Distribution /Location Of Social And   Economic Infrastructure

Only one settlement, Berekum has most of the services and facilities in the Municipality and accounts for 86 percent of the District‘s functions, Jinijini is the only 2nd Order Settlement. 

A number of the communities are deficient in terms of services and facilities. Such a skewed distribution reinforces the supremacy of one town (Berekum) and considering the  size of the Municipality. A deliberate development policy is needed to resource deficient areas example upgrading services and facilities in other settlements at an appreciable scale. 

For instance provision of appropriate technology toilet facilities, telephone and Small Town Water facilities and tarring of selected key and important feeder Roads.  The analysis revealed that areas with fairly motorable roads throughout the year have high influence of accessibility to services and facilities. Distribution /location of major services and facilities can be seen in figures 4, 5 and 6 respectively.  
 
Key Production Centres

Major food and industrial production centres in the Municipality are: Berekum, Biadan, Senase, Amomaso Benkasa, Oforikrom, Namasua, Kutre No. I, Mpatapo Nansuano, Botokrom Nsapor, Jinijini.

Accessibility Maps

Services are normally provided within a geographical setting to serve a given threshold population. Accessibility analysis are carried out in order to determine the ease with which people from different locations within the Municipality can enjoy certain services located in other parts of the Municipality.

Services/facilities were selected for the analysis having in mind their relative importance in providing basic services and reduction of poverty in the Municipality.

The services are:
1.    Financial Institutions
2.    Periodic Market
3.    Daily Markets
4.    Agric Extension Agents
5.    Telecommunication and Postal Services
6.    Educational Facilities (Senior & Tertiary Schools)
7.    Health Facilities

In determining the accessibility to these functions on maps, several assumptions were taken into consideration.  These include, threshold time for a service, travel speed on the various classes of roads, waiting time on each class of road and walking time.  Based on the above assumptions lines were used to link areas of the same travel or service influence. This presents a pictorial view of the level of accessibility. Facilities shown on page 25 eg. Financial Institutions, Agric Extension, Health, Education etc were used for the mapping exercise.

The areas covered by each accessibility zone were used to determine physical access to services/facility.

Maps showing the access to the individual services are shown in the accompanying accessibility maps after determining the accessibility zones. The maps for the various services (Table 25 above) were supper - imposed on each other to produce the aggregate accessibility map this can be seen in figure 8.

An optimum accessibility map figure 8 reveals that a greater proportion of the Municipality is devoid of optimal access to services within the district.  All facilities are concentrated at Berekum and its immediate environs.  This reinforces the analysis for the scalogram where the supremacy of Berekum, the Municipal Capital is depicted.  Services are skewed in favour of Berekum to the neglect of the hinter land ie areas around  Namasua, Botokrom, Nkyenkyemamu, Koraso, Abisase, Twebabi, Kutre, Benkassa etc.

To rectify this situation, efforts should be made towards improvements of roads in the district by tarring to ensure access to services at Berekum in the short term, while in the long term these services should be equitably extended to all parts of the district.

Composite Poverty Pockets    

Four (4) Poverty Pockets were finally derived after the Poverty profiling and Mapping Exercise/Analysis with a slight modification on the tentative poverty pockets derived earlier, (refer to figures 2 and 9).

These are:
This has implication for designing of programme and projects to reduce poverty.  Each focus group should have different prescriptions to deal with their peculiar problems.  

However any prescription should aim at an integrated approach in reducing poverty at the Berekum District.

District Level Stakeholders Dialogue
 
It was realized after the exercise that, understanding of poverty and causes among District sector departments and agencies is relative. Different sector/departments perceive poverty in relation to their sector activities.
 
Community Level Stakeholders Dialogue

• Most of the facilities in the District are located at Berekum, the District capital.

• The condition of Roads in a particular areas has influence on poverty and  accessibility to services.

• Most of the roads in the District are fairly motor able throughout the year.  They are mostly feeder Roads which need regular maintenance to improve access to services and facilities to reduce poverty.

