Accomplishing this requires reducing the transactions costs of doing business.  Monitoring will involve

tracking changes in governmental procedures and interviewing businesses and others involved in

obtaining premits, licenses, etc. to determine if the process has become more facilitative rather than

consisting of roadblocks to accomplishing necessary business functions that involve public agencies  

often, it seems, the government makes reforms in the procedures but the bureaucracy does not follow

through by eliminating the forms or other procedural hassles that the reforms were intended to eliminate

or simplify.

Additional result  k  (an enhanced trade regime) involves removing barriers, both tariff and nontariff

barriers.  Indicators are a lower and more uniform set of tariffs, reduced costs of exporting (including

reduced taxes on exports), improved infrastructure to facilitate imports and exports, improved and more

rapid inspections and customs procedures, and removal of internal barriers to trade (such as elimination

or reduction in arbitrary police inspections of goods being transported within the country.  Monitoring of

these activities will involve tracking changes in the rules and regulations and the compliance with the

reforms with interviews and focus groups used to help in this process.

The final result  l  (a reduced, but more effective role for the government in the economy) recognizes

that there are legitimate functions for the public sector but also that these need to be facilitative of an

improved business climate as well as carrying out legitimate control and regulatory functions that help top

assure that adequate health, safety and environmental concerns are being considered and implemented. 

Monitoring for determining if this result is being achieved involves tracking changes in government rules

and regulations as well as determining the impacts of the changes on doing business. Conferences,

forums, workshops, seminars, working groups, focus groups, rapid surveys and informal interviews with

those who do business in Ghana will be used in this process.  An indicator of success will be a decline in

the deficit and a constant or declining proportion of GDP in the public sector.

C. Monitoring Improvements in Financial Intermediation

Rapid growth in a modernizing economy depends on high rates of savings and investment, generally

together with substantial levels of FDI (foreign direct investment) and, in the case of developing

countries, development assistance (although care must be used to assure that development assistance

does not place undue burdens on the country's fiscal situation).  Mobilization of savings and their

investment depend on the effective functioning of the country's capital markets, i.e., on efficient and

secure processes of financial intermediation.   Task 2 activities are to enhance these processes in Ghana. 

1. Expected Results from Improvements in Financial Intermediation

The expected results from carrying out the activities in CLIN 3 (Improvements in Regulation,

Management and Supervision of the Financial System) and CLIN 4 (Analysis and Development of

Improved Financial Instruments) are given below.

Task 2. Financial Intermediation Improvements and Instruments:  The expected results from Task 2,

Improved Financial Intermediation, include the following:

a  An expansion of viable financial instruments used in Ghana; 

b. A more aggressive and competitive financial services sector;

c. An increase in net domestic credit provided to the private sector;

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