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FY 1997 Development Fund for Africa: $44,974,776
FY 1997 P.L. 480 Title II: $9,739,000
Introduction.
Ghana is a newly democratic country, and one in which the process of economic liberalization has been underway for more than a dozen years. The types of political and economic reforms undertaken by the Government of Ghana (GOG) are consistent with U.S. foreign policy interests, and the nation's success in these efforts encourages the growth of democracy and free markets elsewhere in Africa. The United States is Ghana's leading trade partner, with the U.S. private sector increasingly active in trade and investment. As a regional leader, Ghana has also played a key role in U.S.-backed efforts to find a negotiated settlement to the conflict in Liberia.
The Development Challenge.
Ghana is a medium-sized West African country about the size of Oregon, with a population of 17.5 million. Since the start of a far-reaching Economic Recovery Program in 1983, the government has liberalized markets, prices, foreign exchange and international trade, and has reduced the state's role in the economy in favor of the private sector. Over the past 12 years, gross domestic product (GDP) has grown, on average, by 5% a year, but most of this increase has gone to support a growing population that has expanded by 3% annually. This is the main obstacle to improving living standards in Ghana. Ghana continues to be one of the world's least-developed countries, with a per capita income of only $430 in 1993. The United Nations Development Programme's Human Development Index for 1995 ranks Ghana 129th out of 174 countries. The country remains highly dependent on the export of a few primary commodities, especially cocoa and gold, and GOG budgetary resources are insufficient to provide the level of social services and infrastructure needed.
Adult literacy rates are 60% for men and 40% for women, with 5.3 million adults illiterate. Primary school enrollment stands at 84% for boys and 69% for girls, but attendance is poor and educational achievement is low. Six and a half million people are without access to health services, 7.7 million do not have safe water and 9.3 million are without adequate sanitation. Life expectancy at birth is 56. Ghana has a good natural resource base, though its forests are being rapidly depleted, and with 70% of the population engaged in agriculture, soil degradation is a problem. External debt is $4.9 billion, 90% of GDP. However, debt service equals only 27% of exports, and given healthy foreign exchange reserves and minimal arrearages, this debt is manageable.
To sustain increased economic growth, Ghana is expanding its export base from traditional commodities into more diversified nontraditional exports (NTEs), such as horticultural crops, wood products, and fish and seafood. NTEs have grown rapidly, from $68 million in 1992 to an estimated $180 million in 1995. On the education front, the government initiated reforms in 1987 to strengthen and decentralize the education system. Some progress has been made in lowering the fertility rate in Ghana, which dropped from 6.4 children per woman in 1988 to 5.5 in 1993. Over the same period, the rate of women of reproductive age using some form of contraception increased from 5% to 10%. A large unmet gap in contraceptive needs, however, continues to exist; 52.3% of women want to space or have no more children, but are not using any contraception. Ghana is also at an important stage in its transition to democracy and is consolidating the gains of past political reforms. Following the approval by referendum of a new constitution, free and fair presidential and parliamentary elections were held in 1992. The next round of national elections is scheduled for November 1996.
The GOG's long-range planning document, Ghana Vision 2020, lays out a strategy for raising the country to middle-
income status by early in the next century. USAID can help Ghana achieve that goal through a program that promotes accelerated economic growth and lays the groundwork for sustainable development.
Other Donors.
Assistance to Ghana, in the form of grants and concessional loans from over 20 multilateral and bilateral donors, totals approximately $700 million a year, with the U.S. contributing about 7% of that amount. Donor assistance focuses on structural adjustment, economic growth and poverty alleviation, with USAID playing a lead role in providing supportto the private sector, primary education and family planning. Other principal donors are the World Bank, Japan, Britain, Canada, Germany, the European Union, Denmark, France, the African Development Bank, United Nations Development Programme and the United Nations Children's Fund.
FY 1997 Program.