• Most of the issues relating to understand of poverty boarder on basic needs ie  inadequate access to basic needs eg lack of adequate shelter, malnutrition, inability to pay medical bills, wearing of tattered clothes etc.
•  It was realized during the community level dialogue that understanding of poverty   is relative.  Each focus group sees or understands poverty in relation to their trade  or profession and environmental peculiarity.  Thus farmers understanding of  poverty is someone who lives from hand to month.

Outcome Of Mapping

The mapping exercise revealed that most of the services in the Municipality are  concentrated at Berekum, the District capital.  These services have influence on communities closer to Berekum.  These communities are Kato, Senase, Biadan, Nsapor, Jamdede, Mpatasie and Mpatapo and thus improve the access of these communities to major services and facilities.  The high level of access is also     influenced by 1st and 2nd class roads which are accessible to these communities.

Thus Berekum and its environs are within the optimum accessibility, zone ie they  have high access to all the selected services/facilities listed in the scalogram. Within the very poverty stricken pocket (D) are communities deprived of major  services and characterized by poor road network.

It was also realized that road conditions in the District had much influence on accessibility to services and facilities and for that matter on poverty.  Areas   around Jinijini which are on the 1st and 2nd class roads are relatively endowed and are within the least poor and 3rd poverty zones. Four (4)     final poverty pockets were derived after the mapping exercise.  
    
These are:
A    -  Least Poor Zone        -   Berekum, Jinijini, Anyimom, Mpatasie, Kato,  Senase, Biadan, Nsapor, Jamdede, Domfete,
                                                   
B  -3rd Poorest Zone -  Nanasuano, Benkasa, Anyinasu, Amomaso

C  - 2nd Poorest Zone  - Fetentaa, Botokrom, Nkyenkyemam, Zone           

D.     Most Poverty stricken   -  Koraso, Kutre No. I, Abisase, Akrofro,      Zone   Pepaase, Namasua, Oforikrom, Kotaa,   Tewbabi, Amankokwaa. 
                                                       
It must be stated that these are general poverty pockets.  There are isolated incidence of high poverty within the least poor and 3rd poor zones and vice-versa.

Administrative Arrangements

Administrative  And Institutional Arrangements

The fundamental goal of the Berekum Municipal Assembly is to deliver improved services in all sectors of the society including Public Institutions (Government Departments ), Non Governmental Organizations (NGOs), The Private Sector, Traditional Authorities etc to contribute to a sustained and accelerated rate of social and economic development over the plan period to reduce poverty in the District. 

Projected/Exogenous Revenue For Medium Term Development Plan 2006-2009

According to estimates and based on past performance of the District in respect of revenue generation as well as external grants and other on-going development programmes the District expects massive capital investment during the Plan period.  Examples from the Municipal Assembly Common Fund, Ministry of Finance and Economic Planning Special Programmes, (for up-grading of Berekum Central and Thursday Markets), the KfW Towns V Programme, Community Water & Sanitation Programme, the Highly Indebted Poor Countries Initiative (HIPC), the GET Fund, the Social Investment Fund (SIF), Municipal Assembly’s own Internally Generated Funds (IGF), etc.

The Table below provides information on projected financing plan for the Medium Term Plan.  These projections are however relatively modest considering the volatility of the national economy.  Actual increases could be expected to be very high.  The District’s estimated levels at the moment is expected to be over Twenty-Four Billion cedis (¢24,462,200,000.00) for year 2006 alone for all anticipated Programmes and Projects.

However, the District expects to receive an inflow of about Two Hundred and Three Billion, Twenty-One Million cedis (¢203,021,000,000.00) for the effective implementation of all Programmes and Projects in order to achieve the Goals and objectives within the Plan period, ie 2006- 2009. 

Implementation Of The Medium Term Plan 2006-2009

This section of the Medium Term Plan is designed to identify projects whose implementation will assist in the realization of the objectives of the Medium Term Plan (2006-2009) of the Municipality.

The Development programmes and the projects are carefully phased out year by year within the four (4) year period.  These are reflected in an annual plan, which specifies what actions are to be taken, by whom, and at what time.

