ECONOMIC GOVERNANCE AND MANAGEMENT 8. Successful transformation of the productive structure of the economy has remained elusive. Broadly speaking, there has not been much success in raising agricultural productivity and advancing general industrialisation of the economy. Despite great success in tax reform efforts since 1983, firm control over the budget remains to be achieved. This is due, in large part, to difficulties in containing major expenditure items such as the Wage Bill and interest payments on public debt. Moreover, fiscal management is complicated by uncertainties of budget support flows resulting from Ghana's high net dependence on aid. In 2002, the authorities introduced the multidonor budget support (MDBS) mechanism. It operationalises arrangements with Ghana's development partners to harmonise and simplify procedures of external flows to the budget. The early success of the new mechanism could be seen from the full disbursement of commitments in 2004. 9. Following the elections in 2000, the new government initially had to focus on restoring macroeconomic stability. Early progress was, however, followed by serious fiscal and quasi-fiscal slippages in 2002. These slippages prevented the completion of the final review of the programme supported by the Poverty Reduction and Growth Facility (PRGF). In late 2002 and early 2003, the government redoubled its reform efforts, implementing a plethora of measures to improve the fiscal situation, including a significant rise in petroleum prices at the pump and adjustments in automatic electricity and water tariffs. On the strength of the reforms undertaken and the economic programme of the authorities, the IMF approved a second PRGF arrangement on 12 May 2003. 10. In February 2003, the government issued the Ghana Poverty Reduction Strategy (GPRS) Paper for 2003-2005. Over the past few years, the GPRS has served as the foundation for the macroeconomic and socio-economic programmes implemented in the country. The government summarised its objectives with the GPRS2 as follows: “… to create wealth by transforming the nature of the economy to achieve growth, accelerated poverty reduction and the protection of the vulnerable and excluded within a decentralised, democratic environment. This goal will be achieved by: ? Ensuring sound economic management for accelerated growth; ? Increasing production and promoting sustainable livelihoods; The government informed the Country Review Mission that a revised version of the GPRS was in progress and would be finalised by mid-2005. The revisions would, inter 49