Ghana 1972-79
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The National Redemption Council Years, 1972-79Despite its short existence, the Second Republic was significant in that the development problems the nation faced came clearly into focus. These included uneven distribution of investment funds and favoritism toward certain groups and regions. Furthermore, important questions about developmental priorities emerged. For example, was rural development more important than the needs of the urban population? Or, to what extent was the government to incur the cost of university education? And more important, was the public to be drawn into the debate about the nation's future? The impact of the fall of Ghana's Second Republic cast a shadow across the nation's political future because no clear answers to these problems emerged.
According to one writer, the overthrow of the PP government revealed that Ghana was no longer the pacesetter in Africa's search for workable political institutions. Both the radical left and the conservative right had failed. In opposing Nkrumah's one- party state, Busia allegedly argued that socialist rule in Ghana had led to unemployment and poverty for many while party officials grew richer at the expense of the masses. But in justifying the one-party state, Nkrumah pointed to the weaknesses of multiparty parliamentary democracy, a system that delayed decision-making processes and, therefore, the ability to take action to foster development. The fall of both the Nkrumah and the Busia regimes seemed to have confused many with regard to the political direction the nation needed to take. In other words, in the first few years after the Nkrumah administration, Ghanaians were unable to arrive at a consensus on the type of government suited to address their national problems.
It was this situation, the inability of the PP government to satisfy diverse interest groups that ostensibly gave Acheampong an excuse for the January 13 takeover. Acheampong's National Redemption Council (NRC) claimed that it had to act to remove the ill effects of the currency devaluation of the previous government and thereby, at least in the short run, to improve living conditions for individual Ghanaians. Under the circumstances, the NRC was compelled to take immediate measures. Although committed to the reversal of the fiscal policies of the PP government, the NRC, by comparison, adopted policies that appeared painless and, therefore, popular. But unlike the coup leaders of the NLC, members of the NRC did not outline any plan for the return of the nation to democratic rule. Some observers accused the NRC of acting simply to rectify their own grievances. To justify their takeover, coup leaders leveled charges of corruption against Busia and his ministers. In its first years, the NRC drew support from a public pleased by the reversal of Busia's austerity measures. The Ghanaian currency was re-valued upward, and two moves were announced to lessen the burden of existing foreign debts: the repudiation of US$90 million of Nkrumah's debts to British companies, and the unilateral rescheduling of the rest of the country's debts for payment over fifty years. Later, the NRC nationalized all large foreign-owned companies. But these measures, while instantly popular in the streets, did nothing to solve the country's real problems. If anything, they aggravated the problem of capital flow.
