Transcript GHANA POVERTY REDUCTION STRATEGY (GPRS) UPADATE …

GHANA’S AGENDA FOR SHARED
GROWTH AND DEVELOPMENT, 2010 -2013
MR. P. V. OBENG
CHAIRMAN, NDPC
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OUTLINE

BACKGROUND

POLICY CONTEXT AND STRATEGIC DIRECTION
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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
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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.
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The First Medium-Term Development Plan (19972000) based on Vision 2020 focused Human
Development, Economic Growth, Rural Development,
Urban Development, Infrastructure Development, and
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an Enabling Environment as priorities.
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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
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be implemented over the period 2010 – 2013.
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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.
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These include large fiscal and balance of payment
deficits; inability of the gains in economic growth to
reflect in major improvement in productivity; overreliance 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
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rates to be accompanied by reduction in inequalities.
STRATEGIC DIRECTION
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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.
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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
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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
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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.
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Ensuring and sustaining Macroeconomic Stability
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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.
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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
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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.
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Oil and Gas Development
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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.
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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
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opportunities in the sector.
Infrastructure, Energy and Human Settlement
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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.
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Human Development, Productivity and Employment
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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.
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Transparent and Accountable Governance
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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.
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THANK YOU !!!
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