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Country Development Cooperation Strategy

In the last two decades, Ghana made significant gains in economic growth, health, education, democracy and governance.

Economic growth is averaging more than six percent each year and this country is one of the few in Africa expected to meet the Millennium Development Goal (MDG) of halving the poverty rate by 2015. This growth is also enabling Ghana to achieve lower-middle-income status, though unexpectedly, following the rebasing of its GDP figures in November 2010. Despite these developments, however, the country continues to face a number of challenges, which inhibit progress toward broad-based growth, higher living standards, and good governance. High borrowing costs, unreliable supply of electric power and high transactions costs in land markets continue to be key constraints to broad-based economic growth. Further, while the rate of poverty has decreased significantly at the national level, rural areas are not achieving similar reductions. Reports by the World Bank (March 2011) also reflect a strong geographic disparity in income whereby the poverty rate is about 20 percent in the South, compared to about 60 percent in the North. Addressing this geographic divide remains an area of great importance, as its reduction is necessary to achieve broad-based economic growth and development. Moreover, while the country has realized significant positive results in health, education and governance, many Ghanaians do not have adequate access to high quality health services, educational programs and effective governance mechanisms.

The results framework below presents the goal and the four development objectives (DOs) of USAID’s five year CDCS. The goal of the CDCS is to accelerate Ghana’s transition to an established middle-income country. With an annual growth rate of 14.3 percent in 2011, making Ghana the world’s fastest growing economy, oil revenues projected at $1 billion per annum by the World Bank, and with a history of peaceful elections and regional leadership, Ghana is a lower middle income country since November 2010. In order to build upon these accomplishments and Ghana’s potential for stability, prosperity, environmental stewardship, and improved living standards, the GoG is undertaking its own planning process to reach middle-income status. Key GoG outputs from this process include: the Ghana Shared Growth and Development Agenda (GSGDA) 2010–2013, Ghana’s Aid Policy and Strategy (2011–2015), and the compact between the USAID/GHANA COUNTRY DEVELOPMENT COOPERATION STRATEGY 1 Government of Ghana and development partners 2012–2022. The Compact’s preamble states that it “should not be read as an ODA exit strategy, but should provide guidance for the strategic choices that will have to be made by the GoG and DPs alike in the period 2012–2022, as well as for the fostering of new alliances with emerging new players in development cooperation, with the ultimate goal of transforming Ghana into an established middle income and aid independent country

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