CHAPTER 3 ECONOMIC GOVERNANCE AND MANAGEMENT 3.0 INTRODUCTION In the African Union Declaration on Democracy, Political and Economic Governance, African countries recognized that the principles of “good economic governance including transparency in financial management are all essential prerequisites for promoting economic growth and reducing poverty”. This theme focuses on the actions, policies and programmes that the relevant economic authorities are adopting and implementing in managing the economy. The key policy document being implemented in the country is the Ghana Shared Growth Development Agenda (GSGDA). The Ghanaian economy has recorded mixed results during the year. The government’s multi-year macro economic stabilization programme coupled with positive terms of trade and favourable agricultural production resulted in improved macro economic situation. Exports increased from USD 7,964.70 million in 2010 to USD12.785.4 million in 2011. Imports, however, also increased from USD10,769.8 million in 2010 to USD15,968.3 million in 2011. Gross Domestic Product (GDP) more than doubled, from GHC23 billion in 2007 to GHC59 billion in 2011. The country has also recorded single digit inflation for almost 18 months running. First the first time the country also met all the four primary convergence criteria under the West African Monetary Zone (WAMZ) programme. The gains made in public finance management is challenged by the huge wage bill following the implementation of the Single Spine Salary Policy which has seen Sixth Annual APRM Progress Report: January – December 2011 43