It has been observed that six major drivers shape the power, influence, and ultimately the options of states. The six major drivers include civil society and communications, demographics and health, economics, governance, resources and environment, and security and order. Although these drivers are not exhaustive, they provide a basis to compare the challenges and responses of states. This paper assesses Ghana using the economic driver.
Ghana’s economy is currently facing worrying decline, which could lead to future instability of the country. Most of Ghana’s economic fundamentals are going the negative way. For instance, the annual Gross Domestic Product (GDP) growth rate declined from 3.90 percent in 2012 to 0.5 percent in the last quarter of 2013. This decline is projected to further slide to 0.3 percent in 2014. Also worrisome is the rising inflation rate, which is making the exchange rate to equally rise.
Similar to the rising inflation, the budget deficit is growing, which will make it difficult for the Ghanaian Government to satisfy planned developmental programs. Ghana’s debt ratio to GDP was about 49.30 percent in 2012, which is unhealthy for a developing economy. The Cedi fell from 1.2 per dollar to 2.49 per dollar. The currency has slumped 23 percent in the past year, making it Africa’s worst performer after the South African Rand. The falling currency reduces the purchasing power of the citizens, discouraging savings, and making it difficult to get loans for businesses. As a result, there is a decline in the economic growth rate. Meanwhile, there seems to be no appropriate macroeconomic policies to address the issues as the vicious cycle continues.
Analysts have suggested different reasons for the problems with...
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...igh exchange rates and slow economic growth. These indicators will likely create unrests in the future without appropriate macroeconomic policies.
Accordingly, Ghana’s Fiscal policy should consists in managing the national Budget and its financing so as to influence economic activity. On the international trade, Ghana’s policy should focus on accelerating efforts to increase local production in order to boost export volumes. Ghana also needs to reach out to West African markets, negotiating better trade tariffs and opening up of markets to Ghana’s exports.
Ghana’s stability is essential not only for the country but for the region and international trade. Ghana has played very critical roles in stabilizing the West African sub-region overtime. The country is also a major player in the African Union. Therefore, it is in the interest of all that Ghana should succeed.
It is thought-provoking, in the sense that Africa’s need for foreign created a race to the bottom, much like what Pietra Rivoli described in The Travels of a T-Shirt in the Global Economy. Due to some African states’ reliance on foreign aid in order to mine and profit on their resources, they allow business standards to be lowered and for Chinese firms to tip the contracts moresoever in the favor of Chinese firms. This lowers the potential earnings of African states by lowering royalty rates, for example. Additionally, Burgis’ research was thorough and transparent. When he did not receive a response or if his questions were dodged, he made it obvious to the readers. Sure, some could view this book as too anecdotal to be used as a credible source of Africa’s situation. However, this is due to the nature of the system Burgis is writing about; after all, they are shadow states for a reason. Some readers will be saddened by this text, others angry, most curious to learn more, but above all, everyone will be intellectually stimulated and
In 1957, Ghana gained independence from Britain. Ghanaian kingdoms varied religiously, ethnically, and culturally. Because of this, Ghana, which the regions of Togo and the Ivory Coast presently surround, has been plagued with the effects of too much ethnic diversity.The developing movements for political expansion of early established kingdoms created the foundation for the later independence movements. Pre- independent Ghana a.k.a The Gold Coast, consisted of an imperial authority and colonial powers , Portuguese, Dutch, Prussia, and Britain, who oppressed the natives, exploited them for slave labor and manipulated their economic wealth for their natural resources. Chiefs in the 17th century developed the concept of growing and spurring kingdoms to spread their culture and language in effort to create a larger population with one identity. Nationalism in The Gold Coast did not evolve until the late 1700’s because of overly proud ethnic groups who hindered the unions necessary to nationalise.The growth of nationalism can be depicteded through the “J-Brown Paradigm of National Development” and the last stage of the “5 Stages of Revolution,” the Thermidorian reaction. The expansion of the African tribes, in an effort to rein over other ethnic groups, and their goal of unification to end their oppression due to their status as a crown colony all led to their independence.
