THE U.S. - GHANA RELATIONSHIP: THE AMBASSADOR'S

C O N F I D E N T I A L SECTION 01 OF 05 ACCRA 001679

SIPDIS


PLEASE PASS AGR

E.O. 12958: DECL: 08/20/2015
TAGS: PREL PGOV ECON GH
SUBJECT: THE U.S. - GHANA RELATIONSHIP: THE AMBASSADOR'S
PARTING THOUGHTS

REF: A. ACCRA 1505

B. ACCRA 1386

Classified By: Ambassador Mary C. Yates for Reasons 1.5 d and e


1. (C) Summary: The U.S.-Ghana relationship is strong and
broad-based. In this message, I offer my parting thoughts on
how the relationship has changed during my nearly three-year
tenure as Ambassador, and identify some of the main
challenges ahead. I leave very optimistic about Ghana. The
GoG values its relationship with us, and there is enormous
good will toward the United States among the Ghanaian people.
Our relationship has been strengthened during my watch by
the five meetings between Presidents Bush and Kufuor, and by
the visits to Ghana of President Carter, Secretary of Labor
Chow, HHS Deputy Secretary Allen, MCC CEO Applegarth, and
numerous senior U.S. military visits and codels. The GoG was
wildly enthusiastic when we were recently planning for a
possible visit by Secretary Rice, as they saw it as
validation of Ghana's rising status in Africa.


2. (C) In the three years since my arrival, Ghana has turned
around its economy, solidified its democracy and successfully
concluded a peaceful election, and enhanced its reputation as
a regional leader. While Ghana faces daunting economic and
political challenges in the coming years, I believe it
currently has the best chance of its history to make the leap
to become a middle-income economy. As one of the only
democratic, stable, and peaceful countries in West Africa,
and with its growing importance as a regional leader and
regional economic hub, Ghana stands to become even more
important to United States foreign policy. 2007 promises to
be a historical year for Ghana, as it celebrates fifty years
of independence, while also hosting the African Union summit.
Both events will solidify Ghana as continent-wide leader.
End Summary

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Our Accomplishments
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3. (C) My dynamic Embassy team, scattered in eight compounds
around Accra, has accomplished so much over the past three
years. In my view, these are the highlights:


4. (C) Political: We increased our cooperation with law
enforcement, reflecting growing concerns about trafficking in
narcotics, people, and arms. This included counternarcotics
training and equipment, community policing equipment and
training, computers for an Internal Monitoring Unit in the
police, and basic police training. With a good deal of
persistence and hard work by the Embassy team, Ghana's
parliament passed an anti-trafficking in persons law and just
this month signed agreements for $450,000 in new assistance
on TIP and narcotics. We supported the 2004 presidential and
parliamentary election with over $1 million in assistance and
50 teams of Embassy observers. We strengthened parliament
through USAID, and sent five Supreme Court justices on an
International Visitor program. We improved relations with
the opposition NDC (In the past month alone, I hosted a lunch
for former President Rawlings and received a large NDC
entourage in my office).


5. (C) Economic: The big story in Ghana since 2003 has been
the improvement in the economy, and the U.S. played a
critical role in shaping the GoG's economic policies through
our technical assistance and direct political support and
pressure. Our support for and urging of the GoG was integral
to Ghana maintaining the reform program that enabled it to
fulfill the necessary conditions to achieve Completion Point
under the Heavily Indebted Poor Country (HIPC) Initiative in
July 2004, resulting in approximately $4.2 billion debt
relief. Since 2003, the USG has dramatically increased
economic engagement with Ghana, with Treasury, OPIC,
ExImBank, the African Development Foundation, TDA, FCS, and
USTR all expanding their programs. Ghana is a priority for
USAID, and Washington identified the USAID-Ghana mission's
program for specific praise. In addition, USAID's West
Africa Regional Program (WARP) moved from Mali to Ghana, and
we opened the West African Trade Hub (WATH) in 2003. WARP
and WATH further raised Ghana's regional profile and helped
to strengthen ECOWAS (especially with the development of the
ECOWAS Common External Tariff) while President Kufuor was the
Chairman (2003-4).

