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)

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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 Edition 
   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.

GlasgowMozammel Huq
9November 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.
  Acknowledgements 
   xi

At Strathclyde University, Professors Peter McGregor and Ian Wooton

kindly ensured that the authors had a secure academic environment
within which to work on this volume, with additional support from Mr
Roger Perman. Also at Strathclyde, Dr Girma Zawdie occasionally pro-
vided a sounding board for ideas relating to the development of the book.
For the logistical support constantly forthcoming from Mrs Moira
Quinn, Mrs Fiona McIntosh and Ms Josephine Sargeant, we will be ever
grateful.
It was also possible to consult occasionally with Professors Tony Killick
(former Director of Overseas Development Institute, London) and Fred
Nixson (University of Manchester).
 Contents

Part I Overview    1

1 A General Overview   3
1.1 Achievements and Concerns   5
1.2 Coverage of the Book   8
1.3 The Data Bank   9

2 Policies and Reforms: A Historical Overview  11

2.1 Introduction  11
2.2 Development Planning in Ghana, 1920–1980  12
2.3 Economic Recovery Programme (Phases I and II):
1983–1989  19
2.4 Liberalised Trade Regime, 1989–Present  21
2.5 Concluding Remarks  23

Part II The Wider Macroeconomy   25

3 Growth and Structure of the Economy  27

3.1 Growth of GDP and GDP Per Capita  27

xiii
xiv  Contents

3.2 GDP: Distribution by Uses  31

3.3 GDP: Distribution by Industrial Origin  33
3.4 Savings  37
3.5 Concluding Remarks  39
Appendix to Chapter 3: Ghana’s National Accounts Statistics   41

4 Achieving Macroeconomic Stability  51

4.1 Introduction  51
4.2 Macroeconomic Developments: An Overview  53
4.3 Fiscal Balance: Domestic and External Financing  55
4.4 Ghana’s Macroeconomic Policy: The Role of the IMF
and the World Bank  62
4.5 Ghana Government Economic Policy and Neoliberalism  65
4.6 Conclusions  68
Appendix to Chapter 4: Management of Macroeconomic
and Structural Adjustment Policies   69

Part III Sectoral Developments   81

5 Agriculture  83
5.1 Introduction  83
5.2 Production  86
5.3 Land Use  89
5.4 Labour  95
5.5 Agricultural Credit  97
5.6 Technology  98
5.7 Other Inputs  99
5.8 Livestock 102
5.9 Fisheries 103
5.10 Forestry 105
5.11 Concluding Remarks 105
  Contents 
   xv

6 Cocoa 109
6.1 Introduction 109
6.2 Production 110
6.3 Marketing and Trade 113
6.4 Development Concerns 117

7 Industry: A Broad Overview 121

7.1 Introduction 121
7.2 The Industry Sector and Its Evolution 122
7.3 Construction 129
7.4 Policy Issues since the Mid-1980s 130

8 Mining 133
8.1 Introduction 133
8.2 Major Mineral Products 134
8.3 A Brief Assessment 143

9 Manufacturing 147
9.1 Introduction 147
9.2 Ghanaian Manufacturing Development 148
9.3 Economic Analysis of Manufacturing Performance 162
9.4 Policy Towards Manufacturing Development 166
9.5 Role of Small-Scale Manufacturing 173
9.6 Conclusions 175

10 The Services Sector 177

10.1 Introduction 177
10.2 Global Development of the Services Sector 179
10.3 The Services Sector in Ghana 181
10.4 Conclusion 184
xvi  Contents

Part IV Money & Banking, External Trade and

Financial Flows  187

11 Banking and Finance 189
11.1 Bank of Ghana 190
11.2 Financial Sector Reforms 193
11.3 The Banking Landscape 196
11.4 The Banking Sector: Some Financial Statistics 203
11.5 The Insurance Sector 207
11.6 The Capital Market 208
11.7 Concluding Remarks 210
Appendix to Chapter 11: Microfinance in Ghana  210

12 International Trade 221
12.1 Introduction 221
12.2 Trade Policy and Liberalisation 223
12.3 Composition of Trade 226
12.4 Direction of Trade 237
12.5 The Balance of Payments 244
12.6 The Foreign Exchange Rate 249
12.7 The Terms of Trade 253
Appendix to Chapter 12: Ghana’s Economic Relations
with China 257

