i TABLE OF CONTENTS TABLE OF CONTENTS ..................................................................................................................... II LIST OF TABLES AND FIGURES ............................................................................................... VI LIST OF ACRONYMS ...................................................................................................................... IX EXECUTIVE SUMMARY............................................................................................................... XII 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 M&E Guidelines .......................................................................... 2 1.2.2 Ghana Info Database ................................................................................................... 2 1.2.3 National Strategy for the Development of Statistics (NSDS) ..................................... 3 1.2.4 Evaluation of the Multi-Donor Budget Support (MDBS) .......................................... 3 1.2.5 Dissemination of 2006 APR ....................................................................................... 4 1.3 DATA COLLECTION FOR THE PREPARATION OF THE 2007 APR ............................. 4 1.3.1 Specific Data Collection Challenges by Thematic Areas ........................................... 5 1.4 SUMMARY OF PROGRESS MADE IN 2007 – GPRS II CORE INDICATORS ............. 7 CHAPTER TWO: MACROECONOMIC PERFORMANCE AND ECONOMIC GOVERNANCE ................................................................................................ 9 2.1 INTRODUCTION ......................................................................................................................... 9 2.2 TRENDS IN SELECTED MACROECONOMIC AND ECONOMIC GOVERNANCE INDICATORS .............................................................................................................................. 9 2.2.1 Real GDP Growth Rate ............................................................................................... 9 2.2.2 Trends in Inflation ................................................................................................... 12 2.2.3 Interest Rates ........................................................................................................... 13 2.2.4 The Government Budget ........................................................................................... 14 2.2.5 Developments in the External Sector ........................................................................ 15 2.2.6 Domestic Debt Stock and Domestic Debt Service ................................................... 16 2.3 TRENDS IN SELECTED POVERTY INDICATORS .......................................................... 17 2.4 DEVELOPMENTS IN THE MACROECONOMIC AND ECONOMIC POLICY ENVIRONMENT ...................................................................................................................... 17 2.4.1 Management of Fiscal Policy .................................................................................. 18 2.4.2 Monetary Policy ....................................................................................................... 21 2.4.3 International Trade Policy ....................................................................................... 23 2.5 SUMMARY OF POLICY RECOMENDATIONS ............................................................... 24 CHAPTER THREE: PRIVATE SECTOR COMPETITIVENESS ........................................ 25 3.1 INTRODUCTION ....................................................................................................................... 25 3.2 STATUS OF SELECTED INDICATORS, AND KEY POLICY MEASURES, AND STRATEGIES IN 2007 ............................................................................................................. 25 3.2.1. Private Sector Development .................................................................................... 25 3.2.2. Modernized Agriculture ........................................................................................... 35 3.2.3. Fisheries and Aquaculture Development ................................................................. 46 3.2.4. Restoration of Degraded Environment and Natural Resource Management ........... 48 ii 3.2.5. Promoting Trade and Industrial Development ......................................................... 55 3.2.6. Transport Infrastructure: Road, Rail, Water and Air Transport ............................... 58 3.2.7. Energy Supply to Support Industry and Households ............................................... 66 3.2.8. Science and Technology to Support Productivity and Development ...................... 71 3.2.9. Developing Information and Communication Technology (ICT) ........................... 72 3.2.10. Developing the Tourism Sector for Revenue and Employment Generation.......... 75 3.2.11. Employment Generation and Improvement and Expansion of Safety Nets .......... 77 3.3SUMMARY OF POLICY RECOMMENDATIONS .............................................................. 80 3.3.1 Private Sector Development ..................................................................................... 81 3.3.2 Modernized Agriculture ............................................................................................ 81 3.3.3 Modernized Fishing and Aquaculture Development ................................................ 82 3.3.4 Restoration of Degraded Environment and Natural Resource Management ............ 82 3.3.5 Promoting Trade and Industrial Development ........................................................ 82 3.3.6 Transport Infrastructure: Road, Rail, Water and Air Transport ................................ 82 3.3.7 Energy Supply to Support Industry and Households ................................................ 83 3.3.8 Science and Technology to Support Productivity and Development ....................... 83 3.3.9 Developing Information and Communication Technology (ICT) ............................ 84 3.3.10 Developing the Tourism Sector for Revenue and Employment Generation........... 84 3.3.11 Employment Generation and Improvement and Expansion of Safety Nets ........... 84 CHAPTER FOUR: HUMAN RESOURCE DEVELOPMENT .............................................. 101 4.1 INTRODUCTION ..................................................................................................................... 101 4.2 STATUS OF SELECTED INDICATORS, AND KEY POLICY MEASURES AND STRATEGIES IN 2007 ................................................................................................. 101 4.2.1 Education ................................................................................................................ 101 4.2.2 Training and Skills Development ........................................................................... 108 4.2.3 Health ...................................................................................................................... 109 4.2.4 HIV/AIDS Prevention............................................................................................. 115 4.2.5 Malaria Control ....................................................................................................... 116 4.2.6 Population Management ......................................................................................... 117 4.2.7 Safe Water and Sanitation ....................................................................................... 118 4.2.8 Housing Slump Upgrading ..................................................................................... 123 4.3 SUMMARY OF POLICY RECOMMENDATIONS ..................................................... 123 4.3.1 Education ................................................................................................................ 123 4.3.2. Health ..................................................................................................................... 124 4.3.3 Water and Sanitation. .............................................................................................. 124 CHAPTER FIVE: GOOD GOVERNANCE AND CIVIC RESPONSIBILITY ................. 128 5.1 INTRODUCTION ..................................................................................................................... 128 5.2 STATUS OF SELECTED INDICATORS, AND KEY POLICY MEASURES AND STRATEGIES ................................................................................................................ 129 5.2.1 Strengthening the Practice of Democracy and the Rule of Law ............................. 129 5.2.2 Enhancing Decentralization .................................................................................... 131 5.2.3 Protecting Rights under the Rule of Law ................................................................ 133 5.2.4 Public Safety and Security ...................................................................................... 134 5.2.5 Public Policy Management and Public Sector Reforms ......................................... 139 5.2.6 Fighting Corruption and Economic Crimes ............................................................ 141 5.2.7 Empowerment of Women ......................................................................................