Performance Contracting In Practice: Experience and lessons from the water sector in Ghana

This article provides some insights into how performance contracting works in practice in a developing country context, using the case of the Ghana Water and Sewerage Corporation (GWSC). Performance contracting has been a useful instrument for restructuring the state-owned enterprises (SOE) sector in Ghana, and the GWSC has made some moderate improvements since its introduction. However, the article highlights some of the institutional constraints and capacity issues that reformers will have to pay attention to, including overstretched capacity of the monitoring agency, a weak information management system and inconsistent compliance to contract by government. The findings also highlight the difficulty of separating politics from operational/management issues, especially in politically sensitive public services, yet performance contracting relies on such separation to be effective. Also it shows how informal behaviour undermines the formality of performance contracting.     

An Empirical Analysis of the Determinants of Interest Rates in Ghana

ABSTRACT

This paper provides an empirical analysis of the determinants of the bank lending rate in Ghana using annual time series data from 1970 to 2013. We found evidence of a long-run equilibrium relationship between the average lending rate charged by commercial banks and its determining factors. In the long run, bank lending rates in Ghana are positively influenced by nominal exchange rates and Bank of Ghana’s monetary policy rate but negatively with fiscal deficit, real GDP and inflation. We also find positive dependence of the bank lending rate on exchange rates, and the monetary policy rate both in the short and long run. Specifically, our findings reveal that the Bank of Ghana’s monetary policy rate and the exchange rate, by far, show strong contemporaneous effects on the average bank lending rate in Ghana.     

Adoption and impacts of sustainable intensification practices in Ghana

Sustainable agricultural intensification requires the use of multiple agricultural technologies in an integrated manner to enhance productivity while conserving the natural resource base. This study analyses the adoption and impacts of sustainable intensification practices (SIPs) using a dataset from Ghana. A multivariate probit (MVP) model was estimated to assess the adoption of multiple SIPs. Moreover, we used a multivalued semi-parametric treatment effect (MVTE) model to estimate the effects of adopting multiple SIPs on maize productivity. The MVP model results show, among others, that access to market, capital, and information/knowledge would enhance the adoption of SIPs. The MVTE model results show that a higher number of SIPs is associated with higher productivity which is more visible when commercial inputs are used in combination with cultural practices. These results have the following policy implications. First, they imply that good rural infrastructure and agricultural services such as rural road network, village-level input delivery system, input credit, and multiple information/knowledge sharing approach (instead of the conventional singular formal information/knowledge sharing approach) can enhance adoption. Second, the results suggest that promoting an integrated use of technologies, instead of a single technology, would have a positive impact on farm productivity and farm household income.     

Operationalization of Ghana’s civil service code of conduct

ABSTRACT

This paper examines the internal and external challenges to the implementation of the code of conduct in the Ghana’s civil service using the Controller and Accountant Generals’ Department (CAGD) as a case study. The main internal challenges to the implementation of the civil service code of conduct at CAGD were found to be: the categories of staff affected by the code of conduct; ‘immunity’ from sanctions, nepotism; and limited checks on enforcement mechanisms. The key external challenges to the implementation of the civil service code of conduct at the CAGD are discussed in the paper and the authors make five important policy suggestions to enhance effectiveness of the implementation process. The suggestions will have value in countries with developing administrative systems.