CHAPTER 5 Programme (ERP) in 1983 witnessed the beginning of a marked transformation of the economy from an administrative system of control towards a more market-oriented system of economic management. Major macroeconomic and structural reforms measures were implemented in both the real and financial sectors of the economy. 5. Since the return to democracy in 1992, Ghana has progressively strengthened and consolidated its democratic rule, which understandably is still fragile. The pursuit of neo-liberal policies since the early 1980s and generous government incentives have expanded economic, political and socio-cultural spaces. Notable strides have been made in several respects to spur on socio-economic development. The government has made good progress, albeit less than anticipated, because of administrative capacity constraints. Ghana has indeed become a beacon of hope in the volatile West African sub-region. 6. Government policies are currently geared at making Ghana the gateway to West Africa. The national aspiration is to become a middle-income country by 2010. Ghana's Poverty Reduction Strategy (GPRS)10 provides the overarching policy context for the country's socio-economic development. Essentially, the GPRS aspires to achieve broad development objectives, including: ? Reducing extreme poverty; ? Promoting social and human development; ? Pursuing environmental sustainability and regeneration; ? Consolidating democratic governance; ? Strengthening accountability; and ? Guaranteeing protection of human rights and the rule of law. 7. In the main, socio-economic outcomes have been mixed. Ghana is currently in the medium human development category. Its Human Development Index (HDI) has improved remarkably, from 0.438 in 1975 to 0.506 in 1990, 0.525 in 1995 and 0.548 in 2000. However, with an HDI index of 0.568, Ghana ranked 131st out of 171 in the 2004 United Nations Human Development Report, down from 129 in 2003. Attaining the national objective of achieving middle-income country status by 2010, would require an annual growth rate of 8-10%, far above the current trajectory of 4-5% recorded in the last decade. It also falls short of the 6.5% prescribed by the GPRS. The population growth rate of 2.7%, combined with the GDP growth rate of 4-5%, implies a relatively low per capita income growth of 1.7-2%. About 41.3% of the population are children, with a consequently high dependency ratio. 116