The Economy of Ghana: 50 Years of Economic Development

559 Pages·4.491 MB·English

by  Mozammel Huq, Michael Tribe

THE ECONOMY
OF GHANA
50 Years of Economic Development
Mozammel Huq
with Michael Tribe
The Economy of Ghana
Mozammel Huq • Michael Tribe
The Economy
of Ghana
50 Years of Economic Development
Mozammel Huq Michael Tribe
Department of Economics Department of Economics
University of Strathclyde University of Strathclyde
Glasgow, UK Glasgow, UK
ISBN 978-1-137-60242-8 ISBN 978-1-137-60243-5 (eBook)
https://doi.org/10.1057/978-1-137-60243-5
Library of Congress Control Number: 2018930500
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Preface to the Second Edition
The original edition of this book was written at a time when Ghana was
passing through a severe economic crisis, and I therefore had the oppor-
tunity of focusing on that theme. Indeed, the key findings which had
emerged and featured strongly in the book (and which were presented in
various seminars and discussions) appeared highly critical at the time.
Fortunately, these findings later became almost conventional wisdom.
Ghana of the mid-2010s is a completely different country to what it
was during the mid-1980s when the original volume was completed.
Understandably, given the long period of some six decades that the pres-
ent study now covers, and also the complete turn of events that the coun-
try has witnessed in its economic policy, this new volume is much more
than the usual second edition, necessitating significant new material.
From 1982 to 1984, on secondment from the David Livingstone
Institute (DLI) of Strathclyde University, I was based at the Centre for
Development Studies (CDS), now called the Institute for Development
Studies (IDS), of Cape Coast University. I was there along with two of
my DLI colleagues, Drs Douglas Strachan (who sadly passed away on 1
August 2017) and Michael Tribe, on an EU-funded project, working
closely with our Ghanaian colleagues in the CDS, headed by its Director,
Dr Edwin Amonoo (and later by Dr Kwesi Boakye), with strong support
from Glasgow in the person of Professor James Pickett, Director of
DLI. The harsh economic circumstances prevailing at the time in Ghana
v
vi Preface to the Second Edition
obviously created various difficulties, but the ever-welcoming approach
from the people in general and the concerned individuals in particular,
especially from our Ghanaian colleagues at the three Universities (Cape
Coast, Ghana and Kumasi) and also from a large number of government
officials in Accra and elsewhere, made the task of data collection and
writing the first edition very enjoyable. Also, I had a great Research team
which was based at Cape Coast University, with the late Danny B. Safo
(1943–1988) in particular, making enormous contributions. After my
return from Cape Coast to Glasgow in 1984 and during the extensive
editing process of the book, I had enormous support and help from a
number of colleagues, especially from Dr H P Kushari of the Economics
Department of Strathclyde University. Dr Michael Tribe (who, from our
Cape Coast days, remained closely involved with the book) also provided
strong encouragement. Now in the course of writing the second edition
of the book, it has been my great pleasure that Mike has joined me as
associate author.
It should, however, be mentioned that producing a revised edition,
largely remotely from Ghana, has proved to be a great challenge. I made
two visits to Ghana in 2014 and 2016 but my major research area has,
since the late-1980s, moved to Asia and particularly to Bangladesh where
I have become closely associated with the Bangladesh Institute of
Development Studies (the premier research centre of the country).
However, for a long time Mike continued to remain in constant touch
with Ghana as the UK Co-coordinator of a British Council-supported
academic link, working closely with colleagues from the Universities of
Ghana, Kumasi and Cape Coast. In my case, the two recent visits which
I made to Ghana, mentioned above, were particularly helpful. It was pos-
sible to renew some old contacts, to make new friends and to familiarise
myself with ongoing Ghanaian economic development. Two seminar
presentations which I made at Cape Coast University were also of great
help especially in enabling me to have some close exchange of views with
a wider academic community. Moreover, during both of these visits the
spontaneous help and support that I received from various government
ministries and organisations, and also from many of our colleagues at the
Universities of Cape Coast and Ghana (Legon) proved extremely benefi-
cial. These visits also enabled me to collect a huge amount of published
Preface to the Second Editio n vii
and unpublished materials which were invaluable to the preparation of
this second edition. Mike’s close contacts with various individuals from
his old Ghana days and with a number of former students whom he had
supervised at Bradford University also proved very helpful.
Given the rapid economic developments which have taken place in
Ghana, one would have expected significant progress on the data front
but, unfortunately, this has not been so. Indeed, in the face of the severe
data constraints that currently exist in Ghana it has often been a struggle
to find the data required for careful analysis of economic performance.
The Internet has transformed ‘information systems’ and we have found it
extremely helpful. Our research was carried out in three separate loca-
tions: (a) in Ghana (based at Cape Coast University), (b) in the UK
(Strathclyde University) and (c) in Bangladesh (UttarBangla University
College, where I am also partly based as a Visiting Professor).
Heartfelt thanks to our Research Assistants: Talha Khokhar who gave up
a lot of time during his ‘gap year’ (before starting his Economics under-
graduate degree at Glasgow University) to work on the difficult task of
putting together the tables for the Statistical Appendix; Zainal Abedin
and Bisaw Nath Roy who, working ‘remotely’ in Bangladesh, contributed
greatly to tracking down data and other information mainly from the
Internet; and Raymond Elikplim Kofinti who provided some valuable
research support based at Cape Coast University.
I also owe a special debt to Mr Shafiqul Haque Choudhury (President,