The four year (4yr) investment programme has identified projects which are organized under the major development areas, ie the (GPRS II) which are:

•  Private Sector Competitive,
•  Human Resource Development,
•  Good Governance and Civic Responsibility.

Furthermore, administrative and institutional arrangements required for the effective implementation of the totality of the plan are outlined below.

Strategic Environmental Assessment Of Municipal Medium Term Development Plan.

The Berekum Municipal Assembly in line with the Growth and Poverty Reduction Strategy (GPRS II) will adhere to sound Environmental Impact Assessment (EIA) before the commencement or implementation of every programme and project.

The Municipal’s Medium Term Development Plan (MTDP) captures the three priority areas under the Growth and Poverty Reduction Strategy (GPRS II).  

These are:
1.    Private Sector Competitive,
2.    Human Resource Development and, 
3.    Good Governance and Civic Responsibility

Two levels of public hearing on the MTDP were organized to solicit the views of the people in the district. The EIAs of the various projects will therefore be undertaken to ensure their sustainability.  The EIAs will be based on three cardinal points.  These are:

• Economic factors/effects in the district,
• Effect of the Plan or Projects on the Natural Resources/Environment,
•  Socio-Cultural factors/effects.

The Municipal Assembly will seek technical assistance from the Environmental Protection Agency (EPA) through the Regional Co-ordinating Council for the EIAs.

 Investment and Business Potential

The Berekum Municipal abounds in potential natural resources, which comprise timber resources, fertile agricultural lands, mineral and clay deposits, and tourism services. As a result of the rich timber resources, such as Odum, Wawa and Kyenkyen, the district has three main timber firms (saw milling industries).The industry employs about 10 percent of the active labour force engaged in the manufacturing sector. Products of the firms are for export and local consumption. Woodwork (furniture) has therefore emerged as a potential area of investment to create employment for the youth.

The potential of the soil characteristics of the district reveals that farmlands have prospects for export crops, such as maize, plantain, pepper, ginger, pineapple, mushroom, cashew, sunflower, tomato, black pepper, okro and yam.The Municipal Assembly, in a attempt to promote investment in the agricultural sector, with the aim of alleviating poverty, has offered a loan of ¢200,000 each to 380 beneficiaries, which amounts to a total of ¢76,000,000.00. Gold deposits are found in the district.

The forest reserves are known to abound in gold deposits. These are mostly found in areas such as Jinijini, Domfete, Ayimom, Koraso, Namasua and Fetentaa. In most cases, however, the mining activities are undertaken on small scale basis (popularly known as galamsey) and are unregistered.

However, in recent times some registered companies have been authorised to undertake prospecting to promote the commercialisation of mining activities in the identified areas. This would not only improve the revenue base of the district but could also serve as the antidote to the high unemployment situation. Moreover, the district is sitting on a large clay deposit.This is a raw material base for the brick and tile industry. An investment in the brick and tile industry is important for the construction industry. This is expected to improve urban and rural housing, as well as its potential enormous contribution in the area of the manufacture of artifacts and ceramics for export and the domestic markets.

POCC Analysis

The Berekum Municipal has  abundance of human, natural, financial and other resources, which if properly utilized can result in an appreciable improvement in the current status of the district.The prospect of finding gold in the district is high (according to informal sources and preliminary studies). The discovery of gold and its subsequent exploitation would transform the Berekum District into a rich, vibrant local economy with unlimited opportunities.

Agriculture has for many decades been the major occupation of the rural folks who usually cultivate oil palm, coffee, cocoa, maize, yam, cocoyam, cassava and plantain, vegetables, etc.  Agro-based industries can therefore be established to process the raw materials for added value to be obtained.  Through this initiative, employment opportunities would be created and the living conditions of the people improved.

Clay deposits, fine and course sand and gravel can also be found in most parts of the Municipal.  These have an enormous potential for the construction industry.  If properly exploited and utilized, there would be an appreciable reduction in the cost of building materials.  Consequently, low and middle-income families can put up their own dwelling units.  Moreover, a great potential exist for the export market.

