic institutions 1.9 Establish strategic partnership among MDAs to harmonize and standardize Government sector spatial databases for planning and monitoring of development activities 1.10 Support the maintenance of an up-to-date spatial database for Mapping and Monitoring Development Activities (EMMSDAG) 1.11 Support the development of a web-based system for accessing the EMMSDAG Spatial Database by strategic Government institutions 1.12 Build capacity within MDAs, MMDAs and strategic Government institutions in the use of the EMMSDAG Spatial Database for development planning and monitoring 1.13 Strengthen MIS systems of MDAs and MMDAs 212 GHANA SHARED GROWTH AND DEVELOPMENT AGENDA (GSGDA) COSTING FRAMEWORK (2010 – 2013) VOLUME II COSTING AND FINANCING OF POLICIES AND STRATEGIES December, 2010 NATIONAL DEVELOPMENT PLANNING COMMISSION TABLE OF CONTENTS TABLE OF CONTENTS.......................................................................................................................... i LIST OF TABLES AND FIGURES ....................................................................................................... iii LIST OF ACRONYMS .......................................................................................................................... iv EXECUTIVE SUMMARY .................................................................................................................... vi CHAPTER ONE:INTRODUCTION ....................................................................................................... 1 1.1 Background ................................................................................................................................... 1 1.2 Strategic Focus of GSDA ............................................................................................................... 1 1.3 Review of the GPRS II Expenditure Framework ............................................................................ 2 1.4 GSDA Expenditures ...................................................................................................................... 4 1.5 The Processes for Costing GSGDA ................................................................................................ 5 1.6 Structure of the Document ............................................................................................................. 6 CHAPTER TWO: SUMMARY OF GSGDA POLICIES AND STRATEGIES ........................................ 7 2.1 Introduction ................................................................................................................................... 7 2.2 Ensuring and sustaining macroeconomic stability ........................................................................... 7 2.3 Enhanced competitiveness of Ghana’s private sector; ..................................................................... 8 2.4 Accelerated agricultural modernization and natural resource management ...................................... 9 2.5 Energy, Oil and Gas Development ............................................................................................... 12 2.6 Infrastructure and human settlements development....................................................................... 13 2.7 Human development, employment and productivity ..................................................................... 18 2.8 Transparent and accountable governance...................................................................................... 27 CHAPTER THREE: ESTIMATED RESOURCE REQUIREMENTS FOR THE IMPLEMENTATION OF GSGDA POLICIES AND STRATEGIES ..................................................................... 35 3.1 Introduction ................................................................................................................................. 35 3.2 Costing Methodology................................................................................................................... 35 3.3 Guidelines for Costing the SMTDPs ............................................................................................ 36 3.4 Resource Requirement ................................................................................................................. 40 CHAPTER FOUR: THE RESOURCE ENVELOPE AND THE FINANCING GAP .............................. 45 4.1 Resource Envelope ...................................................................................................................... 45 4.2 The Resource Gap........................................................................................................................ 49 i|Page APPENDICES ...................................................................................................................................... 51 APPENDIX I: INDICATIVE COST FOR IMPLEMENTING THE GDGSD, 2010 – 2013, BY FOCUS AREA ................................................................................................................................ 51 APPENDIX II: INDICATIVE COST FOR IMPLEMENTING THE GDGSD, 2010 – 2013, BY THEMATIC AREA, FOCUS AREA AND POLICY OBJECTIVE ..................................... 58 ii | P a g e LIST OF TABLES AND FIGURES LIST OF TABLES TABLE 3.1: ESTIMATED COST FOR IMPLEMENTING THE GSGDA, 2010 – 2013 (PERCENT) ... 42 TABLE 4.1: REVENUE (MILLION GHANA CEDIS) ......................................................................... 45 TABLE 4.2: EXPENDITURE (MILLION GHANA CEDIS) ................................................................. 47 TABLE 4.3: RESOURCE GAP ANALYSIS ......................................................................................... 49 LIST OF FIGURES FIGURE 3.1: ALLOCATION OF RESOURCES UNDER THE GSGDA, 2010 – 2013 (PERCENT) .... 40 FIGURE 3.2: PATTERN OF RESOURCE FLOW OF EACH THEMATIC, 2010 - 2013 (PERCENT).. 41 iii | P a g e LIST OF ACRONYMS ADR: Alternative Dispute Resolution BOG: Bank of Ghana BRT: Bus Rapid Transit CAGD: Controller and Accountant General’s Department CEDECOM: Central Regional Development Commission CHPS: Community Health Planning and Services CHRAJ: Commission of Human Rights and Administrative Justice COTVET: Council for Technical and Vocational Education and Training DACF: District Assemblies Common Fund DHMIS: District Health Management Information System DPD: Directorate of Public Defenders EMMSDAG: Establishment of Monitoring and Mapping System for Development Activities in Ghana EOCO: Economic and Organised Crimes Office FER: Foreign Exchange Risk FP: Family Planning GDP: Gross Domestic Product GHS: Ghana Health Services GIFMIS: Ghana Integrated Financial Management Information Systems GIS: Geographical Information System GPRS I: Ghana Poverty Reduction Strategy GPRS II: Growth and Poverty Reduction Strategy GSGDA: Ghana Shared Growth and Development Agenda GUTP: Ghana Urban Transport Project HIPC: Highly Indebted Poor Country Initiative HIRD: High Rapid Impact Delivery HIV/AIDS: Human Immuno-deficiency Virus/Acquired Immune Deficiency Syndrome ICT: Information and Communications Technology IGF: Internally Generated Funds ILO: International Labour Organization IMF: International Monetary Fund IRR: Interest Rate Risk LI: Legislative Instrument MDAs: Ministries, Department and Agencies MiDA: Millennium Development Authority: MLGRD: Ministry of Local Government and Rural Development MM: Maternal Mortality MMDAs: Metropolitan, Municipal and District Assemblies MOFEP: Ministry of Finance and Economic Planning MOH: Ministry of Health MSME: Micro, Small and Medium Enterprise MTEF: Medium Term Expenditure Framework NDPC: National Development Planning Commission iv | P a g e NETS: National Expenditure Tracking System NGO: Non Governmental Organization NHIS: National Health Insurance Scheme PPME: Policy Planning, Monitoring and Evaluation PPPs: Public-Private Partnerships PRAAD: Public Records and Archives Administration Department PWDs: People Living with Disabilities R&D: Research and Development RFR: Refinancing Risk RUEAP: Rural and Urban Entrepreneurship and Artisan Project SADA: Savannah Accelerated Development Authority SHS: Senior High School SIEs: Special Industrial Estates SMTDP: Sector Medium Term Development Plans SSNIT: Social Security and National Insurance Trust STI: Science, Technology and Innovation STID: Sexually Transmitted Infections Diseases SWP: Sector-Wide Project TB: Tuberculosis U5M: Under-five mortality WIFA: Women In their Fertility Ages v|Page EXECUTIVE SUMMARY This document is presented as Volume II of the Ghana Shared Growth and Development Agenda (GSGDA). It represents the costing framework for the effective implementation of the policies and strategies outlined in the GSGDA. It briefly reviews the costing framework for the financing of programmes and projects under the GPRS II, identifies some of the constraints in the resource allocation and actual expenditures, and proposes strategic focus of expenditure outlays under GSGDA. The costing framework is based on the following seven thematic areas of the GSGDA: • 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, employment and productivity; and • Transparent and accountable governance The total cost of implementing the GSGDA is estimated at US$23,891.459 million (GH¢34,642.62 million). The allocation by thematic area is as follows: Thematic Area GH¢ (millions) US$ (millions) % Ensuring and sustaining macroeconomic stability 729.17 502.873 2.10 Enhanced competitiveness of Ghana’s private 2,764.01 1,906.211 7.98 sector Accelerated agricultural modernization and natural 1,314.21 906.354 3.79 resource management Infrastructure and human settlements development 13,656.70 9,418.415 39.42 Oil and gas development 5,222.09 3,601.438 15.07 Human development, employment and 8,727.18 6,018.748 25.19 productivity Transparent and accountable governance 2,229.26 1,537.419 6.44 TOTAL 34,642.62 23,891.459 The cost related to enabling environment for effective plan preparation and implementation, as well as ensuring effective national monitoring and evaluation, are captured mostly under Governance thematic area. The resource envelope comprises both domestic and external sources of financing the GSGDA. Overall financing gap of US$12,500.676 million (GH¢18,125.980 million) has been estimated. This resource gap is expected to be financed through various mechanisms including: • identifying new financing sources including targeted bilateral partnerships in state-to- state arrangements; • vigorous promotion of Public-Private Partnership; • introducing new domestic revenue enhancing measures to widen the revenue base; vi | P a g e • scaling up donor inflows; and • accelerate the capacity expansion of the domestic financial markets and targeted support and incentives for the capital market. vii | P a g e CHAPTER ONE INTRODUCTION 1.1 Background Over the years successive governments have provided Medium-Term National Development Policy Frameworks to guide the preparation and implementation of Sector and District Development Plans aimed at reducing poverty and improving the social wellbeing of the people. The Ghana Poverty Reduction Strategy (GPRS I) and the Growth and Poverty Reduction Strategy (GPRS II) are the latest of such national development policy frameworks. GPRS I was a comprehensive policy document prepared as a pre-condition for Ghana to benefit from a significant measure of debt relief under the Highly Indebted Poor Country Initiative (HIPC). It was primarily aimed at positioning the country in an improved macroeconomic environment to address critical issues of poverty on an emergency basis. It also focused on that component of human development which targeted measures designed to improve access of Ghana’s population to basic needs and essential services, with programmes in basic education, safe water and improved health, environmental sanitation, modernized agriculture, private sector development, and good governance. A general assessment of the overall policy environment which emerged from the implementation of GPRS I indicated a positive and significantly stabilized macroeconomic environment, with a potential for attaining higher rates of growth. Against this background, the GPRS II was adopted and implemented over the period 2006-2009 with a shift in focus and context to accelerated growth of the economy towards sustained poverty reduction and the attainment of middle income status within a measurable planning period. It focused on implementing growth-inducing policies and programmes which have the potential to transform the structure of the economy and maximize the benefits of shared accelerated growth. Consistent with its commitment to own the development process and provide a successor to the GPRS II, government initiated a process in 2009 to formulate a medium term national development policy framework. With the large fiscal imbalance experienced in 2008 and the difficult macroeconomic situation inherited, the goal of the medium-term national development policy framework, Ghana Shared Growth and Development Agenda (GSGDA), 2010-2013, is to achieve and sustain macroeconomic stability while placing the economy on a higher path of shared growth, and poverty reduction. 1.2 Strategic Focus of GSDA In the medium-term, the strategic direction is to lay the foundation for the structural transformation of the economy within the decade ending 2020, through industrialization especially manufacturing, based on modernized agriculture and sustainable exploitation of Ghana’s natural resources, particularly minerals, oil and gas. The process will be underpinned by rapid infrastructural and human development as well as the application of science, technology and innovation. In this regard expenditure is expected to be prioritized in favour of policies, 1|Page programmes and projects in Agriculture, Infrastructure (including energy, oil and gas), Water and sanitation, Health, and Education (including ICT, Science, Technology and Innovation). 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 MTDPF are as follows: • Ensuring and sustaining macroeconomic stability; • Enhanced competitiveness of Ghana’s private sector; • Accelerated agricultural modernization and natural resource management; • Oil and gas development; • Infrastructure and human settlements development; • Human development, employment and productivity; and • Transparent and accountable governance. The GSGDA is presented in two volumes: Volume I, the policy framework, analyses the macroeconomic context and the development policy choices that should be made to attain the goals of GSGDA. It includes a policy matrix, which outlines issues, policy objectives, and strategies, and also identifies the agencies responsible for implementing each component of the strategy. Volume II is the four year costing framework, which shows the indicative financial requirements for the effective implementation of the policies and strategies outlined in the GSGDA. 1.3 Review of the GPRS II Expenditure Framework GPRS II was formulated around the following thematic areas: • Continued Macroeconomic Stability; • Private Sector Competitiveness; • Human Resource Development; and • Good Governance and Civic Responsibility In 2002 a process was initiated to effectively link the GPRS I to annual national budgets through the Medium Term Expenditure Framework (MTEF). However the MTEF, had a major shortcoming in that while it provided a high level of detail, it did not aggregate spending into programmes, thus making it difficult to track the relationship between resource allocations and programme priorities as set out in the GPRS I. To overcome this constraint a refined mechanism that allows sector priorities to be effectively linked to the GPRS II objectives through the MTEF was instituted in 2006. This new mechanism establishes the links between the sector plans, GPRS II priorities and the annual budget by ensuring that all: � the objectives of MDAs are properly aligned to the strategic objectives of the GPRS II; � the objectives of the current MTEF are properly aligned to the GPRS II; and � resources for financing expenditures associated with the implementation of the GPRS II are consolidated and rationally allocated. 2|Page The total cost of implementing the GPRS II was estimated at US$8.063 billion, of which 35% was expected to go to implementation of policies, and strategies related to Private Sector Competitiveness thematic area, 55% to Vigorous Human Resource Development thematic area, while 10% was allocated to Governance and Civic Responsibility thematic area. The GPRS II envisaged that the resource envelope would comprise both domestic and external sources of financing. In each of the four years within the GPRS II period, budgetary resources were expected to constitute an average of 35% of annual GDP, with domestic revenue sources making up some 23% of GDP, while grants from bilateral and multilateral sources constituted about 5.5% of GDP. The remaining 6.5% was expected to come from divestiture receipts, programme loans and exceptional financing arrangements. This was to ensure that Ghana gradually weans itself off excessive reliance on donor support. With regard to external inflows, it was expected that HIPC savings and other debt relief as well as resources from the Millennium Challenge Account will augment domestic resources. The outturn over the four year period shows that budgetary resources constituted an average of 38.4% of annual GDP, with domestic revenue sources making up of 22.8% of GDP, while grants from bilateral and multilateral sources constituting about 5.6% of GDP. The remaining 10% was from divestiture receipts, programme loans and exceptional financing arrangements. The overall resource allocation (Services and Investment) through the 2008 Annual Budget for the implementation of the GPRS II amounted to US$9,105.14, representing about 13% increase over the planned GPRS II resource requirements. Nearly 60% of the overall resources spent on the implementation of the GPRS II were from Government of Ghana (GOG) sources, while the remaining 40% were contributed by Development Partners (DPs). Distribution of the resources by thematic area shows that 45.2% were allocated to the implementation of programmes related to Private Sector Competitiveness thematic area, 32.5% to the Human Resource Development thematic area, and 21.8% to Governance and Civic Responsibility thematic area. There were contrary to the pattern of distribution envisaged under the GPRS II costing framework where 35% were expected to go to implementation of policies and strategies related to Private Sector Competitiveness thematic area, 55% to Human Resource Development thematic area, while 10% was allocated to Governance and Civic Responsibility thematic area. The key conclusion from this observation is that resources were prioritized away from Human Resource Development thematic area, in favour of Private Sector Competitiveness and Governance and Civic Responsibility thematic areas during the implementation period. The sources of this misalignment were both GOG and DPs. When the DPs prioritized their resources in favour of the Private Sector Competitiveness and Good Governance and Civic Responsibility