ASA Bangladesh) for enabling me to have some deep insights from
his close understanding of the operations of microfinance and to
Mr M. Aourongjeb (Managing Director of ASA Savings and Loans,
Accra) for familiarising me with the operation of microfinance in Ghana,
besides kindly providing salary support for a research assistant.
We are also grateful to a number of our colleagues and friends spread
over various countries. Gratefully we acknowledge their kind support in
the form of discussions, comments and encouragements.
We would also like to take this opportunity to mention a few of our
friends with whom we have remained in constant touch. Roy Grieve was
of great help especially during the course of editing a number of chapters.
Eric Rahim was always there whenever we needed some crucial discus-
viii Preface to the Second Edition
sions. Asuo Afram of the Ghana Statistical Service (GSS) provided great
support in accessing and interpreting GSS data.
At Palgrave Macmillan, Laura Pacey encouraged me to produce the
second edition and then James Safford followed it up with the highly
needed push. Indeed, we are very grateful to both of them.
We would also like to express our sincere gratitude to Navin Prasath
and his colleagues at SPi Global especially for kindly accommodating a
number of changes at the last minute and also for facilitating the produc-
tion of the book in a very short time period.
Perhaps it does not need emphasising that this volume would not have
been produced without the committed work of Mike Tribe. He was also
closely involved when the first edition was written in Cape Coast (and
finalised in Glasgow) so that in a way he has been involved with both the
editions from the beginning. However, in this volume, as the associate
author, his contribution has been enormous.
I am also heavily indebted to my family, especially my wife (Kumkum)
who has remained fully supportive all through.
The usual disclaimers are in order. No one else is responsible for the
errors and omissions that remain. However, as in the first edition, I do
sincerely hope that the factual errors that remain are not too numerous,
and that they do not present a distorted picture of the Ghana economy.
Producing a volume such as this without any major funding from out-
side has, understandably, created serious constraints. However, the love
and affection that we have for Ghana have greatly inspired us to engage
in this venture, and we would feel highly delighted if we have succeeded
in making any contribution in our humble capacity.
Glasgow Mozammel Huq
9 November 2017
Acknowledgements
Our sincere thanks to the large number of people who provided coopera-
tion and direct help during the preparation of this book.
In Glasgow, special thanks are due to Mr Talha Khokhar (University of
Glasgow) who gave sterling research assistance particularly relating to the
substantial Statistical Appendix, as mentioned in the Preface. Also, as
mentioned, we are indebted to Mr Roy Grieve, Dr Eric Rahim and
Professor Roger Sandilands for their valuable contributions made over
various discussions and comments. We are also very grateful for the con-
tributions of Dr Helen Cargill-Thompson, Miss Molly Huq, Ms Fatema
Sonia Malik and Mr Kamal Huq in working on the text.
In Ghana, Mr Asuo Afram (GSS) provided excellent access and
accounts of evolving Ghanaian economic statistics (particularly relating
to the new national income series). At the University of Cape Coast,
Professor Samuel Kobina Annim (Economics Department) remained
highly supportive, Mr Raymond Elikplim Kofinti provided substantial
research assistance, and Mr William Cantah and Mr Clement Entsua-
Mensah were very helpful in discussions. Old and new colleagues and
friends were also extremely supportive—including Professors Isaac
Acheampong, Kofi Afful, John Victor Mensah and Stephen Kendie;
Dr Eddie Amonoo also continued to give valued counsel. At the University
of Ghana, Legon, we were able to rely on advice from Professors Peter
Quartey and Felix Asante, and Miss Millicent Awuku provided logistical
ix
x Acknowledgements
support. Two other ‘graduates’ from the Bradford Link—Drs Sampson
Edusah (UST Kumasi) and Tony Tsekpo (now a private consultant)—
could be relied upon to respond helpfully to questioning e-mail messages.
Dr George T-M. Kwadzo (Ministry of Food and Agriculture, Ghana)
gave exceptionally appreciated support—a valued connection from his
days as a doctoral student at Strathclyde University. Mr Emmanuel
Agyapong Wiafe of the Ghana Institute of Management and Public
Administration and Miss Davina Osei (now at UNU-MERIT/
Maastricht Graduate School of Governance) also contributed. Elsewhere
Dr Emmanuel Oheneba Agyenim-Boateng (Presbyterian University
College, Ghana) was able to help us with information regarding members
of the Ghanaian team who worked on the first edition of this book and
the Reverend Professor Daniel Nyarko (Takoradi Polytechnic) provided
extremely valuable advice concerning the development of electricity
generation and of the Ghanaian aluminium sector.
Within the Ghanaian public sector, we are highly indebted to
Dr Zakaria Issahaku (Ministry of Finance), Mr Eric Koranteng (Bank of
Ghana), Mr Augustine A.  Otto (GIPC), Mr Yaw Gyamfi (Ghana
Microfinance Institutions Network), Mr Ebenezer Padi Adjirackor
(Ministry of Trade and Industry) and Mr Mawutor Ablo (Ministry of
Gender, Children and Social Protection) for their support and help. In
the microfinance sector, we owe sincere gratitude to Mr M. Aourongjeb
(ASA Savings and Loans, Accra) as already mentioned in the Preface; in
this sector we are also grateful to Mr Arthur Earnest (Microfinance and
Small Loans Centre, Cape Coast), to Mr Eric Awortwe (SALT to Ghana)
and to Mr Padmore Victor Yeboah-Asiamah (UniCredit, Ghana).
The Preface has made clear the considerable research assistance pro-
vided by Mr Zainal Abedin and Mr Bisaw Nath Roy (UttarBangla
University College, Bangladesh) without which the completion of this
volume would have been impossible. In the twenty-first century the
world has become a much ‘smaller’ place. Also at the UttarBangla
University College, the Principal, Professor Monowarul Islam, gave his
utmost support to the efforts to complete this volume, and Professor
Montosh Kumar Roy, Mr Shafiqul Islam and Mr Subash Roy also need
to be mentioned in this connection.