Economist. The impacts of these results will be reflected in the following indicators: a reduced rate of

inflation, more stable and realistic exchange rates, no or slower growth in public debt (debt declines as a

percent of GDP), increased loans to the private sector, increased use of private sector financial resources,

and increased foreign direct investment.

The numbers and types of financial instruments used in Ghana will be determined by monitoring the

financial markets to determine the types of instruments being used and by determining if the numbers

have increased during the life of the program.  This can be determined, in part, by monitoring reports of

financial institutions as well as activities and documents of the BOG and Ministry of Finance.

The Monetary Survey of the BOG will be used to determine changes in the proportion of credit being

extended to the private sector.  Foreign direct investment is a primary measure of linkages with world

financial markets; this information will be obtained from the Ghana Investment Promotion Center (GIPC). 

Formal and informal interviews with business firms that are expanding will be used to help determine if

less firms cite self financing as the primary method for obtaining capital for expansion.  However,

increases in the amount and proportion of loans going to the private sector and increases in firms listed on

the Ghana Stock Exchange (GSE) also will be used as indicators of a reduced need for self financing.

D. Frequency of Data Collection

The different types of data required for monitoring contract activities and accomplishments are generated

at various frequencies.  Some types of price information may be generated daily as, for example, stock

prices on the GSE.  Other data may be generated weekly as in the case of interest rates from weekly

auctions of Government and Bank of Ghana securities.  Substantial amounts of data are generated on a

monthly basis including the CPI, imports, exports, etc.  On the other hand, agricultural production data,

the GDP and some other information are only available on an annual basis.  Thus, the schedule for

collecting and storing the data for monitoring and analysis must be flexibile enough to incorporate these

different frequencies.  Proposed formats for some of the database components are given in Appendix VI.

E. Regional Development Monitoring

An issue in the economic development of Ghana is differences in the various regions of the country.  This

will be addressed to some extent through the formation of the focus groups discussed in Section VI B,

below and in the use of regional conferences and workshops contemplated under Milestones 1.11, 1.12,

1.13, 1.14, 1.17, 2.8, 3.11, 4.3, and 4.4.  However, adequate monitoring of regional effects requires more

information than is now available. To enhance this activity Sigma One will examine the feasibility of

utilizing information from administration of the value added tax (VAT) to monitor economic activities by

region, i.e., to determine the amount of value added by registered economic activities in each region.  It is

recognized that not all economic activity is covered by VAT, but utilizing the data on covered activities

will give a more accurate picture of regional levels and changes than is currently available.

V. Monitoring NPA Compliance

USAID provides non project assistance (NPA) to the Government of Ghana to assist it with the

process of policy reform.  This assistance has conditions which must be complied with before

receiving the next tranche (disbursement).  Sigma One Corporat ion will assist and support the

Interministerial Committee on Competitiveness (IMCC) to prepare its annual proposals for

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