Democracy and Governance in Ghana
The Development Challenge: Ghana continues to move forward as a progressive, democratic state. The Government of Ghana (GOG), along with civil society and the private sector, is completing the first phase of the Ghana Poverty Reduction Strategy (GPRS) 2002-2004 and is in the process of developing a new phase for the next three years. In FY 2004, Ghana was declared one of 16 countries eligible to apply for funds from the U.S. Government's (USG's) Millennium Challenge Account. The incumbent party (winner of the 2004 election) had as its platform to meet the United Nations' Development Goals of the Millennium through implementation of Ghana's Poverty Reduction Strategy (GPRS). With the successful election, the government now has the mandate to continue moving forward with the implementation of GPRS.
Economically, Ghana has made advances over the past year. The Gross Domestic Product is calculated to have grown by 5% in 2004 and the value of exports has increased by 11%. Inflation has declined significantly, but is expected to rise to 20% by year's end. Government debt has dropped 13% and Ghana reached the Heavily Indebted Poor Country completion point in June 2004. This progress is helping to reduce general poverty, down 20% in the last two decades.
Ghana still faces major challenges in certain key areas. An estimated 40% of its population of approximately 21 million still has a per capita income of less than $1 per day and unemployment remains high. Under-five mortality increased slightly over the last five years (according to the 2003 Demographic and Health Survey), increasing from 108 per 1,000 in 1997 to 111 per 1,000 in 2003. While use of family planning methods has increased to 25% nationwide, the total fertility rate (children per woman) has only improved marginally, from 4.6 in 1997 to 4.4 in 2003. On the education front, while USAID-supported schools have made good progress on attendance and performance, nationwide the primary school drop-out rate appears static at 9% and grade level competency in reading and math remains extremely low. While Ghana can certainly be categorized as a democratic nation, devolution of certain responsibilities from the national to the regional and district levels has been slow and District Assemblies' institutional capacity has grown only marginally. The Parliament is still struggling to fulfill its check-and-balance role vis a vis the executive branch. All of these challenges are areas in which USAID is focusing its assistance efforts.
The USAID Program: The U.S. Government and USAID continue to have a solid, positive relationship with the GOG, private sector, civil society, and the people of Ghana. Many activities are implemented in partnership with the Ghanaian private sector and local, non-governmental organizations. While many donors are shifting more assistance to direct GOG budget support, it is still recognized that USAID's development approach, emphasizing technical assistance and training, is effective and relevant. USAID's ability to influence policy reform and government institutions is not diminished, but is strengthened by the more immediate, direct, and targeted forms of assistance.
By the end of FY 2004, USAID had identified most of its principal development partners for the new Country Strategic Plan 2004-2010 and initial activities were underway. The overall program is largely on track. The new strategy builds on the strengths and the many successes of the previous strategic plan, while focusing more support on the ambitious GPRS by strengthening governance systems and promoting private sector growth. USAID's overall goal is equitable economic growth and accelerated poverty reduction within a system of sound democratic governance. This goal directly supports Ghana's poverty alleviation programs as articulated in the country's vision documents, including the GPRS and Vision 2012. Funding is sought to implement USAID's four Strategic Objectives: Strengthened Democratic and Decentralized Governance through Civic Involvement; Competitiveness of Ghanaian Private Sector in World Markets Increased; Health Status Improved; and Improved Quality of and Access to Basic Education. Planned activities are described in the attached data sheets.
(Excerpted from the 2006 Congressional Budget Justification for Ghana)
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