GHANA: SCENE SETTER FOR U.S. PRESIDENT'S VISIT TO GHANA

UNCLAS SECTION 01 OF 02 ACCRA 000220

SIPDIS

C O R R E C T E D COPY - Correcting paragraph markings (1,2, & 5)

FROM AMBASSADOR BRIDGEWATER

SENSITIVE
SIPDIS

NSC FOR BPITTMAN

E.O. 12958: N/A
TAGS: OTRA OVIP PREL PGOV ECON AMGT GH
SUBJECT: GHANA: SCENE SETTER FOR U.S. PRESIDENT'S VISIT TO GHANA
FEBRUARY 19-21, 2008

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1. (U) Mr. President: Our entire mission joins me in extending a very
warm welcome to you to Ghana. We are delighted that you, Mrs. Bush
and your delegation are visiting Ghana at the beginning of what
promises to be another eventful year. After celebrating 50 years of
independence in 2007, Ghana is preparing to hold Parliamentary and
Presidential elections in December 2008. At that time, Ghanaians
will choose a successor to President Kufuor. In addition to holding
independence celebrations in 2007, Ghana hosted the African Union
(AU) Summit and co-hosted with the United States the Sixth African
Growth and Opportunity Act (AGOA) Forum. From January 20-February
10 Ghana hosted 16 teams from around the African continent in the
African Nations Cup soccer championship. In April, Ghana will host
UNCTAD, which will bring thousands of participants to Accra.


2. (U) Ghana has made impressive progress in democratic and economic
development but challenges remain in such areas as poverty
reduction, lack of adequate infrastructure, particularly in the
power sector, and narcotics trafficking. Ghana has a goal of
achieving middle income status by 2015. U.S. interests center on
support for Ghana's fifteen-year-old democracy, promotion of poverty
reduction and shared prosperity, private sector development,
security cooperation, and enhanced people-to-people and cultural
ties. Ghana is a reliable partner in peacekeeping, conflict
resolution, counter-terrorism and economic development. President
Kufuor recently completed his tenure as President of the African
Union and Ghana completed its term as a non-permanent member of the
UN Security Council. END SUMMARY.

2007 AND 2008: IMPORTANT YEARS FOR GHANA
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3. (SBU) Ghana is now gearing up for the December 2008 Presidential
and legislative elections. President Kufuor cannot seek another
term under Ghana's constitution. The 2007 independence celebrations
provided an opportunity for many Ghanaians to celebrate the
country's many achievements over the last 50 years, as well as to
reflect on ways to meet the challenges that remain.

POSITIVE STEPS FORWARD
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4. (SBU) Ghana is relatively stable, with an apolitical military, a
generally good record on human rights, and a lively, free media.
After 15 years of democratic governance, Ghanaians are deeply
committed to democracy. Ghana has held four consecutive free and
fair national
elections. While parliament is weak and the main parties are
increasingly polarized, there is political space for the opposition
and almost half of parliamentary seats are held by the main
opposition National Democratic Congress (NDC) party. Civil
society,
particularly religious associations, is well organized.


5. (SBU) Politics is increasingly focused on the 2008 election which
promises to be a close race between the NDC and the ruling New
Patriotic Party (NPP). The NPP defeated the NDC in the two previous
elections by thin margins. On December 22 the ruling New Patriotic
Party (NPP) selected Nana Akufo Addo, former Minister of Foreign
Affairs, as its candidate from among 17 aspirants, and the National
Democratic Convention (NDC) has selected 2000 and 2004 party
flag-bearer, and former Vice President in the Rawlings
administration, Professor John Atta Mills to contest once again for
the presidency. The People's National Convention (PNC) has chosen
Dr. Edward Mahama who also ran in the 2004 election. The Convention
People's Party (CPP) selected as its candidate, Dr. Paa Kwesi Ndoum,
former Minister for Public Sector Reform and the lead official in
developing Ghana's MCC Compact. In 2004, the NPP received 53.4% of
votes, the NDC received 43.7% of votes, the PNC received 1.9% of
votes and the CPP received 1% of votes.