The 1,635 km2 land area has abundant timber species.  Odum, Wawa, Sapele, Otie, Mohagany and other tropical hardwood are examples.  By regulating the activities of timber firms and the operations of chain-saw operators, the district can ensure a sustainable use of her timber resources.  Foreign exchange can also be earned by processing the timber into veneer, plants, plywood, boards and knockdown furniture for the international timber market.  Namasua, Adom and Koraso can be the initial areas of focus.

Problems And Constraints

The small size of rivers and their seasonality of flow have serious implications for the development of small-scale irrigation schemes.  Such a situation will greatly affect water levels in reservoirs during the dry season.  Thus, the objective of ensuring water availability for all-year-round cultivation will be undermined.

Added to the above is the problem of diminishing soil quality.  Unlike former times, the prospects of cocoa production in the Berekum is no longer bright.  Consequently, only highly resilient crops like cassava, maize and yam can thrive well on the rich ochrosl soils.  In spite of this unfortunate revelation, organic fertilizers can be applied to the soil to improve its quality.

Over the years, rainfall has also been reducing in quantity season after season.  The pattern of its distribution is also less predictable and serious concerns have been raised by farmers.
 
Application Of Potentials, Opportunities Constraints And Challenges Of G P R S  Ii Themes (Pocc Analysis)

The problems which were identified during the community for a were subjected to the above exercise to facilitate implementation. Potentials are existing situation especially within the district which could be exploited for development, eg resources in the district for instance land, sand, stones/gravels, location, Human resources etc. 

Opportunities are external factors which could be utilized in addition to potentials in the district to solve a problem or to enhance development. Challenges are current inhibiting factors which must be over come to facilitate development. Constraints are internal limitations to solving development problems.  The table shows Potentials, Opportunities, Constraints and Challenges in the Berekum Municipal as they affect the process of development.

Private Sector

District Development Priorities For Growth And Poverty Reduction Strategic (Gprs Ii) Themes For Berekum District
Private Sector Competitiveness

Berekum Municipal economy is characteristic of a rural economy with agriculture being the mainstay of the people.  The sector employs 57.8 per cent of the working population with commerce/service and industry employing 37.6 per cent and 4.6 per cent respectively.  

Large proportions of crops grown within the district are food crops and does not Contribute much to the district’s GDP.  Commerce is the booming sector of the district economy, contributing 41.3 per cent to income compare to industry (32.3 per cent) and Agriculture (26.4 per cent).

Relationships between levels of employment by sector and levels of income by sector are inverse.  This makes it clear that agricultural sector has inherent sectoral problems that need to be tackled immediately to enable it function effectively.

Municipal Assembly Finances

The Municipal Assembly internally generated fund (IGF) has been reviewed for the past four years i.e. 2002-2005 to see its performance and the contributions it has made to the total revenue generation of the Assembly.

The immediate Medium Term Development Programme (MTDP) as far as the Assembly’s finances are concerned has reflected an insignificant support of the internally generated fund to total revenue base of the District and low revenue performance vis-à-vis budgeted estimates.

Revenue mobilization since 1999 to 2001 has consistently fallen short of budgeted figures with the exception of year 2001 during which 54%, 84% and 105% was achieved respectively.  Additionally an analysis of the Financial Autonomy Index has shown that low revenue of 25.3% was collected over these periods as IGF as against an external contribution of 74.7% confirming the dominance of external subvention to the Assemblies.

Revenue Performance Index—2002-2005

The performance of the IGF for the periods 2002-2005 is analyzed below:
A critical look at Table1b reveals that the Assembly has been performing above expectation recording over 100% of its targeted figures for years 2002-2003 registering 165% and 118% respectively.  However, not too bad efforts were recorded for years 2004-2005 registering 94% and 90% respectively.

For the periods under review, ¢609.6m, ¢862.7m, ¢1.126b and ¢1.28b were envisaged to be collected.  Yet, ¢1,005,868.38, ¢1,017,896,970.50, ¢1,059,055,765.86 and ¢1,158,600,732.75 were actually mobilized in years 2002, 2003, 2004 and 2005 respectively.

