ECONOMIC GOVERNANCE AND MANAGEMENT 45. Stakeholders agree that, to meet the challenge of macroeconomic stability, Ghana would need to: (a) find ways to develop and enhance the efficiency of the financial sector; (b) continue to improve tax administration and contain the public sector Wage Bill; (c) grant institutional and organisational capacity to the central bank to control inflation; and (d) intensify efforts to improve the management of public debt, especially foreign debt. 46. Meeting the challenges of structural transformation and export diversification would require the following, in addition to macroeconomic stability: ? ? ? Appropriate policies for strengthening entrepreneurship and the private sector, including the design of efficient state-private sector cooperation and coordination mechanisms; Substantial increase in the stock and quality of human capital, including the technological capability of the labour force; and Creation of a more favourable climate for foreign direct investment. 47. Participants stressed that the private sector and civil society have much to offer in the search for effective policies in the areas listed above. Specific suggestions have, however, not been discussed in much detail at the meetings and workshops. 48. In terms of the APRM Questionnaire for self-assessment, the first objective of public economic and financial management is to promote macroeconomic stability. This is considered a necessary condition for achieving sustainable development. In recent years, Ghana's macroeconomic strategies have had some success in reducing the rate of inflation, establishing a more stable exchange rate system, creating a more sound banking and financial environment, and abstaining from inflationary financing of fiscal deficits. The macroeconomic stability achieved through sound macroeconomic policies, however, remains fragile and vulnerable. iii. Recommendations 49. The Panel recommends that the Government of Ghana: ? Continue to pursue macroeconomic policies that will not only consolidate the degree of macroeconomic stability already achieved, but will also create an even more conducive macroeconomic environment in support of sustainable 61