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Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).

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GHANA

	FY 1997	FY 1998	FY 1999
	Actuals	Estimate	Request
Child Survival and Disease..........	$11,400,000	$16,731,000	$15,295,000
Development Assistance..............	$24,600,000	$21,500,000	$21,248,000
P.L. 480 Title II...........................	$13,844,000	$13,478,000	$15,066,000

Introduction

Ghana is a key U.S. ally in promoting economic and political reform and respect for human rights in West Africa. Ghana plays a constructive role as a stabilizing influence in the region and is committed to helping resolve regional conflicts and promoting regional security. Ghana has taken a lead role in supporting the African Crisis Response Initiative, and is also in the forefront of African countries that have made positive steps toward consolidating democracy. Trade links between Ghana and the United States are expanding: U.S. exports to Ghana grew from $53 million in 1985 to $295 million in 1996, boosting Ghana to third place (after South Africa and Nigeria) among African markets for U.S. exports. The United States has a strong commitment to encourage these positive efforts and supports the development of African leadership in promoting economic growth and political stability.

The Development Challenge

The 1997 United Nations Human Development Index -- which measures life expectancy, adult literacy and per capita income -- ranks Ghana 132 out of 175 countries, making it one of the poorest countries in the world. Ghana's development is constrained by low private sector investment, rapid population growth (3%), inadequate health care, low educational status of its citizens, and institutions which are struggling to be effective in a swiftly changing society. Recent setbacks in macroeconomic management have slowed growth to an estimated 4.5% between 1992 and 1996 and led to high, double digit inflation and tight credit. The Government of Ghana is committed to reducing deficit spending, stabilizing the economy and pursuing an annual growth rate of at least 7%. The challenge is to address fundamental macroeconomic problems such as excessive increases in the money supply and public sector spending and unacceptably high inflation and interest rates while expanding support to the private sector and accelerating both privatization and secondary reforms to increase broad-based sustainable growth. A growing and diversified economy, complemented by better education, lower population growth and better health will generate increased investment, higher incomes and improved living standards. Ghana's external debt stands at $5.4 billion, 79% of gross domestic product. Debt service equals 39.7% of exports and, given healthy foreign exchange reserves and minimal arrearage, Ghana is, so far, able to manage this burden. Ghana has set an ambitious goal of becoming a middle- income country by the year 2020 and it will need donor assistance for at least half this period to attain this goal.

Other Donors

Assistance to Ghana, in the form of grants and concessional loans from over 20 multilateral and bilateral donors, totals $800 million a year. The United States contributes about 7% of the amount. Donor assistance focuses on structural adjustment, economic growth and poverty alleviation, human resource development, primary education, health sector reform, family planning and decentralization. Donors include the World Bank, United Nations Development Program (UNDP), United Nations Children Fund (UNICEF), the European Union; Britain, Canada, Denmark, France, Germany, Japan, the Netherlands and the United States.

FY 1999 Program

USAID's FY 1999 resource request will support Ghana's efforts to increase broad-based sustainable economic growth through four mutually reinforcing objectives: (1) increasing private sector growth; (2) improving the effectiveness of primary education; (3) improving family health through family planning, HIV/AIDS prevention and child survival interventions; and (4) enhancing civic participation and accountable governance.

In FY 1999, USAID's Trade and Investment Reform Program will continue to play a strong leadership role in promoting sound macroeconomic and trade policy reforms that will help Ghana attract domestic and international investment and improve private sector capacity to produce quality goods and services more cost-effectively. The Program's focus on boosting the non-traditional export sector through support to farmers and manufacturers will contribute to increases in non-traditional exports and tourism revenues, and increase the capacity of private voluntary organizations to play a major role in working in the rural areas to organize cooperatives and encourage the use of agricultural inputs and more modern production techniques.

USAID's resources also contribute to the management of a 360-square-kilometer forest habitat in Ghana's Central Region which has important biodiversity implications. In FY 1999, resources will contribute to increases in the expansion of microenterprises in areas such as organic cocoa, handicrafts, tour guides and promotional materials that contribute to more sustainable community involvement in managing park resources.

USAID's primary education program is funding the establishment of 330 model schools (at least one in each of 110 districts) in Ghana and the reform of key educational policies to improve the quality of primary education. By FY 1999, USAID will have established model schools in 12 districts. Students in those schools will begin to exhibit: (1) higher English pass rates -- going from 3.6% (for boys) and 3.9% (for girls) in 1995 to 6.5% and 7.0%, respectively, in 1999, (2) higher math pass rates -- from 1.8% (1995) to 5% (1999) for both, and (3) higher enrollment rates -- 60% (boys) and 77% (girls) in 1995 to 65% and 80%, respectively, in 1999.

