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Implementation of the Ghana Poverty Reduction Strategy

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Implementation of the Ghana Poverty Reduction Strategy IMPLEMENTATION OF THE GHANA POVERTY REDUCTION STRATEGY 2005 ANNUAL PROGRESS REPORT GOVERNMENT OF GHANA NATIONAL DEVELOPMENT PLANNING COMMISSION MARCH, 2006 TABLE OF CONTENTS TABLE OF CONTENTS .......................................................................................................III LIST OF TABLES AND FIGURES .......................................................................................VI ACRONYMS ...........................................................................................................................XI EXECUTIVE SUMMARY.....................................................................................................XV CHAPTER ONE: INTRODUCTION......................................................................................1 1.1 BACKGROUND..................................................................................................................................1 1.2 CHALLENGES TO DATA COLLECTION IN THE MONITORING AND EVALUATION OF THE GPRS I.....................................................................................................2 1.3 THE M&E TECHNICAL COMMITTEE ON GPRS...................................................................2 1.4 POVERTY MONITORING GROUPS...........................................................................................3 1.5 DISSEMINATION OF THE 2004 ANNUAL PROGRESS REPORT (APR).........................3 1.6 GHANAINFO DATABASE..............................................................................................................4 1.7 PARTICIPATORY M&E/CITIZENS’ ASSESSMENT SURVEY ............................................5 1.8 SUMMARY OF PROGRESS – GPRS CORE INDICATORS ....................................................7 CHAPTER TWO: THE LINK BETWEEN THE GPRS AND THE 2005 BUDGET........... 9 2.1 INTRODUCTION...............................................................................................................................9 2.2 THE PROCESS OF FORMULATING THE BUDGET .............................................................9 2.3 THE GPRS MACROECONOMIC FRAMEWORK AND THE BUDGET ...........................9 2.4 DISCRETIONARY BUDGET FOR 2005 AND THE MEDIUM TERM PRIORITIES....11 2.5 GOVERNMENT SPENDING ON POVERTY REDUCTION .............................................13 2.6 DONOR SPENDING ON GPRS PRIORITIES.........................................................................15 2.7 UTILISATION OF DISCRETIONARY PAYMENTS..............................................................16 2.8 POLICY RECOMMENDATIONS ................................................................................................17 CHAPTER THREE: OVERVIEW OF THE FINANCIAL PERFORMANCE OF DISTRICT ASSEMBLIES ....................................................................................19 3.1 INTRODUCTION..............................................................................................................................19 3.2 THE DISTRICT ASSEMBLIES’ COMMON FUND (DACF) ..................................................19 3.2.1 DACF Allocation by Regional Population ...........................................................................20 3.2.2 Utilisation of DACF by Key Sectors......................................................................................21 3.3 INTERNAL REVENUE GENERATION BY MMDA S (2001 – 2005) ...................................23 3.4 HIPC FUND DISBURSEMENT AND UTILISATION.............................................................25 3.4.1 HIPC Fund Disbursement and Utilisation by Districts Assemblies .................................25 3.5 MAJOR PROGRAMMES/PROJECTS UNDER THE MLGRD..............................................28 3.6 STATUS OF ACTIONS ON POLICY RECOMMENDATIONS MADE IN 2004 APR..........................................................................................................................28 CHAPTER FOUR: MACROECONOMIC STABILITY ....................................................... 29 4.1 INTRODUCTION.............................................................................................................................29 4.2 TRENDS IN THE PERFORMANCE OF SELECTED MACROECONOMIC INDICATORS ..........................................................................................29 4.2.1 Real GDP Growth Rate..........................................................................................................29 4.2.2 Trends in Inflation.....................................................................................................................31 4.2.3 Interest Rate..............................................................................................................................32 4.2.4 Government Budget..................................................................................................................32 4.2.5 External Developments ............................................................................................................33 4.2.6 Trends in Domestic Debt/GDP & Domestic Debt Service..............................................33 4.2.7 Real Agricultural Growth Rate ................................................................................................34 4.3 IMPACT OF ECONOMIC GROWTH AND GOVERNMENT SPENDING ON POVERTY REDUCTION...............................................................................34 4.4 DEVELOPMENTS IN THE MACROECONOMIC POLICY ENVIRONMENT............34 4.5 STATUS OF ACTIONS ON POLICY RECOMMENDATIONS MADE IN 2004 APR..........................................................................................................................38 4.6 POLICY RECOMMENDATIONS ................................................................................................41 CHAPTER FIVE: PRODUCTION AND GAINFUL EMPLOYMENT.............................. 49 5.1 INTRODUCTION.............................................................................................................................49 5.2 STATUS OF SELECTED INDICATORS AND KEY POLICY ACTIONS IN 2005.........49 5.2.1 Modernised Agriculture ............................................................................................................49 5.2.2 Sustained Environmental Protection through Re-forestation............................................56 5.2.3 Enhanced Infrastructure Development .................................................................................59 5.2.4 Strengthening Private Sector....................................................................................................66 5.3 STATUS OF ACTIONS ON POLICY RECOMMENDATIONS MADE IN 2004 APR..........................................................................................................................71 5.4 SUMMARY OF POLICY RECOMMENDATIONS..................................................................73 5.4.1 Modernised Agriculture ............................................................................................................73 5.4.2 Sustained Environmental Protection......................................................................................73 5.4.3 Enhanced Infrastructural Development ................................................................................74 5.4.4 Strengthening the Private Sector.............................................................................................74 CHAPTER SIX: HUMAN RESOURCE DEVELOPMENT AND PROVISION OF BASIC SERVICES .................................................................................................................. 97 6.1 INTRODUCTION.............................................................................................................................97 6.2 STATUS OF SELECTED INDICATORS FOR THE EDUCATION SECTOR AND KEY POLICY ACTIONS....................................................................................97 6.3 STATUS OF SELECTED INDICATORS FOR THE HEALTH SECTOR AND KEY POLICY ACTIONS................................................................................. 105 6.4 STATUS OF SELECTED INDICATORS FOR THE WATER AND SANITATION SECTOR AND KEY POLICY ACTIONS....................................... 113 6.5 STATUS OF ACTIONS ON POLICY RECOMMENDATIONS MADE IN 2004 APR....................................................................................................................... 117 6.6 SUMMARY OF POLICY RECOMMENDATIONS............................................................... 119 CHAPTER SEVEN: GOVERNANCE.................................................................................. 131 7.1 INTRODUCTION.......................................................................................................................... 131 7.2 STATUS OF SELECTED INDICATORS AND KEY POLICY ACTIONS IN 2005.......................................................................................................................... 131 7.2.1 Security and Rule of Law....................................................................................................... 131 7.2.2 Transparency and Accountability......................................................................................... 136 7.2.3 Decentralisation ...................................................................................................................... 138 7.2.4 Public Sector Reforms ........................................................................................................... 143 7.2.5 Public Policy Management ...................................................................................................
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