REPUBLIC OF GHANA MEDIUM-TERM NATIONAL DEVELOPMENT POLICY FRAMEWORK GHANA SHARED GROWTH AND DEVELOPMENT AGENDA (GSGDA) II, 2014-2017 VOLUME I: POLICY FRAMEWORK GOVERNMENT OF GHANA NATIONAL DEVELOPMENT PLANNING COMMISSION (NDPC) DECEMBER 2014 TABLE OF CONTENTS LIST OF FIGURES AND TABLES ............................................................................................................................................. III LIST OF ACRONYMS ...................................................................................................................................................... IV EXECUTIVE SUMMARY ..................................................................................................................................................... XIII CHAPTER ONE: INTRODUCTION ........................................................................................................................................... 1 1.1 BACKGROUND ....................................................................................................................................................... 1 1.2 CONTENT AND STRUCTURE OF THE FRAMEWORK ................................................................................................ 2 1.3 PROCESS OF PREPARING THE FRAMEWORK .......................................................................................................... 2 1.4 RECENT SOCIO-ECONOMIC DEVELOPMENTS ........................................................................................................ 3 1.5 MEDIUM-TERM DEVELOPMENT AGENDA ............................................................................................................. 7 CHAPTER TWO: ENSURING AND SUSTAINING MACROECONOMIC STABILITY ................................................................... 10 2.1 INTRODUCTION ................................................................................................................................................... 10 2.2 REVIEW OF ECONOMIC PERFORMANCE .............................................................................................................. 10 2.3 ACCELERATING GROWTH IN THE MEDIUM-TERM ............................................................................................... 20 2.4 MACROECONOMIC POLICIES AND STRATEGIES ................................................................................................... 28 CHAPTER THREE: ENHANCING COMPETITIVENESS OF GHANA’S PRIVATE SECTOR ........................................................... 44 3.1 INTRODUCTION ................................................................................................................................................... 44 3.2 REVIEW OF PERFORMANCE OF THE SECTOR UNDER GSGDA (2010 -2013) .......................................................... 45 3.3 MEDIUM-TERM POLICIES AND STRATEGIES TO ENHANCE PRIVATE SECTOR COMPETITIVENESS ......................... 46 3.4 PRIORITY INTERVENTIONS TO ENHANCE PRIVATE SECTOR COMPETITIVENESS ................................................... 51 CHAPTER FOUR: ACCELERATED AGRICULTURAL MODERNISATION AND SUSTAINABLE NATURAL RESOURCE MANAGEMENT ....................................................................................................................................... 53 4.1 ACCELERATED AGRICULTURE MODERNISATION ................................................................................................. 53 4.2 SUSTAINABLE NATURAL RESOURCE MANAGEMENT ........................................................................................... 65 CHAPTER FIVE: OIL AND GAS DEVELOPMENT .................................................................................................................... 72 5.1 INTRODUCTION ................................................................................................................................................... 72 5.2 OVERVIEW OF PERFORMANCE OF THE OIL AND GAS INDUSTRY UNDER GSGDA, 2010-2013 .............................. 73 5.3 MEDIUM-TERM POLICIES AND STRATEGIES FOR THE DEVELOPMENT OF THE OIL AND GAS INDUSTRY ............... 74 CHAPTER SIX: INFRASTRUCTURE AND HUMAN SETTLEMENTS .......................................................................................... 78 6.1 INTRODUCTION ................................................................................................................................................... 78 6.2 PERFORMANCE OF THE INFRASTRUCTURE SUB-SECTOR UNDER GSGDA (2010-2013) ........................................ 79 6.3 STRATEGIC CONTEXT FOR ACCELERATED INFRASTRUCTURE DEVELOPMENT ..................................................... 82 6.4 MEDIUM-TERM POLICIES AND STRATEGIES FOR ACCELERATED INFRASTRUCTURE DEVELOPMENT ................... 