GHANA’S AGENDA FOR SHARED GROWTH AND DEVELOPMENT, 2010 -2013 MR. P. V. OBENG CHAIRMAN, NDPC

OUTLINE BACKGROUND POLICY CONTEXT AND STRATEGIC DIRECTION THEMATIC AREAS Ensuring and Sustaining Macroeconomic Stability Enhancing Competitiveness in Ghana’s Private Sector Accelerated Agricultural Modernisation and Sustainable Natural Resource Management Oil and Gas Development Infrastructure, Energy and Human Settlements Development Human Development, Productivity and Employment Transparent and Accountable Governance

BACKGROUND Since Ghana attained independence in 1957, successive Governments have pursued, with varying degrees of success, policies, programmes and projects to accelerate the growth of the Ghanaian economy and raise the living standards of the people In 1995, Government presented to Parliament the Coordinated Programme of Economic and Social Development Policies with the theme, 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 Human Development, Economic Growth, Rural Development, Urban Development, Infrastructure Development, and an Enabling Environment as priorities.

BACKGROUND 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. 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. In order to provide a successor medium- term national development policy framework to the GPRS II (2006 – 2009), the Ghana Shared Growth and Development Agenda document is being prepared, to be implemented over the period 2010 – 2013.

THE POLICY CONTEXT Despite the 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 livelihoods of the people. These include large fiscal and balance of payment deficits; inability of the gains in economic growth to reflect in major improvement in productivity; over-reliance on the production of primary commodities without sufficient linkages to other sectors of the economy; over-reliance on rain-fed agriculture; low application of science, technology and innovation; and relatively high geographical disparities in poverty arising out of the inability of the increasing growth rates to be accompanied by reduction in inequalities.

STRATEGIC DIRECTION In the medium-term, the strategic direction will be to lay the foundation for the structural transformation of the economy 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 infrastructural and human development as well as the application of science, technology and innovation. This will enhance the creation of employment and income earning opportunities for rapid and sustained poverty reduction.

The strategy will entail: STRATEGIC DIRECTION The strategy will entail: improved enabling environment to empower the private sector; active collaboration between the public and private sectors, including public-private partnerships and civil society organizations; active Government interventions where appropriate; transparent and accountable governance and efficiency in public service delivery at all levels; and effective decentralisation for enhanced local economic development

Infrastructure (including energy, oil and gas) Water and sanitation STRATEGIC DIRECTION In this regard, expenditure will be prioritized in favour of policies, programmes and projects in the following areas: Agriculture Infrastructure (including energy, oil and gas) Water and sanitation Health Education ICT, Science, Technology and Innovation

The transformation of the economy will be anchored on the following thematic areas: Ensuring and sustaining macroeconomic stability; Enhancing competitiveness in Ghana’s Private Sector; Accelerated Agricultural Modernisation and Sustainable Natural Resource Management; Oil and Gas Development; Infrastructure, Energy and Human Settlements Development; Human Development, Productivity and Employment; and Transparent and Accountable Governance.

Ensuring and sustaining Macroeconomic Stability This policy framework will focus on addressing, among other things, the macroeconomic challenges that had emerged at the end of 2008. Fiscal policy will be shaped by the need to scale back the fiscal deficit over the medium term to create fiscal space for increased spending on critical infrastructure, job creation and poverty reduction. Macroeconomic policy will also focus on improving fiscal resource mobilization; improve public resource management including oil and gas resources; promoting effective debt management; ensuring price and exchange rate stability; and deepening the capital markets.

Enhancing the competitiveness of the private sector The key strategic objectives under this thematic area are: 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

Accelerating Agricultural Modernization and Natural Resource Management The overall objectives of the agricultural development policy is to use science, technology and innovations to accelerate agricultural modernization to increase agricultural productivity, enhance food security, create employment opportunities, and increase agricultural export earnings; strengthen the linkages between agriculture and industry; and reduce risk in agricultural production and marketing.

Oil and Gas Development Ghana’s transition to an oil producing country represents one of the most critical tests for the country’s social and political structure since independence. The key strategic objectives under this thematic area include: ensure the development of oil and gas industry and its effective linkage to the rest of the economy; converting the opportunities offered by the Oil and Gas industry to create decent jobs; ensuring that the practices of the Oil and Gas industry are consistent with international standards of environmental sustainability; and strengthening the capacity of local financial institutions to compete with their foreign counterparts for opportunities in the sector.

Infrastructure, Energy and Human Settlement The government recognizes that without well developed infrastructure, the goal of achieving accelerated economic growth to reduce poverty in the country cannot be achieved. Over the medium term therefore, government will invest massively in infrastructure development, including human settlement development; water, environmental sanitation and hygiene; transport infrastructure; science, technology and innovation; and information and communication technology (ICT) development.

Human Development, Productivity and Employment Government recognizes the importance of human development in national development. The government also understands the economic and social costs associated with unemployment. Over the medium term, the government will therefore pay more attention to human development and employment creation. Education, youth development, sports development, health, population management, migration for development, productivity, employment, social protection, poverty reduction, and minimizing income inequality are the focal areas that will receive serious attention.

Transparent and Accountable Governance Over the medium term, government policies in the areas of governance will focus on strengthening democracy and institutional reform; local governance and decentralization; economic growth and plan coordination in special development areas to reduce poverty and inequality; public policy management and public sector reform; women and governance; corruption and economic crime; 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.

THANK YOU !!!