	Overview

U.S.-Ghanaian relations are warm, as signaled by President Barack Obama's travel in 2009 to Ghana, where he laid out his views on democratization and governance in Africa in his single major Africa-focused policy address. Ghana is the only sub-Saharan African country to which Mr. Obama has thus far traveled while serving as president. It has built a relatively robust democracy and a growing economy, although it faces persistent, widespread poverty and a range of profound development challenges. Ghana, which last held national elections in early December 2012 (see below), is considered a model for many of the outcomes that congressional and executive branch policy-makers have long sought to achieve in the region under diverse programs that have drawn substantial congressional engagement. Ghana has received a large U.S. Millennium Challenge Corporation (MCC) Compact and may soon receive a second one. It also participates in three presidential development initiatives, the Global Climate Change (GCC) initiative, Feed the Future (FtF), and the Global Health Initiative (GHI), and hosts U.S. Agency for International Development (USAID) and U.S. Drug Enforcement Agency (DEA) regional offices and the USAID-administered West Africa Trade Hub. The Hub activities seek to expand intra-regional and bilateral trade with West African countries, a focus of renewed congressional interest and a key pillar of the Obama Administration's June 2012 U.S. Strategy Toward Sub-Saharan Afric a . Ghana has also drawn U.S. attention because of its recent discovery of sizable oil reserves and its potential contributions to global and U.S. energy security. Energy production may boost national income and development prospects, but may also pose good governance and resource management challenges, as is common in oil-rich developing countries. Commitment to constitutional governance has become increasingly ingrained, as illustrated by successful inter-party transfers of state power following close recent national elections. Similarly, when President John Atta Mills died in July 2012, state power was transferred to then-Vice President John Dramani Mahama, as constitutionally mandated, within hours. Ghana is a steady contributor of troops to international peacekeeping operations, both in Africa and elsewhere, and is a recipient of U.S. training and assistance aimed at supporting such deployments. Ghana was selected as one of four initial U.S. Partnership for Growth countries globally for several reasons. The winner of the 2012 election was also seen as well placed to win the 2016 election. Services have expanded rapidly, and contributed 47% of GDP in 2011. In recent years, the World Bank's annual Doing Business report has consistently rated Ghana positively—better than all but four countries in sub-Saharan Africa. The start of oil production has spurred an increase in public spending and borrowing based on projected future oil earnings. This means that the government "does not fully comply with the minimum standards for the elimination of trafficking; however, it is making significant efforts to do so," according to the State Department's most recent annual Trafficking in Persons Report , released in June 2012. It also pledged to help Ghana to achieve the poverty reduction and development-focused United Nations Millennium Development Goals by 2015. Ghana hosts the USAID regional office and USAID's West Africa Trade Hub, which seeks to increase exports from countries in the region. Ghana's role as a new oil producer is also likely to increase its strategic importance to the United States. Development cooperation is likely to remain a key area of congressional engagement; despite its economic successes, Ghana faces deep-seated socio-economic development challenges.
Ghana: Bilateral Cooperation and Leadership Engagement
Ghana is considered a model for many of the outcomes that many Members of Congress have long sought to achieve in sub-Saharan Africa in the areas of authorizations; appropriations and program guidance; and oversight. Ghana has received a large U.S. Millennium Challenge Corporation (MCC) Compact and may soon receive a second. It is also a recipient of substantial U.S. Agency for International Development (USAID) and State Department bilateral aid, much of which is channeled through three presidential development initiatives:
the Global Climate Change (GCC) initiative; Feed the Future (FtF), a global food security and poverty reduction initiative; and the President's Malaria Initiative (PMI) and the Global Health Initiative (GHI).
Ghana also hosts USAID and U.S. Drug Enforcement Agency (DEA) regional offices and the USAID-administered West Africa Trade Hub. The Hub focuses on expanding intra-regional and bilateral trade with countries in the region, a key area of current congressional interest and a pillar of the Obama Administration's U.S. Strategy Toward Sub-Saharan Africa, released in June 2012.
Ghana is also one of four initial Partnerships for Growth (PfG) countries. PfG, implementation of which began in 2011 in El Salvador, is intended to advance public and private bilateral cooperation with selected countries whose top leaders demonstrate commitment to good governance and sustainable development. Ghana hosts regular visits by Members of Congress, and in 2009 President Barack Obama signaled that ties remain close by traveling to Ghana, the only sub-Saharan African country that he has visited as president.
Good Governance and Stability
President Obama's visit was premised on Ghana's record of having built a relatively robust democracy and a growing economy, albeit in the face of widespread poverty and diverse development challenges, making it a stable country in an often unstable region. During his visit he lauded its democratic and economic development record and made a major policy address relating these issues to good governance in Africa and the wider developing world. Ghana's stability is maintained, in part, by its citizens' commitment to constitutional governance. Since undergoing a transition from single party rule in the early 1990s, it has held a series of peaceful but close elections, two involving inter-party transfers of state power. The most recent elections, held in early December 2012, were closely contested. In all cases, opposition challengers have either accepted poll results outright or contested them through the courts, rather than through the use of violence or street protests. Constitutional governance was also upheld in July 2012, when state power was rapidly and transparently transferred to the current president, John Dramani Mahama, after the death of President John Atta Mills.
Ghana has also contributed to efforts to maintain stability and end conflict in the surrounding West Africa region, and regularly contributes to international peacekeeping operations elsewhere. It receives U.S. capacity-building assistance in this area, as well as aid to help counter threats posed by international narcotics trafficking.
Development and Economy: Progress and Challenges
Ghana's economy has grown substantially in recent years, based both on increases in farm and mining exports and, more recently, oil production, which is likely to increase its strategic importance to the United States. Growing oil earnings may help fund development, but may also pose resource governance and fiscal management challenges. Economic growth has led to socio-economic and infrastructure construction gains, but Ghana continues to face profound development challenges and threats to the rule of law linked to corruption and trafficking in illegal drugs and persons.