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Ghana

Will procyclicality override Ghana’s new fiscal responsibility law?

Michael Geiger's picture

Ghana has suffered from large fiscal volatility around election cycles for the past two decades. This volatility has been identified as one of the key challenges for Ghana’s future development path in the 2018 World Bank Systematic Country Diagnostic. Fiscal deficits increased sharply and above 5% of gross domestic production (GDP) in all but the 2004 election year since 2000. At 11.5% of GDP, 2012 had the largest ever recorded fiscal deficit in Ghana. And the level of overshooting in fiscal election cycles has increased over the past decade with the discovery of offshore oil fields in 2017. Between 2005 and 2012, public expenditure rose rapidly – related to increased spending on wages due to the introduction of the single spine salary structure, which standardized the public sector pay scale across Government entities and grade levels – from 20 to 30% of GDP.

Taking stock: Financing family planning services to reach Ghana’s 2020 Goals

Ibironke Folashade Oyatoye's picture

Ghana recently held a Family Planning (FP) 2020 stock-taking event as a countdown to the country’s FP 2020 goals and commitment made during the 2012 London summit. The conference, which brought together multi-sector stakeholders,  reviewed Ghana’s progress, challenges and options to accelerate achievement of the country’s FP 2020 targets and commitment.

With a high unmet need for family planning compared to many other early demographic dividend countries across lower-middle income countries, three in 10 Ghanaian women who want contraception to space or limit births currently lack access. Access to contraception is a key strategic lever for development – to empower women, improve investments in children, and ultimately contribute to poverty reduction. Unplanned pregnancies, including teenage pregnancy, perpetuated by lack of access to family planning are linked with higher risks of birth complications such as maternal deaths and early child deaths, and malnutrition in children under-five, particularly in the critical window of child development - the first 1000 days. Securing access to family planning services therefore remains a critical component of building human capital in Ghana.

Figure 1: Unmet need for Family Planning across early demographic dividend LMICs (source: Author's analysis of World Bank Health Equity and Financial Protection Indicators database)

Making extractives work for the people

Cari Votava's picture

In many countries, natural resources and extractive minerals are lucrative state assets that fail to contribute to economic prosperity. In resource-rich Africa, regulatory mismanagement, corruption and theft of natural resource and extractive commodities have contributed to illicit financial flows, poverty, instability and in some cases financed civil wars linked to conflicts over control of state assets. 

What have we learned this year? The latest in research from the Africa Chief Economist’s Office

David Evans's picture



In the Africa Chief Economist’s Office, we seek to generate knowledge on key development issues around the continent. We also host the Gender Innovation Lab, which – as the name suggests – specifically generates evidence on how to close the gender gap in Africa. Over the course of 2018, we’ve produced a range of products (regional reports and updates), but we also produce academic articles and book chapters seeking to answer key, specific development questions.

Ghana’s pathway to the future: jobs and opportunities for the people

Camille Nuamah's picture

The Ghana government’s new Coordinated Program strives to create opportunities for all Ghanaians; safeguard the natural environment and ensure that it is resilient; deepen governance to fight corruption and enhance public accountability to maintain a stable, unified, and peaceful Ghana; and create a competitive business environment to build a strong and resilient economy.

Ghana’s challenges: Widening regional inequality and natural resource depreciation

Tomomi Tanaka's picture

The impact of growth on poverty in Ghana has slowed substantially over the years. Ghana’s largest fall in poverty, 2% a year, was experienced during 1991–1998. Between 2012 and 2016, the poverty rate declined by only 0.2% per year. The growth elasticity of poverty (percentage reduction in poverty for each percentage point in economic growth) has decreased, from −1.18 between 1992 and 1998 to −0.07 between 2012 and 2016. This may reflect the declining contribution of agriculture, in which the majority of poor households are engaged, the limited job opportunities for higher productivity in the services sector, and a largely capital-intensive industrial development.

Ghana’s growth history: New growth momentum since the 1990s helped put Ghana at the front of poverty reduction in Africa

Michael Geiger's picture

Ghana is a politically, economically, ethnically and demographically diverse country. The origins of economic and social inequality between the north and south of Ghana are largely due to geography and historical legacies of inequality established in colonial times. Still, the country had and has been successful in preventing tensions and conflicts, in part because Ghanaian government has maintained ethno-regional balances in representation.

Smackdown: Provide the people of Africa with training, or with cold, hard cash?

David Evans's picture

In recent years, growing evidence supports the value of cash transfers. Research demonstrates that cash transfers lead to productive investments (in Kenya, Tanzania, and Zambia), that they improve human capital investments for children (in Burkina Faso, Tanzania, Lesotho, Zambia, and Malawi), and that they don’t get spent on alcohol (all over the world).

At the same time, the vast majority of governments invest large sums in training programs, whether business training for entrepreneurs or vocational training for youth, with the goal of helping to increase incomes and opportunities.

Higher Salaries Can Worsen Corruption

Kweku Opoku Agyemang's picture

For economists, it is borderline redundant to say that corruption has economic origins—classic and contemporary work has long held the belief that higher salaries are better for corruption. Due to the obvious difficulties of doing real policy reform in developing countries however, researchers and policy makers have seen little evidence that sheds light on this statement; especially in African countries where salaries are often low and where corruption is still a great concern.  

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