Various reasons could be assigned to the above performance.  In the first place the high percentage achieved in 2002 is attributed partly to inaccurate forecasting of the rates due to inadequate data.  Intensification of efforts by the Assembly by way of public education and extra collection efforts by revenue collectors could also account for the impressive achievements.  A huge percentage of 3,700% collected in respect of arrears on properties and 357.4% of unspecified receipts are typical examples of the high recordings.  On the other hand, the under-achievements in 2004-2005 are a reflection of the low revenue collected in respect of Stool Lands.

These achievements are represented in diagram A below:

There has not been a consistent growth in the rate of the IGF showing fluctuating levels from 2002-2005 as illustrated in Table II above.

For 2002-2003 and 2004-2005 periods, none of the revenue items could register a growth above 43% fluctuating between –66.9% and 42.2%.  However, a few items recorded favorable growth rates such as rates, fees and fines and investments, registering 52.4%, 70.1% and 89.9% respectively.

Three items for years 2002-2003 posted negative growth rates thus contributing to the low total growth rate of 1.2%.  Yet four items recorded positive growth rates but below 32%.  Similarly for period 2004-2005 three items: rates, investments and miscellaneous recorded negative growth rates whilst four items Lands, Fees & Fines, Licenses and Rents showing positive growth rates but below 43%.  These, however, contributed to the total growth rate to 9.4%.

The very low performance against contributed collection for all the periods under this analysis could be attributed to the non co-operation by rate payers due to poor sensitization and not too impressive social responsibility on the part of the Municipal Assembly to deliver essential services to the people, low revenue inflow from the Stool Lands, absence of land lords to be served with demand notes, connivance of rate collectors with rate payers to reduce the appropriate tax to be collected among others. 

Extra collection efforts put in by the revenue collectors and public education led to positive variances recorded in items such as Rates, Fees & Fines Licences and Rents.  Under estimation of the budget could also account for the positive variances.

As evidenced from the table above it is clear that the Municipal Assembly IGF constitutes less than 17% of its total revenue with a little over 83% contributed by external sources.  The low IGF reflects the low contribution to the capital budget and the difficulty in servicing the recurrent expenditure.

The Assembly generated on its own 21.8%, 16.97%, 12.8% and 17.01% from 2002-2005.  These figures show an average of 16.9% IGF collection over these periods as against an external subvention of about 83.1%.  This confirms the perception that the Municipal Assemblies put too much emphasis on external sources of funding such as the Common Fund and other donor funds.

Contribution of IGF to support the expenditure budget is very minimal registering an average of 18.72% for the four periods above viz a viz the huge expenditure made.  This confirms that the Assembly relies heavily on external funding to support the budget.

The ratio of IGF growth rate to Expenditure growth rate indicates a wider gap in 2002-2003 for the two items.  This is an indication that the Assembly depends heavily on external sources to service its huge expenditures. The gap narrowed in 2004-2005 showing 9.4% growth for IGF and 18.64% expenditure growth rate.  For this period i.e 2005, the Assembly reduced its expenditure to ¢ 6.4 billion as compared to year 2004 which registered ¢7.9 billion.  Too much strain would therefore not have been put on the IGF for the purpose of incurring expenditure.

Financial Control

The Assembly operates within the framework of the Financial Administration Act and other Acts which prescribes the rules and procedures as far as finances are concerned.  These laws not withstanding, the Assembly goes contrary to some aspects thus exposing a weak financial control.  Paid staff of the Assembly and commission collectors collects revenues based on the fee-fixing resolution and budget approved by the General Assembly.

Copies of the fee-fixing resolution and approved estimates are provided to the collectors as guide in the generation of revenue.    All monies are expected to be lodged at bank directly by each collector and pay-in-slips submitted to the Chief Revenue Superintendent and Local Government Inspector for inspection.

The Chief Revenue Superintendent monitors the inflow of revenue on weekly/monthly basis by recording and conducting random checks to verify the amounts paid.  In respect of expenditure, the FAA stipulates that the accounts of the Municipali Assembly are to be audited by the Auditor General’s Department. 

