The ratings on Ghana balance fragile general government finances and a low level of economic development with a relatively stable political environment, improving external liquidity, and manageable levels of net public external debt and debt service payments. Despite Ghana's short history of democracy, the political environment is increasingly stable. A process of democratization, which culminated in the election of President John Agyekum Kufuor in December 2000, is expected to result in similarly orderly elections later this year. Strong donor support underpins policymakers' focus on fiscal restraint and the restructuring of state-owned enterprises, although progress in restructuring the public sector and privatizing key enterprises remains slow, and is increasingly tempered by the proximity of the election. Consequently, although fiscal discipline and