thematic areas, GOG resources were prioritized in favour of Human Resource Development thematic area in the approved budget, however the actual releases were prioritized in favour of Private Sector Competitiveness thematic area. 3|Page 1.4 GSDA Expenditures In order to overcome the problem of misalignment of resource allocation observed under the GPRS II, the mechanism for linking the GSGDA to the annual national budget, and the process for managing public expenditure will further be strengthened through: • preparation of well costed medium term sector development plans based on the GSGDA; • ensuring that all the objectives of MDAs are properly aligned to the strategic objectives of the GSGDA; • ensuring that only activities related to the GSGDA receive budgetary resources: • ensuring that resources for financing expenditures associated with the implementation of the GSGDA are consolidated and rationally allocated; • ensuring that resources for financing GSGDA implementation can be effectively tracked on an annual basis; and • ensuring effective Cash Management and Public Financial management Systems Preparation of a well costed medium term sector development plan: The MTEF mechanism provides the linkage between the sector development plans, GSGDA priorities and the annual budget. The design of the MTEF is largely based on well-prepared and fully costed sector plans and any shortcomings in developing these plans will automatically render the operation of the MTEF dysfunctional, and the linkages between the sector development plans, GSGDA priorities and the annual budget weak. Alignment of the objectives of MDAs to the strategic objectives of the GSGDA: To ensure that the objectives of MDAs are properly aligned to the strategic objectives of the GSGDA, the MTEF will accordingly be updated with the MDAs policy objectives and cost outlays annually. Budgetary resources are used finance only GSGDA priorities: The budgeting process has not developed the relevant mechanism to ensure that only MDAs who has approved Sector Medium Term Development Plans (SMTDP) receive budgetary allocations. Neither is there a mechanism to ensure that only programmes and projects from the approved SMTDP receive resource allocation. For the budget to serve as a tool in delivering the objectives of national development policy framework an incentive mechanism will be developed and effectively enforced to ensure that only MDAs who have approved Sector Medium Term Development Plans (SMTDP) receive budgetary allocation. Effective tracking of Resources for financing GSGDA implementation: The National Expenditure Tracking System (NETS) developed to facilitate the monitoring of release and expenditure of public funds has not been efficient. The format for capturing data from key national institutions responsible for supervising the release of public sector funds including MOFEP, BOG, CAGD and DACF Secretariat, and MLGRD continue to vary, making it difficult to reconcile data from these sources. For effective tracking of public funds, the institutional arrangements would be clearly defined, and the mechanism for reporting be clearly outlined. Cash Management System will be established, to provide frequent and up-to-date monitoring of revenues, expenditures and cash balances which is critical in setting up monthly cash ceilings for MDAs. Treasury Single Account will be established to link all government accounts to ensure 4|Page efficient monitoring and use of cash balances. A user-driven Ghana Integrated Financial Management Information Systems (GIFMIS) will also be implemented to further improve public financial management. 1.5 The Processes for Costing GSGDA The process for preparing the costing framework involved desk-top research, data capturing, technical analysis of data, and validation of data by key stakeholders. The process lasted for a period of four months, beginning in July, 2010 and ending in November. The process begun with the formation of task team comprising of technical experts in public finance, national budget preparation and execution processes, Medium Term Expenditure Framework (MTEF), and national development planning in Ghana. The process was led by a task team leader responsible for providing the overall technical direction for the exercise. The process was participatory involving the MDAs who provided inputs for the exercise, while the task team provided the technical guidance and final analysis of data for the report. Costing guidelines were provided to guide the MDAs in costing their respective medium term development plans. The costing guidelines were informed by the review of the costing frameworks for the GPRS I & II, and the guidelines for preparing the national budget. It outlines the costing methodology, activities that qualify for costing under the framework, identification of inputs, per unit cost application, and method of cost aggregation. This is to ensure uniform costing structure, and easy harmonization of the costings submitted by MDAs. Inception meeting was organized with MDAs to discuss the costing guidelines and the relevant timelines for the preparation of the costing framework. MDAs were requested to submit the indicative cost of their respective medium term development plans based on the costing guidelines to NDPC within two weeks after the inception meeting. This was predicated on the fact that MDAs had already costed their draft medium term development plans and required time to adjust them to fit the requirements of the costing guidelines. Technical support was provided by the task team and NDPC technical staff to MDAs who required it. All costing inputs received from MDAs were forwarded to Ministry of Finance and Economic Planning for them to be captured into the MTEF database. Validation exercise was undertaken by the task team to ensure that the data captured into the MTEF database is the same as submitted by the MDA. The review of each MDAs MTEF output was undertaken to ensure that they complied with the costing guidelines. Comments on each MDAs indicative cost was compiled, and a validation meeting organized with the MDAs to discuss comments on their respective costing. The exercise was to ensure that: (i) double counting, under-counting and over-costing are eliminated; (ii) sequencing of activities to be implemented is appropriate; and (iii) strategic, catalytic and transformational initiatives are given priority in the costing. 5|Page MDAs were then requested to review their indicative costing on the basis of the comments provided by the task team and re-submit. Re-submitted inputs were re-captured into the MTEF database. The final MTEF output of each MDA was reviewed against their absorptive capacities, and the necessary adjustments made when necessary. MDAs historical expenditure pattern obtained from the database of the Controller and Accountant-General, as well as the average completion time of major national projects were used as proxies for absorptive capacity. On the basis of MDAs historical budgetary expenditure, MDAs (especially in the key infrastructural sectors) ability to utilize more than double of its current resource utilization within a year could not be adequately justified, especially when there are institutional and regulatory procedures which usually slow down the rate of execution of projects. The final MTEF output was generated and used as the basis of analysis for the resource requirement for the implementation of the medium term national development policy framework, 2010 – 2013. 1.6 Structure of the Document This document is presented in four chapters. In addition to the introductory chapter, chapter two presents a summary of the GSGDA policies and strategies to be implemented over the period 2010 - 2013, while chapter three presents estimates of resource requirements for the implementation of the policies and strategies. Chapter four presents analysis of the resource envelope and the financing gap. 6|Page CHAPTER TWO SUMMARY OF GSGDA POLICIES AND STRATEGIES 2.1 Introduction This chapter presents the summary of GSGDA policies and strategies in each thematic area that are expected to be funded and implemented over the GSGDA planning period. It also outlines the key objectives expected to be achieved in each thematic area upon the implementation of policies and strategies. 2.2 Ensuring and sustaining macroeconomic stability Despite the improvements in the performance of the economy in the last two decades, structural challenges still persist, characterized by large fiscal and balance of payment deficits. The medium term economic growth and development will therefore depend very much on the ability to address existing fiscal and balance of payment imbalances. Over the medium term, therefore, priority policies to ensure and sustain macroeconomic stability will focus on: (i) improving fiscal resource mobilization; (ii) improving public expenditure management; (iii) promoting effective debt management; (iv) ensuring price and exchange rate stability; (v) improving export competitiveness; (vi) diversifying and increasing exports and markets; and (vii) strengthening economic planning and forecasting to ensure synergetic development of strategic sectors. Increasing revenue mobilization effort through reforms to tax collection (i.e. single revenue authority, taxation of natural resources, reduction of tax exemptions); enhancing central government control over expenditures and the wage bill through the introduction of treasury single account, information and financial management system, payroll management, hiring controls, payroll audits; and ensuring efficient resource utilization through improved procurement and internal auditing review are expected to contribute about 1% of GDP to fiscal deficit reduction on a sustainable basis. The medium term debt strategy, on the other hand, will focus on managing the risk exposure associated with the existing debt portfolio and taking the necessary and prudent steps to mitigate the potential risk that would be embedded in current and future borrowing. The debt strategy will cover all external public and publicly guaranteed debts and domestic debts. It will also cover all market risks, including Interest Rate Risk (IRR), Foreign Exchange Risk (FER) and Refinancing Risk (RFR). Significant consideration will be given to operational risk in debt management, which is a major improvement on the previous strategy which concentrated on achieving debt sustainability by sourcing for only concessional loans with grant element of at least 35%. In the medium-term, policies will be implemented to ensure that inflation is brought down and maintained at single digit. The commitment to reversing the negative impact of the global financial crisis and its domestic pass-through effect on macroeconomic indicators including inflation and exchange rate expectations remains high. The risk-based supervision of banks will be consolidated, with a commitment to sustaining the major financial sector reforms over the 7|Page medium term. The Financial Services Bill will be passed to provide the legal and regulatory framework for providing non-bank financial services to non-residents. Within the framework of trade liberalization, trade policy will be used to promote the international competitiveness of domestic enterprises, including: improving export competitiveness; diversifying markets and increasing exports; and accelerating economic integration with other regional and/or sub-regional states. Priority policies therefore shall focus on: maintaining competitive real exchange rates; improving the import/export regime; establishment of the Ghana Competition Commission to deal with unfair international trade practices; promoting new goods and services; and strengthen links between industrial and trade policies. 2.3 Enhanced competitiveness of Ghana’s private sector; Ghana’s private sector remains uncompetitive in spite of several attempts by succeeding Governments to enhance its competitiveness. The private sector under this policy framework is expected to partner Government and other stakeholders in the transformation of the economy through industrialization and modernized agriculture. The overall objective is to ensure that private sector work for Ghana, and share the benefits of growth and transformation process. The focus of medium term priority policies therefore is to: • improve private sector competitiveness domestically and globally • develop micro, small and medium enterprise (MSME) • ensure rapid industrialization driven by strong linkages to agriculture and other natural resource endowments • develop tourism as a major industry; and • develop and strengthen Ghana’s creative arts industry These are to be achieved through: improving the investment climate; reducing the cost and risk of doing business; providing modern, efficient and competitive infrastructure; creating the financial sector which is responsible to the private sector; and making available human resources with relevant skills and competences. Others include: • attracting private capital from both domestic and international sources • promoting an enabling environment and effective regulatory framework for public sector management • ensuring that businesses behave as good corporate entities which uphold the tenets of human rights, social responsibility and environmental sustainability; and • ensuring consumer safety and welfare. The many barriers that confront investors and investments will be removed to make Ghana a more attractive investment destination. The various business registration requirements, levies for business registration, and several investment legislations, will be rationalised while MDAs that administer business regulations will be made more responsive to the needs and imperatives of the private sector. 8|Page To enhance productivity and efficiency, and reduce the cost of doing business, continued effort will be made to remove value chain constraints to improve service delivery through urgent and aggressive investment in both physical and social infrastructure as a national priority to improve efficiency and reliability in the production chain. In the medium-term, priority areas will include water, health and education, energy, roads and transport, ports and harbours, information technology and science, technology and innovation. Priority will also be given to investment in relevant and quality human resource development to provide modern skills and competencies required for the industrial economy envisaged over the medium term. Priority skills and competencies will include specialized skills often missing in our domestic economy and which reduces opportunities for top leadership positions in business for locally trained professionals. Special Industrial Estates (SIEs) focusing on the exploitation of industrial minerals and other resource endowments to drive SME-based industrial and commercial value chains shall be promoted. Fiscal and regulatory space will be created to facilitate the incubation of SMEs into champions which can spearhead substantial job creation and accelerated industrial development. 2.4 Accelerated agricultural modernization and natural resource management Ghana’s agriculture is dominated by subsistence small holder production units with weak linkages to industry and the services sector. It is characterized by low productivity, low income and un-competitiveness in production, processing and distribution. Given its central role in generating income and providing subsistence 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 policy, over the medium-term, will be to accelerate the modernisation of agriculture and ensure its linkage with industry through the application of science, technology and innovation. 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 and rural development as well as significant reduction in the incidence of poverty. This will be complemented by an effective natural resource management and environmental governance regime. The broad objectives to be achieved under the medium term development strategy include: • improved agricultural productivity; • increased agricultural competitiveness and enhanced integration into domestic and international markets; • reduced production and distribution risks/ bottlenecks in agriculture and industry • promote selected crop development for food security, export and industry; • promote livestock and poultry development for food security and income; • promote fisheries development for food security and income; and • improved institutional coordination for agricultural development. Some of the specific interventions to be implemented over the medium term include: 9|Page • Scaling-up support for agricultural producers through the establishment of an Agricultural Development Fund; • Establishment of the National Food Buffer Stock Company and Ghana Commodities Exchange to enhance the marketing of agricultural produce and incomes of farmers; • Provision of subsidies for the procurement of improved seeds, grade breeders and stocks, pesticides, fertilizers and other inputs; • Promotion of selected crop development for food security and for export; • Supporting the production of adequate quantities of agricultural raw materials focusing on shea nuts, dawadawa, cotton, pineapple, bananas, rubber, vegetables, and ornamental plants to feed existing local firms as well as new ones; • Supporting livestock farmers to substantially increase the scale of production, including larger scale production of guinea fowls; • The development of aquaculture; • Promotion of small holder productivity; and • Promotion of irrigation-based agriculture with the rehabilitation of existing facilities and the phased irrigation of the Accra Plains. Ghana is endowed with abundant natural resources, which must play an important role in the agricultural and industrial development efforts of the country. 