13 External Financial Flows and Debt Relief 265

13.1 Introduction 265
13.2 Foreign Aid and FDI Inflows 266
13.3 Remittances 269
13.4 External Debt 272
13.5 Conclusions 276
  Contents 
   xvii

Part V Infrastructure, Environment and Governance  277

14 Transport and Communications 279
14.1 Introduction 279
14.2 Transportation Infrastructure 280
14.3 Posts and Telecommunications 290
14.4 Conclusions 292

15 Energy and Water 293
15.1 Introduction 293
15.2 The Energy Sub-sector 294
15.3 Water and Sanitation 307
15.4 Concluding Remarks 310
Appendix to Chapter 15: The Akosombo Dam and Ghana’s
Aluminium Industry  311

16 Education and Health 321
16.1 Introduction 321
16.2 Education 322
16.3 Health 327

17 The Environment 333
17.1 Introduction 333
17.2 Aspects of Environmental Degradation in Ghana 337
17.3 Policy Towards Environmental Issues in Ghana 349

18 Governance 355
18.1 Introduction 355
18.2 Governance in Ghana 362
18.3 CPIA Measures for Ghana and Comparator
African Countries 365
18.4 World Bank Measures of Governance 367
18.5 Attempts to Measure Corruption 368
xviii  Contents

Part VI Poverty and Income Distribution  379

19 Poverty and Inequality 381
19.1 Introduction 381
19.2 Decline of Poverty 382
19.3 Inequality Analysis 386
19.4 Conclusions 389

20 State Role in Welfare 393

20.1 Introduction 393
20.2 Strategies of Social Protection 396
20.3 Various Social Protection Measures 397
20.4 A Brief Assessment 402
20.5 Conclusions 404

Part VII Looking Ahead  407

21 The Way Forward 409

21.1 Introduction 409
21.2 Resource Allocation with Government Controls
versus the Neoliberal Strategy 410
21.3 Learning from the Asian Development Experience 413
21.4 Concluding Remarks 415

Appendix A: A Note on the Data Used 417

Appendix B: Statistical Annex 425

Bibliography 465

Index 515
 List of Tables

Table 2.1 Various development plans as advanced, 1920–1980 13

Table 2.2 Progress towards trade liberalisation: various phases,
1983–201522
Table 3.1 Growth of GDP and GDP per capita, 1960–2015
(constant 2006 prices: percentages) 29
Table 3.2 GDP and GDP per capita, 1960–2015 (selected years) 30
Table 3.3 Percentage distribution by uses of GDP at constant 2006
prices, 1960–2015 (selected years, percentages) 32
Table 3.4 Distribution of GDP by industrial origin at constant 2006
prices, 1965–2015 (selected years, percentages) 34
Table 3.5 GNI per capita and gross savings rates in selected developing
countries (percentage of GDP), 1990–2015: selected years 38
Table 3.6 Average and marginal savings at 2006 prices, 1961–2015 40
Table 4.1 Selected macroeconomic indicators, 1961–2015 54
Table 4.2 Central government capital and recurrent expenditures,
1961–201558
Table 4.3 Types of policy measure requested in return for structural
adjustment loan finance, 1980–1986 64
Table A.4.1 Ghana: summary and time frame for macroeconomic and
structural adjustment policies, 1998–2000 69
Table 5.1 Production of the major food crops, 1950–2015 (selected
years: ‘000 metric tonnes) 87

