In 1957, when independence came, Ghana was one of the most advanced economies in sub-Saharan Africa. It seemed well placed to make rapid and substantial progress. In the event, economic performance was dismal, and by 1982 the economy was all but in ruins. External conditions and the weather can carry some of the blame for this. However, the fault lay mostly in internal policy, which, contrary to sound advice given by Arthur Lewis in 1953, discriminated against agriculture and increasingly inhibited market forces. Since 1983 economic reform and recovery have been under way. Here a realistic exchange rate has been central, and market forces have been resurgent. Apart from encouraging the cocoa farmer, policies have not noticeably included agriculture. State- encouraged agricultural research and development and rural infrastructure could, however, be important, alongside soundly based industrial development.
This blog in the coming days will succinctly discuss the economic development of Ghana over the past three decades, concentrating on agriculture, which is the central economic activity. It analyses the causes of the economic — and perforce agricultural — malaise. It explores the extent to which the dismal performance of the economy may be attributable to weakness of the natural endowments, to an unfavourable external environment, to policy failures, or some combination of all of these factors.
At agricinghana, we believe a key to development is the establishment of appropriate private-public and agriculture-industry balances. In Ghana, the tilting of these balances away from agriculture and the market was the result of domestic political concerns, as well as the influence of economists who, in the late 1950s, were persuaded that government- supported industrialisation policies would pave the road to development.
Periodically visit this blog and keep updated on agricultural policies in Ghana and youth engagement in agricultural value chain activities. We are back!!