This is carried out yearly as required by the law and their findings and recommendations made to management for the necessary action to be taken.  Apart from this the Assembly ensures that all transactions are entered in their respective books and PV’s subjected to auditing by the Internal Auditor and submit a report to the Presiding Member for consideration.

All expenditures to be incurred are provided for in the approved budget for the relevant year.  However, most expenditure is made without recourse to the budget thus creating unstable budget equilibrium through over expenditure.

In line with the new procurement law the Assembly annually makes available a procurement plan which serves as a guide in the implementation of the programmes and projects of the Assembly.  Additionally, a Tender Committee has been put in place with the responsibility of reviewing procurement plans, confirm the range of acceptable costs of items, ensures that procurement procedures are followed among others.

The Assembly runs an imprest of ¢500,000.00 to enable it meet petty transactions over the week. Some of the major problems of collection/controls in the Assembly are: inability to discuss negative variances in rates collected and suggested solutions, disrespect for laid down procedures attitude to overspend without recourse to the budget, lack of logistics to monitor collection, non compliance of audit recommendations and the failure of management to implement decisions of the Assembly among others.

Financing Of Recurrent & Capital Budget

Table VI depicts an unfavourable variance of 103.82% and 147.14% in 2002 and 2003 respectively in expenditure of the Assembly.  However, a favourable pattern was recorded in year 2004 and 2005 showing 99.55% and 60.44% respectively.From 2002-2003 most of the expenditure items were exceeded registering negative variances as exemplified by the Personnel Emoluments, T&T, General Expenditure and Miscellaneous expenditure.  It is important to note that the Personnel Emoluments targets were exceeded because of increases in salaries (overtime allowance) and honorarium to staff.  

The Assembly from the expenditure pattern clearly demonstrates that it places high premium on recurrent items mentioned above to the detriment of maintenance expenditure, which were never exceeded throughout the four-year periods.  The ratio analysis of the expenditure pattern shows that maintenance forms about 0.66% on the average of the total expenditure of the Assembly.  This dismal picture reflects the lack of maintenance culture by the Assembly.

Apart from the Common Fund expenditure, expenditure is highly skewed towards recurrent budget as against a disappointing average of 2.8% for local capital expenditure throughout the years under review.  In the event that the Municipal Assembly Common Fund is not forth coming this expenditure pattern will impinge negatively on development in the district.  This therefore calls for a very vigorous revenue mobilization drive for an increased investment in poverty related activities in the district.

Cash Management

Revenue surpluses or shortages are managed in such a way that the Municipal Assembly does not run into financial difficulties. Large amounts of cash are not kept in safes because they pose security risk but rather kept at bank and withdrawals in respect of recurrent and capital projects are made as and when the need arises.  In cases where there are shortages in revenue, the Assembly postpones payments to suppliers or its creditors for a period by which time it accumulates well enough for payments.

Evaluation of the Fiscal System

Most of the revenue targets by the Assembly for the four fiscal years were exceeded as compared to the achievements in the 1999-2001 periods.  Only years 2004 and 2005 recorded negative variances.  The high performance in years 2002-2003 could be attributed to faulty forecasting (underestimation) or extra efforts put in by the Assembly and collectors.  On the other hand, the relatively low performance in 2004-2005 are as a result of the weak collection efforts put in by the collectors or overestimation of the budget.

It is clear that the local budget structure is highly skewed towards recurrent expenditure to the detriment of the capital budget as a result of the low yields of most of the revenue items.

The Assembly in the foreseeable future should concentrate on the potentials of the revenue sources in order to maximize its revenue, tap on the rich experiences of its revenue staff and adequately motivating and providing training to them for higher `revenue generation.  Again, all limiting factors resulting in the low revenue inflow should be addressed to enhance revenue mobilization within the district.

Financial Institutions

It is heart-warming to note that there are several banking and non-banking financial institutions responsible for capital formation within the Municipality.

Ghana Commercial Bank, Agricultural Development Bank, SG-SSB Bank and other Rural Banks notably Kaaseman, Wamfie and Nsuatreman Rural Banks are well established with enviable records as far as quality banking and client confidence is concerned. 

The financial resources of investors and their returns as well as the safety of their assets are guaranteed.