xix
xx  List of Tables

Table 5.2 Production of major staples, 2008–2015 (000 mt) 88

Table 5.3 Land area under important food crops and land productiv-
ity, 1963–2012 (selected years) 90
Table 5.4 Area planted: some selected industrial and other crops,
201291
Table 5.5 Number of agricultural holders by regions, 2010 91
Table 5.6 Distribution of farm holdings by size, 1970 and 1984 92
Table 5.7 Percentage distribution of holding size by regions, 1970
and 1984 92
Table 5.8 Percentage distribution of the numbers of holders with dif-
ferent numbers of farms (region wise), 1970 and 1984 93
Table 5.9 Households harvesting various crops during 2012–2013
(No. of households) 93
Table 5.10 Loan approval to the agricultural sector by ADB (in mil.
GH₵), 2008–2015: selected years 97
Table 5.11 Sectoral distribution of credit by deposit money banks to
the agricultural sector and bank lending rates, 2002–2015
(selected years) 98
Table 5.12 Domestic livestock population by type, 1960–2015
(selected years) (in thousand) 103
Table 5.13 Production of fish from marine and inland, 1980–2014
(selected years) 104
Table 6.1 Cocoa production in Ghana, 1960/1961–2015/2016
(selected years) 111
Table 6.2 Production of cocoa by regions, 1960/1961–2015/2016:
selected years (‘000 tonne) 112
Table 6.3 Ghana cocoa bean producer prices (GH₵/tonne), 2005–2016 113
Table 6.4 Exports of cocoa beans and cocoa products, 2005–2015
(US$ mil.) 117
Table 7.1a GDP by industrial origin (at 2006 constant prices), 1975–
2015: selected years (mil. GH₵)123
Table 7.1b GDP by industrial origin (at 2006 constant prices), 1975–
2015: selected years (percentage of GDP) 124
Table 7.2 Economically active population by industry sub-sectors
(total numbers and percentages), from 1998/99–2012/13 126
Table 7.3 Currently employed population 15  years and older by
industry group, locality and sex (percentages) 127
Table 8.1 Gold, bauxite, manganese and diamonds: output and
exports, 1960–2015 (selected years) 135
   List of Tables 
   xxi

Table 8.2 Major companies operating in the gold mining sector,

2013138
Table 8.3 Production and export earnings from crude oil, 2000–
2015142
Table 8.4 Contribution of mining to value added and employment,
1960–2010 (selected years) 144
Table 8.5 Gross FDI in the mining sector (in US $ mil.), 2000–2012 144
Table 9.1 Manufacturing in the Ghanaian economy, (selected years:
1965–2015)149
Table 9.2 Manufacturing in the Ghanaian economy, 2005–2015 151
Table 9.3 Composition of manufacturing value added (per cent),
1980–2003 (selected years) 152
Table 9.4 Index of manufacturing production, 1978–2000: selected
years (1977 = 100) 153
Table 9.5 Production of some manufactured commodities, 1975–
2000 (selected years) 154
Table 9.6 Manufacturing industries, estimated rates of capacity utili-
zation, 1978–1993: selected years (large- and medium-
scale factories: percentages) 155
Table 9.7 Non-traditional exports, 1995–2015 (manufactures, US$
million, current prices) 159
Table 9.8 Comparative manufacturing data for sub-Saharan Africa,
1995–2015 (percentages of GDP and of merchandise
exports)161
Table 9.9 Manufacturing performance, 1993 and 2002 166
Table 10.1 The services sector: share of GDP and employment, 1980–
2015: selected years (selected countries) 180
Table 10.2a Ghana GDP by service sectors at constant 2006 prices,
1965–2015 (selected years) 182
Table 10.2b Ghana GDP by service sectors at constant 2006 prices—
percentage of GDP, 1965–2015 (selected years) 183
Table 11.1 Average annual growth rate of money supply and inflation,
1962–2015 (percentages) 192
Table 11.2 Universal banks as at 2016 (in alphabetical order) 197
Table 11.3 Regional distribution of rural banks (1987–2016: selected
years)200
Table 11.4 Credit unions in Ghana: regional distribution, 2013 and
2015202
xxii  List of Tables

