Political history:
Ghana is a unitary republic within the Commonwealth, having become independent from colonial Britain on March 6th, 1957, and the first sub-Saharan African country to become a State free from a European power. Despite its turbulent history in the first decades following independence, Ghana has emerged in the 1990s as a stable, multi-party democracy. Between independence and Flight Lieutenant Jerry John Rawlings's advent to power in 1981, Ghana had two political traditions - initially the socialist policies followed by Kwame Nkrumah immediately after independence, and a laissez-faire tradition, which succeeded him. Rawlings introduced a third element - policies of broad-based development favouring rural areas, and the expansion of the private sector. Under the terms of the 1992 Constitution (Fourth Republic), executive power is vested in the President, who is Head of State and Commander-in-Chief of the armed forces. The President is elected by universal adult suffrage for a term of four years, and appoints a Vice-President. Rawlings was re-elected President in 1996 for his second and final term. Legislative power is vested in a single chamber parliament consisting of between 160 and 200 members elected by direct adult suffrage on a first-past-the-post basis for a four-year term.
At the last elections held in December 2000, His Excellency John Agyekum Kufuor was elected President and sworn in on 7th January 2001, and his political party, the New Patriotic Party forms the government in Parliament.
Political highlights 1957 - independence, Nkrumah of CPP is PM, 2 key parties
1960 - declared republic, one party system, presidential system
1966 - military overthrow of 1st republic
1969 - 2nd republic, Busia of PP is PM, 2 key parties
1972 - military overthrow of 2nd republic
1978 - palace coup to restructure military government
1979 - junior officer uprising and military housecleaning
1979 - ushered third republic, Limann of PNP is President, 3 parties
1982 - military overthrow of 3rd republic
1983 - palace coup to restructure the military government
1992 - ushered 4th republic, Rawlings of NDC is chairman, 2 parties **
1996 - elections in november
Summary: multiparty system 9 years
military system 21 years
one party system 6 years
pseudo multiparty system 3 years **
** fraud allegations led to an electoral boycott resulting in an
effective one party system. Also, marks the first time when the head
of a military regime had contested in an election.
Climate
The climate is tropical. The eastern coastal belt is warm and comparitvely dry; the southwest corner, hot and humid; and the north, hot and dry. There are two distinct rainy seasons in the south: May-June and August-September,whereas in the north, the rainy seasons tend to merge. A dry but gentle, north-earsterly wind, the Harmattan, blows in from the Sahel and the Sahara Desert in January and February. Annual rainfall in the coastal zone averages 83 centimeters (33.1 inches)
Overpopulation: See Population Trends: Ghanapopluation:22,409,572
note: estimates for this country explicitly take into account the effects of excess mortality due to AIDS; this can result in lower life expectancy, higher infant mortality and death rates, lower population and growth rates, and changes in the distribution of population by age and sex than would otherwise be expected (July 2006 est.)
population growth rate: 2.07% (2006 est.)
Colonialism:
The Portuguese who came to Ghana in the 15th Century found so much gold between the rivers Ankobra and the Volta that they named the place Mina - meaning Mine. The Gold Coast was later adopted to by the English colonisers. Similarily, the French, equally impressed by the trinkets worn by the coastal people, named The Ivory Coast, Cote d'Ivoire. In 1482, the Portuguese built a castle in Elmina. Their aim was to trade in gold, ivory and slaves. In 1481 King John II of Portugal sent Diego d'Azambuja to build a castle. In 1598 the Dutch joined them, and built forts at Komenda and Kormantsil. In 1637 they captured the castle from the Portuguese and that of Axim in 1642 (Fort St Anthony). Other European traders joined in by the mid 18th century. These were the English, Danes and Swedes. The coastline were dotted by forts built by the Dutch, British and the Dane merchants. By the latter part of 19th century the Dutch and the British were the only traders left. And when the Dutch withdrew in 1874, Britain made the Gold Coast a crown colony. By 1901 the Ashanti and the North were made a protectorate. Britain and the Gold Coast. The first Britons arrived in the early 19th century as traders in Ghana. But with their close relationship with the coastal people especially the Fantes, the Ashantis became their enemies. 1817 - 1821: Two ambassadors were sent to Kumasi to discuss peace with King Osei Bonsu. This failed. 1823 - 1824: In Asante Denkyira war, Sir Charles Macarthy and his Fante allies supported the Denkyiras. Marcathy was killed. 1826: The Asantes were defeated in the Battle of Kantamanto near Dodowa. 1831: George Maclean signed treaty with the Asantes. 600 ounces of Gold kept for the Asantes. Two princes sent to Britain. Returned after 6 years in 1842. 