Modules

Training Prerequisites

This executive training programme is taught at an intermediate/advanced level. Participants should have some familiarity with economic policy concepts and tools, including data and quantitative tools, though no expertise in these is required. 

Synopses for Modules

Part I: Macroeconomic Policies for Stability and Development

Module 1: The fundamentals of managing economic development.

This module presents the introduction and the schematic representation of the dynamic and complex relationships in economic development management in today’s globalized world, by identifying the various pillars of development and how policies impact them. The process of economic development management involves setting economic development goals, developing policies and strategies to achieve them, identifying and engaging stakeholders, and monitoring the progress to ensure the goals are achieved and sustained. This process requires the use of wide-ranging policies that include broad macroeconomic policies (monetary, fiscal, and exchange rate policies), interventions (policies to reduce poverty and income inequality), and structural change policies to successfully integrate the economy into the expanding international markets while promoting sustainable development.

Module 2: Economic Data analysis and interpretation

Understanding and interpreting key development indicators is crucial for both policy design and implementation. For a policy to be considered feasible and effective, one must be able to first measure its potential impact before implementation and the actual impact after implementation. The consequence of inaccurate measurement and /or misinterpretation of key development indicators is dire; it can lead to the design and implementation of wrong policies which will most likely produce undesirable outcomes. The module is aimed at equipping participants with an understanding of the nature and interpretation of key development indicators that will be used during the programme. Specifically, we will learn about key development indicators, how they are measured, their interpretation, and how to conduct comparative analysis over time and among countries using these indicators. We will employ simple graphs for the analysis of relevant development data.

The model will discuss the following:

• Overview of useful economic indicators
• Measuring and interpreting GDP and economic growth
• Different measures of economic well-being; GDP per capita vs Human Development Indicators
• Interpreting poverty and Inequality indicators
• Comparing development indicators over time and across countries and regions using simple graphs.
• Class discussion/debate on the best development indicator that is reflective of true economic and social development.

Module 3: Fiscal Policy for Economic Development

Fiscal policy is the tool used by governments to influence economic conditions, in general, and macroeconomic conditions, in particular. This objective is achieved through spending and tax measures. Through fiscal policy, governments play a major role in the economy, developing infrastructure, providing a range of public services, providing public sector jobs, and creating an enabling environment to support the private sector to thrive, among others. These interventions ultimately promote economic growth and development. In developing economies, in particular, where the capacities and resources of the private sector tend to be limited, governments have to assume even a more dominant role in the economy. Unfortunately, however, through pressures generated by government spending measures, fiscal policy may create macroeconomic instability, which can manifest in inflation, currency instability, external imbalances and high interest rates that may crowd out the private sector and stifle economic growth. Promoting growth, while containing macroeconomic instability, thus becomes a challenging balancing act for fiscal policy.

The model will discuss the following:

• General overview of fiscal policy: The objectives and instruments of fiscal policy
• Tax management systems: Direct vs indirect, progressive vs regressive, and elasticity and its significance
• Expenditure management approaches: Economic vs functional classifications of expenditure
• Budget deficit and financing: Different measures of budget deficit, Accrual vs cash budgeting. Deficit financing and debt accumulation
• The concept of fiscal sustainability
• The current state of fiscal policy in Ghana

Module 4: Monetary Policy for Economic Development

Monetary policy is considered as the junior partner of, and a countervailing measure for, fiscal policy, in terms of influencing macroeconomic conditions. Monetary policy concerns the decisions taken by central banks to influence the cost and availability of money in an economy with the ultimate objective of controlling inflation. Orthodox monetary policy involves controlling money supply directly as a means of influencing the final objective inflation variable. However, over the years, monetary policy has evolved, with the range of intermediate variables expanding beyond money supply to include interest rates and exchange rates, among others. While controlling inflation is the primary objective of monetary policy, many central bank charters oblige them to contribute to the achievement of high employment and economic growth as well. Indeed, economic growth itself contributes to low inflation. By creating an environment of low interest rates and low inflation, monetary policy can contribute to sustained economic growth and development.

The model will discuss the following:

• General overview of monetary policy: The primary objective and instruments used in monetary policy.
• The sources and solutions to inflation: Demand-based vs Supply-based inflation
• Monetary policy frameworks: Monetary targeting vs Exchange rate targeting framework,

            Inflation targeting framework and its suitability for developing countries, such as Ghana.

• Monetary policy as a countervailing measure against fiscal policy
• Monetary policy as a tool foreconomic growthand development
• The current state of monetary policy in Ghana

Module 5: Public Debt Management

Governments normally collect less revenue to meet their higher expenditure needs. Public debt is created as a result of government borrowing to finance the gap between its revenue and expenditure. If a wide gap persists expenditure-revenue gap persists, public debt can build up to an unsustainable level, whereby it overburdens the budget in terms of servicing and stifles growth. The main objective of public debt management is to ensure that the government’s financing needs and payment obligations are met at the lowest possible cost.Debt management is a way to get government debt under control through financial planning and budgeting. The goal of a debt management plan is to use strategies to help lower current debt and/or serviceobligations and move towardsa sustainable level. A successful debt management strategy can free up resources for government to spend on investment and, thereby, promote economic growth and development.