Table 11.5 Selected indicators of Ghana’s banking industry, 2012–

2015204
Table 11.6 Sectoral credit allocation, 2010, 2012 and 2016 (% distri-
bution)205
Table 11.7 Gross loans and annual growth of credit, 2007–2015 206
Table 11.8 Insurance covers by various insurance companies, as oper-
ating in 2014 (including secondary cover: Million GH₵)207
Table 11.9 The Ghana stock exchange review, 1991–2012 (selected
years)209
Table A.11.1 The microfinance industry in Ghana (as of December
2012)214
Table A.11.2 Microfinance status of regulation by tiers (as of March,
2014)216
Table A.11.3 Average loan amounts and interest charged by the various
types of microfinance providers in Ghana, 2010–2014 217
Table 12.1 Average tariffs rates applied for imports (per cent), 1993–
2013: selected years 223
Table 12.2 Taxes on trade in Ghanaian public finances, 2000–2015
(selected years) 226
Table 12.3 Composition of merchandise imports by product group,
1960–2014: selected years (percentages) 227
Table 12.4 Composition of merchandise exports by product group,
1971–2014: selected years (percentages) 230
Table 12.5 Exports of significant non-oil products, 1986–2015
(selected years) 231
Table 12.6 Trade in oil products, 2001–2015 (current prices) 232
Table 12.7a Ghana’s non-traditional exports (US$ mil. current prices
and %), 1986–2015: selected years 235
Table 12.7b Ghana’s non-traditional exports (GH₵, mil. constant 2006
prices and %), 1986–2015: selected years 235
Table 12.8 Ghana—Origin of imports for selected countries (per cent
of total imports), 1950–2010: selected years 238
Table 12.9 Destination of exports for selected countries (of total
exports), 1950–2010: selected years 239
Table 12.10 Ghana–Origin of imports from selected African countries
(per cent of total imports), 1950–2015: selected years 242
Table 12.11 Ghana—Destination of exports to selected African coun-
tries (per cent of total exports), 1950–2015: selected years 243
Table 12.12a Balance of Payments, 1980–2015: selected years (US $
millions current prices, Bank of Ghana data) 245
   List of Tables 
   xxiii

Table 12.12b Balance of Payments, 1980–1985 (US $ millions current

prices)246
Table 12.13 Foreign exchange rates, 1960–2015 (selected years) 250
Table 12.14 Official and parallel foreign exchange rates, 1978–1983
(selected years) 251
Table 12.15 Terms of trade and associated indicators (2000  =  100),
1968–2014: selected years 256
Table A.12.1 Level and composition of trade between Ghana and China,
2010–2015258
Table 13.1 Foreign aid and FDI, 1960–2015 (selected year) 267
Table 13.2 Remittances received: selected developing countries (% of
GDP), 1980–2015 (selected years) 269
Table 13.3 Remittances—World Bank and Bank of Ghana data (cur-
rent US$ ­million, Net Transfers in Balance of Payments),
1980–2015 (Selected years) 271
Table 13.4 External debt (selected years, 1970–2015) 273
Table 13.5 Details relating to foreign debt relief, 1989–2014 274
Table 14.1 Roads infrastructure and the number of newly registered
vehicles, 1960–2010 (selected years) 282
Table 14.2 Total road network by class of road, 2000–2015: selected
years (in kilometres) 282
Table 14.3 Cargo, container and transit traffic, 2004–2016 (selected
years)287
Table 14.4 Air traffic: aircraft movements, no. of passengers
(International and Domestic) and freight traffic, 1995–
2015 (selected years) 290
Table 15.1a Energy consumption and primary sources in Ghana, 2000 294
Table 15.1b Primary energy supply, 2000–2015 (selected years) 295
Table 15.1c Final energy consumed, 2000–2015 (selected years) 295
Table 15.2 Per capita charcoal consumption in Ghana, 2001–2012
(selected years) 296
Table 15.3 Woodfuel supply (ktoe), 2000–2015 (selected years) 297
Table 15.4 Electricity generation by plants (GWh) per installed capac-
ity (MW), 1966–2015: selected years 299
Table 15.5 Electricity generation (GWh), 1981–1986 301
Table 15.6 Consumption of electricity generated by VRA (GWh),
1966–2012 (selected years) 301
Table 15.7 Consumption of electricity generated by VRA (MWh),
1980–1986303
xxiv  List of Tables

