Once upon Ghana was just another country in West Africa but soon things started turning out for the country. So, why was there a sudden change in the development of Ghana? What did the changes lead to? What’s its current economic condition? Let’s find out.
To put Ghana’s current economic statusinto perspective, the economy of Ghana is currently the second largest in all of West Africa. Strong demand and financial performance of oil, cocoa, and Gold have allowed Ghana to become one of the first countries in West Africa to accept Democracy with all merits and demerits including free elections and allowing changes in government through the main fewpolitical parties. Things first took a turn for the better for Ghana when the Jubilee Oil Field launched crude oil production in the year 2011 along with strong sales performance of their previous line of gold and cocoa.
The Gold and the cocoa lineup of productions were responsible for boosting Ghana’s real GDP growth by 15% in 2011 and 7.9% in the year 2012. With the strong performance from the Gold and Cocoa line up along with new productions of the Crude oil productions, they hoped that it will be enough to keep their growth at a steady rate. This allowed the economy to attract the FDI.
The country is on the path of rapid growth and during this growth, the country is also running a large balance of payments deficit and a large fiscal deficit. As the country was growing more revenues from the oil and gas sector, the jump to 11.5% GDP in 2012 allowed the government to increase its spending on increasing the wages and subsidies.
A recent survey has shown that GDP rose by almost 33% in 2008 and 4 years later, it rose up to 56%. That’s quite the significant rise for a small country like Ghana. Thanks to the capital imports of the oil sector and the development of infrastructure, the deficit is expected to reach a GDP of about 12% in 2013. But external GDP, on the other hand, jumped 34% in the same year. Ghana has a lengthy experience with export base and their exports of cocoa, gold, and oil account for nearly 75% of the total number of exports.
To truly understand the development of Ghana and how much the country has progressed, we need to take an example of a great leader and I couldn’t think of anyone better than Dr. Kwame Nkrumah. If it wasn’t for his actions, there would no motorway. Dr. Kwame Nkrumah, Blessed Memory, has very different experiences altogether when it came to the overall development of Ghana.
According to him, leaders of political parties come and goes and so one cannot expect Ghana to rely on completely. Reading history during the period of 1960s to1981, is it really a surprise that some people have been negatively affected by it? It’s not, at least not to that extent but some families, on the other hand, were happy to do it. Some people liked the order sense of things and to an extent, that’s true. Things like ‘Don’t you dare litter the street’ or ‘Beware of the dog that lives here’ used to give people some sense of discipline in people’s lives but that’s not the case anymore. Nowadays people just don’t think that way anymore and rather they are ready to fight fire with fire.
Ever since Dr, Kwame Nkrumah first inaugurated the motorway in 1965, it became everything Ghanaian people should be proud of. He was way ahead of his time and often thinks of things in a certain way that no one else could. His ingenuity has set him up as an example against whom all future presidents will be compared. But everybody doesn’t share the same sense of enthusiasm.
There is this person who travels a lot and when we exchanged ideas with one another, it seemed like he wasn’t too impressed by the way people perceive the development of Ghana. He said one should go abroad and see what development truly looks like. He even narrated a story where he saw 5 women who are completely sane but were sleeping under traffic lights under a bridge on the principal streets of Accra. Listening to the story, it is true that while Ghana is indeed developing faster than it ever did but it’s not even close to the development speed of other countries. Things will obviously change for the better but hopefully, it doesn’t take too long.