USAID's FY 1999 program in the health and population sectors will contribute to increases in the use of modern contraceptives from 10% (1993) to 18%, and better treatment of sexually transmitted diseases and a slowing of the increase in HIV/AIDS prevalence from 6% (1996) to 5%. Additionally, 60% of one-year-old infants will be immunized with diphtheria-pertussis-tetanus toxoid (DPT3) vaccine (up from 49% in 1997); 45% of children with diarrhea will receive oral rehydration therapy (up from 24% in 1997) and 40% of mothers will exclusively breastfeed their newborns during the first 4 months.

Ghana's successful transition to democracy and holding of the second parliamentary and presidential elections have created opportunities to deepen the democratization process in Ghana. In FY 1999 USAID's assistance to civil society, parliament and local government will contribute to greater citizen participation in the development and articulation of national public policy and more transparency in the deliberative process through non-government organizations involvement in Parliamentary hearings.

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GHANA
FY 1999 PROGRAM SUMMARY
(in thousands of dollars)

USAID Strategic and Special Objective	Economic Growth & Agriculture	Population & Health	Environment	Democracy	Human Capacity Development	Humanitarian Assistance	TOTALS
S.O. 1. Increased Private Sector Growth - DA - P.L. 480/II	11,248 ---	--- ---	2,000 ---	--- ---	--- ---	--- 15,066	13,248 15,066
S.O. 2. Increased Effectiveness of the Primary Education System - DA	---	---	---	---	7,695	---	7,695
S.O. 3. Improved Family Health - CSD - DA	--- ---	7,600 6,500	--- ---	--- ---	--- ---	--- ---	7,600 6,500
S.O. 4. Enhanced Civic Participation and Accountable Governance - DA	---	---	---	1,500	---	---	1,500
Totals: - CSD - DA - P.L. 480/II	--- 11,248 ---	7,600 6,500 ---	--- 2,000 ---	--- 1,500 ---	7,695 --- ---	--- --- 15,066	15,295 21,248 15,066

Acting Mission Director, Thomas Hobgood

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ACTIVITY DATA SHEET

PROGRAM: GHANA
TITLE AND NUMBER: Increased Private Sector Growth, 641-SO01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $13,248,000 DA; $15,065,407 P.L. 480 Title II
INITIAL OBLIGATION: FY 1997 ; ESTIMATED COMPLETION DATE: FY 2002

Purpose: To increase private sector growth.

USAID Role and Achievement to Date: With USAID assistance, Ghana has expanded and diversified its export base beyond its traditional exports and nearly tripled non-traditional export (NTE) earnings since 1992 from $68 million to an estimated $276 million in 1996. Increases in NTEs, such as horticultural crops, fish and seafood, and wood products, have directly resulted in the creation of nearly 27,000 new jobs, a significant accomplishment in an economy which has been experiencing rising unemployment and rampant underemployment.

Description: The Trade and Investment Reform Program (TIRP) is a five-year activity to enhance Ghana's potential to earn needed foreign exchange and compete on the international market. The program supports key macro and sectoral policy reforms and provides technical assistance and training to improve the investment environment and technical capacity of Ghanaian enterprises. Policy reforms focus on eliminating and revising regulations that adversely impact Ghana's international competitiveness in sectors that have the potential to contribute to exports such as horticultural and wood products, telecommunications and financial services. U.S. technical assistance and training help Ghanaian firms working throughout the export production and marketing chain to improve their managerial and operational skills as well as their ability to identify and penetrate viable markets. The latter is particularly important in benefitting smaller producers, thousands of smallholders and micro-entrepreneurs who are playing an increasingly important role in supplying the larger exporters.

The TIRP program also enhances the sustainability of efforts now underway in Ghana's Central Region to support economic growth and generate revenues from tourism. USAID is establishing an endowment to increase the sustainability of USAID's investments in the Central Region, including the historic castles and forts, and Kakum Nature Park, a 360 square kilometer park representing the last vestiges of the Guinea rainforest. Food aid is used to strengthen farmers' groups and cooperatives to increase incomes through agricultural production and marketing, as well as to improve community-based sanitation. These latter activities are implemented by U.S. private voluntary organizations (PVOs). The overall TIRP program supports efforts to increase U.S. trade with and investment in Ghana. It will bolster economic growth which will increase demand for imports of food, equipment, agricultural and industrial inputs and capital goods, as well as promote Ghana's exports to the United States.