Table 15.8 Consumption of electricity by customer class (GWh),

2000–2015 (selected years) 304
Table 15.9 Production, import, export and consumption of major oil/
gas products, 2000–2015: selected years (kilotonnes) 306
Table 15.10 Production, import and export of crude oil and natural
gas, 2000–2015 (selected years) 306
Table 15.11a Ghana—urban and rural drinking water supply and sanita-
tion, 1987/88–1991/92 (per cent) 308
Table 15.11b Percentage of population with access to improved water
and sanitation facilities, 1990–2015 (selected years) 309
Table A15.1 Bauxite production in Ghana, Guinea and Sierra Leone,
1990, 2000 and 2015 (thousand tonnes and per cent of
global total) 317
Table A15.2 Aluminium production in sub-Saharan Africa, 1968–
2006: selected years (thousand tonnes) 317
Table 16.1 Adult and youth literacy in percentages: 2000–2015
(selected years) 323
Table 16.2 Enrolment in education, 1971–2015: selected years (per-
centage of relevant age groups) 323
Table 16.3 Percentage enrolment in private sector educational institu-
tions, 1981–2015 (selected years) 324
Table 16.4 Government expenditure by educational level as percent-
age of GDP, 2001–2013 (selected years) 325
Table 16.5 Government expenditure on education, 2001–2013:
selected years (percentages) 326
Table 16.6 Research and development in the Ghana economy, 2007
and 2010 327
Table 16.7 Life expectancy in Ghana, 1960–2015 (selected years) 328
Table 16.8 Mortality in Ghana, 1960–2015: selected years (numbers
of people) 329
Table 16.9 Health expenditure in the Ghanaian economy, 1995–2014
(selected years) 330
Table 16.10 Health expenditure—Public, private and out of pocket,
1995–2014 (selected years) 331
Table 17.1 Some major environmental issues in Ghana’s development 336
Table 17.2 Environmental degradation in the Ghanaian economy
(adjusted savings), 1970–2013 (selected years) 337
Table 17.3 Some Ghana emissions characteristics, 1990–2010
(selected years) 338
   List of Tables 
   xxv

Table 17.4 Comparison of areas of soil erosion hazard on regional

basis (sq kms) 340
Table 17.5 Estimated value of the stock of Ghana’s biodiversity 348
Table 18.1 The augmented Washington Consensus 362
Table 18.2 Ghana values for CPIA clusters, 2005–2015 (selected
years)366
Table 18.3 Comparator country values for CPIA clusters, 2005 and
2015366
Table 18.4 World Bank indicators of governance for Ghana, 1996–
2015 (selected years) 368
Table 18.5 World Bank estimates for governance characteristics—
African comparator countries, 1996 and 2015 369
Table 18.6 World Bank enterprise survey results on corruption, 2012–
2014371
Table 18.7 Annual average total illicit financial flows 374
Table 18.8 Illicit financial flows—trade misinvoicing: Ghana and
selected African countries—totals for 2004–2013 in US$
million current values 375
Table 18.9 Corruption perceptions index: comparative values and
rankings, 2012–2015 377
Table 19.1 Incidence of poverty and extreme poverty in the regions of
Ghana, 1991/1992–2012/2013 (selected years) 385
Table 19.2 Regional poverty trends: depth and severity (2006 and
2013)386
Table 19.3 Gini coefficients showing inequality estimates (1992–
2013), selected years 387
Table 19.4 Growth-redistribution decomposition of changes in pov-
erty in Ghana, 1992–2013 (selected years) 388
Table 20.1 Estimated projections of government expenditures on
social protection, 2012–2014 404
Table 20.2 Expenditure on social safety nets in selected countries, (%
of GDP) 405
Table 21.1 Estimation and use of shadow prices by selected investing
agencies, early 1980s 411
Table 21.2 Some industrial policy objectives of South Korea and
Taiwan: early development phase 414
Table B.1 Gross Domestic Product, 1960–2015 426
Table B.2 Population and GDP per capita, 1960–2015 428
xxvi  List of Tables

Table B.3 Expenditure components of GDP at current prices (GH₵

millions), 1960–2015 430
Table B.4 Expenditure components of the GDP at 2006 prices (GH₵
millions), 1960–2015 433
Table B.5 Percentage distribution by industrial origin at current
prices, 1965–2015 435
Table B.6 Percentage distribution by industrial origin at constant
2006 prices, 1965–2015 441
Table B.7 Gross fixed capital formation (GH₵ millions), 1960–2015 447
Table B.8 Total gross savings (GH₵ millions), 1961–2015 449
Table B.9 Central government revenue and expenditure (GH₵ mil-
lions: current prices), 1961–2000 451
Table B.10 Central government revenue and expenditure (GH₵ mil-
lions: current prices), 2001–2015 453
Table B.11 Exports and imports (GH₵ millions current prices and
percentages of GDP), 1960–2015 454
Table B.12 GDP deflator and rates of annual inflation, 1960–2015 456
Table B.13 Foreign exchange rates, 1960–2015 458
Table B.14 Monetary growth (GH₵ millions and percentages), 1961–
1996461
Table B.15 Monetary growth (GH₵ millions and percentages), 1997–
2015463
Table B.16 Employment by industry groups in Ghana (employed pop-
ulation 15 years and older: percentages and millions),
1987–1988 to 2012–2013 464
 List of Figures

