ECONOMIC GOVERNANCE AND MANAGEMENT 99. For both capacity and fiscal decentralisation, a major problem involves defining and measuring the nature and extent of the problem. For instance, capacity is often confused with efficiency. Capacity, however, has to do with the technical, financial and human resources available to achieve results, whereas efficiency is concerned with the value of output achieved per unit of input, given the available capacity. Improved allocation of resources, restructuring of incentives, and certain forms of reorganisation can increase output per unit of input, without changing capacity. In the case of fiscal decentralisation, often there is misunderstanding as to the nature, content and sequencing of the decentralisation that has been agreed, as well as whether the decentralisation is conditional on certain factors, such as the evolution of capacity in the local authorities. This means that some consensus must be reached on the nature and extent of the problem. 100. One should not underestimate the complexity of designing and implementing Programmes of Action (POAs) for capacity building in the fiscal area, and for achieving optimal fiscal decentralisation. In each case, the analytical requirements are huge and there is a need to incorporate Ghanaian realities in the analyses. Technical assistance, for example by the AfDB, World Bank and/or the IMF, would yield substantial dividends. iii. Recommendations 101. The Panel recommends that Ghana: Capacity and decentralisation ? ? ? ? Take immediate resolute action to raise capacity in the public finance area, and to make fiscal decentralisation a reality. Undertake a diagnostic exercise in each of these areas in order to set objectives and clear POAs to achieve the objectives, doing the work in such a way that national consensus can be reached on the objectives and POAs. Put an effective organisational framework in place to monitor developments, inform the public about the progress being made, and invite responses from ordinary citizens and autonomous organisations regarding their satisfaction with the progress. Control the process as far as possible, especially as regards the choice of sources of technical assistance. 75