Host Country and Other Donors: The Government of Ghana continues the implementation of its trade and investment initiative, with support from the World Bank and United Nations Development Program. The World Bank is also implementing a $50 million Private Enterprise Export Development Program as well as infrastructure investments. USAID's planned assistance is complementary to these efforts.

Beneficiaries: Over 90% of jobs generated by the TIRP Program will be for workers in small-scale agriculture and fishing, and micro-enterprises. Currently women own 24% of the horticulture, wood, African cloth/garments, and handicrafts industries. Women-owned businesses will continue to grow as a result of this program.

Principal Contractors, Grantees or Agencies: The TIRP Program will be implemented by U.S. institutional contractors and grantees, as well as U.S. PVOs and local non-government organizations. The process to competitively select implementing contractors and grantees will be completed by June 1998.

Major Results Indicators:
	Baseline		Target
	(1994)		(2001)

Increase revenues from selected goods and services	$690 m	$1,500 m
Increase non-traditional exports	$119 m	$   605 m
Increase earnings from tourism	$241 m	$   420 m

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ACTIVITY DATA SHEET

PROGRAM: GHANA
TITLE AND NUMBER: Increased Effectiveness of the Primary Education System, 641-SO02
PROPOSED OBLIGATION AND FUNDING SOURCE: $7,695,000 DA
INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 2002

Purpose: To increase the effectiveness of the primary education system.

USAID Role and Achievement to Date: USAID has supported the primary education sector in Ghana since the early 1990s. Earlier assistance focused on stabilizing government expenditures on primary education, supplying textbooks and other teaching materials, and conducting in-service training for teachers. With USAID assistance, more than six million textbooks have been printed. This is nearly enough to ensure that each pupil within the primary education system is equipped with a basic learning tool and is a substantial improvement over 1992 figures which show that only half of the pupils had access to textbooks. There have been comparable improvements in providing teachers with basic materials and training. Approximately 96% of all primary school teachers have been equipped with instructional materials such as chalk, pens, paper and record books compared to 50% in 1992. Almost 95% of primary school teachers have been trained to meet a minimum standard for teaching English and math, compared to 66% in 1992. However, more work needs to be done to significantly raise student test scores in English and math. A curriculum-based test for sixth graders conducted for the past five years has provided invaluable information to the Ministry of Education (MOE) on student performance. The low test results and ensuing public discussion have helped to focus the government's attention on weaknesses within the primary education system. This has led to the MOE undertaking discussions with USAID and other donors on how to effectively improve the primary education system. The new program will support key educational policy reforms and technical and managerial constraints to primary education.

Description: Quality Improvements in Primary Schools is a six-year activity which is assisting the MOE to: (a) establish 330 model schools in all 110 districts of Ghana, and (2) revise key education policies to ensure that best practices from the Model Schools program will be widely replicated throughout the primary education system. The Model Schools program is based on establishing a set of school quality standards which are necessary for pupil learning. Examples include targets for enrollment of children, minimum attendance rates for pupils and teachers, sufficient equipment and learning materials and adequate school facilities. The Model Schools program will concentrate on three major objectives. First, to improve the learning environment by strengthening the capacity of District Assemblies (similar to city councils) to support quality schools. Second, to improve classroom teaching through better supervision and training in methods that stimulate student interest in learning. Third, to encourage greater community (i.e. Parent-Teacher Associations, School Management Committees) involvement and participation in developing and implementing school improvement plans. Policy reform will focus on improving educational policies in four critical areas: (1) curriculum development; (2) educational personnel management; (3) capacity building at the district and local levels; and (4) school data collection and analysis. A key theme throughout the program will be to expand support for the decentralization process. Policies that increase district authority and accountability will be encouraged and district-level training will be conducted in management, financial planning and teacher training.

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 nongovernmental organizations and religious groups have increased their involvement in education. In early 1996, the Ghanaian government released a comprehensive plan for improving primary education in Ghana. In addition to the United States, other principal donors are supporting basic education. The World Bank has signed a large Basic Education Investment Program aimed at improving access and quality, particularly in impoverished areas. The British development organization will provide budgetary support and collaborate with Germany on improving education in teacher training institutions. United

Nations Children Fund recently started a five-year country education program which concentrates on girls' education and community-based education programs. The European Union plans to continue providing funds for non-wage expenditures. Japan has recently assigned their first education specialist in sub-Saharan Africa to Ghana.

