TOPIC:
The Programme of Action to Mitigate the Social Cost of Adjustment: Objectives and Assessment of Failures and Achievements.

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Abbreviation 1
List of Tables 1 1. Background of PAMSCAD 2 2. Objectives of PAMSCAD 3 a. Projects under PAMSCAD 4 3. Assessment of Success and Failure of PAMSCAD 5 b. Community Initiative Project 5 c. Employment Generation Project 6 d. Redeployment 7 e. Provision of Basic Needs and Services 10 f. Education Infrastructure 11 4. Conclusion 12 5. References 13

ABBREVIATIONS 1. SAP - Structural Adjustment Programme 2. ERP - Economic Recovery Programme 3. IMF - International Monetary Fund 4. GDP - Gross Domestic Product 5. PAMSCAD- Programme of Action to Mitigate the Social Cost of Adjustment 6. CIPs - Community Initiative Projects 7. ADRA - Adventist Development Relief Agency

LIST OF TABLES
TABLE 1 CIPs under PAMSCAD completed and commissioned by 1990
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TABLE 2 CIPs under PAMSCAD under construction by 1990
BACKGROUND OF PAMSCAD
In 1983 the government of Ghana adopted a Structural Adjustment Programme (SAP) locally dubbed the Economic Recovery Program (ERP) under the guidance of the World Bank and the IMF. The overriding purpose of the ERP was to reduce Ghana's debts and to improve its trading position in the global economy. The stated objectives of the program focused on restoring economic productivity at minimum cost to the government and included the following policies: lowering inflation through stringent fiscal, monetary, and trade policies; increasing the flow of foreign exchange into Ghana and directing it to priority sectors; restructuring the country's economic institutions; restoring production incentives; rehabilitating infrastructure to enhance conditions for the production and export of goods; and, finally, increasing the availability of essential consumer goods. In short, the government hoped to create an economic climate conducive to the generation of capital.
The ERP was carried out in roughly three phases. Beginning in 1983, the government focused on reducing its expenditures while creating incentives for private production. Initial expenditure cuts and improved tax collection brought the budget deficit down from 6.3 percent of GDP in 1982 to 0.1 percent by 1986, relieving government pressure on the banking system, while a series of cedi devaluations boosted export activity. During the second phase, which lasted from 1987 to 1989, the government moved to divest itself of many assets through privatization and to institute radical foreign exchange reforms to devalue the cedi further. Although privatization was sluggish, the hard-currency black market was nearly eliminated with the introduction of foreign exchange bureaus in 1988. In the ERP's third phase, the government intensified monetary reforms and reduced private corporate taxes to boost private-sector growth.
By the end of 1991, ERP efforts had improved the country's international financial reputation because of its ability to make loan repayments; although not wipe out foreign debt, and its first entry onto the international capital market in almost two decades. Critics maintained, however, that the ERP had failed to bring about a fundamental transformation of the economy, which still relied on income earned from cocoa and other agricultural commodities. Critics also contended that many Ghanaians had seen few of the benefits from the program such as; the stabilization of the country’s financial structure, promotion of production especially in export sectors, infrastructure rehabilitation for industry, mining, utilities, and agriculture.
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Although the ERP was geared primarily toward restoring the country's international economic standing, it came under popular criticism inside Ghana for ignoring the plight of those not involved in the export sector. The overwhelming shift in resources was toward cocoa rehabilitation and other export sectors, not toward food production. Government employees, especially those in state enterprises, were actively targeted, and many lost their jobs. Farmers suffered as the percentage of the total budget devoted to agriculture fell from 10 percent in 1983 to 4.2 percent in 1986 and to 3.5 percent in 1988, excluding foreign aid projects. Although cocoa contributed less to Ghana's GDP than food crops, cocoa nonetheless received 9 percent of capital expenditures in the late 1980s; at the same time it received roughly 67 percent of recurrent agricultural expenditures because of its export value.
In response to criticism of such policies, the government initiated the US$85 million Program of Action to Mitigate the Social Costs of Adjustment (PAMSCAD).

THE OBJECTIVES OF PAMSCAD

Ghana was one of the first countries to attempt to put a “human face” to structural adjustment. In 1987, on realizing the social costs that the structural adjustment programme was inflicting on the general populace such as job retrenchment, shortfalls in agricultural productions; other than those for exports and further depreciation of exchange rates, the Government of Ghana introduced the Programme of action to reduce the consequences of the Adjustment on the society.