83 6.5 PERFORMANCE OF THE HUMAN SETTLEMENTS SUB-SECTOR UNDER GSGDA (2010-2013) ................................ 92 6.6 MEDIUM-TERM POLICIES AND STRATEGIES FOR HUMAN SETTLEMENT DEVELOPMENT .................................... 94 i CHAPTER SEVEN: HUMAN DEVELOPMENT, PRODUCTIVITY AND EMPLOYMENT ............................................................ 100 7.1 INTRODUCTION ................................................................................................................................................. 100 7.2 OVERVIEW OF PERFORMANCE UNDER THE GSGDA (2010-2013) ...................................................................... 101 7.3 MEDIUM-TERM POLICIES AND STRATEGIES FOR HUMAN DEVELOPMENT, PRODUCTIVITY AND EMPLOYMENT 112 7.4 PRIORITY INTERVENTIONS FOR HUMAN DEVELOPMENT, PRODUCTIVITY AND EMPLOYMENT ......................... 136 CHAPTER EIGHT: TRANSPARENT, RESPONSIVE AND ACCOUNTABLE GOVERNANCE ....................................................... 139 8.1 INTRODUCTION ................................................................................................................................................. 139 8.2 REVIEW OF PERFORMANCE UNDER THE GSGDA, 2010-2013 ............................................................................ 139 8.3 CHALLENGES TO GOOD GOVERNANCE .............................................................................................................. 144 8.4 MEDIUM-TERM POLICIES AND STRATEGIES FOR TRANSPARENT AND ACCOUNTABLE GOVERNANCE ............... 144 8.5 PRIORITY INTERVENTIONS FOR TRANSPARENT AND ACCOUNTABLE GOVERNANCE ......................................... 163 CHAPTER NINE: FACILITATING EFFECTIVE PLAN PREPARATION AND IMPLEMENTATION ................................................ 164 9.1 INTRODUCTION ................................................................................................................................................. 164 9.2 ROLES, RESPONSIBILITIES AND RELATIONSHIPS OF KEY STATE AGENCIES ......................................................... 165 9.3 POLICY IMPLEMENTATION: FROM PLANNING TO DELIVERY OF DEVELOPMENT OUTCOMES ............................ 167 9.4 DEVELOPMENT COMMUNICATION ................................................................................................................... 168 9.5 STAKEHOLDER CONSULTATION AND PARTICIPATION ....................................................................................... 169 9.6 ENFORCEMENT OF RULES, REGULATIONS AND DISCIPLINE ............................................................................... 170 9.7 PROMOTING CIVIC RESPONSIBILITY .................................................................................................................. 170 CHAPTER TEN: MONITORING AND EVALUATION ............................................................................................................. 172 10.1 INTRODUCTION ............................................................................................................................................... 172 10.2 REVIEW OF M&E UNDER THE GSGDA, 2010-2013 ........................................................................................... 172 10.3 M&E CHALLENGES UNDER THE GSGDA (2010-2013) ....................................................................................... 174 10.4 MONITORING AND EVALUATION UNDER GSGDA II (2014-2017) ..................................................................... 174 10.5 M&E INSTITUTIONAL ARRANGEMENTS UNDER THE GSGDA II (2014-2017) .................................................... 176 APPENDICES: MATRICES OF MEDIUM-TERM POLICIES AND STRATEGIES, 2014 -2017 .................................................... 178 Appendix 1.1: Ensuring and Sustaining Macroeconomic Stability ......................................................................... 178 Appendix 1.2: Enhancing Competitiveness in Ghana’s Private Sector .................................................................. 180 Appendix 1.3: Accelerated Agriculture Transformation and Sustainable Natural Resource Management .......... 184 Appendix 1.4: Oil and Gas Development ............................................................................................................... 198 Appendix 1.5: Infrastructure and Human Settlements Development ................................................................... 200 Appendix 1.6: Human Development, Productivity and Employment .................................................................... 216 Appendix 1.7: Transparent, Responsive and Accountable Governance ................................................................ 228 ii LIST OF FIGURES AND TABLES FIGURES FIGURE 2.1: ECONOMIC GROWTH OVER THE PLAN PERIOD ROSE