Fund, I. M. (2011, April 1). International Monetary Fund. Retrieved March 18, 2012, from World Economic Outlook Database, Ethiopia: http://www.imf.org/external/pubs/ft/weo/2011/01/weodata/weorept.aspx?pr.x=52&pr.y=2&sy=2008&ey=2011&scsm=1&ssd=1&sort=country&ds=.&br=1&c=644&s=NGDPD%2CNGDPDPC%2CPPPGDP%2CPPPPC%2CLP&grp=0&a=#cs1
Ghana is a country in Africa that is native to 25 million people. It is neighbored by the Ivory Coast to the West, Togo to the East and Burkina Faso to the North. It is also bordered by the Gulf of Guinea to the south. It is about the size of Oregon and it’s religions include Christianity, Islam, and other Indigenous beliefs (Bbc news, 2013). Ghana has different climates in different parts of the country. Near the coast, there are tropical forests, in the middle there is a transitional zone where it then transitions into the savannah in the north where it is dryer and only gets one rainy season versus two in the south (Encyclopedia of the nations). Their major exports are gold, cocoa, timber, and many other products. Their GDP is $40.71 billion and their monetary unit is Cedi which in relation to one U.S. dollar, it is equivalent to .37910 Cedi (Bbc news, 2013).
2. What were the main changes that Jerry Rawlins made in the Ghanaian political and economic systems? What were the consequences of these changes? What are the lessons here?
Priscilla. “The World Economy and Africa.” JSpivey – Home – Wikispaces. 2010. 29 January 2010. .
"Ghana." Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. Index of Economic Freedom, n.d. Web. 08 Apr. 2014. .
Nigeria has been fondly termed the 'Giant of Africa' and it is expected that as a giant, Nigeria should not only be the voice of Africa, but should be a big brother to the rest African-states. Present experience and occurrences however points away from the "Giantness" of Nigeria. A giant that has come to be relegated to the background, whose economy has continuously weakened and whose political climate cannot be used as a prototype or model for other African states to follow. It therefore begs the question, what happened to the great giant? Did the giant fall? Has the giant turned to a toddler? Is the giant sleeping? Oh! the giant is crippled. It is now understandable why Osaghae thinks the giant has crippled. If the giant has not crippled, why hasn’t the giant taken its place? Shouldn’t the giant be in charge and be dominating? The questions become endless. Little surprise Osaghae submitted that
We are now a decade on from the August 2003 Accra Peace agreement which drew a line under 14 years of civil war and the oppressive dictatorship of Charles Taylor. The peace agreement bought a renewed chance of peace and stability after the atrocities that had been committed across the country. A post-war transitional government was established consisting of 76 members: 12 each from the three warring parties; Government of the Republic of Liberia, the Liberians United for Reconciliation and Democracy (LURD) and the Movement for Democracy in Liberia (MODEL). Other members from the remaining 18 political parties; seven from civil society and s...
This paper is about a small country on the west coast of Africa called Liberia.
The rebuilding of Togo’s economic trade and investments is one of the most important goals I have as the newly appointed Absolute Leader. Togo is rich with many natural resources
“They don't want to build Schools and Hospitals anymore but build private mansions and buy flashy and political campaign cars.” This compelling quote from Francis Tawiah identifies the constant struggle facing the country of Ghana during their shift towards development. From pre-colonial times to today politicians have neglected the health of their fellow Ghanaians and in turn have cause the slow development of the country. Through a combination between global and local influences from past centuries originated the demise of the possibly great empire of Ghana.
Moukarzel, N. (2012, December 31). Ghana Business Media. Retrieved Apil 6, 2014, from Ghana Business Media: http://www.ghanabizmedia.com/
According to the Ghana Poverty Mapping report (2015), the three northern regions of Ghana are the poorest in Ghana with the highest concentration of poor people in the north-western part of the country. They have experienced tremendous improvements over the past years due to several aid initiatives introduced by the government, NGOs and other international agencies to the area. (The National Poverty map can be seen at appendix 4, figure