Ghana - Country Assistance Strategy

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 17002-GH MEMORANDUM OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A COUNTRY ASSISTANCE STRATEGY OF THE WORLD BANK GROUP FOR THE REPUBLIC OF GHANA August 13, 1997 Country Department 10 Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Cedi ( L) USSI = C 2000 (as of July 1997) ABBREVIATIONS AND ACRONYMS BPEMS - Budget and Expenditure Public Management Systems CAS - Country Assistance Strategy CEM - Country Economic Memorandum CIDA - Canadian International Development Agency CG - Consultative Group COCOBOD - Cocoa Board CWIQ - CoreWelfare Indicator Questionnaire DfED - Department for International Development EDI - Economic Development Institute EPA - Environmental Protection Agency ESAF - Enhanced Structural Adjustment Facility ESW - Economic Sector Work FIMTAP - Financial Management Technical Assistance Project FINSAC - Financial Structural Adjustment Credit FY - Fiscal Year GLSS-4 - Ghana Living Standards Survey 4 IDA - International Development Association IFC - International Finance Corporation ISODEC - Integrated Social Development Center GAPVOD - Ghana Association of Private Voluntary Organizations in Development GCB - Ghana Commercial Bank GDP - Gross Domestic Product GEF - Global Envrionment Facility GLSS-4 - Ghana Living Standards Survey 4 GNPC - Ghana National Petroleum Corporation GT - Ghana Telecom IMF - International Monetary Fund ISSER - Institute for Statistical, Science, and Economic Research MIGA - Multilateral Investment Guarantee Agency MTEF - Medium-Term Expenditure Framework NDC - National Democratic Congress NEAP - National Environment Action Plan NGO - Non-Governmental Organizations NIRP - National Institutional Reform Program NOC - National Overview Committee OED - Operations Evaluation Department PBC - Produce Buying Company PER - Public Expenditure Review PFP - Policy Framework Paper PSAC - Private Sector Adjustment Credit PUFLARP - Public Financial Management Reform Program SPA - Special Program of Assistance SSB - Social Security Bank SSNIT - Social Security and National Insurance Trust T.A. - Technical Assistance TF - Trust Fund UNSIA - United Nations Special Initiative for Africa VAT - Value-added Tax VRA - Volta River Authority GOVERNMENT FISCAL YEAR January 1 - December 31 Vice-President: Jean-Louis Sarbib Acting Director: Kazi M. Matin Technical Manager: Charles P. Humphreys Task Teamn Leader: Kazi M. Matin  FOR OFFICIAL USE ONLY Ghana Country Assistance Strategy FY98-FYOO Table of Contents EXECUTIVE SUMMARY i I. INTRODUCTION 1 II. POLITICAL, ECONOMIC, AND SOCIAL DEVELOPMENTS 1 A. Political Developments 1 B. Macroeconomic Developments 2 C. Private Sector Developments 3 D. Social Developments 4 m. GOVERNMENT'S DEVELOPMENT AGENDA 5 A. Restoring Macroeconomic Stability 6 B. Promoting Higher Private Investment 7 C. Ensuring Social and Rural Development 10 D. Implementing Direct Poverty Alleviation Measures 12 IV. MACROECONOMIC OUTLOOK AND RISKS 13 A. The Base Case 13 B. Risks to the Base Case 14 C. Alternative Scenarios 14 D. External Economic Environment 15 V. GHANA-BANK GROUP DEVELOPMENT PARTNERSHIP 15 A. Progress Since Last CAS 15 B. Instruments of Bank-Group Assistance 17 C. Portfolio Management 18 D. Support to the Development Agenda 19 VI. SIZE AND COMPOSITION OF BANK GROUP PROGRAM 25 VII. COLLABORATION WITH OTHER ORGANIZATIONS 26 A. Donor Organizations 26 B. UN System 27 C. Non-Governnental Organizations (NGOs) 27 VIII. CAS PRIORITIES, SUCCESS CRITERIA, AND RISKS 28 This document has a restricted distribution and may be used by recipients only in the perforrnance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Table of Contents (con't.) TEXT TABLES: Table 1: Ghana: Summary of Economic Indicators Table 2: Social Indicators Table 3: Unfinished Reform Agenda for Promoting Private Investment Table 4: Ghana: Selected Indicators of Portfolio Performance Table 5: Triggers for Lending Program Table 6: Sectoral Participation of Selected Donors TEXT BOXES: Box 1: Capacity Building in Ghana Box 2: Follow-up to the OED's 1995 "Ghana Country Assistance Review" Box 3: Bank Actions for Poverty Reduction Box 4: Environment in Ghana Box 5: Ghana: Promoting Gender Equality ANNEXES: Al: Ghana: Country Assistance Strategy Matrix FY1998-2000 A2: Ghana: Selected Indicators of Bank Portfolio Performance and Management A3: Ghana: IBRD/IDA Lending Program Ghana: IFC and MIGA Program, FY95-97 A4: Ghana: Summary of Nonlending Services A5: Ghana at a Glance A6: Ghana: Social Indicators A7: Ghana: Key Economic Indicators A8: Ghana: Key Exposure Indicators A9: Status of Bank Group Operations in Ghana Ghana Statement of IFC's Committed and Disbursed Portfolio AIO: Ghana: Bank Group Program Summary, FY1998-2000  14~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~r t.o ~ ~ ~ ~ ~ ~ ~~~t V I .4<~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~t ,toDM 8Q .0 3~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~c o. .4~~~~~~~~~~ 000~~~~~~~~~~ U.~~  tjr U K4)  AAH {t$;4Sb9* to&i pu 44  iioddfts 4s2St0i v'4s&g  AA H AA  tUPOtIP O% Jp'4 A  A H AH ;A< A A A A A IflRflMA4 uon#nwitanxAU&iflnftrn. 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