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GHANA’S AGENDA FOR SHARED GHANA’S AGENDA FOR SHARED GROWTH AND DEVELOPMENT, 2010 -2013GROWTH AND DEVELOPMENT, 2010 -2013

MR. P. V. OBENGMR. P. V. OBENG

CHAIRMAN, NDPCCHAIRMAN, NDPC

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OUTLINE OUTLINE

BACKGROUND BACKGROUND

POLICY CONTEXT AND STRATEGIC DIRECTIONPOLICY CONTEXT AND STRATEGIC DIRECTION

THEMATIC AREASTHEMATIC AREAS

Ensuring and Sustaining Macroeconomic StabilityEnsuring and Sustaining Macroeconomic Stability

Enhancing Competitiveness in Ghana’s Private SectorEnhancing Competitiveness in Ghana’s Private Sector

Accelerated Agricultural Modernisation and Sustainable Natural Accelerated Agricultural Modernisation and Sustainable Natural

Resource Management Resource Management

Oil and Gas Development Oil and Gas Development

Infrastructure, EnergyInfrastructure, Energy and Human Settlements Development and Human Settlements Development

Human Development, Productivity and Employment Human Development, Productivity and Employment

Transparent and Accountable Governance Transparent and Accountable Governance

BACKGROUNDBACKGROUND Since Ghana attained independence in 1957, Since Ghana attained independence in 1957,

successive Governments have pursued, with varying successive Governments have pursued, with varying degrees of success, policies, programmes and projects degrees of success, policies, programmes and projects to accelerate the growth of the Ghanaian economy and to accelerate the growth of the Ghanaian economy and raise the living standards of the peopleraise the living standards of the people

In 1995, Government presented to Parliament the In 1995, Government presented to Parliament the Coordinated Programme of Economic and Social Coordinated Programme of Economic and Social Development PoliciesDevelopment Policies with the theme, with the theme, Ghana: Vision Ghana: Vision 2020,2020, aimed at making Ghana a middle-income aimed at making Ghana a middle-income country in 25 years.country in 25 years.

The First Medium-Term Development Plan (1997-2000)The First Medium-Term Development Plan (1997-2000) based on Vision 2020 focused Human Development, based on Vision 2020 focused Human Development, Economic Growth, Rural Development, Urban Economic Growth, Rural Development, Urban Development, Infrastructure Development, and an Development, Infrastructure Development, and an Enabling Environment as priorities.Enabling Environment as priorities. 33

BACKGROUNDBACKGROUND The Ghana Poverty Reduction Strategy (GPRS I) and the The Ghana Poverty Reduction Strategy (GPRS I) and the

Growth and Poverty Reduction Strategy (GPRS II) are Growth and Poverty Reduction Strategy (GPRS II) are the latest of such national development policy the latest of such national development policy frameworks.frameworks.

Under GPRS I and GPRS II substantial progress was Under GPRS I and GPRS II substantial progress was made towards the realisation of macroeconomic made towards the realisation of macroeconomic stability and the achievement of poverty reduction stability and the achievement of poverty reduction goals. goals.

However, structural challenges also emerged, However, structural challenges also emerged, characterized by large fiscal and balance of payment characterized by large fiscal and balance of payment deficits. In order to provide a successor medium- term deficits. In order to provide a successor medium- term national development policy framework to the GPRS II national development policy framework to the GPRS II (2006 – 2009), the Ghana Shared Growth and (2006 – 2009), the Ghana Shared Growth and Development Agenda document is being prepared, to Development Agenda document is being prepared, to be implemented over the period 2010 – 2013.be implemented over the period 2010 – 2013.

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THE POLICY CONTEXT THE POLICY CONTEXT Despite the significant improvements in the Despite the significant improvements in the

performance of the economy in the last two decades, performance of the economy in the last two decades, there remain a number of macroeconomic and there remain a number of macroeconomic and structural challenges that limit the capacity of the structural challenges that limit the capacity of the economy to achieve sustainable improvements in the economy to achieve sustainable improvements in the livelihoods of the people.livelihoods of the people.

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

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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.

STRATEGIC DIRECTION STRATEGIC DIRECTION

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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

STRATEGIC DIRECTION STRATEGIC DIRECTION

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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

STRATEGIC DIRECTION STRATEGIC DIRECTION

The transformation of the economy will be anchored on The transformation of the economy will be anchored on the following thematic areasthe following thematic areas::

Ensuring and sustaining macroeconomic stability;Ensuring and sustaining macroeconomic stability; Enhancing competitiveness in Ghana’s Private Sector;Enhancing competitiveness in Ghana’s Private Sector; Accelerated Agricultural Modernisation and Sustainable Accelerated Agricultural Modernisation and Sustainable

Natural Resource Management; Natural Resource Management; Oil and Gas Development; Oil and Gas Development; Infrastructure, Energy and Human Settlements Infrastructure, Energy and Human Settlements

Development;Development; Human Development, Productivity and Employment; Human Development, Productivity and Employment;

andand Transparent and Accountable Governance.Transparent and Accountable Governance.

