[Occasional Paper No. 19] Ghana’s Attempts at Industrialization: How Can the Country Achieve the Success It Yearns For?

Since independence, Ghana has sought to extensively develop the manufacturing sector of the economy with the goal of becoming an industrialized nation, enjoying rapid and sustained economic growth and development. Yet, data reveal that the manufacturing sector has performed very poorly, leading to the failure of the country’s industrialization attempts despite strong policy attention paid to the sector.

Economic fundamentals such as high fiscal deficits, macroeconomic instability, shortage of foreign currency, inadequate raw materials to feed the manufacturing industries, etc. have commonly been cited by researchers as being responsible for this failure. We show that although economic fundamentals (and other factors) are the immediate causal factors affecting the performance of Ghana’s manufacturing sector, they are themselves affected by certain intermediate as well as more primitive or root causes, which have not been significantly addressed over the years and which are not only daunting to address but are also very delicate to deal with.

To ensure the success of the present and future industrialization efforts and achieve rapid and sustained growth and development of the broader economy, the country needs to adopt bold steps to address these root causes. We have provided a number of recommendations by which the country can address the root causes in order to permit long-term improvements in the economic fundamentals to stimulate manufacturing development and industrialization.

Read the full paper here.

May 24, 2019

Ghana’s Attempts at Industrialization: How Can the Country Achieve the Success It Yearns For? [Occasional Paper No. 19]

[Occasional Paper No. 19] Ghana’s Attempts at Industrialization: How Can the Country Achieve the Success It Yearns For? Since independence, Ghana has sought to extensively develop the manufacturing sector of the economy with the goal of becoming an industrialized nation, enjoying rapid and sustained economic growth and development. Yet, data reveal that the manufacturing sector has performed very poorly, leading... Read more
November 15, 2018

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[Occasional Paper 18] Ensuring Strong Broad-Based Economic Growth and Significant Reduction in Unemployment in Ghana

Having witnessed a decline in economic growth in the 1990s on average, Ghana recorded increased rates of economic growth in the 2000s. In 2011 and 2012, the economy of Ghana registered exceptionally high growth rates.

Even though this was partly due to the production of oil in commercial quantities, which began in December 2012, the traditional non-oil sector also saw very high growth rates in these years. However, starting from 2013, the growth of both the total and non-oil economies began to decline, reaching incredibly low rates from 2014 to 2016. In 2017, the economy appeared to have turned around, as it registered a strong growth rate. Nevertheless, the high growth rate in 2017 was induced by the oil sector because of the coming on stream of the Tweneboa Enyenra Ntomme (TEN) and Sankofa Gye Nyame oil fields.

The traditional non-oil sector continued to register low growth in 2017. As a consequence, unemployment, particularly among the youth, is soaring. To address this dangerous socioeconomic problem, strong broad-based economic growth is critically needed. Although the present government is pursuing a number of policy programmes to ensure broad-based economic growth, the weak and fragile fiscal position in which the country currently finds itself call for extreme care in policy formulation and implementation.

After conducting a thorough analysis of the government’s policy programmes, and based on clear analytical evidence, this paper provides recommendations to help the government fine-tune its policies so as to ensure policy effectiveness and the avoidance of complications.

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October 28, 2018

Strong Economic Growth And Significant Reduction In Unemployment: The Critical Issues To Address In Ghana’s 2019 Budget [Occasional Paper 17]

 [Occasional Paper 17] Strong Economic Growth And Significant Reduction In Unemployment: The Critical Issues To Address In Ghana’s 2019 Budget

Unemployment has become the most serious challenge currently confronting Ghana. Indeed, the unemployment problem has reached a crisis point, given that the rate consistently increased over the most part of the last three decades, and stood at 11.9% at the end of 2015. The overwhelming majority of the unemployed are young people, aged between 15 and 34 years. Only 10% of graduates find jobs after their national service, and available statistics show that sometimes it takes up to 10 years for a large number of graduates to secure employment. Majority of the employed are in the private sector, of which about 90% are in the informal sector. The informal sector is known for its low productivity and very low incomes. The failure of Ghana’s economy to grow at appreciable rates in order to create jobs and improve incomes and livelihoods of Ghanaians has become a major concern.  
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September 30, 2018

Analysis of Unemployment in Ghana Using District Level National Population Census Data [Occasional Paper 16]

[Occasional Paper 16] Analysis of Unemployment in Ghana Using District Level National Population Census Data 

This study analyses unemployment in Ghana using district-level data based on the 2010 and 2000 National Population and Housing Censuses. In line with government’s district-focused policies, including the One District One Factory (1D1F), One District One Ambulance (ODOA), and One Village One Dam (OVOD), this study uses district-level data from the only two national population censuses conducted during the Fourth Republican era, in 2000 and 2010, to analyse the factors influencing the unemployment rate at the district level. Based on the 2010 Census, it was established that the level of unemployment rate varied from a low of 0.9% to a high of 10.6% showing a considerable degree of variation that required some analyses to ascertain factors influencing the unemployment rate. Using panel data regression analysis, it was established that the level of unemployment in a district was significantly influenced by the degree of age-dependency burden with higher burden leading to higher unemployment rates.   Read full paper Occasional No 16