Fig. A.3.1 GDP growth rates for ‘old’ and ‘new’ data series, 2007–2014 45
Fig. A.3.2 Illustrative interpretation of revised GDP series 46
Fig. A.3.3 GDP per capita: SSA comparisons with ‘old’ and ‘New’ Data
Series for Ghana 47
Fig. 11.1 Rapid Growth in Mobile Money, 2012–2015 204
Fig. 13.1 Foreign aid, FDI and remittance inflows to developing
countries, 1970–2005 266
Fig. 17.1 The costs and benefits of environmental change 334
Fig. 19.1 Decline of poverty and extreme poverty at the national level,
1991–1992 to 2012–2013 382

xxvii
 List of Boxes

Box A.11.1 Structure and Key Stakeholders of Microfinance in Ghana 212

Box 18.1 CPIA Criteria 360

xxix
 Principal Acronyms

₵ Ghana Cedi (Ghanaian currency which operated during

1957 to 2006-07)
ACP Africa, Caribbean and Pacific
ADB Agricultural Development Bank
AERC African Economic Research Consortium
AfDB African Development Bank
AGC Ashanti Goldfields Corporation
ALCOA Aluminium Company of America
AMSECs Agriculture Mechanization Services Enterprises Centres
ARB Association of Rural Banks
ASA Association for Social Advancement
ASCAs Accumulating Savings and Credit Associations
ASIP Agricultural Services Investment Project
ASSFIN Association of Financial NGOs
BoG Bank of Ghana
BPI Bribe Payers Index
BRAC Bangladesh Rural Advancement Committee (now named as,
Building Resources Across Communities)
CAAD Comprehensive Africa Agriculture Development Programme
CAP Common Agricultural Policy
CBRDP Community Based Rural Development Programme
CCMA Cape Coast Municipal Area
CDS Centre for Development Studies

xxxi
xxxii  Principal Acronyms

CEB Communaute Electrique du Benin

CFA Communaute Financiere Africaine (African Financial
Community)
CFC Chlorofluorocarbon
CGP Capitation Grant Programme
CIDA Canadian International Development Agency
CMB Cocoa Marketing Board
CMC Cocoa Marketing Company
CO2 Carbon Dioxide
COCOBOD Ghana Cocoa Board
CPI Corruption Perceptions Index
CPIA Country Policy and Institutional Assessment
CPP Convention People’s Party
CSAE Centre for the Study of African Economies
CSIR Council for Industrial and Scientific Research
CUA Co-operative Credit Unions Association Ltd.
CUs Credit Unions
DAC Development Assistance Committee (of the OECD)
DFID Department for International Development (UK)
DLI David Livingstone Institute
ECA Economic Commission for Africa
ECG Energy Commission of Ghana
ECOWAS Economic Community of West African States
EDDI Enhanced Data Dissemination Initiative
ENI Ente Nazionale Idrocarburi (National Hydrocarbons Authority)
EO Export Orientation
EPA Environmental Protection Agency
EPZs Export Processing Zones
ERP Economic Recovery Programme
ESAF Extended Structural Adjustment Facility
EU European Union
FAA Federal Aviation Administration
FAO Food and Agriculture Organization
FASDEP Food and Agriculture Sector Development
FDI Foreign Direct Investment
FINSAP Financial Sector Adjustment Programme
FINSSP Financial Sector Strategic Plan
FISM Financial Intermediation Services (Indirectly) Measured
FNGOs Financial NGOs
   Principal Acronyms 
   xxxiii