PAMSCAD, the Programme of Action to Mitigate the Social Cost of Adjustment, was launched in 1987; it was the first programme in Ghana to be explicitly designed to protect the poor from the adverse consequences of the adjustment process. It sought to reduce mass poverty by providing training, work, and income through community development projects for targeted groups such as retrenched workers, women, and poor households. Several community development projects like construction of roads, schools, and health centres were undertaken under PAMSCAD. Beginning in 1988, the program sought to create 40,000 jobs over a two-year period. It was aimed at the poorest individuals, small-scale miners and artisans and communities were to be helped to implement labour intensive self-help projects.

The main objective of PAMSCAD was to reduce the social problems caused by the Economic Recovery Programme cardinal among which was Poverty. It was targeted at four main groups; small scale farmers and hired labour, poor households with limited access to basic social services such as health, education and water. The others were, the unemployed and those with smaller earnings especially youth and households in the northern regions. The problems of these groups were to be addressed through five types of projects; 1. Community initiative Projects
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To rehabilitate socio-economic infrastructure, it was allocated 7.5 per cent of planned expenditure. PAMSCAD was to be operated largely on the bases of community participation and mobilization. Community involvement was to be realized through a decentralized community initiative programmes which will be serviced by 10 mobile district planning teams and a small planning unit in the Ministry of Local Government. In turn, the efforts of the Ministry Unit will be supported and animated by a social sector task force.

2. Employment generation Projects
This allocated approximately 41 per cent of planned expenditure and included food-for-work which geographically targeted the North. Also, priority public works focused on urban slums and low income housing. Employment of people for labour intensive feeder roads as well credit for small-scale farmers and enterprises. Persons for school building rehabilitation, business training for women; as well as support for small-scale gold mining

3. Redeployments
The Redundancy compensation projects were for public service employees who were made redundant under adjustment. The project included training and technical advice with the objective of encouraging them to enter into small scale business. It allocated 21 per cent of the planned expenditure.

4. Provision of basic needs and services
Basic needs projects focused on low cost water and sanitation, primary health care services, nutrition education programmes, curative health care, de-worming, for primary school children and rural shelter rehabilitation. Altogether this category of expenditure was to absorb about 18 per cent of planned PAMSCAD expenditure.

5. Education Infrastructure.
This was through commodity aid for schoolbooks and food stocks for secondary boarding schools. It was also allocated 12.5 percent of planned expenditure under the programme. (Source: F. Stewart & W. van der Geest, 2005)

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ASSESSMENT OF SUCCESS AND FAILURES OF THE PAMSCAD

With any human institution some gains and losses will be made in respect of its intended purpose. To better assess the degree of accomplishment it will be necessary to look at the planned individual projects as against the outcome. 1. Community initiative Projects (CIPs)
Ten mobile district planning teams were established to be in charge of the implementation and monitoring of PAMSCAD projects under the project for institutionalised strengthening for decentralized implementation of social sector programmes. Community initiatives projects were introduced under PAMSCAD. Page 13 of the report by the local government information digest, volume 3 of 1990 indicated that, of the first twenty CIPs financed with an amount of ₵24.6m, 15 had been completed and commissioned by 1990. These are set out in the table below.
TABLE 1 REGION | DISTRICT | TOWN | TYPE OF PROJECT | Central | KEEA | Ntranoa | JSS Block | | Cape Coast | Esuekyir | JSS Block | Ashanti | Atwima | Nerebehi | KVIP | | Ahafo-Ano South | Mankranso | KVIP | Eastern | East Akyem | Kukurantumi | KVIP | | Akuapem North | Akropong | JSS Block | Brong Ahafo | Sene | Bantama | JSS Block | | Dormaa | Amasu | KVIP | Western | Asankragua | Asankra- Saa | Clinic | | Jomoro | Jewi Wharf | KVIP | Northern | Yendi | Sang | Health Post | | Tolon | Gbullung | PHC Centre | Greater Accra | Ga | Akutiaku | Community | Upper West | Sisala | Serbelle | Clinics and JSS Block | | Jirapa | Jirapa | KVIP | Source: Prof. M. Quaye, 2004
The five other projects were near completion. These were:
TABLE 2 Greater Accra | Ga | Danfa | JSS Block | Upper East | Builsa | Gbedema | JSS Block | | Bolgatanga | Sokotia | Clinic | Volta | Keta | Fiahor | JSS Block | | Kete krachi | Chenderi | JSS Block |
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Source: Prof. M. Quaye, 2004
Other social and economic accomplishments by the PAMSCAD on its completion included;
606 schools and health centres improved
Wells and Sanitation Program: 612 hand-dug wells and 462 latrines
Rehabilitation low-income houses: 1227 houses completed which represented 27% of target.
Food-for-Work - North: 52 schools improved, 10 clinics built, 2358 acres of agro-forestry
Priority Works Programme: 71.71 km road improvement, 499 culverts constructed
(Sources: F. Stewart & W. van der Geest, 2005; PAMSCAD Secretariat, 1990 and 1992)

