The Poverty Reduction Support Credit(PRSC) instrument was put to use at an opportune juncture in2003 when, after a period of economic crisis, macroeconomicstability had been restored to Ghana and a reform processhad been mapped out. The Bank used this instrument to signalstrong support to the Government for the reform process,which was at risk of being derailed in the run up to the2004 elections. The PRSC was perceived as a clear departurefrom previous adjustment lending, which was characterized byacrimonious negotiation of conditions. Followingindependence from Britain some 50 years ago, Ghanaexperienced rapid economic growth, spurred by commodityexports and industrialization linked to import-substitutionpolicies. But by the early 1980s, standards of living haddeclined sharply, and Ghana had joined the ranks of otherlow-income African countries. Ghana's economic reformprogram, launched in 1983, marked a notable change in policydirection and a shift from a state-controlled economy to amore market-driven system. Ghana made progress in regainingmacroeconomic stability and achieved its Highly IndebtedPoor Country (HIPC) initiative completion point by 2004.Even so, progress was uneven, and the economy remainedvulnerable. Ghana was among Africa's top 10 performersin the 2008 doing business report, and its ranking oncorruption indicators is the best of low-income Africancountries. A recent national survey found that 75 percent ofhouseholds regard corruption as a serious national problem,and 80 believe it has worsened in recent years.
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