By Darko Kwabena Opoku (auth.)
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Additional resources for The Politics of Government-Business Relations in Ghana, 1982–2008
Sample text
Both faced rising oil prices in the 1970s—a condition often cited as a major cause of Ghana’s economic crisis. Yet, while Ghana struggled, the Ivory Coast enjoyed an “economic miracle,” averaging growth rates of between 7 and 8 percent a year during the period 1960 to 1979 (Gyimah-Boadi and Daddieh, 1999). The divergent experiences are attributable primarily to domestic policies, not exogenous factors. In particular, because the Ivory Coast government paid much higher real prices to its cocoa producers and was able thereby rapidly to expand cocoa production, it was in a position to reap the benefits of record-high world market prices in 1976–1978.
They and their radical movements derived their intellectual origins from the “dependency” school of political economy. They blamed Ghana’s underdevelopment on the exploitation of foreign capitalist interests with the connivance of a local “comprador bourgeoisie” and wanted to sever Ghana’s ties with global capitalism. They were thus strongly opposed to any deal with the International Monetary Fund (IMF) or World Bank. Deeply distrustful of the profit motive, they espoused socialism and the destruction of the position of the “propertied classes” ( Jeffries, 1989, p.
They expected to be rewarded with jobs, and there was little prospect of large-scale private sector enterprises expanding rapidly enough to meet this demand. Moreover, the issues that galvanized people into political action and which Nkrumah exploited so well in the anticolonial struggle—housing scarcity, unemployment, rising cost of consumer Ghanaian Entrepreneurs and Governments 19 goods, and lack of opportunity for upward social mobility—had special appeal to urban inhabitants (Leith and Lofchie, 1993).