The Politics Of Economic Reform In Ghana

This book explores the significant economic transformation of Ghana over the three decades since the end of the Cold War, focusing on the role of political-economic change and reform. The Politics of Economic Reform in Ghana presents a range of perspectives from scholars drawn from both academia and policy-making on the way Ghanaian economic reforms have been shaped by various political and economic actors. First, it establishes and debates the uniqueness of Ghana as a case study in Africa, and the developing world. Second, the book offers a broad account of how global and domestic political or institutional actors have contributed to shaping economic development in Ghana. Drawing on theoretical perspectives, the volume assesses how major political-economic changes have affected Ghana’s economic development. This book will be of interest to students, scholars, policymakers, and organizations interested in the economic and political advancement of Africa, as well as African Politics and Economics.

Economic reform was the most pressing question for African and other Third World countries during the 1980s. In this first full-length examination of the political economy of adjustment in Ghana, Jeffrey Herbst describes the causes of Ghana's dramatic economic decline and reviews the politics of reform that began in 1983. Since Ghana was one of the first African countries to adopt a comprehensive reform program and the one that has sustained adjustment longest, the Ghanaian experience has profound ramifications for debates regarding stabilization and structural change across the continent. Herbst devotes special attention to the interaction between the type of government and the politics of adjustment, the reaction of interest groups such as urban labor and the peasantry, and the relationship between economic and political change. His extended field research and sophisticated knowledge of the issues involved, both from the economic and political science literature, make this study of importance not only to Africanists, political scientists, economists, and sociologists, but also to government and financial leaders wrestling with economic reform in developing countries. This title is part of UC Press's Voices Revived program, which commemorates University of California Press’s mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1993.

Reviews the performance of the Ghanaian economy for the period 1983 to 1991, aimed at assessing the impact of structural adjustment policies in different areas of the economy.

What are the political and institutional prerequisites for pursuing policies that contribute to structural transformation? This paper addresses this question by focusing on Ghana, which has achieved sustained economic growth in recent decades and is broadly lauded for its environment of political pluralism, respect for human rights, free and fair elections, and vocal civil society. Yet, despite these virtues, Ghana remains unable to achieve substantial structural transformation as identified as changes in economic productivity driven by value-added within sectors and shifts in the allocation of labor between sectors. This paper argues that Ghana is strongly democratic but plagued by weak state capacity, and these politico-institutional characteristics have shaped the economic policies pursued, including in the agricultural sector, and the resultant development trajectory. Specifically, three political economy factors have undermined Ghana’s ability to achieve substantive structural transformation since then. First, democracy has enabled a broader range of interest groups to permeate policymaking decisions, often resulting in policy backtracking and volatility as well as fiscal deficits around elections that, among other things, stifle credit access for domestic business through high interest rates. Secondly, public sector reforms were not pursued with the same vigor as macroeconomic reforms, meaning that the state has lacked the capacity typically necessary to identify winning industries or to actively facilitate the transition to higher value-added sectors. Thirdly, successive governments, regardless of party, have failed to actively invest in building strong, productive relationships with the private sector, which is a historical legacy of the strong distrust and alienation of the private sector that characterized previous government administrations.

Since the early 1980s, the World Bank, backed by aid donor countries, has been involved in a determined effort to stimulate capitalist growth in Africa by prescribing a set of orthodox, neoliberal economic policies. Using Ghana as a case study, this book considers why this is the case.

By looking at 20 reform efforts in ten OECD countries, this report examines why some reforms are implemented and other languish.