6. (C) U.S. economic linkages are expanding rapidly. U.S.
exports to Ghana rose from $200 million in 2003 to $300
million in 2004, in part due to our trade promotion efforts,
and USTR has selected Ghana as a "pacesetter" country, due to
its relative success in diversifying its exports to the U.S.
under the AGOA program. We have revamped our commercial
relationship, reviving the Amcham, facilitating numerous
American business successes (including the GoG's recent award
of an oil block operator-ship to U.S. firm Amerada Hess),and
playing a critical role in the resolution of longstanding,
high profile American investor disputes. We also supported
the entry into Ghana of a number of large U.S. companies,
including Newmont Mining, and ALCOA. The Embassy's political
lobbying on the Ghanaian government added to direct technical
assistance were the key factors in the signing of the
agreement to build the Chevron-Texaco-led $600 million West
Africa Gas Pipeline, stretching from Nigeria to Ghana. The
GoG is proud of this regional accomplishment and cites it
frequently as the backbone of its energy strategy for
economic growth. Also with our assistance, Standard and
Poor's and Fitch Ratings Agencies gave Ghana its first-ever
sovereign credit ratings (of B ). Finally, we supported
Ghana Expo 2004 in Atlanta, which raised Ghana's business
profile in America, and I lead a delegation to the Corporate
Council on Africa's summit in June 2005.


7. (C) MCA: The inclusion of Ghana among the 16 countries
eligible for assistance under the Millennium Challenge
Account (MCA) was an enormous achievement for the GoG, and
vindicated President Kufuor's politically difficult decision
to implement macroeconomic reforms to stabilize the economy.
Despite the GoG's enthusiastic support for the program, the
MCA has had a difficult birth in Ghana. We worked hard to
get the GOG organized, overcoming weak institutional capacity
and unrealistic expectations. In recent months, the GoG has
come a long way quickly, largely in response to our nudging.
To support this progress, on August 12 we signed a $3 million
MCA 601g technical agreement with Ghana, which we hope will
pave the way for a large, multi-year MCA program in Ghana by
year-end.


8. (C) Health and Education: Both the GoG and USAID continue
to prioritize these critical sectors in their poverty
reduction strategies and resource allocation. USAID HIV/AIDS
funding nearly doubled in Ghana in the past three years,
significantly helping Ghana contain the AIDS epidemic and
expand health care services. We partnered with the Dutch
Embassy on promoting HIV/AIDS workplace policies at the ports
and mines. Internally, we implemented a very successful
workplace HIV/AIDS policy for the Mission, and still count as
one of our greatest accomplishments the fact that the
majority of local staff have been counseled and tested thanks
to our innovative, day-long health fair last spring.


9. (C) Public Diplomacy: We have had an enormously
successful Muslim outreach program, with Iftaars, dialogues
in their communities, and about $12 million in USG assistance
each year focused on Muslim communities. We opened an
American Corner outpost in 2004 in the predominantly northern
city of Tamale, offering a reading library on America and a
dozen internet stations. I saw the fruits of this effort
during my recent visit to Kumasi, which has Ghana's most
radical Muslim elements. The Regional Chief Imam and a group
of about 30 Imams and Muslim Chiefs greeted me with a
veritable love fest for America, eagerly taking our
friendship pins with the American flag. My receptions from
the Chief Imam of Tamale and the National Chief Imam in Accra
over the past month were equally warm. Other major successes
in PD have been reinforcing tertiary educational institutions
(forging new partnerships with many universities and
polytechnics, and expanding our Fulbright program). The
launching of Voice of America FM broadcasting in Accra 24/7
in 2005 gives Ghanaians more American news and views.