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. There is a rapid loss of biological diversity and wildlife populations. The key priority areas for policy interventions over the medium term are: • Environmental Degradation (land, forest, etc) • Biodiversity and Protected Areas • Coastal Erosion and Marine Ecosystem • Wetlands and Water Resources Management • Climate Variability and Change Environmental Degradation (land, forest, etc) In the medium-term, the focus of policy interventions aimed at reducing environmental degradation shall include: • application of appropriate agriculture intensification techniques that provide irrigation infrastructure and promote correct soil conservation techniques; • encourage afforestation of degraded forests and off-reserve areas, including the adoption of a medium to long-term plan for public and private programmes; • encourage investments 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; • monitoring the activities of both large and small scale mining companies in order to protect the environment; • strengthen and enforce existing environmental laws and regulations including the passage of regulations under the current Minerals and Mining Act 2006 (Act 703); 10 | P a g e • vigorously pursue the reclamation and plantation development measures in areas mined- out especially by illegal miners; • ensuring environmental stewardship by mining companies; and • introduce and enforce economic instruments for mining sector environmental management. Biodiversity and Protected Areas The key policy strategies identified for addressing the challenges associated with loss of biodiversity and protected areas are: • maintaining and enhancing the protected area system; • strengthening the legal framework on protected areas. • 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; • fast-tracked the identification of river basins and corridors best suited for connectivity and acquisition of lands that could possibly serve as landscape corridors; and • promulgating strict national legislation on initiation of bush fires to enable District Assemblies to enforce bye-laws on bush fires. Coastal Erosion and Marine Ecosystem Over the medium-term, interventions to be implemented to control coastal erosion and maintain marine ecosystem will include: • investing directly in control structures and construction; • establishment of gabions and boulder revetments to arrest erosion; • promotion of mangrove forests replanting and planting of other vegetative cover to contain erosion; • encouraging investments in upgrading and maintenance of waste treatment and small- scale waste collection facilities in order to reduce the impacts of pollution on the coastal environment; • designing appropriate policies to promote recycling, recovery, re-use and reduction of all types of waste; • monitoring and enforcing 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 against illegal fishing by trawlers; • strengthening institutional capacity for research, monitoring and enforcement of all bye- laws; • improving coastal zone management by ensuring proper location of industries in developing coastal towns; and • establishing a Coastal Zone Commission with strong stakeholder participation. 11 | P a g e Wetlands and Water Resources Management To ensure efficient management of wetlands and water resources policy measures interventions to be implemented will include: • promotion of decentralization and participatory wetlands management; • acceleration of national capacity building, and institution of appropriate legal and institutional framework to regulate the sustainable use of wetlands; • supporting comprehensive wetlands inventory, backed by research and monitoring; • instituting mechanisms to restore and rehabilitate degraded and badly altered wetlands; • establishing appropriate institutional structures for enhanced water resources management.; • ensuring 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; and • promoting partnership with the private sector for the protection and conservation of water resources. Climate Variability and Change The key policy measures to achieve the objective of adapting to the impacts of, and reduced vulnerability to climate variability and change include: • identifying and enhancing early warning systems; • enhance national capacity to adapt to climate change through improved land use management; and • adapt to climate change through enhanced research and awareness creation. 2.5 Energy, Oil and Gas Development The focus of priority policies in the energy sector is to increase access of households and industry to reliable and adequate energy supply, and diversify the national energy mix to include the use of indigenous sources of energy. To achieve this, energy infrastructure will be rehabilitated and expanded to ensure adequate and reliable supply of energy and increased access to the modern forms of energy to the poor and vulnerable through the extension of the national electricity grid. In additional, national policy will promote energy efficient technologies that safeguard the health of domestic users especially women and children. On the other hand, oil and gas resources will be developed to ensure that the industry becomes a major anchor for national growth and development. The oil and gas will provide opportunity for diversification of the economy, as well as capacity development to support the needs of a modern industrial society. Priority policies will focus on increasing access to petroleum products at prices that support the development objectives of the nation, paying attention to protecting the environment and implement a transparent revenue management policy to ensure the oil and gas resources benefit Ghanaians. A local content law will be enacted to optimise the use of local goods, services, and associated resources in all segments of the oil and gas industry value chain, in order to retain a significant 12 | P a g e part of the benefits within Ghana. Priority will also be given to the 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 into oil and gas exploration and development will continue to be an important step towards increased benefits to the people of Ghana. The oil and gas industry will provide the impetus to strengthen the capacity of local financial institutions to compete with their foreign counterparts for opportunities. It will also build capacity to improve domestic resource availability to fund further exploration as well as the establishment of other strategic industries. The key policy interventions to support the achievement of these policy objectives are as follows: provide a conducive legal, fiscal and regulatory environment to attract investors into the energy sector; encourage Ghanaian investors to use the 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. 2.6 Infrastructure and human settlements development The critical role of infrastructure in propelling economic growth and development has become more crucial as Ghana transition into a middle-income country. Policies in this thematic area seek to expand existing social and economic production infrastructure to ensure that services provided are reliable, affordable and efficient. The medium term policies on infrastructure and human settlement development focus on the following key areas: • Transportation (including road, rail, air, maritime and inland transport) • Science, Technology and Innovation to Support Productivity and Development • Information and Communications Technology (ICT) • Water and Sanitation • Human Settlements • National Land Use Transportation (including road, rail, air, maritime and inland transport) Ghana’s transport sector needs a massive infusion of resources and policy interventions to enable it support national development. Policies identified for implementation are aimed at addressing the constraints in road, rail, air, maritime and inland water transports in an integrated manner. The key objectives of the transport sector policies over the medium term focus on: • establishing Ghana as a transportation hub for the West African Sub-Region • creating and sustaining an efficient transport system that meets user needs; • integrating land use, transport planning, development planning and service provision; • creating a vibrant investment and performance-based management environment that maximise benefits for public and private sector investors; • developing and implementing comprehensive and integrated Policy, governance and institutional frameworks; • ensuring sustainable development in the transport sector; and 13 | P a g e • developing adequate human resources and apply new technology. In the road sector interventions to be implemented include: • 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 busing schemes; • 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. Special initiatives will be launched to re-construct, rehabilitate or modernise as appropriate, the Eastern and Western Corridors, as well as the Bawku-Tumu-Lawra and Tamale-Fufulso-Sawla- Wa roads. Additionally, a natural resource road network will be constructed to upgrade the rural roads that support Ghana’s production infrastructure. In the rail sector, the existing railway network will be rehabilitated in some cases, and totally re- built in others, and upgraded, modernized and expanded to support accelerated industrial growth. This will reduce the increasing pressure on urban transportation in the major metropolitan areas of Accra, Kumasi, Tema and Sekondi-Takoradi and provide industrial freight haulage to the new oil and gas-driven industries anticipated to spearhead accelerated growth. A general result will be to ease pressure and congestion on the roads and highways. The facilities at the national airport in Accra 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. Attention will also be given to ensure that Ghana complies with, and sustains international safety and security standards at all its airports. A modern deep sea port will be developed at a suitable location in the Western Region to serve the oil and gas services industry as well as the requirements of new processing industries. In addition, the existing Takoradi and Tema ports will be rehabilitation and upgraded. The Volta Lake Transport system will be transformed into an effective transport hub by addressing its problems including dredging, removal of tree stumps from the Lake and the procurement of additional boats, ferries etc. In addition, the on-going Debre Marine Project to build a mini-harbour at Debre on the Lake will, when completed, enable all year round movement of bulk petroleum products from Akosombo to the North via pipelines and barges to reduce costs and the environmental consequences of road haulage. 14 | P a g e 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. 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 key policy objectives to be achieved are: • 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. These are to be achieved through the implementation of the following policy interventions: • encouraging the diffusion and transfer of technology; • promoting the establishment of two national science and technology theme parks: one in Cape Coast and the other on the Akuapim-Ridge; • initiating a Young Researchers Programme to stimulate interest in research and technological innovation among pupils in second cycle schools; • promoting and establishing national systems of innovation to support the technology development cycle; • establishing a Science and Technology Fund to support research activities in tertiary and research institutions; • providing support for businesses to adopt R&D as a critical component of production; • providing incentives to strengthen the linkage between research and industry, and facilitate their collaboration; and • establishing a mathematics, science and technology scholarship scheme to support brilliant but needy students who study science, mathematics and technology-based subjects at the second cycle and tertiary levels of education. Information and Communications Technology (ICT) The accelerated development of ICT infrastructure is a catalyst for Ghana’s modernisation and rapid growth. The key policy objectives to be pursued for the purpose 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. The key strategic interventions to be implemented to achieve these policy objectives include: • facilitating the development of the ICT sector through the use of local capabilities in STI; • providing affordable equipment/accessories to encourage the mass use of ICT; 15 | P a g e • 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; • implement a national e-Governance programme by deploying ICT infrastructure in all Government institutions; • periodically review the existing institutional and legal framework to ensure effective meteorological service delivery and forecasting; • utilization in the process of education and in the provision of health services at all levels through the gradual introduction of electronic health records; and • the establishment of public centres to provide access to computers and the internet for those who do not own ICT equipment. Water and Sanitation Priority policy interventions to be implemented are aimed at achieving the following key objective: • ensuring efficient management of water resources; accelerating the provision of safe and affordable water; • accelerating the provision and improve 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; and • improving sector institutional capacity. The key strategic interventions to be implemented to achieve these policy objectives therefore include: • enhancing trans-boundary water resources cooperation and management; • developed and implement legislative instruments for efficient water resources management; • develop mechanisms and measures to support, encourage and promote rainwater harvesting; • improved data collection and management for water resources assessment and decision- making; • support the provision of safe water in rural and urban areas with investments for the construction of new facilities as well as the 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; • facilitate the extension of distribution networks especially to low income consumers; • support public-private partnerships in solid and liquid waste management; • promote cost-effective and innovative technologies for waste management; • Implement health education as a component of all water and sanitation programmes, through incorporation of hygiene education in all water and sanitation programmes. 16 | P a g e • adoption of a sector-wide approach to planning, implementation, monitoring and evaluation of sector activities • development and implementation of a Sector Strategic Development Plan; • develop a Strategic Environmental Sanitation Investment Plan; • implementation of the National Environmental Sanitation Strategic and Action plan; and • Strengthen Water Directorate and the Environmental Sanitation and Hygiene Directorate with adequately trained personnel and other resources to enable them take ownership and lead roles of the sector. Human Settlements 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. Policy interventions therefore focus on addressing issues relating to: housing and shelter; settlement disaster prevention; hierarchy of human settlements; and institutional arrangement for human settlements management. The key strategies to be implemented in the housing and shelter policy area include: • launch a new national housing initiative to begin the rationalisation of the housing market in order to provide affordable housing for Ghanaians; • promote the manufacture and use of local building materials and appropriate technologies in housing; • establishing standards for local construction materials to guarantee the appropriate use of these materials for construction; • ensuring the enforcement of standards for architectural designs and building codes; • establishment of a legal framework to support the construction of condominiums; • promote savings and investments in housing. • review and implement the existing rural housing policy; • promote erosion control and prevention schemes, and drainage construction programmes; • foster the growth of settlements which can support the rural economy and its transformation; • promote self-help building schemes organized by trade associations. In the area of settlements disaster prevention, key strategies to be implemented include: • proper planning of drainage systems; • undertake educational and sensitization programmes to make Ghanaians more conscious of how to prevent and manage disasters; • review and modernize building codes; and • strengthen institutions to enforce building and planning laws. The urban system in Ghana is characterized by an over-concentration of towns within the southern zone as compared to fewer towns in the northern part of the country. This state of affairs is largely attributed to lack of effective intermediate cities between key urban settlements and the rural settlements; and the uncontrolled urban sprawl in cities and other urban settlements 17 | P a g e as a result of their attractiveness to rural migrants. The strategies to be implemented to address these problems include the establishment of a new hierarchy of urban centres, with clearly defined set of functions for each hierarchy having. All regions and districts, will be physically integrated, especially their respective capitals; and accelerated growth of medium-sized towns to large urban centres promoted. To ensure effective institutional arrangement for human settlements management, a framework for effective coordination and development of the capacities of key national institutions for effective planning of human settlements shall be established. In the medium-term a National Human Settlements Commission or a National Housing Board to coordinate the activities of all institutions involved in housing development will be established. National Land Use In the medium-term, priority interventions will be implemented under the national land use policy to address existing and emerging problems and issues as they relate to urban development and management; rural development and management; and slum upgrading. Key strategic interventions to be implemented under urban development and management include: • introducing a modern street naming and property address system; • providing adaptive space in the urban areas for commercialization; • reinforcing spatial planning in urban management; • ensuring linkages between urban and rural areas; and • the institution of a nationwide urban renewal programme. Key strategic interventions to be implemented under rural development and management include: • improve the supply of a critical mass of social services and infrastructure to meet the basic needs of the people; • establishment of rural service centres to promote agriculture and agro-based industries; and • attraction of investment for the growth and development of the rural areas. Key strategic interventions to be implemented under slum upgrading include: • strengthening the legal framework on urban development; • establishment of guidelines for the planning and development of urban areas; • improving upon existing infrastructure and facilities within slum communities; and • introduction of major slum renewal programmes. 