IV. Impact Monitoring Plan

As a result of policy dialogue and related activities (by USAID, the World Bank, IMF, etc.),

the Government of Ghana is expected to implement additional economic reforms (it has

already carried out a substantial body of reforms).  A purpose of the Sigma One USAID

contract is to assist the GOG in the analysis and implementation of appropriate policy reforms,

as well as enhancing the capacity for policy analysis and dialogue and increasing the

involvement of the private sector and general population in the process.  Thus, one aspect of

monitoring for results is the impact of the policy dialogue process on the economic reforms

actually implemented.  However, since the objective of the reforms is increased economic

growth, the impacts of the reforms on the economy must also be measured through monitoring

of general and sector specific indicators of economic growth and development.  Some reforms

can be expected to have relatively immediate and direct impacts, e.g., the removal of an export

ban on a product can be expected to cause an increase in the export of that product, at least if

it is competitively produced.  Other reforms act only indirectly on the economy and, thus,

direct impacts cannot be measured.  These can be assessed to some extent by general measures

of economic growth such as increases in per capita GDP.  Such measures, however, are

influenced by many factors and, therefore, care must be used when analyzing the impacts of

particular reforms or in using a particular indicator in determining success or failure of any

specific contract activity.  Thus, for the monitoring of this portion of the TIRP, information on

both general and specific indicators will be regularly collected, analyzed and reported.

In the selection of the indicators used for monitoring the results and impacts of the Improved

Policy Reform and Financial Intermediation program, the criteria listed in the AID manual for

monitoring for results were used.  The matrices utilized in this process and an explanation of

the procedures are given in Appendix III.

A. Potential Policies to be Evaluated, Adopted and Implemented

Due to the many distortions and problems in the Ghanaian economy and, despite previous

reform efforts, there are still many policy changes to be made that will contribute to enhanced

growth.  A listing of many of these is given in the following outline based on the draft policy

agenda in the Technical Proposal from Sigma One Corporat ion.  This list is for illustrative

purposes only, since the final policy agenda is not yet approved.  However, it is representative

of the types of policy reforms that are required to address problems and issues that must be

resolved if Ghana is to meet the ambitious goals of its Vision 2020.

1. Fiscal Planning and Accountability

(a) Incorporate the Broad Budget as the single approved budget for fiscal expenditures

(Fiscal Plan for the Nation)  The preparation of this fiscal plan will include the domestic

currency requirements to counterpart internat ional development assistance. It must be

developed in close consultation with the Regional Ministers and their advisers to ensure

regional investment programs are focused on international competitiveness with due

regard to human and social welfare issues.

(b) Timeliness of the Fiscal Planning Process  All parties agree that the new fiscal plan in (1)

above will be prepared with sufficient time for submission to Parliament and debate

18