10. (C) Management: After overcoming many property
acquisition difficulties, we broke ground on our New Embassy
Compound and are making great progress. General Williams
promises a spring 2007 completion, which will add to Ghana's
historic celebration. We put in place an effective
State/USAID pilot program to harmonize administrative
services. Embassy Accra volunteered to pilot and is on the
verge of starting a DOS diplomatic post office as I depart
which should be a real morale booster. We significantly
improved our consular services, with on-line visa
applications, electronic scheduling and increased staffing.
As a result, the wait for non-immigrant visas has reduced
from an average of six to three months. But we still need to
reduce this further.


11. (C) Security: Our military-military cooperation has been
transformed in the past few years, with dozens of Flag
Officers' visits, three major ship visits, and assistance to
the Kofi Annan International Peacekeeping Center, including
at last a fulltime American military officer on staff. We
supported Ghana's military and peacekeeping leadership in
ECOWAS, especially in their contributions to advancing the
African Union's plan to stand-up force brigades. We
initiated a State Partnership Program with the North Dakota
National Guard, only the second in Sub-Saharan Africa. U.S.
military built the Exercise Reception Facility, and we signed
an African Fuel Initiative Hub agreement to facilitate future
U.S. military engagements in West Africa. We also developed
a more robust intelligence sharing relationship. Post's
active Office of Defense Cooperation supports Ghana's
regional leadership, through ACOTA assistance for
peacekeeping as well as significant humanitarian assistance
programs. Ghana has been very cooperative in the war against
terrorism, signing all 12 UN terrorism conventions.

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The Challenges Ahead
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12. (C) As we continue to build on our strong foundations
with Ghana, we should be mindful of some potential problems
as well. The main ones I see are:


13. (C) Governance: Corruption and cronyism are growing
concerns, as revealed by two recent public opinion surveys
(reftels),and this is an area the GoG must focus on if it is
to continue its impressive economic and political reform
movement. Parliament and anti-corruption institutions are
ineffective. Politics is highly polarized, with little
cooperation between the main NPP and NDC parties, as was
recently witnessed in their debate over whether to allow
expatriate Ghanaians to vote. Traditional chieftaincy
disputes (mostly over land) and some level of isolated ethnic
tension cause social strains. All of these factors have the
potential to corrode Ghana's democracy. We will also have to
work to keep the GoG from being too distracted by the
politics of election 2008. Some observers believe
pre-election politicking is already beginning to slow down
government decision-making.


14. (C) Reducing Poverty: The GoG's careful management of
the economy turned a distressed economy in 2002 into an
economy marked by 5.8% growth, low inflation, and a stable
exchange rate in 2004. However, the economy is heavily
dependent on gold and cocoa exports and is, therefore,
vulnerable to external shocks. With weaker cocoa prices and
rising oil prices, Ghana's declining terms of trade could
pose some balance of payments challenges down the road.
Investment levels are still low, and a top priority is for
the GoG to improve the investment climate. Poverty remains
high in much of Ghana, and average Ghanaians do not yet see
the benefits of the government's macroeconomic reforms.


15. (C) Regional Conflict: There is always the potential for
spillover from Ghana's turbulent neighborhood, especially
with a view to the upcoming elections in Cote d'Ivoire and
Liberia. There is already the beginning of some refugee
fatigue in the GoG as seen with the recent influx of
Sudanese. The GoG also worries about illegal arms transfers,
rising narcotics trafficking, armed crime. We will have to
monitor the impact of regional events on Ghana and work to
reinforce Ghana's leadership on many issues in the region.

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Moving Beyond the Legacies
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16. (C) Our relationship with Ghana will have to work through
some legacy issues over the longer term.


17. (C) The Nkrumah Legacy: Nkrumahist
socialism/Panafricanism/non-alignment helped forge the sense
of nationhood and unity that Ghana enjoys today. It helps
explain why Ghana is not wracked by the kinds of ethnic
strife seen elsewhere in the region. Nkrumahist socialist
economics is still seen in a pervasive policy of state
intervention in the economy and business transactions, and an
assumption by the public that the government is responsible
for the economy. However, it also impacts Ghana's foreign
policy in a way that is not always helpful. Ghana stresses
nonalignment, African unity. For example, we see this in
Ghana's UN voting record. In 2004, the GoG's coincidence
with us on overall votes in the UN was only 14.5% (22.2% on
important votes),slightly below average for Africa.