6. (SBU) The economy has performed generally well under the Kufuor
administration. Sound macro-economic policy accompanied by major
debt relief, large inflows of donor resources and relatively high
cocoa and gold prices have been key to the steady improvements in
the real GDP growth, which was more than 6 percent in 2006 and 2007,
lower inflation and reductions in poverty. In October 2007 Ghana
became the first sub-Saharan country other than South Africa to
successfully enter international capital markets by issuing a $750
million sovereign bond.
In 2008, Ghana will be the first sub-Saharan African country to meet
the Millennium Development Goal of reducing poverty by 50 percent.



7. (U) USAID provides significant support for Ghana's development,
averaging about $40 million annually 2004-2007 in addition to $22 -
$25 million in food aid prior to FY 2007. While food aid is being

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phased out, additional support for malaria and education under your
special Presidential Initiatives has increased overall funding for
USAID to approximately $73 million in FY 2008. Ghana's strong
performance was recognized in 2006 with the signing of a five-year,
$547 million Compact with the Millennium Challenge Corporation. The
Compact has three main components: enhancing profitability of small
farmers; reducing transportation costs affecting agricultural
commerce through improvements in transportation infrastructure; and
expanding basic community services and strengthening rural
institutions.

DIFFICULT CHALLENGES REMAIN
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8. (SBU) Despite Ghana's democracy and stability, politics is
deeply
polarized, political power is highly centralized, and democratic
institutions are weak. Corruption is a serious problem and Ghana
faces human rights challenges relating to child labor and human
trafficking. Ghana also faces a range of security challenges,
including a rise in violent street crime and vigilante justice,
sometimes violent chieftaincy disputes, a proliferation of small
arms, and a growing problem with narcotics trafficking.


9. (U) Economically, Ghana is vulnerable to external price
shocks in cocoa and gold, which account for about 65 per cent of
exports. It remains heavily dependent on foreign inflows of aid and
on remittances. Infrastructure necessary to support growth is poor,
particularly power generation and water supply. Last year's energy
crisis, with scheduled 12-hour power outages every second day, has
subsided, but concerns over long-term energy policies remain. The
impact of the discovery in 2007 of potentially commercially viable
oil reserves in Ghanaian waters is a wild card in Ghana's energy and
economic future.


10. (SBU) Social indicators such as maternal and infant mortality
rates are well below levels in the 1980s but remain high and have
not changed significantly in ten years. Access to education has
grown but quality is lacking. Many Ghanaians do not feel they have
benefited from the country's macroeconomic success. According to
the Center for Democratic Development's 2005 Afrobarometer survey,
53 percent of respondents thought their standard of living had
declined over the previous year, compared to 38 percent in a similar
survey in 2002.

GHANA IN THE WORLD
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11. (U) Ghana has been playing an increasingly significant and
positive global leadership role. It is an active member of the
Economic Community of West African States (ECOWAS),chaired the
African Union in 2007, and just concluded a term as a non-permanent
member of the UN Security Council. Ghana is a major contributor of
troops to UN Peacekeeping Missions and currently has personnel
serving in Liberia, Cote d'Ivoire, Democratic Republic of the Congo,
and Lebanon. Ghana prefers multilateral solutions to global
problems and has a history of committed African leadership, based on
consensus among players.

GHANA AND THE U.S.
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12. (SBU) Our bilateral relations are exceptionally good, and
Ghanaians and citizens of the U.S. share a love of democracy, human
rights, educational opportunity, free enterprise, peace and
stability. There is a deep reservoir of goodwill toward you and the
United States and a genuine appreciation of our role and
contributions to this society. Approximately 3000 Ghanaian
students are studying in the United States and the Mission nominates
many strong candidates for International Visitor Programs that
enhance professional development. Ghana signed its MCC Compact in
August 2006 and you most recently met President Kufuor at the UN
General Assembly in September 2007. Ghana in partnership with
AFRICOM has made great strides in developing its maritime domain
awareness, improving its commercial port security and safeguarding
its territorial waters. Africa Partnership Station, a six-month
U.S. deployment to the Gulf of Guinea, recently wrapped up training
in Ghana, providing courses to nearly one-third of the Ghana Navy.
There is great media interest and excitement in anticipation of your
visit, and we look forward to welcoming you to experience a bit of
Ghana's wonderful success story first hand.

BRIDGEWATER