FOB Free on Board

FTE Full-Time Equivalent
GAIN Global Agricultural Information Network
GAMA Greater Accra Metropolitan Area
GAN GAN Integrity Online Compliance Software
GATT General Agreement on Tariffs and Trade
GAVI Global Alliance for Vaccination and Immunisation
GCAA Ghana Civil Aviation Authority
GCD Ghana Consolidated Diamonds
GCSCA Ghana Co-operative Susu Collectors Association
GDE Gross Domestic Expenditure
GDP Gross Domestic Product
GEBSS Graduate Business Support Scheme
GEPC Ghana Export Promotion Council
GFCF Gross Fixed Capital Formation
GFI Global Financial Integrity
GH₵ New Ghana Cedi (Ghanaian currency) (announced in 2006
and effective from July 2007)
GHAMFIN Ghana Microfinance Institutions Network
GHASALC Ghana Association of Savings and Loans Companies
GHS Ghana Health Service
GIC Ghana Investments Centre
GIHOC Ghana Industrial Holding Corporation
GIMC Ghana International Manganese Corporation
GIPC Ghana Investment Promotion Centre
GLSS Ghana Living Standards Survey
GLST Ghana Luxemburg Social Trust
GMC Ghana Manganese Company Limited
GNGC Ghana National Gas Company
GNI Gross National Income
GNMC Ghana National Manganese Corporation
GNPC Ghana National Petroleum Corporation
GNSPS Ghana National Social Protection Strategy
GoG Government of Ghana
Gp Ghana pesewa (1/100th of a Cedi)
GPNS Global Property Network Standards (Marriott)
GPRS Ghana Poverty Reduction Strategy
GRC Ghana Railways Corporation
xxxiv  Principal Acronyms

GRDA Ghana Railway Development Authority

GSB Ghana Standards Board
GSCA Ghana Sample Census of Agriculture
GSD Geological Survey Department
GSE Ghana Stock Exchange
GSFP Ghana School Feeding Programme
GSP General System of Preferences
GSS Ghana Statistical Service
GSSP Ghana Strategy Support Programme
GVC Global Value Chain
GWSC Ghana Water and Sewerage Corporation
HIPC Heavily Indebted Poor Countries
IASA International Aviation Safety Audit
IBRD International Bank for Reconstruction and Development
(World Bank)
ICAI Independent Commission for Aid Impact
ICCO International Cocoa Organization
ICOR Incremental Capital-Output Ratio
ICT Information and Communication Technology
IDA International Development Association (World Bank)
IDRC International Development Research Centre
IDS Institute of Development Studies
IEG Independent Evaluation Group (World Bank)
IFAD International Fund for Agricultural Development
IFC International Finance Corporation
IFIs International Financial Institutions
IFPRI International Food Policy Research Institute
ILO International Labour Organization
IMF International Monetary Fund
IPCC Intergovernmental Panel on Climate Change
IS Import Substitution
ISIC International Standard Industrial Classification (United
Nations)
ISSER Institute of Statistical, Social and Economic Research (UoG)
ISTC Intercity State Transport Corporation
IUCN International Union for the Conservation of Nature
JICA Japan International Cooperation Agency
KIA Kotoka International Airport
ktoe kilotonne of oil equivalent
   Principal Acronyms 
   xxxv

KVIP Kumasi Ventilated Improved Pit Latrine

LBCs Licensed Buying Companies
LCU Local Currency Unit
LDC Least Developed Country
LDMs Licensed Dealing Members
LEAP Livelihood Empowerment Against Poverty
LESDEP Local Enterprises and Skills Development Programme
LIPW Labour-Intensive Public Works
LONRHO London-Rhodesia Company
LPG Liquefied Petroleum Gas
M&E Monitoring and Evaluation
M2 Broad Money
MASLOC Microfinance and Small Loans Center
MDGs Millennium Development Goals
MDRI Multilateral Debt Relief Initiative
METASIP Medium Term Agriculture Sector Investment Plan
MFCs Microfinance Companies
MFEP Ministry of Finance and Economic Planning
MFIs Micro-Finance Institutions
MFW4A Making Finance Work for Africa
MLAG Money Lenders Association of Ghana
MMDAs Metropolitan, Municipal and District Assemblies
MMT Mobile phone-based money transfer
MoFA Ministry of Food and Agriculture (Ghana)
MoGCSP Ministry of Gender, Children and Social Protection
MoRH Ministry of Roads and Highway
MoT Ministry of Transport
MOTI Ministry of Trade and Industry
MPI Multidimensional Poverty Index
MTEF Medium Term Expenditure Framework
NAFCO National Food Buffer Stock Company
NBER National Bureau of Economic Research
NBFIs Non-Bank Financial Institutions
NCA National Communications Authority
NCTE National Council on Tertiary Education
NDC National Democratic Congress
NDPC National Development Planning Commission
NGOs Non-Governmental Organizations
NHIS National Health Insurance Scheme
xxxvi  Principal Acronyms