2.7 Human development, employment and productivity The acquisition and application of knowledge and skills in solving problems in society have remained essential aspects of national development efforts. The medium term policies on human development, employment and productivity focus on the following key areas: • Education 18 | P a g e • Skills Training • Health and Nutrition • Youth and Sports Development • Social Protection and Inclusion • Population Management • Labour Productivity and Employment Education Although school enrolments are increasing, the quality of education is declining. Priority policy interventions to be implemented over the medium term are aimed at achieving the following objectives: • increased equitable access to, and participation in education at all levels; • improved quality of teaching and learning; • bridging the gender gap in access to education; • improved access to quality education for persons with disabilities; and • improved management of education service delivery. The key policy interventions to be implemented to improve equitable access to, and participation in quality education include: • the provision of infrastructural facilities for schools across the country particularly in deprived areas; • strengthening of enrolment drives in communities; • promoting collaboration with the private sector to expand school facilities within the set guidelines for the establishment of schools; and • enhancing teaching and learning in schools through increasing the deployment of trained teachers. The key policy measures to be implemented 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; • 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 counseling services in schools. The key policy measures to be implemented to bridge the gender gap in access to education include: • expanding the incentive schemes to increase girls’ enrolment, retention and completion particularly in deprived areas; 19 | P a g e • enforcing a ‘no-tolerance’ policy for sexual harassment and publicized disciplining of recalcitrant teachers; • intensifying community mobilization and sensitization to create awareness of the importance of girls’ education; and • re-introducing science and technology workshops for girls in second cycle institutions. The key policy measures to be implemented to improve 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; and • improving the supply of logistics for special education on a regular basis. The key policy measures to be implemented to promote science and technical education at all levels 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; and • encouraging the private sector to support initiatives in science education. The key policy measures to be implemented to strengthen linkages between tertiary education and industry include: • establishing industry/university collaborative programmes to increase opportunities for practical training/internship and human resource planning; • determining the skills and human resource requirements necessary for accelerated growth and restructuring of the economy; • 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. Skills Training A purposeful national shift in skills development is necessary to produce employable manpower for an industrial economy. The key policy measures to be implemented to improve skill development include: • developing and implementing a modern National Apprenticeship Policy; • empower the Council for Technical and Vocational Education Training (COTVET) to provide a more skills competency-based technical and vocational education; • restoring the vacation workshops for second cycle girls aspiring to careers in science and technology; and • modernization and expansion of technical schools to provide a well-developed stream as an alternative to second cycle academic education in collaboration with the private sector. 20 | P a g e Health and Nutrition Priority policy interventions to be implemented, under health and nutrition, over the medium term are aimed at achieving the following objectives: • ensure sustainable financing arrangements that protect the poor; • bridging equity gaps in access to health care and nutrition services; • improving governance and strengthening efficiency in health service delivery, sustainable financing arrangements that protect the poor; • intensifying prevention and control of non-communicable and communicable diseases; • improving access to quality maternal, child and adolescent health services; • strengthening mental health service delivery; • providing support for HIV and AIDS/STI/TB patients; and • improving nutrition and food security. The key policy measures to be implemented to ensure sustainable financing arrangements that protect the poor include: • introduce the payment of a one-time premium under the National Health Insurance Scheme; • 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; and • fully integrating private medical practice into the operations of the NHIS. The key policy measures to be implemented to bridge equity gaps in access to health care and nutrition services include: • accelerating Community 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 districts hospital; • expanding pre-service health training facilities; and • expanding infrastructure and equipment to support effective and efficient maternal and child delivery services. The key policy measures to be implemented to strengthen efficiency in public health service delivery include: • improving financial management systems (e.g. budget, procurement and audit); • strengthening intra and inter-sector processes for policy dialogue, review, collaboration, coordination, planning and accountability; 21 | P a g e • reviewing and aligning data collection tools and linking District Health Management Information System (DHMIS) to regional/headquarters to build essential data depositories for effective action e.g. MOH, GHS (ICD, PHD, PPME etc); and • monitoring and evaluating the performance of the health sector. The key policy measures to be implemented to improve access to quality maternal, child and adolescent health services include: • re-introducing certificate midwifery training and ensuring midwifery service in Community Health Planning and Services (CHPS) compounds; • providing comprehensive emergency obstetric care (including blood transfusion, ambulances) at the district level; • providing basic emergency obstetric care at all health centres; scaling up community case management and strengthening High Impact Rapid Delivery (HIRD) for under-five mortality (U5M), maternal mortality (MM) and malnutrition; and • instituting essential newborn care. The key policy measures to be implemented to prevent and control the growth of non- communicable and communicable diseases include: • establishing screening and management programmes (for diabetes, hypertension, cancers, sickle cell, and asthma); and • developing capacity for research into communicable and non-communicable diseases and adolescent health programming; The key policy measures to be implemented to strengthen Mental Health service delivery include: • advocating for the passage of the Mental Health Bill and implementation of the mental health law; • promoting community-based services and ensure stakeholder collaboration; • training and deploying more mental health personnel; • scaling up mental health promotion; • establishing services for treatment and rehabilitation of alcohol and drug addiction and other psychiatric conditions in all age groups, especially young people; • establishing and upgrading mental health facilities and infrastructure; and • establishing stress management centres at all levels. The key policy measures to be implemented to address the adverse effects of HIV and AIDS/STI/TB and other related conditions include: • 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 effects of HIV and AIDS, and enhance their proper management. The key policy measures to be implemented to address the persistent high malnutrition rate among children, particularly in rural areas and northern Ghana include: 22 | P a g e • reducing malnutrition-related disorders and deaths among infants and young children and Women In their Fertility Ages (WIFA); • promoting the consumption of locally available and nutritionally adequate food including the consumption of micro-nutrient rich foods among children and WIFA; • ensuring 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. Youth and Sports Development The key policy measures to be implemented to improve youth and sports development include: • mainstreaming youth development into national development policy framework; • ensuring the implementation of the recently formulated youth policy; • equipping youth with employable skills; • introducing new initiatives for youth development; • review and pass the Sports Bill; and • provide support for the further development of academicals/schools and juvenile sports. Social Protection and Inclusion The key policy measures to be implemented to ensure social protection and inclusion include: • prepare a comprehensive national social policy framework to provide social safety nets, especially, for the poor, vulnerable and excluded; • strengthen coordination of social sector policies and programmes across sectors; • provide adequate resources for social policy formulation, implementation and evaluation; • improve targeting of existing social protection programmes; • mainstream social protection into sector and district planning; and • strengthen monitoring of social protection programmes. Population Management Priority policy interventions to be implemented, under this broad policy area are aimed ensuring that: population variables are integrated into all aspects of development planning at all levels; family planning is re-position as a national development issue; and demographic database on population and development are regularly updated. The key policy measures to be implemented to ensure effective population management include: • Introduce measures that can improve the livelihoods in places of origin • Strengthen capacity of relevant stakeholders to integrate population issues into development planning • Integrate family planning into plans and activities of MDAs and MMDAs • Strengthen partnerships among stakeholders including the private sector to promote FP • Integrate Sexual and Reproductive Health and HIV and AIDS 23 | P a g e • Increase the number of trained professionals in reproductive health and family planning services delivery • Strengthen capacities for research, monitoring and evaluation • Strengthen the capacity of institutions to collect, analyze, coordinate and disseminate population and other relevant statistical data • Build capacity to effectively coordinate population management • Establish a regulatory body for effective migration management Child Development And Protection The key objectives of policies on child development and protection are to promote effective child development in all communities, especially deprived areas; enhancement of children’s physical, social, emotional and psychological development; and enhancement of institutional arrangements for inter and intra sectoral collaboration. The specific policy interventions to be implemented to achieve these objectives include: • creation of appropriate platforms for institutional collaboration on child survival, development and protection; • strengthening of the capacity of oversight institutions for children; and • enhancing the implementation and reporting of international conventions and protocols. The Aged The key objective for policy on the aged is to ensure that the issues on ageing is integrated in the development planning process. The specific policy interventions to be implemented to achieve this objective include: • promoting the development and effective implementation of a comprehensive ageing policy; and • improving funding of programmes for older persons. Disability The key objective for policy on the disability is to ensure a more effective appreciation of and inclusion of disability issues both within the formal decision making process and in the society at large. The specific policy interventions to be implement to achieve this objective include: • mainstream issues of disability into the development planning process at all levels • promote continuous collection of data on PWDs; • implement the provisions of the Disability Act; and • promote universal access to infrastructure by PWDs. Labour Productivity and Employment Priority policy interventions to be implemented, under this broad policy area are aimed at achieving the following key objectives: • national policy for enhancing productivity and income in both formal and informal economies; 24 | P a g e • mainstreaming employment issues in national development planning process; • strengthening the legal and institutional framework for labour administration; • implementing a functional labour market information and statistics system; and • implementing policies and strategies to promote workers rights, social dialogue and social protection. The specific policy interventions to be implemented to achieve the objective of enhancing productivity and income in both formal and informal economies include: • 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 in both the formal and the informal sectors of the economy; • supporting the establishment of participatory and cooperative mechanisms to enhance income and job security in the informal economy; and • adopting measures to integrate formal and informal economies. The specific policy interventions to be implemented to ensure that employment issues are mainstreamed in national development planning process 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. The specific policy interventions to be implemented to promote more and better jobs in both the formal and informal economies include: • supporting selected industrial products to be produced domestically in labour-intensive environment (e.g. construction and building materials, agricultural equipment, motor vehicles, etc); • developing and implementing a Rural and Urban Entrepreneurship and Artisan Project (RUEAP) to provide capital and technical support to potential businesses; • developing and implementing 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; • establishing 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; 25 | P a g e • supporting artisans and other professionals including fitters and mechanics, carpenters and electricians; hairdressers and beauticians to form strong district, regional and national associations to enable them qualify for Government support; • expanding nursing and midwifery colleges and increase new students intake for health- care-related jobs; • 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. The specific policy interventions to be implemented 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. The specific policy interventions to be implemented to ensure a functional labour market information system 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 collaborationamong 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. The specific policy interventions to be implemented to promote workers rights, social dialogue and social protection include: • strengthening institutions for social dialogue and social protection; • building the capacity of tripartite partners; • facilitating the enforcement of labour laws which protect the security, health and welfare of workers, and especially stemming the tide of casualisation of employment; • enhancing the capacity of both public and private sector agencies, including the Factories Inspectorate of the Ministry of Employment and Social Welfare to facilitate work-place occupational safety and health standards; and • support the Social Security and National Insurance Trust (SSNIT) to expand the Informal Sector Fund to cover the risks and pension requirements of informal sector workers. Poverty and Income Inequalities Reduction Priority policy interventions to be implemented, under this broad policy area are aimed at achieving the following key objectives: 26 | P a g e • develop targeted social interventions for vulnerable and marginalized groups • enhanced public awareness on women’s issues • reduce poverty among food crop farmers and other vulnerable groups, including PWDs The specific targeted social interventions for vulnerable and marginalized groups to be developed include: • coordinate and redistribute development projects and programmes in a manner that ensures fair and balanced allocation of national resources across ecological zones, gender, income groups including groups of PWDs; • designate a special sevelopment area for the coastal savannah region of Ghana; • Implement local economic development activities to generate employment and social protection strategies; • develop district infrastructure plans and improve business development services to facilitate local economic growth and private sector engagement; • develop harmonized regional infrastructure and investment plans and provide opportunities for private sector participation, especially in the tourism industry; • ensure accelerated development of social and economic infrastructure and services in rural areas and poor urban communities including education and training, health, roads, good housing, water and sanitation; and • improve agricultural productivity and incomes, and transform rural agriculture management and practices into viable business ventures. The specific interventions to be implemented to enhance public awareness on women’s issues include: • promote the economic empowerment of women through access to land, labour, credit, markets, information, technology, business services and networks, and social protection; and • Promote the social empowerment of women through access to education. The specific interventions to be implemented to reduce poverty among food crop farmers and other vulnerable groups include: • link food crop farmers to the Ghana School Feeding Programme, second cycle institutions, prisons for it to serve as ready market for their produce; • develop and implement a programme to expand access of extremely poor farmers to complimentary farm inputs and services; and • provide comprehensive business support to farmers benefiting from credit schemes, especially training. 2.8 Transparent and accountable governance Transparency, accountability and participation are the cornerstones for good democratic governance. The overarching goal of this thematic area is to entrench participatory democratic governance by empowering state and non-state actors to participate effectively in the governance and development processes at all levels of the society. Consequently the medium term priority policies focus on addressing constraints in the following key areas: 27 | P a g e • Deepen Practice of Democracy and Institutional Reform Agenda • Local Governance and Decentralization • Economic growth and Plan coordination in special development areas to reduce poverty/ inequalities • Public Policy Management and Public Sector Reforms • Development Communication • Women Empowerment • Corruption and Economic Crimes • Rule of Law and Justice • Public Safety and Security • Access to Rights and Entitlement • National Culture for Development • International Relations (Partnership) for Development • Evidence-Based Decision Making Deepen Practice of Democracy and Institutional Reforms The specific interventions to be implemented to deepen practice of democracy and institutional reforms include: • strengthening the arms of the independent governance institutions such as Parliament, CHRAJ and the Economic and Organised Crimes Office (EOCO); • carrying out the constitutional review process; • build capacity of governance institutions and Parliament to draft laws and perform oversight responsibilities; • ensuring that civil society and private sector organizations participate effectively in the governance and development processes; and • ensure the enactment of the Transition Bill. Local Governance and Decentralization The specific interventions to be implemented to strengthen local governance and decentralization include: • reviewing the Local Government Service Act, 2003 (Act 656) and Local Government Act, 1993 (Act 462) to eliminate areas of conflicts and implement the National Decentralization Policy and Plan; • operationalisation and strengthening of the sub-district structures by reviewing 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; • 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; • establish the proposed Constituency Development Fund for Members of Parliament; and • ensuring efficiency and transparency in the management of district and local resources. 