1844: Commander Hill and the bond of 1844 1863: Battle of Bobikuma. Britain defeated . 1864: Britain lost another war. 1873-1877: Kofi Karikari invaded Southern and coastal areas. Major General Sir Garnet Woseley with British expedition forces defeated the Asantes. Treaty of Fomena in 1874. Asante forced to recognize the Independence of all states south of the Pra River. 1888: Nana Agyeman Prempeh I ascended the throne of the Asante Kingdom. 1896: British troops marched to Kumasi, led by Sir Francis Scott. The king was exiled first to the Elmina Castle, then to Sierra Leone and later to Seychels. 1900: Arnold Hodgson went to ask for the golden stool. The Asantes were infuriated. Yaa Asantewaa, the queen mother of Edwiso (Ejisu) led attack on the British Fort in Kumasi. 1924: Nana Agyemang Prempeh I returned . Died in 1931. Other events Events occurred that made Fantes and others to react: Fante Confederation - In Mankesssim. 1897 Aboriginess right Protection society. 1925 Guggisburg Constitution Legislative Council (legco) 15 Govt Officials, 14 non officials (9 Ghanaians, 6 elected by chiefs and 3 from Accra, Cape Coast and Sekondi). Central Administration was made of the Governor, the Executive Coucil and the Legislative Council. The latter only in advisory capacity. 1935: Prempeh II Asante Confideracy Council. Otumfuo Nana Osei Agyeman Prempeh II In the North were also Mamprusi, Dagomba and Gonja State Councils. 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. Poilitical Movements and Nationalism in Ghana (NA (1945 - 1957) The educated Ghanaians had always been in the fore-front of constructive movements. Names that come into mind are --Dr Aggrey, George Ferguson, John Mensah Sarbah. Others like king Ghartey IV of Winneba, Otumfuo Osei Agyeman Prempeh I raised the political consciousness of their subjects. However, movements towards political freedom started soon after WWII. This happened because
suddenly people realised the colonisation was a form of oppression, similar to the oppression they have just fought against.The war veterans had become radical. The myth surrounding the whiteman has been broken. The rulers were considered economic cheats, their arogance had become very offensive. They had the ruling class attitude, and some of the young District Commissioner (DC) treated the old chiefs as if they were their subjects. Local pay was bad. No good rural health or education policy. Up to 1950 the Govt Secondary schools in the country were 2, the rest were built by the missionaries. There was also the rejection of African culture to some extent. Some external forces also contributed to this feeling. African- Americans such as Marcus Garvey and WE Du Bois raised strong Pan-African conscience. In 1945 a conference was held in Manchester to promote Pan African ideas. This was attended by Nkrumah of Ghana, Azikwe of Nigeria and Wallace Johnson of Sierra Leone. The India and Pakistani independence catalysed this desire. Sir Alan Burns constitution of 1946 provided new legislative council that was made of the Governor as the President, 6 government officials, 6 nominated members and 18 elected members. The executive council was not responsible to the legislative council. They were only in advisory capacity, and the governor did not have to take notice. These forces made Dr J.B. Danquah to form the United Gold Coast Conversion (UGCC) in 1947. Nkrumah was invited to be the General Secretary to this party. Other officers were George Grant (Paa Grant), Akuffo Addo, William Ofori Atta, Obetsebi Lamptey, Ako Agyei, and J Tsiboe. Their aim was Independence for Ghana. They rejected the Burns constitution. Events hastened this desire 1948: Nii Kwabena Bone II--an Accra chief organised the boycott of Europen and Syrian, Lebanese goods. 28 Feb 1948: Ex-servicemen marched on Christianborg Castle to hand petition to the governor about their poor conditions. The order was given and 3 laid dead. UGCC was held responsible and its officers were detained. (The dead were sergeant Adjetey, Corporal Attipoe, and Private Odartey Lamptey). The six detained were Kwame Nkrumah, Obetsebi Lamptey, Ako Adjei, Ofori-Atta, Dr Danquah and Akuffo Addo. Mr Aiken Watson was appointed by the British Government to look into disturbances. He recommended a new constitution. Mr J Cousey headed this committee. 1949: Internal trouble in UGCC. Nkrumah broke off to form his own Convention Peoples' Party (CPP), with the slogan of SELF GOVERNMENT NOW. 1951: First General election . CPP won 34 seats , UGCC --3. Kwame Nkrumah who was in prison for positive action, won the seat in central Accra, and was released to become the leader of Govt business, and Prime Minister on 21 March 1952. 1954: New Constitution with assembly and speaker. 104 elected representatives. CPP --72 seats, Northern People's Party (NPP) - 15, Independents - 11, and others - 6. The NLM (National Liberation Movement ) was formed by linguist Baffour Akoto. Leader was J B Danquah, and Dr K.A. Busia - member. This group wanted a federal government. 1956: There was another election. CPP won 72 of the 104 seats. The NLM and its allies won the remaining seats and so became the parliamentary opposition. The former British Mandated Togoland also voted to join the Gold Coast--Ghana.