USAID's Mission goal is broad-based sustainable economic growth to help Ghana achieve its goal of middle-income status. This will be achieved through increasing the marketed value of selected agricultural products, increasing the effectiveness of the primary education system, reducing fertility and increasing use of proven prevention interventions for the human immunodeficiency virus (HIV) and sexually transmitted diseases (STDs). Improving economic viability through sustainable development will move Ghana toward graduation from donor assistance and further the U.S. policy goals of economic growth and political democratization in Africa.
If resources diminish, USAID's ability to help Ghana achieve middle-income status would be reduced, and reaching that goal would be delayed. Cutbacks in funding would mean slower growth in the marketed value of selected agricultural products, delays in completing the decentralization of education, fewer people having access to long-term family planning methods, and more cases of AIDS.
Agency Goal: Encouraging Broad-based Economic Growth
USAID sees economic growth as the chief factor affecting development in Ghana. It is the essential element for raising living standards, including the improvement of education and health, and for ensuring the success of democracy. The program focuses on strengthening markets, improving basic education and combatting the spread of HIV and STDs.
During the past year, the enactment of an Export and Import Act, together with the elimination of the exchange control form, resulted in the introduction of a new, simplified Ghana Export Form for NTEs. This resulted in substantial savings of cost and time for exporters. The value of NTEs increased by 50%, from $120 million in 1994 to an estimated $180 million in 1995. A principal constraint to more rapid growth in agriculture is the weak marketing system for inputs and products. Major obstacles include regulatory restrictions, high wastage and spoilage, excessive marketing margins, low input utilization, limited access to financing, and lack of knowledge of domestic and export market opportunities. Significant concerns that will be addressed in FY 1997 are continued streamlining of export regulations and procedures, and further improvements to business and export promotion support services.
Textbook production and distribution continued to improve over the past year, with more than 2,000,000 copies being printed and sent to schools. In response to poor student performance on standardized tests, more than 11,000 teachers received in-service training in English and mathematics. A survey was completed and disseminated on community attitudes and social factors affecting education. Learning is not taking place in the classroom because of poor teaching, poor management and insufficient community participation. The education system is producing large numbers of students who do not have basic skills in literacy and numeracy. In FY 1997 new activities will be initiated at the community level focusing on improved classroom instruction, better education management and greater community participation.
An HIV/STD surveillance system was put in place, and the first annual report issued. Construction started on four public health reference laboratories to do confirming blood tests, with the one in Accra being completed. Drafting started on guidelines for the proper diagnosis and treatment of STDs. Many people do not recognize the symptoms of STDs and consequently do not seek medical attention. If treatment is sought, it may not be effective due to the presence of drug-resistant strains of the disease, poor medical practices or lack of compliance with treatment regimens. Funding in FY 1997 will be used for increasing knowledge of HIV transmission, ensuring the quality of lab work in the HIV/AIDS surveillance system and improving the diagnosis and treatment of STDs through training for medical personnel and greater access to more effective drugs.
Agency Goal: Stabilizing World Population Growth and Protecting Human Health
Reduced fertility to lower population growth is critical for achieving sustainable economic development. If this rapid increase does not slow, the population will place unsustainable pressure on Ghana's food supply, energy resources, environment, education system, labor market and health services. The program focuses on reducing the total fertility rate.
The Ghana Registered Midwives Association doubled the number of new people practicing some form of contraception, and family planning commodity distribution, as a whole, exceeded planned levels of distribution. The first family planning center opened that provides, under one roof, all family planning services -- short-term, long-term and permanent methods. Fifteen doctor/nurse teams were trained in long-term contraceptive methods, while 97 nurses/midwives received instruction in counseling on long-term contraceptive methods. The major challenges to reducing fertility are low use of modern family planning methods, inadequate access to family planning services and low levels of female literacy. Concerns being addressed in FY 1997 are increasing the demand for family planning through strengthened information, education and communication activities; expanding the provision of family planning services; and improving the sustainability of family planning services.
