CHAPTER 3 58. Such comparative advantages should therefore be explicitly recognised and duly rewarded. Conversely, an environment should not be created in which expatriates are refused re-entry at levels that reward them for their current level of knowledge and the value of their potential contribution to the country's development. In addition, the authorities should not tolerate a hostile environment in which those who stayed behind deliberately frustrate the returning émigrés. These are all complex issues. The Panel recommends that stakeholders in Ghana address directly the question of how to value and reward the potential contributions of the two sets of professionals, and how to create an environment in which they can work cooperatively and harmoniously. Clearly, this would require focused discussion among all stakeholders. 59. In the area of human resource management in general, the Panel recommends the application of a merit-based reward system, where the general criteria for what one deserves are clearly set out. Decisions pertaining to human resource management (recruitment, staffing, compensation, career development, separation, etc.) would then be made using criteria that are transparent and generally accepted as being objective and fair. Structural change and diversification 60. The economy of Ghana remains vulnerable to external shocks and internal disruption through uncontrollable events such as crop failures and adverse weather conditions. The past 45 years have also proven that it is no easy task to engineer structural change in, and greater diversification of the national economy in a very competitive global environment. The government's objective to encourage more active private/public sector ventures and to create a more conducive environment for private sector initiatives should lend support to the objective of diversification. The President's Special Initiatives and the Free Zone Areas should also be used constructively to encourage greater participation in the economy by private sector institutions. 61. In this regard, the problems of land ownership, asset protection and the institutionalisation of businesses (covered in the chapter on Corporate Governance) form essential elements of the programme for encouraging a more active private sector in the economy. 64

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