NIB National Investment Bank Limited

NIC National Insurance Commission
NLC National Liberation Council
NPL Non-Performing Loan
NRC National Redemption Council
NSPS National Social Protection Strategy
N-T Non-Traditional
NYEP National Youth Employment Programme
ODA Official Development Assistance
ODF Official Development Finance
ODI Overseas Development Institute (UK)
OEC Observatory of Economic Complexity
OECD Organisation for Economic Cooperation and Development
OECD/DAC OECD Development Assistance Committee
OPEC Organization of the Petroleum Exporting Countries
OXFAM Oxford Committee for Famine Relief
PAMSCAD Programme of Actions to Mitigate the Social Costs of
Adjustment
PEGR Poverty Equivalent Growth Rate
PFP Policy Framework Paper
PIP Public Investment Programme
PMMC Precious Minerals Marketing Co. Ltd.
PNDC Provisional National Defence Council
PNDCL Provisional National Defence Council Law
PNP People’s National Party
PPA Participatory Poverty Assessment
PPP Public-Private Partnership
PRSP Poverty Reduction Strategy Paper
PSBR Public Sector Borrowing Requirement
PURC Public Utilities Regulatory Commission
PwC PricewaterhouseCoopers (Ghana) Limited
QDS Quarterly Digest of Statistics
QGDP Quarterly Gross Domestic Product
RCB Rural and Community Bank
R&D Research and Development
REER Real Effective Exchange Rate
REP Rural Enterprise Project
RFSP Rural Financial Services Project
ROSCAs Rotating Savings and Credit Associations
   Principal Acronyms 
   xxxvii

RPED Regional Programme on Enterprise Development (World

Bank)
S&L Savings and Loans
SAL Structural Adjustment Loan
SADC Southern Africa Development Community
SAP Structural Adjustment Programme
SAPRI Structural Adjustment Participatory Review Initiative
SAPs Structural Adjustment Programmes
SDGs Sustainable Development Goals
SGE The State of the Ghanaian Economy
SGMC State Gold Mining Corporation
SIDA Swedish International Development Cooperation Agency
SIF Social Investment Fund
SIT Social Inclusion Transfer
SITC Standard International Trade Classification
SLA Sustainable Livelihood Approach
SME Small and Medium Enterprise
SOEs State Owned Enterprises
SPRING Spatial Planning for Regions in Growing Economies
SRID Statistics, Research and Information Directorate
SSA Sub-Saharan Africa
SSSS Single Spine Salary Structure
SULs Special Unnumbered Licences
Susu Susu collectors are a traditional type of financial
intermediaries
TBT Technical Barriers to Trade
TEN Tweneboa Enyenra Ntomme
TFP Total Factor Productivity
TFPG Total Factor Productivity Growth
TI Transparency International
TOR Tema Oil Refinery
UCC University of Cape Coast
UNCTAD United Nations Conference on Trade and Development
UNDP United Nations Development Programme
UNECA United Nations Economic Commission for Africa
UNEP United Nations Environment Programme
UNESCO United Nations Education, Science and Cultural
Organisation
UNFCCC United Nations Framework Convention on Climate Change
xxxviii  Principal Acronyms

UNFPA United Nations Population Fund

UNHCR United Nations High Commissioner for Refugees
UNICEF United Nations Children’s Emergency Fund
UNIDO United Nations Industrial Development Organisation
UNIFEM United Nations Development Fund for Women
UNOWA United Nations Office for West Africa
UNSNA United Nations System of National Accounts
UoG University of Ghana
UP United Party
US$ United States Dollars
USAID United States Agency for International Development
USDA United States Department of Agriculture
UST (KNUST) (Kwame Nkrumah) University of Science and Technology,
Kumasi
VALCO Volta Aluminum Company (Ghana)
VLTC Volta Lake Transport Company Ltd.
VRA Volta River Authority
VSD Veterinary Services Department
WAEMU West African Economic and Monetary Union
(Francophone – UEMOA)
WAFAL West African Aluminium Limited
WC Washington Consensus
WDI World Development Indicators
WDR World Development Report
WEF World Economic Forum
WFP World Food Programme
WHO World Health Organisation
WIDER World Institute for Development Economics Research
(United Nations University)
WTO World Trade Organisation