Beneficiaries: The primary beneficiaries will be approximately 132,000 students in 330 model schools. The rest of Ghana's 3 million primary school children will benefit as changes introduced into the initially targeted schools become more widespread throughout the system. Other beneficiaries include approximately 3,300 teachers and head-teachers along with 400 district education personnel.

Principal Contractors, Grantees or Agencies: The Program is implemented by the following U.S. contractors and U.S. private voluntary organizations: Academy for Educational Development, The Mitchell Group and the Education Development Center (which includes CARE and Save the Children).

 Major Results Indicators:
	Baseline		Target
	  (1995)		(2002)

Model Schools established		  0		     330

					Boys	Girls		Boys	Girls

English Pass Rate			3.6%	3.9%		30%	30%
Math Pass Rate			1.8%	1.8%		15%	15%
Enrollment Rate			60%	77%		85%	90%

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ACTIVITY DATA SHEET

PROGRAM: GHANA
TITLE AND NUMBER: Improved Family Health, 641-S003
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999 $7,600,000 CSD; $6,500,000 DA
INITIAL OBLIGATION: FY 1994; ESTIMATED COMPLETION DATE: FY2000

Purpose: To improve family health through reducing fertility, increasing child survival and increasing use of interventions to prevent HIV/AIDS and other sexually transmitted diseases (STDs).

USAID Role and Achievement to Date: Policy reforms promoted by USAID have led to the elimination of price controls, deregulation of contraceptives and wider availability of contraceptives through the private sector. These contributed to a significant decline in the fertility rate from 6.4 to 5.5 children per woman between 1988 and 1993. Both the increase in the use of modern contraceptives and the marked decline in the total fertility rate are significant achievements over a short period of time, making the Ghana program one of the first family planning successes in West Africa. In addition to family planning, USAID's health program has focused on increasing awareness of HIV/AIDS in the general population. Now more than 90% of men and women in Ghana are aware of the HIV/AIDS transmittal routes. However, major behavioral changes have not yet occurred to slow transmission of HIV, with prevalence now estimated at 5% of the population. USAID funded a national sero-surveillance system to track HIV prevalence. The system includes four public health reference laboratories in strategic locations throughout the country which have been built, equipped and staffed by laboratory personnel who have been trained under this program. USAID is providing technical assistance to the Ministry of Health (MOH) to develop a new, comprehensive child survival strategy. Child survival interventions supported by USAID are incorporated into health messages and support for immunization equipment (cold storage) and vaccines is an integral aspect of this assistance.

Description: To improve health status in Ghana, USAID supports policy dialogue designed to improve access and availability of contraceptives, effective diagnosis and treatment of AIDS and STDs and greater use of child survival interventions. Technical assistance and training is geared towards: (1) development of Information, Education & Communication (IEC) campaigns to generate greater demand for family planning, child survival and AIDS/STDs awareness; (2) training of service providers to improve counseling and medical procedures; (3) promotion of use of family planning methods, continued training of staff, and equipping laboratories to improve diagnosis and treatment of AIDS/STDs; and (4) provision of contraceptive commodities. Greater resources are being channeled to the National Population Council and its secretariat to implement effective decentralization of population policy at the regional level, improve data gathering of vital statistics, and enhance more vigorous political support for the National Population Policy. Support is provided for expanding points of sale for contraceptives through non-government organizations (NGOs), private physicians and the private sector, which is already providing 56% of family planning services. For child survival activities USAID supports selected elements of the new MOH strategy, namely improving child nutrition, exclusive breastfeeding, immunization coverage, including the Polio Eradication Campaign, and infant diarrhea management. Collaboration continues with U.S. private voluntary organizations (PVOs) (Africare, Plan International and CARE), United Nations Children Fund (UNICEF) and local NGOs to: (1) increase immunization coverage (with special emphasis on the eradication of polio); and (2) improve treatment of diarrhea and reduction of dehydration through increased use of oral rehydration therapies, both home fluids and commercially prepared oral rehydration salts.

Host Country and Other Donors: The Government of Ghana (GOG) strongly supports family planning, the fight against HIV/AIDS and improved child survival interventions. USAID is the lead donor in population/family planning and HIV/AIDS. Japan is beginning to collaborate with USAID to complement efforts in public health training, supplying public health laboratories and assisting in the Ghana Census.

Other major donors in the health sector include the World Bank, United Nations Population Fund, UNICEF 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 children but are not currently using family planning methods, adolescents, males and people in rural areas with limited access to services.