28 | P a g e Economic growth and Plan coordination in special development areas to reduce poverty/ inequalities The specific interventions to be implemented to reduce spatial and income inequalities across the country and among different socio-economic classes include: • ensuring accelerated rural development at the district level aimed at improving rural infrastructure and increasing access to social services; • enhance planning and coordination of the development of Ghana’s oil basin, and other special development areas including SADA, MIDA, CEDECOM/Coastal Savannah, Bui City, etc; • Review legislative frameworks for special development areas to conform to the national development planning system; and • Enhance monitoring and evaluation of special development areas and programmes. Public Policy Management The scope of efforts required to ensure effective public policy management entails: • strengthening the coordination of the development planning system for equitable and balanced spatial and socio-economic development; • upgrading the capacity of the public and civil service for transparent, accountable, efficient, timely, effective performance and service delivery; • rationalizing and defining structures, roles and procedures for state and non-state actors; and • provision of an efficient e-governance structure to ensure best practice. The specific policy measures to be implemented include: • strengthening the coordinating function of the NDPC to enhance evidence-based decision-making and resource allocation at all levels; • reviewing the current status of the on-going public sector reform programmes to enhance accelerated implementation; • develop a comprehensive human resource development policy for the public sector to include reasonable remuneration; • undertake a comprehensive review and clarify the mandate and functions of state and non-state actors; • integrate the institutional networks within public sector and shared resources; and • make automation and networking compulsory as a tool to reduce fraud. Public Sector Reforms The specific policy measures to be implemented to bring about reforms in the public sector include: • the introduction of Ministerial Advisory Boards with private sector and civil society representation; 29 | P a g e • the establishment of a Public Sector Reform Secretariat and the Policy Evaluation and Oversight Wing of the Policy Unit at the Office of the President; and • the establishment of Project Advisory Committees and Project Management Units in each Ministry as well as the optimum deployment of capacity and expertise to implement specific reform initiatives. Development Communication The key objectives of priority interventions in this policy area is to: • ensure that development communications is mainstreamed into national planning system; • promote media and public relations accountability for national development; • enhance information dissemination on Government policies and programmes; • increased partnership with the media based on a mutual principled relationship of fairness, objectivity and truthfulness; and • promote an efficient communication strategy. The specific policy measures to be implemented to ensure that development communications is mainstreamed into national planning system include: • streamlining development communications across MDAs and MMDAs; • create awareness of opportunities for engagement with local and national governance structures; and • strengthening the implementation of the National Development Communication Policy The specific policy measures to be implemented to promote media and public relations accountability for national development include: • promoting social responsibility among media houses; and • developing behaviour change communication models in support of development. The specific policy measures to be implemented to enhance information dissemination on Government policies and programmes include: • enact law on right to public information; • expand the structures of the PRAAD to function effectively in the collation, storage and retrieval of information; • initiate a process of public and media education on the right to information law after its passage; and • publish and disseminate materials in local language on the Right to Information Act. The specific policy measures to be implemented to increase partnership with the media include: • organise regular press/media briefings; • improving media encounters//bi-monthly interactions with media; • identifying key authorities/professionals to speak to issues on behalf of Government; and • capacity building for media personnel and organizations. The specific policy measures to be implemented to promote an efficient communication strategy include: 30 | P a g e • build capacity of ministers and members of Government on media relations and communication skills; • develop and implement a comprehensive and inter-sectoral communication policy to address all government communication needs including public feedback; • improve Government information dissemination and management machinery to take charge of Government information policy and public feedback; • maintain a policy of proactive communication and prompt response to public feedback; • expand opportunities for community and public ownership of radio; and • make use of indigenous communication channels e.g. drama, theatre, local dialects, etc. Women’s Participation in Governance The specific interventions to be implemented to improve women’s participation in Governance include: • increasing the pace of the implementation of the policy of affirmative action for women including strengthening the institutions dealing with women’s and children’s issues; • ensuring gender parity in education at all levels; • reviewing and enforce existing laws protecting women’s rights and introduce new legislations to take care of existing gaps; and • continue to formulate and implement gender policies and legislative reforms aimed at attaining a minimum of 40% women’s representation in Government and public sector appointments. Rule of Law and Justice The specific interventions to be implemented to ensure the rule of law and justice include: • improving case management systems of the courts including scaling- up mechanisms; • enhanced human resource levels; expanding infrastructure and revise and implement rules of procedure; • effectively mainstream the alternative dispute resolution (ADR) mechanism; and • 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. Public Safety and Security The key objectives of priority interventions in this policy area is to: • ensure that the capacity of security agencies is improved to provide internal security for human safety and protection; • the intelligence agencies are strengthened to fight social and economic crimes; and • territorial integrity is safeguarded. The specific interventions to be implemented to promote public safety and security include: 31 | P a g e • monitoring and regulating the operations of internet service providers as well as strengthening and supporting intelligence agencies; • reviewing existing laws and regulations on spatial and infrastructural development; • forestalling civil strife and external aggression in order to secure the country for growth and poverty reduction; and • build operational, human resource and logistics capacity of the security agencies. Corruption and Economic Crimes Over the medium term, efforts at fighting corruption and economic crimes are aim at promoting transparency and accountability and reducing opportunities for rent-seeking among public officials. The specific interventions to be implemented to fight corruption and economic crime include: • enforcing existing enactments pertaining to public procurement, internal audit, public financial management and the whistle blower law; • ensuring the enactment of the Freedom of Information Bill; and • finalize and implement a fair wage policy. Access to Rights and Entitlement The specific interventions to be implemented to improve access to right and entitlement include: • developing and designing special capacity building programmes for the unemployed graduates, the vulnerable and excluded; • increase the provision and quality of social services; • Strengthen capacity for public education and dissemination of information on rights and entitlement; • Collect and document data on rights and entitlements of children; • Develop capacity building programmes for institutions responsible for children’s rights; • Enhance the capacity of relevant agencies to adequately enforce laws on family life (Domestic Violence etc); • Intensify advocacy for ratification of charters and domestication of international conventions, e.g. child labour (ILO Convention 182); • Mainstream Human Rights perspective into National Development • Promote human rights education at all levels; and • Implement National Disability Act, Early Childhood Care and Development Policy, Children’s Act, Gender and Children’s Policy and Human Trafficking Act, Juvenile Justice Act. National Culture and Development Recognising the important role that national culture plays in national development, medium term priority policies are aimed at creating appreciation of, and love for national culture. The specific policies to be implemented therefore include: 32 | P a g e • strengthening of both the National and Regional Houses of Chiefs to contribute appropriately to national development; • documentation of chieftaincy and cultural history, • review the national culture policy to ensure it takes into account the strategic role of culture in development; • mainstream culture in the nation’s social and economic development agenda; • promote the implementation of a dynamic culture development programme; • complete the development of fully-functional Centres for National Culture in all regional and district capitals; and • develop the capacity of Centres of National Culture to effectively promote cultural activities across the country. International Relations (Partnership) for Development The key objectives of priority interventions in this policy area is to: • accelerate economic and social integration with regional and/or sub-regional states; • sustain Government’s commitment to international peace and security, adherence to international protocols and conventions, and incorporate them into national laws; • institute mechanisms to manage external economic shocks; and • promotion of domestic trade and effective enforcement for standards and regulations. The specific policies to be implemented therefore include: • Work towards establishing a common customs union; • Mainstream international protocols into local laws for the promotion of international peace and sustainable developments; and • Strengthen the Sub- Regional/Global collaboration among security agencies Evidence-Based Decision Making The key objective of priority interventions in this policy area is to improve accessibility and use of existing database for policy formulation, analysis and decision making. The specific policies to be implemented for the attainment of this objective therefore include: • rationalize the production of data within the statistical system; • define the roles and mandates of the various data producing institutions; • adopt common definitions, methods and classifications; • review the Statistical Service law, develop and adopt a 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 MDA’s to generate data for effective planning and budgeting; • build capacity of MDAs in electronic data analysis and management; • Re-engineer and fully automate the operations of government strategic institutions; • establish strategic partnership between MDAs to harmonize and standardize government sector spatial databases for planning and monitoring development activities; 33 | P a g e • support the maintenance of an up-to-date spatial database for Mapping and Monitoring Development Activities (EMMSDAG); • support the development of a web-based system for accessing the EMMSDAG Spatial Database by strategic government institutions; • building capacity within MDAs, MMDAs and strategic government institutions in the use of the EMMSDAG Spatial Database for development planning and monitoring; and • strengthen MIS systems of MDAs and MMDAs. Managing migration for national development The key objective of priority interventions in this policy area is to minimise the negative impact and optimising the potential impact of migration for Ghana’s development. The specific policies to be implemented for the attainment of this objective therefore include: • formulate and promote national migration and development policy; • mainstream migration into national development frameworks; • establish national institution for the management of migration for development; and • establish a database on Ghanaians in the Diaspora. 34 | P a g e CHAPTER THREE ESTIMATED RESOURCE REQUIREMENTS FOR THE IMPLEMENTATION OF GSGDA POLICIES AND STRATEGIES 3.1 Introduction This chapter presents the methodology employed in estimating the resource requirements for the implementation of policies and programmes, as well as the guidelines for costing the Sector Medium Term Development Plans (SMTDPs). 3.2 Costing Methodology The starting point for costing the GSGDA, 2010 – 2013 is the Sector Medium Term Development Plans (SMTDPs), 2010 – 2013. The process of national development planning in Ghana involves the preparation of national development policy framework on the basis of which Planning Guidelines are issued to MDAs and MMDAs to prepare their respective Sector and District Development Plans. The Sector and District Development Plans are synthesized and harmonized into the National Medium-Term Development Plan. Consequently the consolidation of the costs of implementation of individual medium-term Sector or District Development Plans provides the overall resources required to implement a National Medium-Term Development Plan derived from the National Development Policy Framework. These costs which are normally outlined by strategy and policy objective within the sector or district medium term development plans can be aggregated at the national level by the following categorization: • Thematic Area; • Key Focus Area; • Policy Objectives; • Strategies; and • Implementing and Collaborative agencies Diagram 1 shows a hierarchy reflecting how a thematic area can be further broken down into key focus areas, objectives, strategies, activities and inputs. In 2009 the Ministries, Department and Agencies (MDAs) were assisted by NDPC to prepare their respective SMTDPs, for the period 2010 – 2013 based on the GSGDA, 2010 - 2013. The SMTDPs are the basis of the logical framework for the GSGDA’s cost estimate. The SMTDPs consist of the following: • Mission Statement; • Adopted Sector Objectives from the MTDPF, 2010 – 2013; • Sector Strategies in line with the Medium-Term Development Policy Framework (2010- 2013); • Formulated broad sector programme; • Set of outputs based on broad sector programme; and 35 | P a g e • Set of activities which are aligned to the strategies and policy objectives of the GSGDA. The activities to be costed by MDAs were expected to be SMART: Specific: should clearly state exactly WHAT is to be accomplished and for whom in terms of end results Measurable: should clearly state the desired LEVEL of accomplishment of end results Achievable: should not be so tight that it cannot be achieved Relevant: they should be consistent with MTDPF policy objectives, strategies and higher goals Timely: should include time scales of WHEN the objective will be achieved The MDAs were expected to define the activities to be undertaken in order to realize the objectives using the following approach: • Identify for each thematic area the objectives specified in the sector medium-term strategic plan. • For each objective, list the results expected or the outputs i.e. what are the specific things that will be delivered as a result of this project? • Identify the activities to be undertaken to implement the strategy, i.e. what will actually be done in order to deliver the intended outputs? In the context of the GSGDA, 2010 – 2013, activities are limited to Service (Item 3) and Investment (Item 4). Personnel Emoluments (Item 1) and Administration (Item 2) are not to be included in the GSGDA cost estimates. For each activity, an estimate of the input costs was provided. These Inputs were valued according to Quantities, Frequencies and Unit cost. The inputs were standardized and classified as the national account segment of the government chart of account. It is the product of the Unit Cost, the Quantity and the Frequency of the Input that will give the Total Input Cost. The sum of the Input Costs for each Activity gives the Activity Cost. These are further aggregated to obtain the Strategy cost, the Policy Objective Cost, Key Focus Area Cost and eventually Thematic Area Cost as depicted in Diagram 2. Since there are cross cutting issues, MDAs were required to be careful to avoid double counting of activities to be shared with collaborating MDAs. Cost associated with MDAs role in achieving the cross-cutting policy objective were accounted for by the relevant MDA. 3.3 Guidelines for Costing the SMTDPs The guiding principle derived from the costing methodology was summarized into the following to guide the MDAs in the costing of their SMTDPs: • The costs of both new and on-going programmes and projects necessary for meeting the targets were included in the total cost of implementation. • There is a basic assumption with regard to personnel and administration costs associated with the execution of the action plan. They are assumed to be included in the normal budgetary resources and are not included in the costing of the priority themes. Therefore, the activities costed consisted mainly of Service and Investment expenditures associated with the programmes and projects. 