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Ghana
>> Regional Overview >> Ghana Overview
Previous Years' Activities
2002, 2001, 2000, 1999, 1998, 1997
Last updated: 20
THE DEVELOPMENT CHALLENGE: Ghana's recent national election further consolidated democracy as the 20-year military/civil rule of Jerry Rawlings ended and the opposition party won both the presidency and control of parliament. However, the new government faces major challenges to increase economic growth and reduce poverty. Private sector growth, critical to reducing poverty, is severely hampered by high interest rates, poor economic management, and Ghana's inability to attract sufficient domestic and foreign capital investment. The extreme poverty rate declined by 10% to 27% of total population from the 1990's, but 59% of the population located in the rural savanna zone (central and northern Ghana) are classified as extremely poor. The International Monetary Fund estimates that Ghana's per capita gross domestic product was $270 in 2000 compared to $310 in 1999, due in large part to the devaluation of the cedi.
Ghana ranks 119th out of 162 countries in the latest UN Human Development Index. The HIV/AIDS infection rate is 4%, and infant mortality is 57 per 1,000. Overall performance on structural and macro-economic reforms has been good over the past 15 years with an average annual growth rate of 4.5% (as compared with 2.9% for sub-Saharan Africa), but such growth has been largely concentrated in finance, construction and gold and cocoa exports. Ghana has also experienced periodic declines in the quality of macro-economic management during election years (1992, 1996, and 2000) that caused cycles of inflation and devaluation in the subsequent years. Having an external debt of $5.9 billion in 2001, Ghana has enormous debt servicing costs. If both principal and interest were paid, debt servicing would have required over 70% of 2001 government revenue ($560 million). As it happened, not all debt could be serviced. Ghana has applied for external debt relief under the Highly Indebted Poor Countries (HIPC) Initiative, which requires an approved poverty reduction strategy. The strategy that Ghana has prepared is consistent with the U.S. foreign policy priorities and will focus on: 1) macro-economic stability; 2) sustainable economic growth/increased employment; 3) basic education and health services; 4) programs for those most vulnerable and at extreme risk; and 5) anti-corruption and good governance.
Ghana continues to be of U.S. interest as the third largest trading partner in Sub-Saharan Africa. It plays a key role in promoting political and economic stability in the region and has a strong human rights record.
THE USAID PROGRAM:
FY 2002 Estimate: $46.062 million FY 2003 Request: $54.694 million USAID/Ghana's strategy supports the new Government of Ghana goal of poverty reduction through private sector-led growth. It is based on a diversified economy, which will generate greater amounts of investment, higher incomes and improved living standards. Improvements in education, health, and citizen participation in the democratic processes are essential for achieving this accelerated economic growth. The specific activities under the four Strategic Objectives (SOs) to be funded by FY 2002 and FY 2003 appropriations are described in more detail in the following Program Data Sheets. All funding is incremental funding for on-going activities under existing strategic objectives.
SO 1 (Increased Private Sector Growth) supports sustainable private sector-led growth through a range of policy reforms and direct support to private enterprise. USAID also continues to support new energy development as critical to increased economic growth, including the development of the West African Gas Pipeline.
SO 2 (Improved Effectiveness of Primary Education Systems) experienced considerable growth and achievement during the past year moving from pilot efforts to mainstreaming into school systems in all of the 110 districts in the country. Nationwide test scores for English and Mathematics were higher in program-assisted than in non-assisted schools.
SO 3 (Improved Family Health) programs have made significant contributions toward improving the health of Ghanaians. A national HIV/AIDS program is helping to combat the spread of HIV/AIDS through high profile media and behavior change activity. Immunization coverage increased, national Vitamin A distribution commenced, and an anti-malaria program was launched. Family planning use is also increasing. Activities under this SO will also support expanded community-based services delivery and initiatives in health care financing.
The main focus of SO 4 (Democracy and Governance Program) is to strengthen the legislature, anti-corruption/accountability, and decentralization. Citizen access to information increased significantly through the use of an expanding information and communication technology system funded through USAID's Education for Democracy and Development Initiative.
OTHER PROGRAM ELEMENTS: The Women in Development Office within the Economic Growth, Agriculture and Trade (EGAT) Bureau funds the "Strategies for Advancing Girls Education" (SAGE) program that promotes increased school attendance by girls. The Democracy, Conflict and Humanitarian Assistance Bureau is funding an adolescent reproductive health program through Plan International. The Global Health Bureau funds several organizations (e.g. Population Council, Johns Hopkins University, University of North Carolina, and Academy for Educational Development) to undertake program activities in midwifery schools, promotion of breastfeeding, community-based health services, and health training.
The African Trade and Investment Policy Program (ATRIP) provided approximately $4 million to support the development of the West African Gas Pipeline which will link the gas fields of Nigeria to markets in Ghana, Togo, and Benin. ATRIP also supports capacity building efforts to meet international grades and standards leading to increased agricultural exports.
The P.L. 480 Title II resources are supporting agroforestry and on-farm production (Adventist Development and Relief Agency), and small and micro-enterprise, and micro-credit programs (Technoserve). Significant expansion of the basic education program in the northern regions was achieved with Title II resources (Catholic Relief Services). Title II is also supporting programs to improve nutritional practices and sanitation.
OTHER DONORS: Donor coordination is excellent in Ghana. There are active donor coordination groups in 14 sectoral areas including health, education, and governance/democracy sectors. Assistance to Ghana, in the forms of grants and concessional loans from over 20 multilateral and bilateral donors is estimated at $919 million in 2001. The United States ranks third among bilateral donors and contributes approximately 6% of that amount. USAID assistance is all through grants. Donor assistance focuses on infrastructure, economic growth and poverty alleviation, agriculture, education, health, family planning, and governance. Other major donors to Ghana include: the World Bank (infrastructure, education, and health); the International Monetary Fund (structural adjustment); United Nations agencies; Japan (the largest bilateral donor with programs in education, health, and agriculture); the European Union (transportation infrastructure); Great Britain (second largest bilateral donor with programs in public administration, health, education, rural infrastructure and agriculture); Denmark (health, energy, and water); the Netherlands; Germany; France; Canada; Italy; and Spain.
Program Data Sheets
- 641-001 Increased Private Sector Growth
- 641-002 Increased Effectiveness of the Primary Education System
- 641-003 Improved Family Health
- 641-004 Public Policy Decisions Better Reflect Civic Input
Country Background Information Resources
CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: May 29, 2002 |