Agency Goal: Providing Humanitarian Assistance
The P.L. 480 Title II program contributes directly to USAID/Ghana's strategic objective to increase the marketed value of selected agricultural products. Title II assistance enhances food security in vulnerable groups in Ghana through a program carried out by three nongovernmental organizations. Part of this program assists in increasing productivity and reducing soil erosion through agro-forestry initiatives and expanding access to potable water and improved sanitation. The monetization component of the Title II program helps to support PVO projects that work with farmer groups to enhance their business skills and improve production, post-harvest processing, storage and marketing capabilities.
PROGRAM: GHANA
TITLE AND NUMBER: Increased Marketed Value of Selected Agricultural Products (641-S001)
STATUS: New
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $20,074,943 DFA; $9,739,000 P.L. 480 Title II
INITIAL OBLIGATION: FY1995; ESTIMATED COMPLETION DATE: FY 1997
Purpose: To improve policies, increase production and expand market sales for agricultural producers, input suppliers and market intermediaries.
Background: Growth in the agricultural sector is lagging, averaging less than 2% a year since 1983. With the population growing by 3% annually, accelerated growth in agriculture, both in domestic and export markets, is essential for achieving broad-based sustainable economic growth. USAID has been active in increasing non-
traditional exports (NTEs) through the highly successful Trade and Investment Program. Continued support to promote increased NTEs will be provided under this strategic objective. The GOG recognizes the prime economic importance of agriculture, which employs 70% of the population, and stresses the need for demand-driven production. The external constraints for achievement of the Strategic Objective (SO) are lack of awareness of commercialization possibilities on the part of farmers and other market participants and inadequate infrastructure.
USAID Role and Achievement to Date: USAID has helped Ghana increase its NTEs since 1992. During that time, the value of NTEs has increased from $68 million to an estimated $180 million in 1995. Investments in the NTE sector increased from an average of $4 million a year from 1986-92 to $18.3 million in 1995. Export regulations and procedures have been streamlined with the elimination of exchange controls and the introduction of a simplified export form. The GOG has provided additional export handling equipment and granted port handling fee waivers for horticultural sea freight exporters. A new Customs Export Data Information System has been put in place to more accurately track data.
Description: The SO will be achieved through the implementation of better trade and investment policies, greater agricultural production and improved domestic and export marketing. The focus will be on agricultural producers, input suppliers and market intermediaries. Emphasis will be placed on improving production and marketing practices; increasing knowledge of prices, buyers and consumer preferences; and strengthening market linkages with suppliers and distributors. Farmers' groups, comprised largely of smallholders, and rural microenterprises will be helped to improve their production, post-harvest and marketing capabilities. P.L. 480 Title II resources will address food insecurity resulting from poor food utilization and limited access and availability. Sustainability will be achieved by strengthening the capacity and profitability of agricultural enterprises, helping them to maintain and expand their operations.
Host Country and Other Donors: Over the past nine months, the GOG has undertaken an extensive review of its agricultural strategy, resulting in a set of recommendations to put greater emphasis on the sector. Areas of focus are to be the multiplication of planting materials for exportable crops, the development of linkages with the private sector to increase agricultural productivity, extension packages to farmers and better information on investment opportunities. The World Bank is the leading donor in agriculture and trade development. USAID belongs to a second tier of donors that also includes the European Union, Canada and Britain. The work of other donors compliments USAID's assistance by supporting mutually reinforcing activities that benefit farmers in a variety of ways. Other donors are active in the following areas: research and extension (World Bank), rural poverty alleviation (Canada and the United Nations Development Programme), credit (World Bank, Canada and the European Union), rural feeder roads (World Bank and Denmark), and biodiversity and forest management (World Bank, European Union and Denmark).
Beneficiaries: The SO will focus assistance on approximately 100,000 small producing and marketing enterprises and 200 larger producers, manufacturers, and marketing and exporting intermediaries. The small producers will be dealt with in groups. In all, approximately 1.6 million people will benefit, either directly or indirectly.
