Ghana is a multiparty constitutional democracy with a democratically elected government. Ghana, on March 6, 1957, gained independence from Britain, and became the first sub-Saharan country in colonial Africa to become independent. Since January 1993 when Ghana ushered in the Fourth Republic, four presidential and parliamentary elections have been held successfully. President John Kufuor was re-elected in December 2004, and sworn into office for a second and final four-year term in January 2005.

The incumbent party, winner of the Parliamentary and Presidential elections had as its platform to meet the United Nations Millennium Development Goals by implementing Ghana's Poverty Reduction Strategy (GPRS). The strategy aims particularly at ensuring sustainable growth, increasing poverty reduction, and protecting the vulnerable in society. With the successful election, the government has the mandate to continue implementing the GPRS.

Ghana is located on the west coast of Africa bordering the Gulf of Guinea with a 539-kilometer stretch of coastline. The capital, Accra, is situated along the coast. The country shares borders with Togo to the east, Cote d'Ivoire on the west and Burkina Faso to the north. Ghana covers a total area of 238,537 square km (92,100 square miles). The climate is tropical: the eastern coastal belt is warm and comparatively dry; the southwest corner is hot and humid; and the north, hot and dry. Temperatures are generally between 21 and 38 degrees Centigrade. The southern part has two rainy seasons: April-July and September-October, while in the north, the rainy seasons tend to merge. Annual rainfall in the south averages 2,030mm but varies greatly throughout the country, with the heaviest rainfall in the southwest and the lowest in the north.

Ghana is well endowed with natural resources - gold, timber, and cocoa - the major sources of foreign exchange. The domestic economy continues to revolve around subsistence agriculture, which accounts for 35% of GDP and employs 60% of the work force, mainly small landholders. Ghana's Volta Lake is the world's largest man-made lake, and extends from the Akosombo Dam in southeastern Ghana to the town of Yapei, 520 kilometers to the north. The lake generates electricity, provides inland transportation, and is a potentially valuable resource for irrigation and fish farming.

The country has a total of 138 metropolitan, municipal and district assemblies within its ten administrative regions and has approximately 23 million people. Most of the population is concentrated in the southern part of the country, with highest densities occurring in urban and cocoa-producing areas.

Ghana opted for debt relief under the Heavily Indebted Poor Country program in 2002 and reached the decision point in 2004. Ghana was selected in 2004 as one of the 16 countries eligible to apply for funds from the U.S. Government's Millennium Challenge Account. The selection was based on the country's sound political, economic and social policies that can promote economic growth.

HISTORY OF USAID IN GHANA

During the first eight years (1957-1965) of USAID's presence in Ghana , the program was involved in agriculture, training and infrastructure (including support for the construction of the Akosombo Dam). In the period 1966-1974, the program turned to balance of payments support in the form of program loans for commodity imports. In addition to program loans, USAID provided cotton and oil under PL480 soft loans for the industrial sector. USAID strengthened agricultural extension service, farmer training institutes and the GOG's seed multiplication service. The Mission also had a small family planning and health technical assistance program.

In 1975, USAID increased the focus on rural sectors and had a major program of support to increase maize production in the Brong-Ahafo and Ashanti regions. This included support for inputs and construction of feeder roads. Beginning around 1978, a number of questions were raised about the level of support to Ghana due to the severe and growing macroeconomic distortions. The exchange rate was enormously overvalued, and interest rates were heavily negative. These distortions, combined with the Rawlings coup in 1981, led to a period of reduced programming.

In 1987 the USAID assistance levels began to rise as a result of the success of the economic reforms that the GOG began in 1983. By 1990, the USAID levels were about $12 million per annum plus another $5-$10 million in PL480 Title II commodities. USAID assistance supported health, education and agriculture. In agriculture, USAID supported the privatization of the seed industry and feeder road development. USAID also provided funding for primary education, including the introduction of criterion reference testing. In health, USAID supported maternal child health as well as HIV/AIDS prevention. In 1992, USAID began implementation of a new strategy designed to increase economic growth through exports, family planning, quality primary education, environmental protection, and HIV/AIDS prevention. Funding averaged $35 million per year.

Building on this program, in 1997 USAID embarked on a Country Strategic Plan which focused on: economic growth (trade, microfinance, tourism, and energy); health (reproductive health/child survival, mother and child health care, and HIV/AIDS prevention); primary education (community involvement, teaching improvement, better management); and democratic governance (civil society and local government, anti-corruption, and parliamentary systems). Funding averaged $38 million per annum plus $15 million in food aid commodities.