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OIL FOR FOOD & EDUCATIONAfrica Centre for Energy Policy
Benjamin Boakye
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Ghanas oil Background
Ghana Discovered oil in 2007
Several other discoveries
Since then
Commercial production
Started in late 2010And Ghana joined the club
Of oil producers
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Oil money and National Economies
Many oil producingcountries mismanageoil revenues -Oil curse
Dutch Disease infestmany other
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Ghanas Strategy Against oilCurse & Dutch Disease The Petroleum Revenue Management
law
Local content Regulation
E&P Bill
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Oil Revenues Already Flowing
petroleum revenues of about US$1.5billion.
This comprises US$444 million in 2011,
US$541 million in 2012 and
about US$575 million by August 2013
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PRMA 815
Ministerial Discretion to prioritize
Four Sector of the Economy
Based on Medium term framework
Aligned with National developmentplan
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Area of spending oil revenue1. Agriculture and industry;
2. physical infrastructure and service delivery in education;
science and technology;3. potable water delivery and sanitation;
4. infrastructure development in telecommunication, road, railand port;
5. physical infrastructure and service delivery in health;
6. housing delivery;
7. environmental protection, sustainable utilisation andprotection of natural resources;
8. rural development;
9. developing alternative energy sources;10. the strengthening of institutions of government concerned
with governance and the maintenance of law and order;
11. public safety and security; and
12. Provision of social welfare and the protection of the
physically handicapped and disadvantaged citizens.
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Socioeconomic Indicators ofGhana
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Prioritization for 2011-2013
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Agriculture
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Deficiency of the Agricprioritisation Whilst these projects promote small
holder farming particularly fertilizersubsidy and agricultural
mechanization, it fails to address Technology for smallholder farmers,
improved seedling,
extension service, access to credit and
market access, among others.
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Examples of Oil for Agric
Malaysia Oil- Oil palm and forestry
Chile Copper- agriculturalcommodities
Indonesia, oil- Green revolution. Agricresearch and new commodities
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Returns on Agric-Researched
One marginal Cedi on Agric returnsGH16.8.
This is against a marginal cedi
invested in feeder roads with returnsof GH8.8,
and that of health sector investment
with returns of GH1.3 Ghana Long-Term Funding for Agricultural Growth,
Poverty Reduction, and Food Security- CAADP Brochure 4
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Basic Education
Education in Ghana remains an important priority andhas attracted significant attention from past andcurrent governments
coverage expanded to about 84 percent of
the relevant age population in primary, basic services extended to 11 years,
expansion of access at secondary and
tertiary levels, and growth of public expenditures both in scale
and in the share of Governmentexpenditures.
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Basic Education Challenges
Socioeconomic disparities in accessand quality;
Significant and stubborn regional
differences; Poor quality of learning;
Inefficient use of resources; and,
Insufficient measures to ensure thatschools and administrators areaccountable for delivering theeducation services in line withex ectations.
Ch ll ti
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Challenges continue While access rates between rural and
urban areas are already large, the gap in
learning outcomes appears even larger. 6thgraders low NEA English scores (38 or
below) went to school within districts of the
Northern region, while the highestconcentration of students with high scores(44 or above) attended schools in thedistricts of Greater Accra
High performing schools had over 90percent trained teachers -- 36.4 percent
more trained teachers than low performingschools
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Challenges Continue
Pupil Teacher Ratio (PTR) at theprimary level which has remainedunchanged during the past decade,
Between 2001/02 and 2008/09 thenumber of primary teachers grew from80,552 to 114,421
However, the portion of primaryteachers who were untrained grewfrom 35.1 percent to 52 percent
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Technical Education
Enrollment in public TVET institutes hasbeen declining over the last few years
In the NVTI total enrollment 2005-2007 fell
by just less than 10% from 7,297 to 6,710 This is very worrying as it has implications
for building the required technicalmanpower necessary to support economic
growth. The gender gap is much bigger at the
countrys Technical and VocationalEducation and Training (TVET) institutions.
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Women in Vocation
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0
1
2
3
4
5
6
7
Jan-08 Jan-09 Jan-10 Jan-11
Public Spending on Education (%GDP)
Ghana SSAfrica LMIncome
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Examples of Oil for Education
Brazil also developed a National Education Planwith a focus on improvements in quality and access(educational infrastructure).
Brazil recently passed a new law which allocates 70% of
royalties to finance education Botswana has consistently spent over 5% of its
GNP on education since the mid-1970s, reaching8.2% in 2010
Today, it is one of the richest countries inSub-Saharan Africa
achieved universal primary education
its secondary gross enrolment ratiostands at 82%, double the average for the
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conclusion
This proposal follows criticalanalysis of the situation prevailing
in Ghanas small holder agricultural
development and the challenges ofthe education sector particularly
basic and technical education.
Based on the above analysis, werecommend that Government
should prioritise agricultural
modernization as one of the four
riorit areas for ABFA for the
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We also recommend that as a resultof the challenges facing the
education sector particularly at the
basic and technical levels,Government should consider
technical education as one of the
four priority areas for the spendingof the Annual Budget Funding
Amount (ABFA).
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