36 | P a g e • The implementation of SMTDPs (2010 – 2013) involves activities that may be carried out by the public sector alone, or by the private sector in partnership with the public sector. In the case of the latter, only the public sector activities are costed. The costing of the SMTDP (2010 – 2013) was also guided by the Guidelines for the 2011-2013 Annual National Budget. The budget guidelines provide the boundaries within which a cost centre is allowed to budget and its elements such as exchange rate among others are therefore applied by cost centres during costing. The cost centres for the accumulation of costs are the same as the cost centres in the Annual National Budget, currently at 35 (Schedule 1). Costs aggregated by Key Focus Area and Thematic Area are to be summarized using Schedule 2. SCHEDULE 1: COST CENTRES 1 Ministry of Food and Agriculture 2 Ministry of Lands & Natural Resources 3 Ministry of Trade & Industry 4 Ministry of Tourism 5 Ministry of Energy 6 Ministry of Environment, Science & Technology 7 Ministry of Water Resources, Works & Housing 8 Ministry of Transport 9 Ministry of Roads & Highways 10 Ministry of Communications 11 Ministry of Education 12 Ministry of Youth and Sports 13 Ministry of Employment and Social Welfare 14 Ministry of Health 15 Ministry of Women and Children’s Affairs 16 Ministry of Local Government and Rural Development 17 Office of Government Machinery 18 Office of Parliament 19 Audit Service 20 Public Services Commission 21 District Assemblies Common Fund 22 Electoral Commission 23 Ministry of Foreign Affairs and Regional Cooperation 24 Ministry of Finance and Economic Planning 25 National Commission for Civic Education 26 Ministry of Chieftaincy & culture 27 National Media Commission 28 Ministry of Information 29 National Development Planning Commission 30 National Labour Commission 31 Ministry of Justice & Attorney-General’s Department 32 Ministry of Defence 33 Commission on Human Rights & Administrative Justice 34 Judicial Service 35 Ministry of Interior 37 | P a g e DIAGRAM 1: IDENTIFICATION OF INPUTS AND COSTS THEMATIC AREA KEY FOCUS AREA 1 KEY FOCUS AREA 2 OBJECTIVE 1 OBJECTIVE 2 STRATEGY 2 STRATEGY 2 ACTIVITY 1 ACTIVITY 2 INPUTS COSTS 38 | P a g e DIAGRAM 2: AGGREGATION OF COSTS THEMATIC AREA KEY FOCUS AREA 1 KEY FOCUS AREA 2 ACTIVITY 1 ACTIVITY 2 ACTIVITY 1 ACTIVITY 2 INPUTS INPUTS INPUTS INPUTS COSTS COSTS COSTS COSTS 39 | P a g e 3.4 Resource Requirement The policies and strategies that underline the activities in each thematic area are summarized in the Policy Matrix of the GSGDA, 2010 – 2013. These are categorized under the seven main thematic areas, namely: • Ensuring and sustaining macroeconomic stability; • Enhanced competitiveness of Ghana’s private sector; • Accelerated agricultural modernization and natural resource management; • Oil and gas development; • Infrastructure and human settlements development; • Human development, employment and productivity; and • Transparent and accountable governance. The total costs for implementing the GSGDA over the period 2010 – 2013 is estimated at US$23,891.459 million (GH¢34,642.616 million), which amounts to about US$5,972 million per annum. About 54.5% of the total resource requirement is expected to go into the implementation of activities related to the provision of economic and social infrastructure, human settlements development, as well as the development of the oil and gas industry. Resources to implement activities related to human development, productivity and employment constitutes 25.2%, while those to enhancing the competitiveness of Ghana’s private sector and also for promoting agriculture modernization and efficient natural resource management constitute about 12%. Resources allocated to ensuring and sustaining macroeconomic stability constitute the least of about 2%, while those for promoting transparent and accountable governance constituted 6.4% (Figure 3.1). FIGURE 3.1: ALLOCATION OF RESOURCES UNDER THE GSGDA, 2010 – 2013 (PERCENT) Source: MTEF Database, MOFEP, 2010 40 | P a g e The resource flow is expected to be evenly distributed, particularly during the outer years with an average resource requirement of about 28.7% per annum. The resource requirement for 2010 is expected to be the lowest, constituting about 14%, and increasing gradually to 29.9% in 2013 (Figure 3.2). FIGURE 3.2: PATTERN OF RESOURCE FLOW OF EACH THEMATIC, 2010 - 2013 (PERCENT) Source: MTEF Database, MOFEP, 2010 Ensuring and sustaining macroeconomic stability In order to ensure and sustain macroeconomic stability, total cost of implementing policies and strategies is estimated at US$502.873 million over the period 2010 – 2013 (Table 3.1). About 87.1% of this amount is expected to be spent on interventions related to ensuring efficient fiscal policy management, and 8.2% to efficient management of monetary and financial policies. Resources for ensuring effective economic policy management including strengthening economic planning and forecasting, constitute 2.4%, while those for promoting international trade and integration to the ECOWAS constitute 2.3%. Resource requirement in this thematic area is expected to be evenly distributed over the plan period, with about 22.1% required in 2010 and increasing gradually to 26.8% in 2013. Enhancing the competitiveness of Ghana’s private sector In the area of enhancing the competitiveness of Ghana’s private sector, total resource requirement amounts to US$1,906.211 million (Table 3.1), of which about 95.6% is expected to be spent on activities related to developing the industrial base of the economy. This entails ensuring rapid industrialization driven by strong relationship to agriculture, and transforming the extractive industry for economic development including implementing the Eastern corridor counterpart industrial mineral processing initiative as well as the salt-based and 41 | P a g e bauxite driven industries initiative. The remaining 4.4% is expected to be spent on activities related to promoting the development of the private sector, good corporate governance, tourism industry and the creative industry. The resource flow is expected to be evenly distributed, particularly during the outer years, with about 1.1% required in 2010 and increasing gradually to 38.5% in 2013. Agriculture modernization and natural resource management Total resource requirement for implementing interventions related to the agriculture modernization and natural resource management thematic area over the plan period amounts to US$906.354 million (Table 3.1). About 80% of this amount is expected to go into implement activities aimed at modernizing agriculture including minimizing production and distribution risks and bottlenecks, increasing agricultural competitiveness and enhance integration into domestic and international markets, and promoting selected crop development for food security, export and industry. The remaining 20% is expected to go into activities aimed at ensuring efficient natural resource management and environmental governance. Nearly 10% of the resource in this thematic area is expected to be spent in 2010, while 32.3% and 31.5% are required for the 2011 and 2012 respectively. The resource required for 2013 is estimated at 26.2%. TABLE 3.1: ESTIMATED COST FOR IMPLEMENTING THE GSGDA, 2010 – 2013 (PERCENT) Expenditure Summary THEME AREA 2010 2011 2012 2013 Total Value (in Value (in Value (in Value (in Value (in Million % Million % Million % Million % Million % US$) US$) US$) US$) US$) I. ENSURING AND SUSTAINING 111.129 3.34 126.579 1.92 130.371 1.91 134.795 1.89 502.873 2.10 MACROECONOMIC STABILITY II. ENHANCING COMPETITIVENESS IN GHANA’S PRIVATE SECTOR 21.467 0.65 507.513 7.71 643.298 9.41 733.933 10.26 1,906.211 7.98 III. AGRICULTURE MODERNIZATION AND NATURAL RESOURCE 90.755 2.73 292.616 4.44 285.102 4.17 237.882 3.33 906.354 3.79 MANAGEMENT IV. INFRASTRUCTURE AND HUMAN SETTLEMENTS 1,493.714 44.96 2,497.376 37.93 2,568.205 37.57 2,859.120 39.99 9,418.415 39.42 V. ENERGY, OIL AND GAS INDUSTRY 281.699 8.48 1,257.948 19.11 1,182.371 17.30 879.421 12.30 3,601.438 15.07 VI. HUMAN DEVELOPMENT, PRODUCTIVITY AND 1,109.410 33.39 1,441.495 21.89 1,577.153 23.07 1,890.690 26.44 6,018.748 25.19 EMPLOYMENT VII. TRANSPARENT AND ACCOUNTABLE GOVERNANCE 214.076 6.44 460.711 7.00 448.417 6.56 414.216 5.79 1,537.419 6.44 GRAND TOTAL 3,322.250 100.00 6,584.238 100.00 6,834.916 100.00 7,150.056 100.00 23,891.459 100.00 Source: MTEF Database, MOFEP, 2010 Infrastructure and human settlements In the infrastructure and human settlements thematic area, about US$9,418.415 million is required to implement policies and programmes over the plan period, of which 55.2% is expected to be spent on activities related to the provision of efficient and integrated transport infrastructure including the rehabilitation of the central and western railway lines, 42 | P a g e modernization of Takoradi Harbour, re-construction of the Eastern and Western corridor roads, development of a new deep sea port to serve the oil and gas industry, and improvement of the domestic and national airport as well as the air strips. About 20.5% is also estimated to be spent on activities related to the provision of improved water and adequate sanitation, while 11.9% is estimated for the accelerated development of affordable housing and shelter. The remaining 12.4% is estimated to be spent on activities related to science and technology development, development of information communication technology, human settlement development and provision of recreational infrastructure. Resource requirement in this thematic area is expected to be evenly distributed over the plan period, with about 16% required in 2010 and increasing to 30.4% in 2013. Energy, oil and gas Total resource requirement for the energy, oil and gas thematic area over the plan period is estimated at US$3,601.438 million (Table 3.1). The resource requirement for the development of the necessary infrastructure and human resource to support the development of the oil and gas industry, including developing the relevant local capacity to take advantage of the local content law, constitutes about 21.5% of total resource requirement of the thematic area. The remaining 78.5% of the resources in this thematic area, is however, expected to be spent on activities related to the provision of a reliable and adequate energy supply to households and industry. This will entail rehabilitation and expansion of existing energy infrastructure, diversifying of the national energy mix, development of selected small river dams, and integrating energy infrastructure with sub-regional infrastructure. Nearly 8% of the resource in this thematic area is expected to be spent in 2010, while about 68% is required during the 2011 and 2012. The resource required for 2013 is estimated at 24.4%. Human resource, productivity and employment Total resource requirement for the human resource, productivity and employment thematic area over the plan period is estimated at US$6,018.748 million (Table 3.1), of which about 61.3% is expected to be spent on activities related to the provision of quality health care and nutrition, especially improving access to quality maternal, child and adolescent health services, as well as bridging equity gaps in access to health care. On the other hand, 33.6% is expected to be spent on activities related to the provision of quality education, while the remaining 5% goes into programmes aimed at improving productivity and employment, developing the youth and sports, population management, and social protection and expansion of safety net. Resource requirement in this thematic area is expected to be evenly distributed over the plan period, with about 18.4% required in 2010 and increasing gradually to 31.4% in 2013. Transparent and accountable governance In the transparent and accountable governance thematic area, total resource requirement for implementing interventions over the plan period is estimated at US$1,537.419 million (Table 3.1), of which 26.8% is expected to be spent on activities related to public policy management and public sector reforms, 20.6% to public safety and security and 19.8% to the promotion of the practice of democracy and institutional reforms. In order to implement policies aimed at reducing regional development gaps and income inequalities about 8% of the resources in this thematic area is expected to go into promoting the special development areas initiatives, while 6.6% is expected to be allocated to the promotion of local governance 43 | P a g e and decentralization. About 6.7% is expected to be spent on interventions aimed at ensuring evidence-based decision making, while the remaining 18.2% is expected to be spent on activities related to promoting women empowerment, development communication, rule of law and justice, national culture in development, international relations and partnerships, access to right and entitlements, and fighting corruption and economic crimes. Nearly 13.9% of the resource is expected to be spent in 2010, while 30% and 29.2% are required for the 2011 and 2012 respectively. The resource required for 2013 is estimated at 26.9%. 44 | P a g e CHAPTER FOUR THE RESOURCE ENVELOPE AND THE FINANCING GAP 4.1 Resource Envelope The resource envelope comprises both domestic and external sources of financing. In each of the four years of the GSGDA implementation period, budgetary spending excluding net lending is projected at an average of 40.3% of annual GDP. Domestic revenue sources including oil revenue make up some 31.8% of GDP, while grants from bilateral and multilateral sources constitute about 4.3% of GDP on the average. The remaining 4.2% of GDP is expected to come from programme loans and exceptional financing arrangements (Tables 4.1 & 4.2). About 86.5% of total receipts over the period of implementation of the GSGDA are expected to be generated from domestic sources (i.e. domestic tax and non-tax sources). Revenue from oil and gas over the plan period is expected not to be less than 6% of the domestic receipt. Table 4.1: REVENUE (Million Ghana Cedis) 2010 2011 2012 2013 Budget Budget Projected Projected Estimate Estimate Estimate Estimate TAXES ON INCOME & PROPERTY 2,235.386 3,334.799 4,471.376 5,056.159 Personal 938.811 1,334.200 1,478.200 1,842.480 Self employed 103.736 119.050 138.950 152.480 Companies 881.756 1,128.900 1,355.940 1,514.398 Oil Revenue 0.000 198.448 813.498 697.398 Others 311.083 554.202 684.787 849.404 Other direct taxes /1 249.193 416.224 520.347 667.324 o/w Royalties from Oil 0.000 123.406 199.877 213.944 o/w Mineral Royalties 0.000 192.940 0.000 0.000 NRL (Arrears) 0.000 0.000 0.000 0.000 NFSL / (Arrears) 35.080 97.478 17.580 8.790 Airport tax 26.810 40.500 146.860 173.290 TAXES ON DOMESTIC GOODS 444.305 455.400 534.633 609.705 Excise Duty 91.905 125.400 147.510 177.020 Petroleum tax 352.400 330.000 387.123 432.685 TAXES ON INTERNATIONAL TRADE 1,141.444 1,335.864 1,436.134 1,563.938 Imports 1,089.622 1,273.677 1,361.510 1,478.620 Import duty 1,089.622 1,273.677 1,361.510 1,478.620 Special tax 0.000 0.000 0.000 0.000 Other taxes/2 0.000 0.000 0.000 0.000 Exports 51.822 62.187 74.624 85.318 Cocoa 51.822 62.187 74.624 85.318 Lumber 0.000 0.000 0.000 0.000 VAT 1,675.350 1,937.650 2,309.600 2,650.780 Domestic 609.400 829.250 1,009.980 1,211.980 45 | P a g e 2010 2011 2012 2013 Budget Budget Projected Projected Estimate Estimate Estimate Estimate External 1,065.950 1,108.400 1,299.620 1,438.800 National Health Insurance Levy (NHIL) 480.908 477.673 565.132 644.306 CEPS Collection 216.710 226.300 259.920 287.800 VATS Collection 121.820 161.600 202.000 242.400 SSNIT Contribution 142.378 89.773 103.212 114.106 Other revenue measures 132.990 0.000 0.000 0.000 Import Exemptions 237.228 260.838 292.105 320.522 Tax Revenue 6,072.243 7,712.451 9,505.768 10,731.304 Non-tax revenue 1,916.403 1,355.668 1,659.061 1,899.685 TOTAL REVENUE 8,264.013 9,299.521 11,441.281 12,952.985 GRANTS 1,364.515 1,301.601 1,306.873 1,489.123 Project grants 832.880 784.183 736.211 838.411 Programme grants 296.205 281.387 318.928 385.398 HIPC Assistance (multilaterals) 131.595 128.746 135.227 132.487 Multilateral Debt Relief Initiative (MDRI) 103.835 107.286 116.508 132.826 International Monetary Fund 0.000 0.000 0.000 0.000 World Bank 93.930 97.440 105.995 112.667 African Development Bank 9.905 9.846 10.513 20.159 TOTAL REVENUE & GRANTS 9,628.527 10,601.123 12,748.154 14,442.108 Source: Ministry of Finance and Economic Planning, 2010 The greater proportion of investments under GSGDA is expected to be funded through programme and project loans, special bilateral financing arrangements and public-private partnership arrangements in view of the large capital requirements of major economic and social infrastructure projects envisaged under the GSGDA which the national budget cannot support. About 54.8% of capital investment envisaged under the GSGDA is expected to be financed through the traditional domestic and foreign financed arrangements. The remaining 45.2% is expected to be financed through special financing arrangements including the Sino- Ghana Bilateral Investment Initiatives, Korea-Ghana Bilateral Initiative and Public-Private Partnerships. Traditional foreign finance capital investment is expected to average, at least, US$1,168.228 million per annum during the planned period, while domestic financed capital expenditure (excluding statutory expenditure) is estimated at US$1,365.972 million per annum. HIPC and MDRI financed expenditure is expected to average US$182.59 million per annum, while Programme and Project loans on the other hand is expected to average, at least, US$897.609 million per annum during the planned period (Table 4.2). 