Principal Contractors, Grantees or Agencies: Implementation will be through the following U.S. firms: Sigma One,Amex International, Incorporated, African Project Development Facility, International Executive Service Corps, Foreign Investment Advisory Service, and Technoserve; and local nongovernmental organizations will participate as well.
Major Results Indicators:
Baseline Target
Marketed value of selected products $470 million (1994) $780 million (2001)
PROGRAM: GHANA
TITLE AND NUMBER: Increased Effectiveness of the Primary Education System, 641-SOO2
STATUS: New
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $9,646,466 DFA
INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 2001
Purpose: To improve learning in the classroom, decentralize and improve school management, and increase community participation.
Background: Effective basic education is fundamental to achieving the literacy and numeracy levels required for sustainable economic growth. The present primary education system is characterized by poor teaching, inadequate management and insufficient community participation, with the result that children learn little and standardized test scores are low. USAID has been helping to strengthen the policy and institutional framework at the Ministry of Education, including the printing and distribution of textbooks. The limited results achieved from these efforts have shown the need to focus attention more at the classroom and community level. The Government of Ghana has recently issued a program outlining a framework for providing nine years of free compulsory education for the more than 2 million primary-school-age children by 2005. Any residual activities under the Primary Education Project will be subsumed under this Strategic Objective (SO). The external constraints are inefficient management at the ministry level, lack of experience in decentralization and poor physical infrastructure.
USAID Role and Achievement to Date: USAID activities have focused on stabilizing expenditures for primary education, supplying textbooks and other teaching materials, in-service training, developing policies on equity and providing resources to strengthen the decentralization of the education reform program. A major accomplishment has been the development and implementation of a standardized test, given to 5% of sixth-graders, to measure achievement in English and mathematics. The low test scores attained helped to focus the attention of the government and the public on the weaknesses of the education system.
Description: The SO will focus on improving primary education at the classroom and community levels, including support for decentralization and better school management. To improve classroom instruction, teachers will receive in-service training, while circuit supervisors will be instructed in the observation, monitoring and feedback techniques that best support teacher improvement. District planning, management and evaluation capacity will be strengthened, resulting in greater discipline and accountability at schools, with higher morale and reduced absenteeism. At the community level, parents will be encouraged to participate in school improvement programs through awareness campaigns, social mobilization activities and incentive grants to improve school quality. Revitalized parent-teacher associations and school management committees will play a major role in ensuring improvements in the quality of education.
Host Country and Other Donors: Education reforms, beginning in 1987, have led to the devolution of greater responsibility for local school facilities to the district level. At the same time, local Non-Governmental Organizations and religious groups have increased their involvement in education. The GOG's recent release of a major planning document for improving primary education will help set the agenda for improving schools in Ghana. The principal donors to education as a whole are the World Bank and the European Union. The United States is the major supporter of primary education. Other donors will play an important part in the achievement of the SO. School facilities will be improved by the World Bank; Britain and Germany will fund pre-service training; and the United Nations Children's Fund will help improve students' health and nutritional status. USAID has coordinated teacher training efforts with Britain, including holding joint workshops and sharing research information.
Beneficiaries: The primary beneficiaries will be approximately 200,000 students in 500 schools in five districts. Secondary beneficiaries will be the rest of Ghana's more than 2 million primary school children, who will profit as changes introduced into the initially targeted schools become more widespread throughout the educational system. Other beneficiaries include about 3,300 teachers and head teachers and 400 district education personnel.
Principal Contractors, Grantees or Agencies: A U.S. firm and NGO will be identified, along with local NGOs, forimplementation of this project.
Major Results Indicators:
Baseline Target
% of students in beneficiary schools passing 3.6% English (1995) 30% English (2001)
standardized test in English and math 1.8% math (1995) 15% math (2001)
% of students in beneficiary schools whose TBD TBD
standardized test results fall with 15 points of
passing score
______________________
TBD: To be determined
PROGRAM: GHANA
TITLE AND NUMBER: Reduced Fertility, 641-SOO3
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $12,000,000 DFA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To increase the use of more effective family planning methods and improve the sustainability of family planning services.
