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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)" <mendelso@haas.Berkeley.EDU<, < "Aiaz Kazi (E-mail)" <kazi@haas.Berkeley.EDU<, < "Charlotte Kwon (E-mail)" <Kwon@haas.Berkeley.EDU<, < "Chris_Neale (E-mail)" <Chris_Neale@gap.com<, < "Chrystine Lee (E-mail)" <clee@haas.Berkeley.EDU<, < "Deepika Shah (E-mail)" <dshah@haas.Berk - Ireland 11 7 99.doc - Ghana 11 7 99.doc Kimberly Kupiecki Senior Account Executive A&R Partners kkupiecki@arpartners.com (650) 762 2800 main (650) 762 2825 direct fax (650) 762 2801
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