46 | P a g e Table 4.2: EXPENDITURE (Million Ghana Cedis) 2010 2011 2012 2013 Budget Budget Projected Projected Estimate Estimate Estimate Estimate Recurrent 7,625.049 8,924.861 10,059.795 10,471.373 Non-interest expenditure 6,278.891 7,093.561 8,643.645 8,950.523 Wages & Salaries 3,112.950 3,732.762 4,740.607 6,020.571 Goods & Services 635.082 604.230 717.867 802.355 o/w Administration 408.608 400.604 473.792 529.555 o/w Service 226.474 203.626 244.075 272.801 Transfers 1,972.559 2,352.688 2,685.395 1,569.000 Pensions 254.153 282.300 358.864 455.757 Gratuities 103.736 94.400 105.861 118.320 Social Security 233.406 363.300 461.261 585.802 National Health Fund (NHF) 480.908 477.673 565.132 644.306 o/w Social Intervention Programmes 0.000 93.624 0.000 0.000 Other transfers 900.357 1,107.766 1,194.278 1,376.179 Retention of Internally-generated funds (IGFs) 595.700 818.118 866.980 1,016.322 Safety net for deregulation 41.494 0.000 0.000 0.000 Lifeline consumers of electricity 25.934 28.810 35.193 39.335 Tax Expenditure (Exemptions) 237.228 260.838 292.105 320.522 Subsidies to utility companies 0.000 27.250 0.000 0.000 o/w TOR for under-recovery/Debt 0.000 27.250 0.000 0.000 Reserve Fund 558.300 403.881 499.776 558.596 0.000 0.000 0.000 0.000 Interest Payments 1,346.157 1,831.300 1,416.150 1,520.850 Domestic 1,038.300 1,372.200 1,090.983 1,180.050 External (Due) 307.857 459.100 325.167 340.800 Capital expenditure 2,839.498 3,745.903 3,645.366 4,427.882 Capital (domestic financed) 1,311.071 1,587.503 2,349.318 2,656.410 Development 1,311.071 1,587.503 2,349.318 2,656.410 Education Trust Fund 326.693 376.880 449.225 515.586 o/w Social Intervention Programmes 0.000 101.757 0.000 0.000 Road Fund 145.230 154.300 176.950 197.776 Petroleum Related Fund 5.187 6.100 7.039 7.867 Dist. Ass. Common Fund 434.485 530.738 610.261 706.994 o/w Social Intervention Programmes 0.000 159.221 0.000 0.000 Other cash expenditure 399.476 257.300 633.474 708.030 Oil-financed Expenditure 0.000 262.185 472.369 520.157 o/w transfer to GNPC 0.000 262.185 472.369 520.157 Capital (foreign financed) 1,528.427 2,158.400 1,296.048 1,771.472 HIPC financed expenditure 209.312 0.000 250.212 246.334 MDRI financed expenditure 103.835 0.000 116.508 132.826 47 | P a g e 2010 2011 2012 2013 Budget Budget Projected Projected Estimate Estimate Estimate Estimate Financing 1,945.050 2,336.914 1,667.501 1,189.458 Foreign (net) 553.211 998.952 768.150 481.039 Borrowing 1,110.947 1,618.716 1,377.094 1,099.376 Project loans 695.547 1,374.217 1,210.779 933.061 Programme loans 415.400 244.499 166.315 166.315 Amortisation (due) -557.736 -619.764 -608.944 -618.337 Exceptional financing 130.045 118.175 114.985 113.847 HIPC Relief (Cologne terms) 130.045 118.175 114.985 113.847 Domestic (net) 1,261.794 1,219.787 784.367 594.573 Other Financing 0.000 0.000 0.000 0.000 Memorandum items Taxes on income and property 8.6 10.7 12.7 12.9 Taxes on domestic goods 1.7 1.5 1.5 1.6 Taxes on international trade 4.4 4.3 4.1 4.0 Tax revenue 23.4 24.8 27.0 27.3 Nontax revenue 7.4 4.4 4.7 4.8 Domestic revenue 31.9 29.8 32.5 32.9 Grants 5.3 4.2 3.7 3.8 Total revenue and grants 37.1 34.0 36.2 36.7 Total Oil Revenue 0.000 584.039 1,485.745 1,431.498 Recurrent 29.4 28.6 28.6 26.6 Goods and services 2.4 19.4 2.0 2.0 Subvention 0.0 0.0 0.0 0.0 Transfers 7.6 75.5 7.6 4.0 Interest payments 5.2 58.8 4.0 3.9 Capital 10.9 120.2 10.4 11.3 Total expenditure & net lending (% of GDP) 41.6 40.7 40.0 38.8 TOTAL EXP. & NET LENDING 10,777.694 12,670.764 14,071.881 15,278.414 Total Non Salary Recurrent and Investment 3,547.841 3,251.325 4,447.785 5,038.907 Total Non Salary Recurrent and Investment in US Dollars 2,481.008 2,242.293 3,067.438 3,475.108 Exchange Rate 1.43 1.45 1.45 1.45 Source: Ministry of Finance and Economic Planning, 2010 48 | P a g e 4.2 The Resource Gap The estimated total resources required to finance the GSGDA is US$23,891.459 million (GH¢34,642.616 million) over the period 2010-2013. This cost excludes wages and salaries expenses associated with project and programme implementation. A comparison of the projected resource inflows to the estimated cost of implementing the GSGDA provides an indication of the resource gap that must be filled to ensure full implementation of the programmes and projects identified under the GSGDA. Over the period, total revenue and grants is expected to rise by an average of 17.9% per annum from US$6,088.545 million in 2010 to US$9,960.074 million in 2013. The GOG budgetary resources allocated for expenditures in Services and Investment is estimated to rise at average of 15.2% per annum from US$2,271.403 million in 2010 to US$3,418.921 million in 2013, thereby accounting for 47.7% of the total resource requirement over the period. Table 4.3: Resource Gap Analysis Amount (in million US$) 2010 2011 2012 2013 Total 1. SERVICES 285.740 276.279 326.753 365.210 1,253.982 2. INVESTMENT 1,985.663 2,583.381 2,514.045 3,053.711 10,136.801 - Domestic Financed(excluding 916.833 1,094.829 1,620.219 1,832.007 5,463.889 statutory) -Foreign Financed 1,068.830 1,488.552 893.826 1,221.705 4,672.913 3. SERVICES + INVESTMENT 2,271.403 2,859.660 2,840.798 3,418.921 11,390.783 4. ESTIMATED COST OF THE 3,322.250 6,584.238 6,834.916 7,150.056 23,891.459 GSGDA 5. RESOURCE GAP 1,050.847 3,724.577 3,994.118 3,731.134 12,500.676 Source: Derived from data, 2010 Based on the projected total revenue and expenditures in Investments and Service over the period, overall resource gap of US$12,500.676 million (GH¢18,125.980 million) and an average of US$3,125.169 million per annum was estimated. This represents an overall financing gap of about 52.3% over the period 2010-2013, which is expected to be filled by: • identifying new financing sources including targeted bilateral partnerships in state-to- state arrangements, vigorous promotion of Public-Private Partnership, etc; • introducing new domestic revenue enhancing measures to widen the revenue base; • scaling-up donor inflows; and • accelerate the capacity expansion of the domestic financial markets and targeted support and incentives for the capital market New Financing Sources/Bilateral State-to-State Partnerships: Inadequate budgetary as well as financial market resources to fund large infrastructural projects have been a big constraint to the national develop effort. In other to fully finance the GSGDA it is important to diversify from the traditional sources of funding to more innovative ones. This will create 49 | P a g e the necessary fiscal space for investments in the large economic and social infrastructure required for economic and social transformation. Bilateral partnerships will be forged to focus on state-to-state initiatives in specific areas of the economy. About 45.2% of capital investment envisaged under the GSGDA is expected to be financed through special financing arrangements including the Sino-Ghana Bilateral Investment Initiatives, Korea-Ghana Bilateral Initiative and Public-Private Partnerships. Many of the interventions outlined in the GSGDA lend themselves easily to private sector involvement. To complement the traditional sources for funding GSGDA, the necessary space will be created for private sector participation through the vigorous promotion of Public Private Partnership (PPP). This will involve access to technology and technical know- how and large financing, as well as risk-sharing to reduce the pressure on the nation’s budgetary resources. Scaling-up Donor Inflows: An analysis of ODA inflows to Ghana shows that aid inflows have increased from US$578.96 million in 2001 in nominal terms to US$1,698.21 million in 2009, constituting an average annual increment of about 23% during the period. The Multi- Donor Budgetary Support (MDBS) which currently constitute about 30% of donor inflows in Ghana, has improved commitment and predictability of aid inflows. However in real terms, ODA inflows have stagnated between 2002 and 2009. With the shift of most of the Development Partners from Project Support and Sector-Wide Project (SWP) approach to the Programme/Budget Support approach, and the adoption of the Multi-Donor Budgetary Support (MDBS) System by the GOG, there are positive prospects for mobilizing more DPs resources for the effective implementation of the GSGDA. The country financial management and mechanisms for value for money will be strengthened to increase the confidence of Development Partners in the country systems. Introducing new revenue enhancing measures: With the medium term objective of increasing government revenue through a number of revenue enhancing mechanisms, the prospect for scaling-up GOG resources in support of the implementation of the GSGDA is high. Revenue enhancing mechanisms including introduction of a single revenue authority, improving VAT collection, taxation of natural resources, reduction of tax exemptions, etc will be pursued. Expansion of Domestic Financial Markets: To expand domestic financial market for increase availability and pace of domestic resource mobilisation to support investments by the private sector, the financial sector reforms and capacity strengthening will be accelerated. The banking sector capitalisation will be increased to expand banks’ risk capacity and their capability to fund the private sector in order to ensure they can take advantage of existing and emerging opportunities in the economy to grow and create jobs. In addition, the incentive mechanism for the Ghana Stock Exchange and investors on the exchange will be deepened to encourage the private sector to access long-term capital. 50 | P a g e APPENDICES APPENDIX 1: INDICATIVE COST FOR IMPLEMENTING THE GDGSD, 2010 – 2013, BY FOCUS AREA I. ENSURING AND SUSTAINING MACROECONOMIC STABILITY Expenditure Summary Theme / Key Focus Area 2010 2011 2012 2013 Total Value (in Value (in Value (in Value (in Value (in % % % % % Million US$) Million US$) Million US$) Million US$) Million US$) 1. Monetary Policy and Financial Management 8.398 7.56 10.078 7.96 10.950 8.40 11.852 8.79 41.278 8.21 2. Fiscal Policy Management 97.067 87.35 110.418 87.23 113.184 86.82 117.236 86.97 437.905 87.08 3. Economic Policy Management 2.923 2.63 2.963 2.34 3.067 2.35 3.136 2.33 12.089 2.40 4. International Trade Management and ECOWAS Community Development 2.741 2.47 3.119 2.46 3.170 2.43 2.571 1.91 11.601 2.31 Sub-total 111.129 100.00 126.579 100.00 130.371 100.00 134.795 100.00 502.873 100.00 51 | P a g e II. ENHANCING COMPETITIVENESS OF GHANA’S PRIVATE SECTOR Expenditure Summary Theme / Key Focus Area 2010 2011 2012 2013 Total Value (in Value (in Value (in Value (in Value (in % % % % % Million US$) Million US$) Million US$) Million US$) Million US$) 1. Private Sector Development 5.913 27.54 6.299 1.24 12.627 1.96 13.076 1.78 37.915 1.99 7.849 36.56 7.974 1.57 6.625 1.03 6.783 0.92 29.231 1.53 2. Good Corporate Governance 3.210 14.95 489.553 96.46 620.214 96.41 710.210 96.77 1,823.186 95.64 3. Industrial Development 3.997 18.62 3.172 0.62 3.238 0.50 3.188 0.43 13.595 0.71 4. Developing the Tourism Industry 5. Promoting the Creative Industry for 0.499 2.32 0.515 0.10 0.594 0.09 0.676 0.09 2.284 0.12 Economic Development Sub-total 21.467 100.00 507.513 100.00 643.298 100.00 733.933 100.00 1,906.211 100.00 III. AGRICULTURE MODERNIZATION AND NATURAL RESOURCE MANAGEMENT Expenditure Summary Theme / Key Focus Area 2010 2011 2012 2013 Total Value (in Value (in Value (in Value (in Value (in % % % % Million US$) Million US$) Million US$) Million US$) Million US$) 1. Accelerated Modernization of Agriculture 76.197 83.96 235.255 80.40 232.672 81.61 184.353 77.50 728.478 80.37 2. Effective Natural Resource Management and Environmental Governance 14.557 16.04 57.360 19.60 52.430 18.39 53.529 22.50 177.877 19.63 Sub-total 90.755 100.00 292.616 100.00 285.102 100.00 237.882 100.00 906.354 100.00 52 | P a g e IV. INFRASTRUCTURE AND HUMAN SETTLEMENTS Expenditure Summary Theme / Key Focus Area 2010 2011 2012 2013 Total Value (in Value (in Value (in Value (in Value (in % % % % Million US$) Million US$) Million US$) Million US$) Million US$) 1. Human Settlements Development 131.483 8.80 153.336 6.14 198.166 7.72 110.802 3.88 593.787 6.30 2. Accelerated Housing and Shelter Development 124.537 8.34 249.274 9.98 342.048 13.32 409.087 14.31 1,124.946 11.94 3. Institutional arrangement for implementing human settlements 0.550 0.04 0.708 0.03 0.406 0.02 0.448 0.02 2.111 0.02 development 4.Water and Environmental Sanitation and hygiene 383.701 25.69 486.662 19.49 461.021 17.95 603.526 21.11 1,934.910 20.54 5.Transport Infrastructure: Road, Rail, Water and Air Transport 772.795 51.74 1,441.265 57.71 1,420.878 55.33 1,567.515 54.83 5,202.454 55.24 6. Recreational Infrastructure 56.516 3.78 102.597 4.11 102.533 3.99 102.533 3.59 364.178 3.87 7. Science, Technology and Innovation to Support Productivity and Development 8.089 0.54 33.846 1.36 23.884 0.93 46.356 1.62 112.175 1.19 8.Information Communication Technology Development for real growth 16.043 1.07 29.688 1.19 19.270 0.75 18.854 0.66 83.854 0.89 Sub-total 1,493.714 100.00 2,497.376 100.00 2,568.205 100.00 2,859.120 100.00 9,418.415 100.00 53 | P a g e V. ENERGY, OIL AND GAS INDUSTRY Expenditure Summary Theme / Key Focus Area 2010 2011 2012 2013 Total Value (in Value (in Value (in Value (in Value (in % % % % % Million US$) Million US$) Million US$) Million US$) Million US$) 1. Oil and Gas Development 23.069 8.19 342.229 27.21 203.838 17.24 204.697 23.28 773.833 21.49 2.Energy Supply to Support Industries and Households 258.630 91.81 915.719 72.79 978.533 82.76 674.724 76.72 2,827.606 78.51 Sub-total 281.699 100.00 1,257.948 100.00 1,182.371 100.00 879.421 100.00 3,601.438 100.00 VI. HUMAN DEVELOPMENT, PRODUCTIVITY AND EMPLOYMENT Expenditure Summary Theme / Key Focus Area 2010 2011 2012 2013 Total Value (in Value (in Value (in Value (in Value (in % % % % Million US$) Million US$) Million US$) Million US$) Million US$) 1. Education 413.792 37.30 543.287 37.69 511.576 32.44 555.161 29.36 2,023.816 33.63 2.Human Resource Development 3.735 0.34 16.726 1.16 17.446 1.11 11.731 0.62 49.639 0.82 3. Health 645.343 58.17 789.848 54.79 990.200 62.78 1,262.505 66.77 3,687.897 61.27 4. HIV, AIDS, STDs, and TB 2.482 0.22 2.496 0.17 3.855 0.24 4.014 0.21 12.847 0.21 5. Sports Development 2.274 0.20 2.274 0.16 3.133 0.20 3.148 0.17 10.829 0.18 54 | P a g e Expenditure Summary Theme / Key Focus Area 2010 2011 2012 2013 Total Value (in Value (in Value (in Value (in Value (in % % % % Million US$) Million US$) Million US$) Million US$) Million US$) 6. Productivity and Employment 13.622 1.23 44.003 3.05 19.447 1.23 19.262 1.02 96.334 1.60 7. Social Protection and Expansion of 6.483 0.58 19.867 1.38 7.759 0.49 7.725 0.41 41.834 0.70 Safety Net 8.Population Management 2.672 0.24 3.101 0.22 0.805 0.05 0.331 0.02 6.909 0.11 9. Child Survival, Development and Protection 1.470 0.13 1.470 0.10 1.470 0.09 1.470 0.08 5.879 0.10 11.Youth Development and Participation in National Development 14.345 1.29 14.345 1.00 15.907 1.01 19.297 1.02 63.895 1.06 12. Protecting the Social Wellbeing of the Aged 0.117 0.01 0.601 0.04 0.715 0.05 0.872 0.05 2.303 0.04 13. Protection and Participation of PWD in National Development 2.081 0.19 2.482 0.17 3.564 0.23 3.867 0.20 11.994 0.20 14.Poverty and income inequalities 0.994 0.09 0.996 0.07 1.276 0.08 1.307 0.07 4.573 0.08 Reduction Sub-total 1,109.410 100.00 1,441.495 100.00 1,577.153 100.00 1,890.690 100.00 6,018.748 100.00 55 | P a g e VII. TRANSPARENT AND ACCOUNTABLE GOVERNANCE Expenditure Summary Theme / Key Focus Area 2010 2011 2012 2013 Total Value (in Value (in Value (in Value (in Value (in % % % % Million US$) Million US$) Million US$) Million US$) Million US$) 1.Practice of Democracy and Institutional Reform Agenda 61.089 28.54 71.883 15.60 94.244 21.02 77.828 18.79 305.044 19.84 2. Local Governance and Decentralization 20.645 9.64 26.721 5.80 29.794 6.64 23.937 5.78 101.097 6.58 3. Economic growth and Plan coordination in special development 11.117 5.19 33.352 7.24 32.621 7.27 45.603 11.01 122.693 7.98 areas to reduce poverty/ inequalities 4. Public Policy Management and Public Sector Reforms 46.472 21.71 149.272 32.40 119.762 26.71 95.865 23.14 411.371 26.76 5. Development Communication 0.210 0.10 0.556 0.12 0.817 0.18 0.717 0.17 2.299 0.15 6. Women Empowerment 2.060 0.96 2.386 0.52 4.314 0.96 3.979 0.96 12.740 0.83 7. Corruption and Economic Crimes 2.202 1.03 15.344 3.33 15.391 3.43 18.156 4.38 51.093 3.32 8. Rule of Law and Justice 2.863 1.34 24.545 5.33 24.035 5.36 24.089 5.82 75.532 4.91 9. Public Safety and Security 25.204 11.77 90.854 19.72 98.848 22.04 101.252 24.44 316.158 20.56 10. Access to Rights and Entitlement 1.764 0.82 3.546 0.77 3.808 0.85 4.351 1.05 13.469 0.88 11. National Culture for Development 3.796 1.77 5.706 1.24 5.707 1.27 6.004 1.45 21.213 1.38 56 | P a g e Expenditure Summary Theme / Key Focus Area 2010 2011 2012 2013 Total Value (in Value (in Value (in Value (in Value (in % % % % Million US$) Million US$) Million US$) Million US$) Million US$) 12. International Relations (Partnership) for Development 0.457 0.21 0.517 0.11 0.518 0.12 0.649 0.16 2.141 0.14 13. Evidence-Based Decision Making 36.198 16.91 36.030 7.82 18.557 4.14 11.786 2.85 102.571 6.67 Sub-total 214.076 100.00 460.711 100.00 448.417 100.00 414.216 100.00 1,537.419 100.00 57 | P a g e APPENDIX II: INDICATIVE COST FOR IMPLEMENTING THE GDGSD, 2010 – 2013, BY THEMATIC AREA, FOCUS AREA AND POLICY OBJECTIVE Expenditure Summary (in Million US$) THEME / KEY FOCUS AREA / POLICY OBJECTIVE 2010 2011 2012 2013 Total I. ENSURING AND SUSTAINING MACROECONOMIC STABILITY 111.129 126.579 130.371 134.795 502.873 8.398 10.078 10.950 11.852 41.278 1. Monetary Policy and Financial Management Deepen the capital markets 1.566 1.879 1.931 1.931 7.307 Create a more diversified financial sector and improve access to financial 6.833 8.199 9.019 9.921 33.971 services 97.067 110.418 113.184 117.236 437.905 2. Fiscal Policy Management Improve fiscal resource mobilization 63.305 67.962 68.635 70.166 270.069 Institute mechanisms to manage external shocks - 0.345 0.345 0.345 1.034 Improve public expenditure management 33.465 41.766 43.825 46.242 165.298 Promote effective debt management 0.296 0.345 0.379 0.483 1.503 2.923 2.963 3.067 3.136 12.089 3. Economic Policy Management Strengthen economic planning and forecasting to ensure synergetic 2.923 2.963 3.067 3.136 12.089 development of strategic sectors 2.741 3.119 3.170 2.571 11.601 4. International Trade Management and ECOWAS Community Development Improve export competitiveness 2.632 2.895 2.924 2.299 10.751 Diversify and increase exports and markets 0.109 0.120 0.132 0.147 0.508 Accelerate economic integration with other regional and/or sub-regional states - 0.103 0.114 0.125 0.342 II. ENHANCING COMPETITIVENESS IN GHANA’S PRIVATE SECTOR 21.467 507.513 643.298 733.933 1,906.211 5.913 6.299 12.627 13.076 37.915 1. Private Sector Development Improving the Investment Climate 0.001 0.015 0.016 0.018 0.050 58 | P a g e Expenditure Summary (in Million US$) THEME / KEY FOCUS AREA / POLICY OBJECTIVE 2010 2011 2012 2013 Total Increasing opportunity for the poor 0.430 0.650 0.520 0.469 2.069 Remove internal value chain constraints 0.634 0.702 0.772 0.139 2.247 Remove obstacles and improve trade and investment 0.220 0.288 0.317 0.349 1.175 Ensure consumer safety 4.628 4.644 11.001 12.101 32.375 2. Good Corporate Governance 7.849 7.974 6.625 6.783 29.231 Promote an enabling environment and effective regulatory framework for public 0.036 0.162 0.162 0.162 0.522 sector management Ensure businesses behave as good corporate entities which uphold the tenets 7.812 7.812 6.625 6.783 21.220 of human rights, social responsibility and environmental sustainability 3. Industrial Development 3.210 489.553 620.214 710.210 1,823.186 Ensure rapid industrialization driven by strong relationship to agriculture 2.848 306.937 355.532 405.532 1,070.848 Facilitate Technology transfers and research and development to drive 0.280 2.526 4.583 4.569 11.958 industrial transformation Decentralise industrial development to exploit the resource endowments of 0.082 0.090 0.099 0.109 0.380 Districts Transforming the Extractive Industry for economic development - 180.000 260.000 300.000 740.000 4. Developing the Tourism Industry 3.997 3.172 3.238 3.188 13.595 Diversify and Expand the tourism industry for revenue generation 3.694 2.945 2.989 2.993 12.621 Promote Domestic Tourism to foster National Cohesion as well as redistribution 0.086 0.094 0.094 0.094 0.367 of income Promote sustainable and responsible tourism in such a way to preserve 0.217 0.133 0.156 0.101 0.607 historical, cultural and natural heritage. 