Subject: Ireland/Ghana
From: [email-masked]
To: [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Wed, 8 Dec 1999 08:54:00 -0800 (PST)

Hey Team,

I have attached country information on Ireland and Ghana - it is not in the
special format - hope you don't mind.

>GHANA
>
>Monetary Policy:  Ghana has a new central bank governor, Kwabena Duffour who
>is focused on tightening the money supply  - shifting govenment sector
>accounts from commercial banks (who charged 40% rates to the gov) to the
>Bank of Ghana - this had the effect of reducing the money supply which
>helped keep the currency from sliding too much against the dollar (4%
>instead of the typical 25%)
>
>Fiscal Policy: Ghana is currently investing governement and forein
>investment in infrastructure projects.  The govenment has kept borrowing and
>inflation down under pressure from the IMF
>
>UE: I could not find the UE rate, but Ghana suffers from a lack of high
>skilled workers, they are lacking in human capital so I suspect the UE rate
>is low - I will keep looking.
>
>GDP Growth: Decreased slightly from 1998 levels, projection for 2000 is 5.4%
>
>Exhange/Currency: Currency is the Cidi which has been slipping against the
>dollar since 1998 - current nominal rate: 2,880 Cidi to the dollar.
>
>Inflation: around 4%
>
>Trade: Ghana is one of Africa's leading countries on free trade.  Their main
>exports are commodities - cocoa, gold.  Trade balance is negative and the
>trend is towards a larger negative number:
>1999 deficit: US$M 525.  Ghana has not changed their export profile in 200
>years.  They rely heavily upon energy imports and their economy is very
>sensitive to oil prices.
>
>Polictial Events:  President elected every four years by popular vote,
>cabinet style minstry.  Tension exists between Aglophone and Francophone
>countries in Africa which creates risk aversion to foreign investment.
>Ghana's economy is linked to Nigeria which has experienced political
>instability - if Nigeria takes off, so will Ghana.
>
>IRELAND
>
>Monetary Policy: EU policy - no control over its own monetary policy
>
>Fiscal Policy: Investment in human capital want to improve the quality of
>the work force - stay in school policy is aimed to alleviate tight labour
>market.  Investment in infrastructure.  Aging work force is triggering the
>government to increase pension fund provisions.
>
>UE: 5%
>
>GDP Growth: 6%-much higher than most other EU Zone countries
>
>Exchange/Currency:Sterling is the currency of Ireland's main trading partner
>- England.  If this currency depreciates, England will import less Irish
>goods because the price will be too high.  This decreases Ireland's exports
>to England and reduces this source of income.
>
>Inflation: 2%
>
>Trade: Main trading partner is England.  Ireland is moving into electronics
>(Dell) and e-commerce
>
>Political Events: Continuing North/South conflict
>
>ADDITIONAL NOTES ON GHANA
>
>Efforts to increase Growth:
>********Ghana is encouraging a private sector role in developing
>infrastructure: toll roads, water, port handling,
>********Ghana is encouraging outside investment in the country be
>positioning itself as the "gateway to Africa."
>********Ghana is increasing the percentage of equity investment in pension
>funds from 3 - 15%
>********Ghana is amending securities law allowing the creation of investment
>vehicles such as unit trusts
>********The new central bank governor, Kwabena Duffour shifted government
>sector accounts from commercial banks (who charged 40% rates to the gov) to
>the Bank of Ghana - this had the effect of reducing the money supply which
>helped keep the currency from sliding too much against the dollar (4%
>instead of the typical 25%)
>********The government has kept borrowing and inflation down (under pressure
>from the IMF)
>********Central Bank has promoted a repurchase strategy to tie up excess
>liquidity - this will also tighten the money supply
>
>What Ghana still needs to do - or still can do to increase growth
>********The government needs to reduce interest rates to spur investment
>********The government needs to speed up the privatization of state-owned
>enterprises (oil, cocoa) privatization will allow these industries to
>operate more efficiently and competitively
>********Ghana can do more to encourage investment from abroad by working
>with neighboring countries to create a politically stable environment
>********The country could offer incentives for foreign investment - could
>invest in the country's human capital through training of relevant skills
>********Step up infrastructure projects - make this a very high priority,
>most wealthy countries have a solid infrastructure
>********Target the margin - for savings and investment policies example:
>investment tax breaks, tax breaks for saving based on income.
>********Diversify sources of income which are not so prone to commodity
>price effects
>********Government can take long-term loans from investors - transforming
>short-term into long term (???)
>********since Ghana is so dependant on foreign oil prices, in the long term,
>they can reduce their dependence by developing/employing energy saving
>processes
>********Offer more support for industry - subsidies?, lower interest rates
>
>Facts on Ghana:
>********Main GDP contributors: (1997) Services: 45.7%, Agriculture: 40.1%,
>Industry: 14.2%
>********Heavy reliance on commodity products: Cocoa, Gold
>********Sensitive to fuel costs
>********Government has lost reserves, there is concern that if the
>government spends more that it has, inflation will result
>********There have been complaints that the government is too soft
>********Ghana's sources of income have not changed for over 200 years
>
>ADDITIONAL NOTES ON IRELAND
>
>Efforts to increase growth:
>********Encourage continuing education to alleviate tight labour force -
>"stay in school" policy
>
>What Ireland still needs to do - or still can do to increase growth:
>********improve infrastructure, public services
>********index welfare to wages
>********increasing the use of the Internet in schools and businesses -
>increasing e-commerce - establishing the country as a world-class site for
>e-commerce
>
>Facts on Ireland:
>********Economy is growing faster than main trading partners
>********More education: from 20% university to 80% university in 20 years
>
>Why does Ireland fear a weak British pound - according to FT?
>Sterling is the currency of Ireland's main trading partner - England.  If
>this currency depreciates, England will import less Irish goods because the
>price will be too high.  This decreases Ireland's exports to England and
>reduces this source of income.
>
>Why does ECB interest rate policy not match Ireland's needs  Does this
>mismatch mean joining the Eurozone was a bad idea?
>
>Ireland's economic growth is much higher than other EU nations (6%), but it
>only contributes about 1% of the Eurozone economy - this means it does not
>have much say in interest rate policy.  What is good for Germany's growth
>with their 12% UE and 3% growth may not be good for Ireland with 5% UE and
>6% growth - if ECB reduces interest rates to simulate growth in the
>Eurozone, it may cause inflation in Ireland.

At 10:35 PM 12/6/99 -0800, Jonathan Hudacko wrote:
>Aaron Mednelson (E-mail)" <[email-masked]>,
>         "Aiaz Kazi (E-mail)" <[email-masked]>,
>         "Charlotte Kwon (E-mail)" <[email-masked]>,
>         "Chris_Neale (E-mail)" <[email-masked]>,
>         "Chrystine Lee (E-mail)" <[email-masked]>,
>         "Deepika Shah (E-mail)" <[email-masked]
 - Ireland 11 7 99.doc - Ghana 11 7 99.doc

Kimberly Kupiecki
Senior Account Executive
A&R Partners
[email-masked]
(650) 762 2800 main
(650) 762 2825 direct
fax (650) 762 2801