REPUBLIC OF GHANA THE IMPLEMENTATION OF THE GROWTH AND POVERTY REDUCTION STRATEGY (GPRS II) 2006 - 2009 2008 ANNUAL PROGRESS REPORT ACCRA, GHANA SEPTEMBER, 2009 NATIONAL DEVELOPMENT PLANNING COMMISSION TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................................................................... i LIST OF TABLES AND FIGURES ................................................................................................................ iv LIST OF ACRONYMS .................................................................................................................................. vii EXECUTIVE SUMMARY ............................................................................................................................... x CHAPTER ONE: INTRODUCTION ............................................................................................................... 1 1.1 BACKGROUND ........................................................................................................................................ 1 1.2 KEY ACTIVITIES FOR THE MONITORING AND EVALUATION OF GPRS II ................................ 2 1.2.1 Sector and District Monitoring and Evaluation of the GPRS II Implementation .............................. 2 1.2.2 2008 Citizens’ Assessment of the National Health Insurance Services ............................................ 2 1.2.3 Budget and Public Expenditure Management Systems ..................................................................... 3 1.2.4 National Strategy for the Development of Statistics (NSDS) ........................................................... 4 1.2.5 Ghana Info Database ......................................................................................................................... 5 1.2.6 Evidence Based Policy Making Programme (EBPM) ...................................................................... 5 1.2.7 The Multi-Donor Budget Support (MDBS) Programme .................................................................. 6 1.2.8 Distribution of the 2007 APR ........................................................................................................... 7 1.3 DATA COLLECTION FOR THE PREPARATION OF THE 2008 APR ................................................. 7 1.3.1 Data Collection Challenges ............................................................................................................... 7 1.3.2 Reporting Cycle of Selected MDAs .................................................................................................. 8 1.4 SUMMARY OF PROGRESS MADE IN 2008 – GPRS II CORE INDICATORS .................................. 10 CHAPTER TWO: MACROECONOMIC PERFORMANCE AND ECONOMIC GOVERNANCE ............ 12 2.1 INTRODUCTION .................................................................................................................................... 12 2.2 TRENDS IN SELECTED MACROECONOMIC AND ECONOMIC GOVERNANCE INDICATORS 13 2.2.1 Real GDP Growth Rate ................................................................................................................... 13 2.2.2 Trends in Inflation ........................................................................................................................... 16 2.2.3 Interest Rates ................................................................................................................................... 18 2.2.4 Developments in the Fiscal Sector .................................................................................................. 19 2.2.5 Developments in the External Sector .............................................................................................. 20 2.2.6 Domestic Debt Stock and Domestic Debt Service .......................................................................... 22 2.3 TRENDS IN SELECTED POVERTY INDICATORS ............................................................................. 23 2.4 DEVELOPMENTS IN THE MACROECONOMIC AND ECONOMIC POLICY ENVIRONMENT ... 23 2.4.1Management of Fiscal Policy ........................................................................................................... 24 2.4.2 Monetary Policy .............................................................................................................................. 27 2.5 SUMMARY OF POLICY RECOMENDATIONS ................................................................................. 30 CHAPTER THREE: PRIVATE SECTOR COMPETITIVENESS ................................................................ 34 3.1 INTRODUCTION ................................................................................................................................... 34 3.2 STATUS OF SELECTED INDICATORS, AND KEY POLICY MEASURES, AND STRATEGIES IN 2008 .................................................................................................................. 34 3.2.1. Private Sector Development ........................................................................................................... 34 3.2.2. Modernized Agriculture ................................................................................................................. 43 3.2.3. Fisheries and Aquaculture Development ....................................................................................... 56 3.2.4. Restoration of Degraded Environment and Natural Resource Management.................................. 58 3.2.5. Promoting Trade and Industrial Development ............................................................................... 67 3.2.6. Transport Infrastructure: Road, Rail, Water and Air Transport ..................................................... 69 3.2.7. Energy Supply to Support Industry and Households ..................................................................... 76 3.2.8. Science and Technology to Support Productivity and Development ............................................. 80 3.2.9. Developing Information and Communication Technology (ICT) .................................................. 82 3.2.10. Developing the Tourism Sector for Revenue and Employment Generation ................................ 84 i 3.2.11. The Music and Films Industry for Growth and Job Creation ....................................................... 87 3.2.12. Employment Generation and Improvement and Expansion of Safety Nets ................................. 91 3.3 SUMMARY OF POLICY RECOMMENDATIONS .............................................................................. 93 3.3.1 Private Sector Development ............................................................................................................ 94 3.3.2 Modernized Agriculture .................................................................................................................. 94 3.3.3 Modernized Fishing and Aquaculture Development....................................................................... 95 3.3.4 Restoration of Degraded Environment and Natural Resource Management .................................. 95 3.3.5 Promoting Trade and Industrial Development .............................................................................. 96 3.3.6 Transport Infrastructure: Road, Rail, Water and Air Transport ...................................................... 96 3.3.7 Energy Supply to Support Industry and Households ...................................................................... 98 3.3.8 Science and Technology to Support Productivity and Development .............................................. 98 3.3.9 Developing Information and Communication Technology (ICT) ................................................... 98 3.3.10 Developing the Tourism Sector for Revenue and Employment Generation ................................. 99 3.3.11. The Music and Films Industry for Growth and Job Creation ....................................................... 99 3.3.12 Employment Generation and Improvement and Expansion of Safety Nets ................................ 100 CHAPTER FOUR: HUMAN RESOURCE DEVELOPMENT .................................................................... 117 4.1 INTRODUCTION .................................................................................................................................. 117 4.2 STATUS OF SELECTED INDICATORS, AND KEY POLICY MEASURES AND STRATEGIES IN 2008 ....................................................................................................................................................... 117 4.2.1Education ....................................................................................................................................... 117 4.2.2 Training and Skills Development.................................................................................................. 125 4.2.3 Health ............................................................................................................................................ 127 4.2.4 HIV/AIDS Prevention ................................................................................................................... 137 4.2.5 Malaria Control ............................................................................................................................. 139 4.2.6 Population Management ............................................................................................................... 141 4.2.7 Safe Water and Sanitation ............................................................................................................