5. Promoting the Creative Industry for Economic Development 0.499 0.515 0.594 0.676 2.284 Develop and strengthen Ghana’s creative arts industry 0.499 0.515 0.594 0.676 2.284 90.755 292.616 285.102 237.882 906.354 III. AGRICULTURE MODERNIZATION AND NATURAL RESOURCE 59 | P a g e Expenditure Summary (in Million US$) THEME / KEY FOCUS AREA / POLICY OBJECTIVE 2010 2011 2012 2013 Total MANAGEMENT 1. Accelerated Modernization of Agriculture 76.197 235.255 232.672 184.353 728.478 Increase agric productivity through Minimization of production and distribution 53.767 145.840 146.999 106.864 453.470 risks and bottlenecks in agriculture and industry Improve agriculture productivity 7.350 70.993 66.739 59.498 204.580 Increase agricultural competitiveness and enhance integration into domestic and 0.020 1.383 3.411 0.952 5.766 international markets Promote selected crop development for food security, export and industry 0.153 0.153 0.153 0.153 0.614 Improved Institutional Coordination for Agricultural Development 14.907 16.886 15.369 16.886 64.048 14.557 57.360 52.430 53.529 177.877 2. Effective Natural Resource Management and Environmental Governance Ensure the restoration of degraded natural resources 0.031 26.757 26.924 27.085 80.797 Promote sustainable natural resource management 10.378 25.375 20.332 21.297 77.382 Building institutional capacities for sustainable environmental resource 4.148 5.228 5.174 5.147 19.698 management IV. INFRASTRUCTURE AND HUMAN SETTLEMENTS 1,493.714 2,497.376 2,568.205 2,859.120 9,418.415 1. Human Settlements Development 131.483 153.336 198.166 110.802 593.787 Promote a sustainable, spatially integrated and orderly development of human 0.759 11.803 14.945 18.777 46.283 settlements to support socio-economic development Revamp the spatial/land use planning system in Ghana 0.313 0.313 0.333 0.278 1.237 Facilitate ongoing institutional, technological and legal reforms under the 0.912 0.912 0.957 0.910 3.692 LAP/TCPD-LUPMP in support of land use planning Enhance the human and institutional capacities for effective land use planning 0.215 10.369 13.432 17.375 41.391 and management through science and technology. Promote structured integrated urban development 2.273 2.273 2.483 1.724 8.753 Promote resilient urban infrastructure development, maintenance and provision 55.928 55.928 72.437 13.807 198.100 of basic services Promote and facilitate private sector participation in disaster management (e,g, 3.483 4.138 4.103 4.138 15.862 60 | P a g e Expenditure Summary (in Million US$) THEME / KEY FOCUS AREA / POLICY OBJECTIVE 2010 2011 2012 2013 Total flood control systems and coastal protection) Create an enabling environment that would enhance the development of the 67.600 67.600 89.476 53.793 278.469 potential of rural areas 2. Accelerated Housing and Shelter Development 124.537 249.274 342.048 409.087 1,124.946 Increase access to safe, adequate and affordable shelter 123.148 247.543 339.914 406.400 1,117.005 Improve and accelerate housing delivery in the rural areas 1.389 1.732 2.134 2.687 7.941 3. Institutional arrangement for implementing human settlements 0.550 0.708 0.406 0.448 2.111 development Establish an institutional framework for effective coordination of human 0.550 0.708 0.406 0.448 2.111 settlements development 4.Water and Environmental Sanitation and hygiene 383.701 486.662 461.021 603.526 1,934.910 Accelerate the provision of affordable and safe water 358.507 453.633 436.147 578.831 1,827.117 Ensure proper management of water resources 0.450 1.992 1.381 1.440 5.263 Accelerate the provision of adequate and disability friendly sanitation facilites 0.028 0.186 0.186 0.103 0.503 Improve environmental Sanitation. 23.910 30.044 21.731 21.700 97.386 Ensure the implementation of health education program as a component of all 0.655 0.655 1.424 1.300 4.034 sanitation programmes Ensure sustainable financing of environmental sanitation services 0.152 0.152 0.152 0.152 0.607 5.Transport Infrastructure: Road, Rail, Water and Air Transport 772.795 1,441.265 1,420.878 1,567.515 5,202.454 Establish Ghana as a Transportation Hub for the West African Sub-Region 238.378 216.691 149.954 66.034 671.057 Create and sustain an accessible, affordable, reliable, effective and efficient 508.463 1,190.656 1,250.543 1,487.357 4,437.020 transport system that meets user needs Integrate Land use, transport planning, development planning and service 4.179 4.034 4.228 4.228 16.669 provision Create a vibrant investment and performance-based management environment 2.069 1.310 1.379 0.034 4.793 that maximise benefits for public and private sector investors Develop and implement comprehensive and integrated Policy, Governance and 5.405 8.379 5.091 2.387 21.262 61 | P a g e Expenditure Summary (in Million US$) THEME / KEY FOCUS AREA / POLICY OBJECTIVE 2010 2011 2012 2013 Total Institutional Frameworks Ensure Sustainable Development in the Transport Sector 8.376 14.560 6.650 4.917 34.503 Develop adequate Human Resources and apply New Technology 5.924 5.634 3.034 2.558 17.150 6. Recreational Infrastructure 56.516 102.597 102.533 102.533 364.178 Ensure that urban centres incorporate the concept of open spaces, and the 0.210 0.210 0.179 0.179 0.778 creation of green belts or green ways within and around urban communities Develop recreational facilities and promote cultural heritages and natural 56.306 102.388 102.353 102.353 363.400 conservation in both urban and rural areas 7. Science, Technology and Innovation to Support Productivity and 8.089 33.846 23.884 46.356 112.175 Development Promote the application of Science, Technology and Innovation in all sectors of 8.089 33.846 23.884 46.356 112.175 the economy 8.Information Communication Technology Development for real growth 16.043 29.688 19.270 18.854 83.854 Promote rapid development of the national ICT infrastructure 13.526 26.943 16.943 16.943 74.355 Strengthen the institutional and regulatory framework for managing the ICT 0.617 sector 0.698 0.617 0.617 2.549 1.052 Promote the use of ICT in all sectors of the economy 0.742 0.804 0.568 3.166 Facilitate the provision of quality meteorological data and forecast in support of 1.076 weather sensitive sectors of the economy 1.076 0.906 0.726 3.785 V. ENERGY, OIL AND GAS INDUSTRY 281.699 1,257.948 1,182.371 879.421 3,601.438 1. Oil and Gas Development 23.069 342.229 203.838 204.697 773.833 Convert the opportunities offered by the oil and gas sector to create jobs for the 20.700 339.750 200.700 200.700 761.850 populace. Ensure that the practices of the Oil and Gas Industry are consistent with 0.862 0.862 1.034 1.241 4.000 62 | P a g e Expenditure Summary (in Million US$) THEME / KEY FOCUS AREA / POLICY OBJECTIVE 2010 2011 2012 2013 Total international standards of environmental sustainability. Effectively manage the potential revenue from oil and gas production. 1.069 1.069 1.283 1.539 4.960 Transform the structure of the economy from production and export of primary 0.128 0.238 0.448 0.769 1.583 products to a diversified industrial based economy. Strengthen institutional capacity. 0.310 0.310 0.372 0.447 1.440 2.Energy Supply to Support Industries and Households 258.630 915.719 978.533 674.724 2,827.606 Ensure increased access of households and industries to efficient, reliable and 254.860 871.075 942.791 649.724 2,718.449 adequate energy supply Diversify the national energy mix including the use of indigenous sources of 44.644 energy 3.770 35.742 25.000 109.156 VI. HUMAN DEVELOPMENT, PRODUCTIVITY AND EMPLOYMENT 1,109.410 1,441.495 1,577.153 1,890.690 6,018.748 1. Education 413.792 543.287 511.576 555.161 2,023.816 Increase equitable access to and participation in quality education at all levels 362.067 480.451 443.133 482.260 1,767.911 Improve quality of teaching and learning 14.086 14.155 16.285 16.916 61.442 Improve access to quality education for people with disability 1.578 1.589 1.736 1.910 6.812 Promote science and technical education at all levels 2.803 6.599 6.603 6.603 22.609 Strengthen linkage between tertiary education and industry 0.046 0.386 0.390 0.390 1.211 Integrate essential knowledge and life skills into school curriculum to ensure 0.497 7.393 7.443 7.498 22.831 civic responsibility Improve Management of Education service delivery 32.714 32.714 35.986 39.584 140.999 2.Human Resource Development 3.735 16.726 17.446 11.731 49.639 Develop and retain Human Resource capacity at National, Regional and District 3.735 16.726 17.446 11.731 49.639 levels 3. Health 645.343 789.848 990.200 1,262.505 3,687.897 Bridge the equity gaps in access to health care and nutrition services and 63.214 83.866 159.688 168.900 475.668 63 | P a g e Expenditure Summary (in Million US$) THEME / KEY FOCUS AREA / POLICY OBJECTIVE 2010 2011 2012 2013 Total ensure sustainable financing arrangements that protect the poor Improve governance and strengthen efficiency and effectiveness in health 126.852 140.579 155.723 172.285 595.439 service delivery Improve access to quality maternal, neonatal, child and adolescent health 230.941 275.101 319.859 365.214 1,191.115 services Prevent and control the spread of communicable and non-communicable 119.939 163.454 205.634 384.361 873.388 disease and promote healthy lifestyles Expand access to and improve the quality of institutional care, including mental 104.398 126.847 149.296 171.745 552.286 health service delivery 4. HIV, AIDS, STDs, and TB 2.482 2.496 3.855 4.014 12.847 Ensure the reduction of new HIV and AIDS/STI/TB transmission 2.339 2.354 3.723 3.882 12.298 Promote reduction of the impact of HIV and AIDS related morbidity and mortality 0.136 0.136 0.129 0.129 0.530 Enhance management of HIV, AIDS, STI and TB response to promote healthy 0.007 0.006 0.003 0.003 0.019 lifestyles 5. Sports Development 2.274 2.274 3.133 3.148 10.829 Develop comprehensive sports policy and legislation 0.264 0.264 0.310 0.381 1.218 Improve sports infrastructure 2.010 2.010 2.823 2.768 9.611 6. Productivity and Employment 13.622 44.003 19.447 19.262 96.334 Adopt a national policy for enhancing productivity and income in both formal - 0.150 0.114 0.345 0.609 and informal economies Adopt a comprehensive employment Policy - 0.032 - - 0.032 Promote decent work in formal and informal economies 0.007 0.049 0.050 0.009 0.115 Strengthen the legal and institutional framework for labour administration and 0.058 2.403 2.046 2.046 6.553 employment management Conduct a labour market survey to generate relevant data - 0.024 0.069 - 0.093 Implement a functional labour market information and statistics system to - 0.275 0.275 - 0.549 support relevant decision making Implement policies and strategies to strengthen tripartism and social dialogue 0.591 0.668 0.472 0.982 2.713 64 | P a g e Expenditure Summary (in Million US$) THEME / KEY FOCUS AREA / POLICY OBJECTIVE 2010 2011 2012 2013 Total Bridge the mismatch between training and labour market demand - 0.668 0.905 0.430 2.003 7. Social Protection and Expansion of Safety Net 6.483 19.867 7.759 7.725 41.834 Develop a and implement a comprehensive social policy 6.467 6.492 1.054 1.054 15.066 Develop a comprehensive care policy for the country 0.017 0.049 0.050 0.019 0.135 Finalize and implement the National Social Protection Strategy - 13.327 6.655 6.652 26.633 8.Population Management 2.672 3.101 0.805 0.331 6.909 Update demographic data base on population and development 2.078 2.078 0.145 0.026 4.326 Create awareness on implication of rapid population growth 0.050 0.050 0.050 0.050 0.199 Minimize the negative impact and optimize the potential 0.544 0.974 0.611 0.255 2.384 9. Child Survival, Development and Protection 1.470 1.470 1.470 1.470 5.879 Strengthen policy, legal and institutional frameworks for child survival, 1.470 1.470 1.470 1.470 5.879 development, protection and participation 11.Youth Development and Participation in National Development 14.345 14.345 15.907 19.297 63.895 Ensure co-ordinated policy and institutional framework for youth development 8.868 8.868 9.956 12.219 39.911 Enhance youth skills and employment services 0.991 0.991 0.991 0.991 3.964 Mobilize the youth for accelerated national development 2.395 2.395 2.679 3.287 10.756 Promote social well being of vulnerable youth 2.091 2.091 2.282 2.800 9.264 12. Protecting the Social Wellbeing of the Aged 0.117 0.601 0.715 0.872 2.303 Reduce poverty among older persons 0.117 0.601 0.715 0.872 2.303 13. Protection and Participation of PWD in National Development 2.081 2.482 3.564 3.867 11.994 Implement the Disability policy 2.081 2.482 3.564 3.867 11.994 14.Poverty and income inequalities Reduction 0.994 0.996 1.276 1.307 4.573 Reduce feminised poverty 0.862 0.862 0.862 0.862 3.448 Implement preventive, promotional and protection interventions to deal with 0.132 0.134 0.414 0.445 1.125 65 | P a g e Expenditure Summary (in Million US$) THEME / KEY FOCUS AREA / POLICY OBJECTIVE 2010 2011 2012 2013 Total chronic poverty, vulnerability and exclusion VII. TRANSPARENT AND ACCOUNTABLE GOVERNANCE 214.076 460.711 448.417 414.216 1,537.419 1.Practice of Democracy and Institutional Reform Agenda 61.089 71.883 94.244 77.828 305.044 Strengthening Arms of governance and independent governance institutions 7.634 20.584 37.620 29.692 95.530 Enhancing civil society participation in governance 0.911 1.196 1.342 1.581 5.029 Promoting coordination, harmonization and ownership of the development 1.049 1.251 1.448 1.183 4.930 process Ensuring true transparency in the electoral process 51.330 48.347 52.981 45.140 197.797 Foster Civic Advocacy to nurture the culture of democracy 0.166 0.506 0.853 0.232 1.757 2. Local Governance and Decentralization 20.645 26.721 29.794 23.937 101.097 Ensure commitment to the implementation of Local Government Service Act 1.758 1.390 1.301 1.301 5.749 Strengthen the capacity of MMDAs for accountable, effective performance and 4.841 8.244 11.315 5.637 30.038 service delivery Integrate and Institutionalize district level planning and budgeting through 0.028 0.024 0.024 0.024 0.100 participatory process at all levels Strengthen functional relationship between assembly members and citizens 0.630 0.630 0.631 0.665 2.555 Operationalise and strengthen the sub-district structures and ensure 10.360 10.360 10.386 10.379 41.486 consistency in local government laws Ensure efficient internal revenue generation leading to 3.008 6.030 6.111 5.905 21.053 Ensure transparency in local resource management 0.020 0.044 0.026 0.026 0.116 3. Economic growth and Plan coordination in special development areas to 11.117 33.352 32.621 45.603 122.693 reduce poverty/ inequalities Reducing spatial and income inequalities across the country and among 11.117 33.352 32.621 45.603 122.693 different socio-economic classes 4. Public Policy Management and Public Sector Reforms 46.472 149.272 119.762 95.865 411.371 66 | P a g e Expenditure Summary (in Million US$) THEME / KEY FOCUS AREA / POLICY OBJECTIVE 2010 2011 2012 2013 Total Strengthen the coordination of development planning system for equitable and 0.546 0.756 1.246 1.046 3.592 balanced spatial and socio-economic development Upgrade the capacity of the public and civil service for transparent, accountable, 37.251 137.126 107.882 88.474 370.732 efficient, timely, effective performance and service delivery Rationalize and define structures, roles and procedures for state and non state 0.046 0.041 0.037 0.040 0.164 actors Deepen on-going Institutionalization and internalization of policy formulation, 7.576 9.825 9.717 5.474 32.592 planning, and M&E system at all levels Strengthen monitoring and enforcement mechanism of environmental legislation 0.814 0.817 0.186 0.190 2.007 Enhance policy and regulatory framework and effective coordination among key 0.240 0.707 0.694 0.642 2.284 government agencies to improve the performance of the environment sector 5. Development Communication 0.210 0.556 0.817 0.717 2.299 Mainstream development communications into national planning system 0.014 0.130 0.130 0.122 0.397 Promote media and Public Relations accountability for national development 0.113 0.113 0.113 0.113 0.451 Increased partnership with the media based on a mutual principled relationship of fairness, objective and truthfulness to promote national cohesion and 0.083 0.313 0.574 0.482 1.451 sustainable development 2.060 2.386 4.314 3.979 12.740 6. Women Empowerment Empower women and mainstream gender into the socio-economic development 1.454 1.558 3.453 3.173 9.638 Introduce and strengthen gender budgeting 0.361 0.567 0.577 0.497 2.002 Enhance women’s access to economic resources. 0.245 0.261 0.285 0.309 1.100 7. Corruption and Economic Crimes 2.202 15.344 15.391 18.156 51.093 Promote transparency and accountability and reduce opportunities for rent 1.412 14.206 14.287 16.882 46.787 seeking Strengthen and empower anti-corruption institutions 0.790 1.138 1.104 1.274 4.306 8. Rule of Law and Justice 2.863 24.545 24.035 24.089 75.532 67 | P a g e Expenditure Summary (in Million US$) THEME / KEY FOCUS AREA / POLICY OBJECTIVE 2010 2011 2012 2013 Total Increase the capacity of the legal system to ensure speedy and affordable 2.041 1.070 1.113 1.143 5.366 access to justice for all Strengthen the capacity of judges, lawyers, the police and para-legal staff in 0.562 21.512 21.493 21.496 65.063 both public and private sectors to promote the rule of law Increase national capacity to ensure safety of life and property 0.261 1.963 1.429 1.450 5.102 9. Public Safety and Security 25.204 90.854 98.848 101.252 316.158 Improve the capacity of security agencies to provide internal security for human 12.888 40.701 42.471 48.393 144.453 safety and protection Strengthen the intelligence agencies to fight social and economic crimes 2.838 13.538 14.040 8.121 38.537 Increase national capacity to ensure safety of life and property 0.598 0.598 0.619 0.643 2.458 Forestall external aggression, safeguard territorial integrity and contribute to 8.880 36.017 41.719 44.094 130.709 international peace keeping efforts 10. Access to Rights and Entitlement 1.764 3.546 3.808 4.351 13.469 Identify and equip the unemployed graduates, vulnerable and excluded with 0.188 0.290 0.327 0.361 1.166 employable skills Strengthen the Children’s Department to promote the rights of Children. 0.934 0.934 0.934 0.934 3.738 Effective public awareness creation on laws for the protection of vulnerable and 0.256 1.000 1.326 1.456 4.037 excluded Create an enabling environment to ensure the active involvement of PWDs in 0.141 0.141 0.141 0.141 0.563 mainstream societies Strengthen institutions responsible for enforcement of children’s right - 0.221 0.214 0.203 0.638 Protect the rights and entitlements of women and children 0.245 0.457 0.362 0.787 1.851 Entrench culture of respect for Human Rights - 0.503 0.503 0.469 1.476 11. National Culture for Development 3.796 5.706 5.707 6.004 21.213 Strengthen the National House of Chiefs and all regional Houses of Chiefs 1.660 3.790 3.371 3.543 12.364 Strengthen the regulatory and institutional framework for the development of 2.136 1.916 2.336 2.461 8.849 national culture 68 | P a g e Expenditure Summary (in Million US$) THEME / KEY FOCUS AREA / POLICY OBJECTIVE 2010 2011 2012 2013 Total 12. International Relations (Partnership) for Development 0.457 0.517 0.518 0.649 2.141 Accelerate economic and social integration with regional and/or sub-regional 0.012 0.013 0.015 0.016 0.056 states Sustain government’s commitment to international peace and security, adherence to international protocols and conventions, and incorporate them into 0.445 0.504 0.504 0.633 2.085 domestic laws 13. Evidence-Based Decision Making 36.198 36.030 18.557 11.786 102.571 Improve accessibility and use of existing data-base for policy formulation, 36.198 36.030 18.557 11.786 102.571 analysis and decision making Grand Total 3,322.250 6,584.238 6,834.916 7,150.056 23,891.459 69 | P a g e