18. (C) The Dependency Legacy: Ghana's dependence on foreign
assistance over a long period of time has built a paradigm of
dependence that impacts our relationship. Add to this the
large Ghanaian diaspora population in the U.S. and the result
is a knee-jerk "what can you give me" mentality. There is a
need to build more entrepreneurship, more bureaucratic
capacity, more of a sense of responsibility for tough
economic decisions.


19. (C) The Traditional Legacy: Ghana's traditional chiefs
and rulers have a strong hold. They have a positive impact
on many aspects of Ghanaian culture. However, their control
of land generates conflict at times, and is the single
biggest problem for foreign investors looking at Ghana. They
impact political decision-making -- the Ashanti king, for
example, has tremendous influence over political
appointments. They reinforce traditional beliefs, which
negatively impact human rights, such as early marriages,
domestic trafficking of persons, and punishing suspected
witches. Traditional power structures impact Ghana in ways
which affect (largely negatively) our bilateral relationship.



20. (C) The Rawlings Legacy: Former President Rawlings still
has a big impact on Ghana. He is still a major force in the
opposition NDC, although he splits the party among Rawlings
supporters and detractors. While his political weight alone
is capable of drawing significant votes for the NDC, there
are those that say his presence in politics hampers the NDC's
ability to win an election. Many Ghanaians oppose the NDC
because they do not want a return to days of human rights
abuses and restraints on civil liberties. Rawlings' personal
feud with President Kufuor exacerbates tensions between the
parties. There is an element of bile in Ghanaian party
politics that is fueled by Rawlings' continued activism in
politics (although he is not entirely to blame for it). It
undermines the health of the country's democracy.


21. (C) The Constitutional Legacy: At some point Ghana will
have to rethink flaws in its 1992 constitution. Ghana's
fourth constitution established a parliamentary/presidential
hybrid, which concentrated excessive power in the executive.
Many Ghanaian political analysts see these flaws. The result
is that Parliament cannot initiate laws, many local
government officials are not elected, one half of
Parliamentarians are government ministers, and there is no
limit on the numbers of Supreme Court justices. There is
broad understanding of the need to reform the constitution,
although it will be difficult to find the political consensus
to do so. The constitutional deficiencies limit our ability
to strengthen Ghana's democracy, including its ability to
instigate legislation covering a range of issues relevant to
our relationship (such as IPR, money laundering,
Whistleblower, and other laws).

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Comments
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22. (C) Moving beyond these legacy issues will be a process
of political development that will take time. The outlook is
bright. Ghana has moved beyond a military legacy, an
anti-American legacy, and a history of traditional ethnic
tensions. It has overcome decades of economic mismanagement
and begun to build a vibrant civil society. It has
established a long track history of positive international
engagement, from peacekeeping to regional peace efforts. We
have built a solid foundation for our bilateral relationship,
and over the past few years have added important new
dimensions, such as our mil-mil ties, counterterrorism
cooperation and Muslim outreach efforts. President Kufuor
feels he has developed a personal relationship with President
Bush. The MCA, G-8 debt relief, our law enforcement
cooperation, and other components of our engagement with
Ghana have further boosted our standing here. We will reap
benefits from our continued efforts to reduce the wait for
non-immigrant visa appointments and increase the transparency
to the public of our visa process.


23. (C) I leave Ghana proud of all these accomplishments and
optimistic that, despite its many challenges and legacy
issues, Ghana is on the right track. On August 19 President
Kufuor conferred on me Ghana's highest honor, The Grand
Medal, and asked the Foreign Minister to read a citation
re-capping many of my Mission's accomplishments. As we look
forward toward 2007, the 50th anniversary of Independence, 50
years of our bilateral relationship, the opening of the new
U.S. Embassy compound, and Kufuor's expected ascendance to
the Chairmanship of the African Union, Ghana will only grow
in importance within Africa and to the United States. End
Comment.


YATES