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                         GHANA: COUNTRY ASSISTANCE STRATEGY

                            CHAIRMAN'S CONCLUDING REMARKS

                                   Meeting of ExecutiveDirectors

                                              June 21,2007


       The Executive Directors welcomed the Country Assistance Strategy (CAS) for Ghana with its
emphasis on sustaining economic growth, surpassing the 2015 Millennium Development Goal (MDG)
for poverty reduction and starting to reduce inequalities. They also welcomed the Ghana-Joint
Assistance Strategy (G-JAS) and the process through which it was developed, involving all key
stakeholders.

       Directors commended the authorities on the results achieved in recent years, including in
accelerating economic growth, putting Ghana on a solid road to attaining the poverty MDG and
improving economic policy, public financial management, and the investment climate. They noted
favorably Ghana's strong CPIA scores. Nonetheless, Directors encouraged the Bank and other donors
not to be complacent and to strive for higher poverty reduction and reducing inequalities. Directors
noted the active coordination with key development partners on the ground and the Results, Resources
and Partnership focus of the annual Partnership Group Meetings.              Notwithstanding the Bank's
constructive efforts with respect to harmonizing activities on the ground, Directors called for better
coordination of analytical work and external missions. Directors also noted that while Ghana is on track
to achieve a number of the MDGs, there are key challengesto the expansion of growth and development.
In this regard, they highlighted infrastructure gaps and encouraged the authorities to take the necessary
steps in the energy sector and in public sectorreform.

       Directors broadly agreed with the focus of the CAS to support the Government's strategy of
raising private sector competitiveness, improving human development outcomes and strengthening
governance. They congratulatedthe authoritieson further refining the Ghana Partnership Results Matrix,
on which the World Bank CAS results matrix is based, and encouraged them to continue to strengthen
the dialogue around results. SeveralDirectors encouraged the Bank to be more selective in its proposed
broad sector coverage. A concern was expressedthat the emphasison measurableresults might drive the
Bank towards those development activities that can be measured, rather than those that would have the
greatest long-term development impact. The Bank was also encouraged to provide more support for
public financial management, governance, and agriculture sector, strengthen cooperation with other
partners on capacity building, and continue to play a leading role in Consultative Group meetings. IFC
and MIGA were expectedto play a key role in private sector-leddevelopment and technical assistance.

       Directors expressed broad support for the proposed level and composition of World Bank Group
assistance to Ghana. They welcomed the Bank's plan to review its set of financial and non-financial
instruments and urged the Bank to work closely with other partners. Directors noted the importance of
efficient utilization of the country's resources, particularly as it seeks new non-concessional financing.
Finally, Directors recognized the improvements in Ghana's debt management capacity and urged the
authorities to adopt a prudent approach to market borrowing so as not to reverse progress made in
managing debt sustainability.