Background: Reducing fertility to slow population growth is critical to achieving sustainable economic growth. At the current annual growth rate of 3%, the number of Ghanaians will double in 24 years, from 17.5 million to 35 million. An increase of that magnitude would put great pressure on the economy, the social infrastructure and the environment. USAID began its involvement in family planning in Ghana by helping to increase the use of and demand for family planning commodities and services. Following this successful effort that saw the total fertility rate fall from 6.4 in 1988 to 5.5 in 1993, more emphasis is now being put on providing long-term contraceptive methods, such as intrauterine devices, injectables and sterilization. The Government of Ghana strongly supports family planning and has set targets of reducing fertility to 5.0 in 2000, and 3.0 by 2020. The family planning part of the Ghana Population and AIDS Project will be subsumed under the Strategic Objective (SO). The external constraints are insufficient funds for the Ministry of Health to provide and maintain clinical facilities for providing long-term contraceptive methods and low levels of female literacy.
USAID Role and Achievement to Date: As a result of USAID-supported policy changes, contraceptives are now widely available throughout the country, including through the private sector; price controls have been eliminated; and contraceptives are no longer legally classified as dangerous drugs. Modern contraceptive prevalence increased from 5.1% in 1988 to 10.1% in 1993. The two-fold increase in modern contraceptive prevalence and the marked decline in the total fertility rate are significant achievements over a short period of time, making the Ghana program the first family planning success in West Africa.
Description: The SO will be achieved through increased use of more effective family planning methods and improved sustainability of family planning services. Demand for family planning services will be increased by strengthening information, education and communication activities and improving the quality of services. Campaigns, some aimed at special audiences such as men and adolescents, will disseminate messages about the benefits of family planning and information on specific methods through mass media, posters and brochures. Service providers will be trained in order to improve the quality of care and ensure that the most appropriate family planning methods are prescribed. Clients will be encouraged to move to long-term methods. The provision of both short- and long-term methods will be expanded through greater use of private-sector points of sale, increased distribution through Non-Governmental Organizations and private physicians, and better equipped and trained staff in the public health system. Policy reforms and GOG budgetary commitments will improve sustainability, as will greater involvement of the private sector, which is already providing 56% of family planning services. The price structure of the contraceptive market will be updated, and charges at GOG facilities will be revised to keep pace with inflation and increase cost recovery.
Host Country and Other Donors: The GOG strongly supports family planning. A National Population Council, located in the President's Office, was established in 1992, and the National Population Policy was revised in 1994. USAID is the lead donor in population and family planning, with a particularly strong advantage in working with the private sector. Japan is developing joint coordinated actions with USAID to complement efforts already under way. Other major donors are the World Bank, United Nations Population Fund, the United Nations Children's Fund and the United Kingdom.
Beneficiaries: Beneficiaries include all men and women of reproductive age in Ghana. Important target groups are women who wish to delay or limit their births but are not currently using family planning, adolescents, males and people in rural areas with limited access to services.
Principal Contractors, Grantees or Agencies: Implementation will be through the GOG, Ghanaian professional organizations, private non-profit Ghanaian associations, the Association for Voluntary Surgical Contraception, a private non-profit U.S. association, and local NGOs.
Major Results Indicators:
Baseline Target
Total fertility rate 5.5 (1993) 5.0 (2001)
PROGRAM: GHANA
TITLE AND NUMBER: Increased Use of Proven HIV/STD Prevention Interventions, 641-SOO4
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $3,253,367 DFA
INITIAL OBLIGATION: FY1995; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To improve diagnosis and treatment of sexually transmitted diseases other than AIDS, strengthen the surveillance system for AIDS, and increase knowledge about transmission and preventive measures for HIV.
