Economic History

Economic and Social Development (Before 1957)

1874–Gold Mine in Wassa and Asante.
Between 1946-1950 gold export rose from 6 million pounds
to 9 million pounds.
1898–1927 Railway expansion in Ghana.
1928–Takoradi Harbour.
1878–Tetteh Quarshie brought cocoa from Fernado Po.
1885–Cocoa first eported to Britain.
1951–Revenue from cocoa was 60 million pounds.
Cocoa Marketing Board (CMB) was found in 1947.

1957 Inherited 200 million pounds from British

1957 to 1966
Development Projects/Policies:
socialist path to development
proliferation of state farms and industries
no linkages between farms and industries
universities and secondary schools (free for all)
health care facilities
negative NPV projects (e.g., Job 600)
WET (e.g., Akosombo Dam)
Price controls
emphasis on cocoa for export

Cost:
inheritance is fully spent (no more free lunch for the future)
balance of payment deficits
inflation
disguised unemployment
Foreign debts

1966 to 1972

Privatization of state farms and industries
university student loan scheme
families asked to take more responsibility for education
proliferation of private medical practice
blue print for sewage system for the whole country
devaluation to solve inherited problems
elimination of price controls
emphasis on staples for domestic consumption

Cost:
unemployment
foreign debts and servicing
cedi value allowed to fall
good excuse for military

1972 to 1979

Repudiate foreign debts
Operation feed yourself and industry
revaluation
price controls
import licensing
university loan scheme
CMB scholarships for education on whom you know basis
increase money supply

Cost:
Kalabule
inflation
smuggling

1979

seize assets from cheats
burn down makola, the citadel of kalabule
enforce tax code
price controls
rationing

1979 to 1982

relax price controls
reestablish credibility with donor and donor countries

cost:
inflation persists
balance of payment problems persist
kalabule persists

1982 to 1984

socialist path to development
price controls
rationing
PDC’s in charge of distribution
WDC’s in charge an as part of the IMCC
use of force to control prices, smuggling
confiscate 50 cedis note
blame the rich

Cost:

embargo on Ghana
Inflation
queing
lack of medicine, food, transportation, etc.
Rawlings chain and necklace

1984 to 2000

Economic recovery program
free markets
layoffs at civil service
students bear more of cost
patients bear more of cost
stock exchange
PAMSCAD
more privatization of state industries
float the cedi
boost exports
VAT, then UNVAT

Cost
inflation
massive unemployment
schools/health care is broken down
interest rate at close to 50%
Goods available but not affordable
2001 ->

New Government

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