Principal Contractors, Grantees or Agencies: The program is implemented through the GOG, the Association for Voluntary Surgical Contraception, Plan International and Africare (all U.S. PVOs), private non-profit Ghanaian associations and local NGOs such as Ghana Social Marketing Foundation, Ghana Registered Midwives' Association and the Planned Parenthood Association of Ghana.

 Major Results Indicators:
						Baseline			Target
						(1997)				(1999)

Total Fertility Rate				  5.5% (1993)			  5.0% (2001)
Modern Contraceptive Prevalence		10.1% (1993)			18 %
HIV Infection Prevalence			  6 % (1996)			  5 %
Mothers exclusively breastfeeding		19 %				40 %
Infants immunized with DPT3*		49 %				60 %
Children receiving ORT**			24 %				45 %

^* DPT3 -- Diphtheria-pertussis-tetanus toxoid vaccine
^** ORT -- Oral rehydration therapy

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ACTIVITY DATA SHEET

PROGRAM: GHANA
TITLE AND NUMBER: Enhanced Civic Participation and Accountable Governance, 641-SO04
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $1,500,000 DA
INITIAL OBLIGATION: FY 1997; ESTIMATED COMPLETION DATE: FY 2002

Purpose: To increase civic participation and accountable governance by supporting the development of civil society and strengthening the capacity of parliament and local government to improve accountability and transparency.

USAID Role and Achievements to Date: USAID has been a major player in encouraging and supporting Ghana's efforts to consolidate democracy. From 1994 to 1996, USAID's program focused on supporting the electoral process by funding the development of a new voter registry (9.2 million registered) in 1995 and strengthening the capacity of the Electoral Commission to conduct presidential and parliamentary elections in December 1996. Nearly 80% of registered voters participated in the elections, the first consecutive national elections to be held in Ghana's history. With the elections over, Ghana is continuing on the path of consolidating democracy.

Description: USAID's program focuses on strengthening civil society organizations (CSOs) to play a more active role in the governance process and fostering greater government accountability and transparency. This program was designed in late FY 1997 as a follow-on to the previous electoral assistance activities. Two U.S. private voluntary organizations based in Ghana implement the activity and conduct training programs nationally that include leadership development, organizational and financial management, problem analysis and solving techniques, and greater collaboration with other non-government organizations and local government organizations. Workshops and seminars are to be held in all 110 administrative districts over the four years of the project. The civil society development activities include increasing management capacity of CSOs promoting collaboration and communication with government decision makers, improving CSOs' capacity to represent their members and improving coordination among CSOs to articulate their positions on public-policy issues. Parliamentary assistance includes support to improve the professional skills of parliamentarians and staff, increase access to and use of information, and improve oversight capacity. Limited support is also provided to conduct local district-level elections and improve the capacity of political parties to develop party platforms. Assistance to strengthen local government is also provided through training and technical assistance.

Host Country and Other Donors: Many donors are involved in promoting democracy and good governance objectives in Ghana. USAID is the largest donor in civil society development and parliamentary support. The United Kingdom, Denmark, Germany, and Netherlands as well as the European Union and World Bank have active programs in supporting decentralization of government services to local level district assemblies. Germany also have an active media and journalism support program.

Beneficiaries: Ghana's 18 million people are the beneficiaries of this program. Without a stake in the society that encourages individual initiative and involvement in decision making, Ghanaians will not be able to achieve the levels of economic, social and political growth required to move the country forward.

Principal Contractors, Grantees or Agencies: The major grantees implementing the strategic objective are: International Foundation for Election Systems (IFES); National Democratic Institute (NDI); and Georgetown University Law Center's Women's Law and Public Policy Fellowship Program. IFES's activities support development of civil society, strengthening local government effectiveness and enhancing the capacity of political parties in a multiparty democracy. NDI works principally to strengthen Parliament and enhance its role as an effective legislative body and counterweight to the

executive branch. Under the auspices of the Georgetown Fellowship Program, USAID supports the Legal Advocacy for Women in Africa Program which funds advanced training for women lawyers in Ghana involved in advocacy and non-governmental organizations.

Major Results Indicators:

									Baseline	Target
									(1996)		(2000)
Number of changes made to government-introduced
legislation as a result of CSO advocacy				2		10

Percent of Ghanaians surveyed who feel they have sufficient
information about what the government is doing			32%		65%

Percent of District Assembly budgets generated from local
sources								 5%		20%

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