Background: Infections in Ghana of the human immunodeficiency virus (HIV), which leads to acquired immune deficiency syndrome (AIDS), have not yet reached epidemic proportions, but if current trends continue, 1.2 million Ghanians will be infected with HIV by 2010. Ghana's neighbors are already experiencing HIV/AIDS prevalence rates as high as 10% of the population. USAID has been involved in raising AIDS awareness, fostering linkages between family planning and AIDS prevention, and monitoring the epidemiological progress of AIDS. Ghana was one of the first countries in Africa to recognize the threat of AIDS and since 1989 has had a plan in place, emphasizing information and education, to prevent the spread of the disease. The Special Objective will subsume the AIDS element of the Ghana Population and AIDS Project. The external constraint is lack of acknowledgement by individuals that they are at risk.
USAID Role and Achievements to Date: USAID's HIV/AIDS program has focused on increasing awareness and reducing transmission in the general population. Awareness has increased to the point where 97% of men and 93% of women have a fairly accurate understanding of the disease. A national sero-surveillance system has been designed and put into operation to track HIV prevalence.
Description: The Special Objective will change sexual behavior before HIV/AIDS reaches more serious proportions in Ghana. This will be accomplished through improved diagnosis, reduction of high-risk sexual behavior, better treatment and prevention of STDs, a strengthened system for sentinel surveillance and increased knowledge about HIV/AIDS transmission. The special attention being given to STDs stems from the fact that the presence of a sexually transmitted disease (STD) increases the likelihood of heterosexual transmission of HIV two to nine times. In Ghana, women account for 76% of AIDS cases and 68% of HIV seropositives.
Host Country and Other Donors: The Government of Ghana remains committed to fighting AIDS and has made funding available for HIV/AIDS and STD prevention and control activities. USAID is the lead donor in the battle against HIV/AIDS. Other donors have supported upgrading STD case management in government clinics (European Union), laboratory testing for STDs (Germany, Britain and the Netherlands), training for private physicians and pharmacists (Britain), and assistance to the Health Education Unit at the Ministry of Health for educational materials pertaining to AIDS and STDs (Britain). Donors cooperated closely in the establishment of public health reference laboratories; USAID undertook construction and furnished equipment, while other donors supplied reagents and provided training.
Beneficiaries: The beneficiaries include all Ghanaians because of the negative impact AIDS has on affected individual, families, groups and the community at large. Sexually active men and women will benefit by having their chances of contracting HIV, and eventually developing AIDS, reduced. Children will benefit by having less chance of being orphaned.
Principal Contractors, Grantees and Agencies: Implementation will be through the GOG, Ghanaian professional organizations, private non-profit Ghanaian associations, local NGOs, and USAID will seek expertise from a private non-profit U.S. association.
Major Results Indicators:
Baseline Target
Men and women reporting using a condom during 61% (1992) 75% (2001)
sexual intercourse with non-regular partners
Providers using appropriate interventions for TBD (1996) TBD (2001)
treatment of STDs
Men and women seeking treatment from health 34%(1996) TBD (2001)
providers for STD symptoms
|
Encouraging Broad-based Economic Growth |
Stabilizing Population Growth and Protecting Human Health |
Protecting the Environment |
Building |
Providing Humanitarian Assistance |
TOTALS |
|
|
USAID Strategic Objectives |
||||||
|
1. Increased Marketed Value of Selected Agricultural Products - Dev. Fund for Africa - P.L. 480 Title II |
17,409,747
|
|
2,165,196 |
500,000 |
9,739,000 |
20,074,943 |
|
2. Increased Effectivenss of Primary Education System -Dev. Fund for Africa |
9,000,000 |
|
|
646,466 |
|
9,646,466 |
|
3. Reduced Fertility - Dev. Fund for Africa |
|
11,500,000 |
|
500,000 |
|
12,000,000 |
|
4. Increased Use of Proven HIV/STD Prevention Interventions - Dev. Fund for Africa |
|
2,753,367 |
|
500,000 |
|
3,253,367 |
|
Totals - Dev. Fund for Africa - P.L. 480 Title II |
26,409,747
|
14,253,367
|
2,165,196
|
2,146,466 |
9,739,000 |
44,974,776 9,739,000 |
USAID Mission Director: Myron Golden