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Ensuring and sustaining Ensuring and sustaining Macroeconomic StabilityMacroeconomic Stability

This policy framework will focus on addressing, This policy framework will focus on addressing, among other things, the macroeconomic challenges among other things, the macroeconomic challenges that had emerged at the end of 2008. that had emerged at the end of 2008.

Fiscal policy will be shaped by the need to scale Fiscal policy will be shaped by the need to scale back the fiscal deficit over the medium term to back the fiscal deficit over the medium term to create fiscal space for increased spending on critical create fiscal space for increased spending on critical infrastructure, job creation and poverty reduction. infrastructure, job creation and poverty reduction.

Macroeconomic policy will also focus on improving Macroeconomic policy will also focus on improving fiscal resource mobilization; improve public resource fiscal resource mobilization; improve public resource management including oil and gas resources; management including oil and gas resources; promoting effective debt management; ensuring promoting effective debt management; ensuring price and exchange rate stability; and deepening the price and exchange rate stability; and deepening the capital markets.capital markets. 1010

Enhancing the competitiveness of the private sectorEnhancing the competitiveness of the private sector

The key strategic objectives under this The key strategic objectives under this thematic area are: improving the investment thematic area are: improving the investment climate; reducing the cost and risk of doing climate; reducing the cost and risk of doing business; providing modern, efficient and business; providing modern, efficient and competitive infrastructure; creating the competitive infrastructure; creating the financial sector which is responsible to the financial sector which is responsible to the private sector; and making available human private sector; and making available human resources with relevant skills and resources with relevant skills and competencescompetences

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Accelerating Agricultural Modernization and Natural Accelerating Agricultural Modernization and Natural Resource ManagementResource 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 DevelopmentOil and Gas Development

Ghana’s transition to an oil producing country Ghana’s transition to an oil producing country represents one of the most critical tests for the represents one of the most critical tests for the country’s social and political structure since country’s social and political structure since independence.independence.

The key strategic objectives under this thematic The key strategic objectives under this thematic area include: ensure the development of oil and gas area include: ensure the development of oil and gas industry and its effective linkage to the rest of the industry and its effective linkage to the rest of the economy; converting the opportunities offered by economy; converting the opportunities offered by the Oil and Gas industry to create decent jobs; the Oil and Gas industry to create decent jobs; ensuring that the practices of the Oil and Gas ensuring that the practices of the Oil and Gas industry are consistent with international standards industry are consistent with international standards of environmental sustainability; and strengthening of environmental sustainability; and strengthening the capacity of local financial institutions to the capacity of local financial institutions to compete with their foreign counterparts for compete with their foreign counterparts for opportunities in the sector.opportunities in the sector.

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Infrastructure, Infrastructure, EnergyEnergy and Human Settlement and Human Settlement

The government recognizes that without well The government recognizes that without well developed infrastructure, the goal of achieving developed infrastructure, the goal of achieving accelerated economic growth to reduce poverty in accelerated economic growth to reduce poverty in the country cannot be achieved. the country cannot be achieved.

Over the medium term therefore, government will Over the medium term therefore, government will invest massively in infrastructure development, invest massively in infrastructure development, including human settlement development; water, including human settlement development; water, environmental sanitation and hygiene; transport environmental sanitation and hygiene; transport infrastructure; science, technology and innovation; infrastructure; science, technology and innovation; and information and communication technology and information and communication technology (ICT) development. (ICT) development.

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Human Development, Productivity and EmploymentHuman Development, Productivity and Employment Government recognizes the importance of human Government recognizes the importance of human

development in national development. The development in national development. The government also understands the economic and government also understands the economic and social costs associated with unemployment. social costs associated with unemployment.

Over the medium term, the government will Over the medium term, the government will therefore pay more attention to human development therefore pay more attention to human development and employment creation. Education, youth and employment creation. Education, youth development, sports development, health, development, sports development, health, population management, migration for development, population management, migration for development, productivity, employment, social protection, poverty productivity, employment, social protection, poverty reduction, and minimizing income inequality are the reduction, and minimizing income inequality are the focal areas that will receive serious attention. focal areas that will receive serious attention.

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Transparent and Accountable GovernanceTransparent and Accountable Governance Over the medium term, government policies in the Over the medium term, government policies in the

areas of governance will focus on strengthening areas of governance will focus on strengthening democracy and institutional reform; local democracy and institutional reform; local governance and decentralization; economic growth governance and decentralization; economic growth and plan coordination in special development areas and plan coordination in special development areas to reduce poverty and inequality; public policy to reduce poverty and inequality; public policy management and public sector reform; women and management and public sector reform; women and governance; corruption and economic crime; rule of governance; corruption and economic crime; rule of law and justice; public safety and security; access to law and justice; public safety and security; access to rights and entitlements; national culture for rights and entitlements; national culture for development; domestic and international relations; development; domestic and international relations; migration for development; and evidence-based migration for development; and evidence-based decision making.decision making.

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THANK YOU !!!THANK YOU !!!