The module will discuss the following:

• The mechanics of debt accumulation
• Types of debt by holders and by maturities
• Debt service and budget implications
• The concept and measurements of debt sustainability
• Debt management options:

a) Debt consolidation or buyback—creating new, less costly debt

b) Debt reprofiling—restructuring of maturities

c) Negotiation of principal and coupon discounts

d) Negotiation of debt relief or forgiveness—eg: HIPC and Paris Club Initiatives

e) Fiscal adjustment—to reduce the rate of debt accumulation

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Part II: Structural Change Policies for Development

Module 1: The fundamentals of managing economic development II

This module presents the introduction and the schematic representation of the dynamic and complex relationships in economic development management in today’s globalized world, by identifying the various pillars of development and how policies impact them. The process of economic development management involves setting economic development goals, developing policies and strategies to achieve them, identifying and engaging stakeholders, and monitoring the progress to ensure the goals are achieved and sustained. This process requires the use of wide-ranging policies that include broad macroeconomic policies (monetary, fiscal, and exchange rate policies), interventions (policies to reduce poverty and income inequality), and structural change policies to successfully integrate the economy into the expanding international markets while promoting sustainable development.

Module 2: Agricultural transformation

Traditionally, agriculture has been assumed to play passive and supportive role in the process of economic development through industrialization. Today, most development economists agree that the agricultural sector must play an indispensable part in any overall strategy economic development, especially for developing economies. It is therefore imperative for government to adopt policies and programmes to improve the agriculture sector and promote integrated rural development. These policies should aim at: increasing output growth through technological, institutional, and price incentive changes designed to raise the productivity of small farmers; improve food security; reduce poverty; and promote sustainable development.

This module will discuss the following key agricultural transformation policies and programmes:

• Agricultural research and development policy.
• Agricultural mechanization policy to promote the use of modern machinery and equipment in agriculture.
• Youth in agriculture policy to promote the involvement of young people in agriculture.
• Land reforms policies.
• Irrigation development to improve water management in agriculture.
• Agriculture credit policy to provide farmers with access to credit.
• Agricultural marketing and value chain development policy.
• Peasant vs modern agriculture farming

Module 3: Industrialization for Economic Transformation

Industrialization is the process of economic and social change that transforms a country from an agrarian society into a modern industrialized society, involving extensive manufacturing reorganization of the economy. Industrialization helps a country in overcoming its deterioration in terms of trade, ushers in technological progress and makes available critical elements to strengthen the economy. Most countries have adopted various industrialization pathways using transformative policies and strategies. These policies generally aim at changing the nature of their export from raw materials into finished goods, import substitution, digitalization of the economy to expand production and enhance export growth and increase employment and revenue.

In this module, the following industrialization policies and programmes will be discussed:

• What is industrialisation? General overview of industrialisation
• Effect of industrialisation on Economic development
• Models of industrialisation: Choosing the right industrialisation model for Ghana
• Industrialisation and Continental Trade
• Leveraging agriculture and natural resources for industrialisation
• Industry decentralisation in Ghana: A case study of the One District One Factory Programme.
• Current state of industrialisation in Ghana

Model 4: Globalisation, International Development, and Financial Institutions

We live in a global world where one country’s economic policy decisions could have significant spill overs to another country’s economy. The world today is integrated by international trade and finance, and immigration of labour. The benefits of globalisation are well documented, but the distribution of these benefits is unequal and developing economies often receive the least of the benefits. Imbalances in economic and political power among nations have led to the current system which perpetuates unequal distribution of the benefits of globalisation. The establishment of International Development and Financial institutions like the World Bank, IMF and the WTO is expected to put in place international rules that ensure a more even distribution of the benefits of globalisation and provide development and financial assistance to member countries in need. On one hand, these institutions have been praised for providing significant development and financial support to developing economies, and on the other hand, they are criticized for perpetuating the existing order that causes unequal distribution of the benefits of globalisation. This module is aimed at providing participants with a detailed understanding of the concept of globalisation, the role and effectiveness of key international development and financial institutions such as the World Bank, IMF and WTO, and economic policies to minimise the effect of global economic crises on the domestic economy. There will be 2 case study discussions: first, we will discuss Ghana’s two most recent IMF programmes and their effect on the economy. Second, we will examine the impact of Global crises on the Ghanaian economy and the effectiveness of policy responses aimed at reviving the economy.

At the end of this model, we expect that participants will have an indebt understanding of the following:

• The concept of globalisation, its benefits, and challenges
• Overview of key international development and financial institutions including the IMF, World Bank, and the WTO.
• Trade theories and policies.

protect domestic industries, and export promotion policies to promote the export of manufacturing/value-added goods.

• Stabilisation policies to mitigate the effects of global crises on the Ghanaian economy. 
• Case studies on Ghana’s IMF programmes and the effectiveness of Ghana’s policy responses to external economic shocks.
• The choice of exchange rates regimes and exchange rates policies.
• Balance of payments problems.

Module 5: Poverty, inequality, and development

The elimination of widespread poverty and high and uneven growing income inequality are at the core of all development problems and in fact define for many people the principal objective of development policy. The poor in developing countries often suffer from undernutrition and poor health, have little or no literacy, live in environmentally degraded areas, have little political voice, and are socially excluded. However, many developing countries that experienced relatively high rates of economic growth by historical standards brought little in the way of significant benefits to the poor. Hence, governments, civil society organizations, and the private sector must proactively work together to promote inclusive economic growth that reduces poverty, inequality, and improves access to resources and opportunities.

This module will discuss the following key policies and programmes to reduce poverty and inequality and achieve sustainable development:

• Policies and programmes to increase asset ownership of the poor.
• Programmes to build capabilities and human social capital of the poor.
• Reducing poverty through rural industrialization programmes.
• Agriculture development programmes that promote increase in farm productivity.
• Reducing income inequality through progressive taxation, social safety nets, and minimum wage laws.
• Investing in infrastructure and promoting sustainable economic growth to create economic opportunity for all.
• Increasing access to credit and financial services.
• Empowering marginalized groups and individuals such as women, youth, and minorities to reduce poverty and inequality.
• Current state of poverty and inequality in Ghana