However, the beauty of this project was stained by some in discrepancy in its policies as well as its implementation. For instance, the expectation that the poor groups should contribute substantial amounts of money to implement the project in addition to their labour input appeared to defeat the objective of PAMSCAD under the CIP. Similarly, without accurately estimating the cost of projects, by taking into consideration differences in socio-economic status, skills, natural and environmental conditions, flat amounts were established as assistance for each project in all locations. This was found to be inappropriate and have contributed to the failure to complete most projects started (M. K. Armah et al, 2010)

Also, as to even request that projects must be 60-75% completed to benefit from PAMSCAD assistance from those considered poor and vulnerable was unfortunate since by definition they are vulnerable because they are not capable of helping themselves. Analysis of the targets set under this project and the results achieved, showed gross under-achievement of the target set. For example, the 1227 houses completed under the Rehabilitation of low-income house only represented 27 percent of the target. This was a serious indictment on the integrity of the administrators. 2. Employment generation Projects
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The number of participants in the food-for-work schemes in the North was nearly 11,000 by the end of 1992. Using PAMSCAD's own estimate of four indirect beneficiaries for each participant, this would indicate some 55,000 direct and indirect beneficiaries (PAMSCAD Secretariat, 1992, p.13). Also, small-scale mining which yielded a total of ₵2.494 billion from the sale of both gold and diamond, created about 11,000 regularized jobs. Credit facilities were also created for small-scale enterprises under which approval and finance were granted for 109 projects. As at February 1990, it had contributed ₵2 million to a revolving fund. There was also Agricultural rehabilitating credit for peasant farmers through which two Farmers’ Associations in the Northern and Volta Regions were financed and provided with equipment. The food-for-work project in Northern Ghana under the auspices of the Adventist Development Relief Agency (ADRA) also benefited about 2,500 people.
PAMSCAD, in 1987, reduced mass poverty by providing training, work and income through community development projects for targeted groups such as retrenched workers, women and poor households. However, critics contend that PAMSCAD did little to alleviate the Economic hardships faced by the truly disadvantaged, notably women and the poor. It is argued that most of the resources, credit, and construction projects initiated by PAMSCAD favoured men over women. Brydon and Legge (1996) note that the section of the PAMSCAD designed to Enhance the Opportunity for Women in Development was the last to get off the ground. Furthermore, most of the income-generating activities funded for women only reinforced women’s traditional roles of cooking, childcare and petty trading rather than empowering them in new and more lucrative sectors of the economy. 3. Redeployments
Under the activities to help the retrenched, some 1044 started training in various trades, blacksmithing, baking, dress making, among others. The resettlement project in agriculture has already assisted some redeployed to go into farming either on a cooperative or individual basis. By December 1992 nearly 61,000 civil servants had been redeployed. The PAMSCAD targeted this group through compensation by severance and redundancy payments placement and counselling services, training for self-employment and food-supplements for the redeployed, taking up small scale farming. An assessment of the impact on a small sample of public employees who lost their job or took voluntary retirement found that nearly all the redeployed had found some work, though typically of a lesser status and quality. Those with larger amounts of severance pay were more likely to have found full-time work, including self-employment.

On the other hand, studies by F. Stewart and W. van der Geest in 2005 found out that; after 14 months of redeployment only half had recovered the same employment status that is fully-employed with comparable earnings. Overall earnings of the redeployed workers appeared to have fallen sharply by approximately half. However, difficulties in measuring income from self-employment and informal activities may have led to underestimation. The study concluded that poverty among the redeployed households increased significantly. Before redeployment some 4 per cent were below the poverty line, whereas after it had increased to 22 per cent. From the point of view of targeting the poor, the compensation schemes were not efficient. Public employees even in low grades were typically better-off than various other social groups, especially those in the rural North.

