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I r- i - r ' ;I i {j ~i·· Proceedings of the National Economic Dialogue May 14-15,2001 and its Preparatory Workshops April 19 to May 7, 2001 Accra, Ghana Submitted to: U.S. Agency for International Development Mission to Ghana .. for: Trade and Investment Reform Program (TIRP) Improved Policy Reform and Financial Intermediation USAID Contract Number: 641-C-OO-98-00229 .... by: BDC,Accra For Sigma One Corporation In fulfillment of the following milestones: 1.11 (Y3) Annual National Economic Forum in Fall (September) .... June 2001 Sigma One Corporation ... ... Proceedings of the NATIONAL ECONOMIC DIALOGUE Accra, Ghana MAY 14 -15, 2001 .' ... - - ~- ' .. Proceedings of the National Economic Dialogue, May 14-15,2001 Chairman's Opening Remarks Allan Kyeremanteng The chairman Allan Kyeremateng, started the session off by describing it as an extraordinary general meeting of Ghana Incorporated, welcomed all the participants and hoped that by the end of the proceedings, a course would have been charted leading not only to prosperity but that it would provide the basis for lasting peace and security. He said Ghana needs to make a quantum leap in economic growth. He said the dialogue is about finding answers to three fundamental questions; • Where are we now; • Where do we want to go to?; and • How and when do we get there? He cautioned the participants against coming up with a long wish list and advised that recommendations which they come up with must be internally consistent. Welcome Address Minister of Economic Planning & Regional Integration Hon. DR. P.K. Nduom Dr. Nduom informed the participants that to ensure an all-inclusive agenda setting process, six workshops were held prior to the National Economic Dialogue. The workshops were under the following themes: • Poverty Reduction Strategy • Golden Age of Business • Education, Labour Market & Human Resource Development • Economic Policy • Resources for Growth • Financial Sector They were attended on average by about one hundred participants, who represented political parties, civil society, private sector, students, labour and other identifiable groups and this has ensured that the agenda before the National Economic Dialogue was built out of consensus. He recalled the Vision 2020 programme implemented by the previous government and explained that given the slow pace of growth, it would take another fifty years to achieve the objectives of Vision 2020. He stressed that in coming up with recommendations, the participants must . /- learn from what worked and what did not work over the last twenty years. He said it is possible to determine what needs to be done to build a more solid foundation that we can rely on for accelerated growth and development. .r H. E The President's Address President Kufuor re-emphasised some of the thematic areas that describe his vision for Ghana. He said: • We should build a property owning democracy that will enable our people to defend the right of all citizens at all times. • We will take advantage of vast resources to make Ghana a leading agro-industrial country by 2010. '" • We will create a 'Golden Age of Business' where the private sector is the pillar by which Ghanaians become prosperous. • We will engender a strong spirit of social responsibility. • We will enlarge social and economic infrastructure and our ability to maintain them. • We will resolve to eliminate poverty. The president stated that in creating the 'Golden Age of Business' all .... sectors, including labour, entrepreneurs, civil society and government should work together with one vision that will allow all to win. He said the National Economic Dialogue should not be seen as another talking shop and that we should concentrate on finding solutions to our problems which are pragmatic in the light of current circumstances. President Kufuor said Ghana can no longer defer what needs to be done today to secure its future. This is why the government has taken so many difficult decisions in its first one hundred days. These include increasing the prices of petroleum products, the decision to join the HIPe programme, and the raising of utility rates. The president said that there is hope for the country as a number of positive signs are already becoming evident. He said the government's forthright position on the debt situation has led to our development partners to signal an intention to write off a significant portion of our external debt. He promised that the government intends to payoff the domestic debt of r:t.9 trillion by the end of the current term of office. The government had put in place measures to attract foreign direct investment to take advantage of the Africa Growth and Opportunity Act to create new jobs. He said government will shortly sign two agreements with leading .... financial institutions that want to use Ghana as the gateway to West Africa. This will help achieve our objective of making Ghana the leading financial centre in West Africa. The government, he said, will invest heavily in the food and crop growing areas to generate employment and reduce poverty. NED, May 14-15,2001 2 President Kufuor advised those entrusted with responsibility to work with circumspection and a sense of duty. He predicted a new era that will bring in its stride a confident and free Ghana . ... .. NED. May 14-15.2001 3 ... SYNDICATE GROUP 1 POVERTY REDUCTION STRATEGY Chairperson Dr. Sulley Gariba The poverty reduction group was chaired by Dr. Sulley Gariba. The group was given recommendations of preparatory sessions for the Economic '''' Dialogue at GIMPA as discussion documents for the workgroup session. The discussions of the group centred on five main areas, which are outlined below as follows: .... • Macro-economic environment for poverty-targeted growth; • Human Resource Development and Basic Services • Vulnerability and exclusion • Production and Gainful Employment • Poverty and Governance The workgroup then established key priority areas for as follows: • Enhance local governance and strengthen District Assemblies to playa central role in poverty-focused planning, equitable resource allocation and program implementation, and provide adequate financial and increased capacity to perform their mandate. • Make the Agricultural (food growing sector) as the lead sector for poverty-targeted growth. Within this sector, emphasis should be placed on gender dimensions of the food sector. • Streamline and make more efficient investments in the social sectors of health, education, water and sanitation to provide increased access and utilization of these services by the poorest of the poor, especially people who are vulnerable, disabled and I", excluded in the mainstream of society • The locational priority for poverty reduction measures should be in the three northern regions and in specific districts in the Central and Eastern Regions that register worsening poverty trends, through the establishment of Gender-based targeting to ensure that poor women are targeted to gain access to financial and other resources for poverty reduction. ..... • Establish transparent monitoring and evaluation systems for poverty-targeted programs. NED, May 14-15,2001 4 Following the establishment of key priority areas, there were comments discussions and recommendations on the various issues, which have been captured under various headings as follows: DECENTRALISATION o Basic infrastructure (roads, water & sanitation, etc.) should be the responsibility of the District Assemblies. DAs must concentrate on how the provision of such services impact on poverty o DACF should be targeted at development, and should be changed to District Development Fund. o Developments in districts should involve the town and area councils as well as the chiefs and local people. o The principle of 'all hands on deck' should involve mobilisation of all available human resources for the mass production of needs e.g. 5,000 National Service Persons could plant about IS million trees per year . o District Assemblies must focus on increasing revenues. o Increase levels of productivity at the District level. o Issues of gender should be assessed in addressing the issue of vulnerable groups in poverty alleviation. o The Assurances Committee of Parliament should monitor fiscal decentralisation and the DACF. o There should be a ceiling on the levels of public expenditure through enactment of legislation. o Increase the poverty alleviation proportion of the DACF from 5%- 10% o DCE's should be elected to make them more accountable to the electorate. AGRICULTURE o Targets must be set for selected products, which have markets externally. o Support the poor in agric sector with specific schemes in the areas of health, education and provision of potable water. o Identify areas for target setting and prioritisation o Identify infrastructure needs and appropriate technology
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