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4. Provision of basic needs and services
The provision of basic needs and services under PAMSCAD spanned across many programmes and activities. Such programmes included activities geared towards essential drug supply to hospitals, clinics and most especially schools. Drug supply for schools was especially towards de-worming programme for school children. According Nii Kweku Sowa (2002) the programme enabled 1 million out of 1.5 million school children of 6-12 years to have their first administration of piperzine, a de-worming drug. Other needs satisfied were; provision and improvement of health centres to satisfy the health needs of the people; Wells and Sanitation Programme, which resulted in the provision of 612 hand dug wells and 462 latrines. In satisfying the travelling needs of people, there was an improvement of 71.71 km road and the construction of 499 culverts. As part of PAMSCAD, ¢10 billion was slated in the 1993 budget for the rehabilitation and development of rural and urban social infrastructure.

However, like other projects under PAMSCAD, some obstacles were realized. Spanning a wide range of reasons including financial and infrastructural constraints. For example, a project to meet the nutritional needs of local school children was marred by limitations like; inadequate kitchen facilities and bad condition of regional food depots. Also, in the area of health, bad conditions resulted in many health practitioners going into private practice. This programme gave little incentive for health practitioners in public service. This meant that, the health facilities provided by PAMSCAD had little personnel manning it. People had to go for private health care, which was worse off in rural areas.

5. Employment Infrastructure

Education infrastructure under the PAMSCAD initiative, involved the provision of schools facilities in various districts in the country. Provision of school books and other essential facilities necessary for effective learning. For example, as indicated in Tables 1 and 2 at page 5 of this document, notable ones included; provision of JSS Blocks at Ntranoa in KEEA District, Esuekyir in Cape Coast, Akropong in Akuapem North District, among others. F. Stewart & W. van der Geest (2005) indicated that, Provision of good educational infrastructure ensured various levels of education and training. It included; non-formal education with 270,000 learners, Institutional Capacity Building, training of 40 officers for 10 mobile teams to support Community Initiative, Training of 366 trainees for rural building and 90 nutrition education centres attended by 12,842 preschool children.
It was however constrained by, insufficient textbook and classroom furniture. Also, the problem of inadequately trained staff was cardinal. Equitable distribution of resources across the country was also a big problem, especially to poor schools. This included the uneven distribution of qualified teachers across the country because cities and large towns had a larger share of such personnel.

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In conclusion, the announcement of a Programme to help reduce the social costs of adjustment was welcomed by many, with the hope of solving the widespread inequalities in the social sector of the economy. However, the many constraints realized brought disappointment to the ones excited Ghanaians. A review of Ghana's PAMSCAD undertaken by its Secretariat after two years, in 1990, realized that the programme was marred by delayed implementation because of lack of clarity of the institutional framework for its implementation as well as major financial constraints for the programme.

For future consideration, an initiative to solve problems concerning the society should incorporate inputs from the Ghanaian people. The Government should also be well certain of continued financial support for the programmes and must ensure the effective implementation of the policies made.

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REFERENCES 1. Oquaye, M. (2004). Politics in Ghana 1982-1992: Rawlings, Revolution and Populist Democracy. Thomson Press Limited, India. 2. Rogers, S. G. (2005). History of Ghana. Greenwood Press, London. 3. Hutchful, E. (2002). Ghana’s Adjustment Experience: The Paradox of Reform. United Nations Research Institute for Social Development, UNRISD, Geneva, Switzerland. 4. Mensah, J., Koranteng, O. R. & Yeboah, F. (2002). Understanding Reform: The Ghanaian Case. The Global Development Network, GDN, Ghana. 5. Stewart, F. & Van der Geest, W. (1995). Adjustment and Social Funds: Political Panacea or Effective Poverty Reduction? Employment Department- International Labour Office, Geneva, Switzerland. 6. Boadi, K. C. (2004). Participatory Implementation: The Gender Dimension in the Implementation of Community- Level Projects in Ghana. University of Helsinki, Finland. 7. Brydon, L. & Legge, K. (1996). Adjusting Society: the World Bank, the IMF and Ghana. Tauris Academic Series, London and New York. 8. Sowa, N. K. (2002). An Assessment of Poverty Reducing Policies and Programmes in Ghana. A paper presented in a conference on Assessment of Poverty Reduction Policies, organized by INSEA and IDRC under Micro Impacts of Macroeconomic Adjustment Policies (MIMAP) Project, January 28-31, 2002, Rabat-Morocco. 9. Tsikata, D. (1995). Effects of Structural Adjustment on women and the poor. Third World Resurgence, Accra, Ghana.
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