1957: Ghana finally gained her Independence.
Economic Issues:
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 (a la yentua)
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 present
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
cedi is worthless
massive unemployment
schools/health care is broken down
everyone is a trader
interest rate at close to 50%
manufacturing sector is dead
Goods available but not affordable
Debt:
Ghana opted for debt relief under the Heavily Indebted Poor Country (HIPC) program in 2002, but was included in a G-8 debt relief program decided upon at the Gleneagles Summit in July 2005. Priorities under its current $38 million Poverty Reduction and Growth Facility (PRGF) include tighter monetary and fiscal policies, accelerated privatization, and improvement of social services. Receipts from the gold sector helped sustain GDP growth in 2006 along with record high prices for Ghana's largest cocoa crop to date. Ghana received a Millennium Challenge Corporation (MCC) grant in 2006, which aims to assist in transforming Ghana's agricultural export sector.
revenues: $3.616 billion
expenditures: $3.947 billion; including capital expenditures of $NA (2006 est.)
Market Economies:
Agricultural products: cocoa, rice, coffee, cassava (tapioca), peanuts, corn, shea nuts, bananas; timber
Industries: mining, lumbering, light manufacturing, aluminum smelting, food processing, cement, small commercial ship building
Ghana's economy is based primarily on agriculture (cocoa, domestic food crops, forestry, and fishing), which accounted for 40-45% of GDP in the period 1991 to 1995, but has now declined to some 20%. The mining and manufacturing industry accounts, however, for only a fifth of GDP, with services making up the remainder.
Cocoa is Ghana's best known crop, and it accounted for between 45% and 70% of commodity exports from the 1970s to the 1990s, when increased mineral revenues led to a decline in its share of exports, to some 37%. Between January and September 1999, cocoa prices fell by 33% reaching a 5 year low in May, causing a severe revenue loss for the country.
Other major exports are gold and timber. Both the gold and timber industries were established in the 1880, with gold enjoying a major revival in the 1990s. Gold production is running at about 2.4 million ounces per annum. However, gold also suffered in 1999 as prices hit 20 year lows, but has since recovered to better levels. Ghana also has sizeable deposits of diamonds, bauxite and manganese. Mineral exports account for almost half of Ghana's foreign exchange earnings.
The government's privatisation programme, which envisages the outright sale or reduction of equity in some 300 government-owned corporations and enterprises, received an important boost in 1994 with the sale of 25 percent of its equity in the Ashanti Goldfields Corporation, Ghana's largest gold mining company (1.24 million ounces per annum from 4 mines), and the 9th largest in the World. Ghana has now sold more than 180 of its state-owned enterprises to private investors and, since the passing of the Investment Act in 1994, has recorded 250 new foreign investments, 70% of which are joint ventures involving Ghanaians.
Economic Promise:
Ghana is one of the few countries in western Africa to offer real economic promise, and, as one of the model reformers in Africa, is unlikely to face sanctions from donors, including the IMF. Fiscal reforms continue, for example the introduction of a 10% VAT in December 1998, and increases in electricity tariffs, which are linked to improvements in the over-strained power grid. The regional drought in 1998 crippled the country’s chief power supply facility, the Akosombo Dam built in 1968, which was reduced to supplying only 400MW of its 912MW capacity. Additional thermal capacity has been installed at Takoradi (660MW by 2001) and Tema (80MW), and there is a longer term plan to pipe natural gas from Nigeria. Good rain in recent years has restored the dam at its highest levels since 1993. As capacity constraints are lifted with more power becoming available, however, real GDP growth was 4.6% in 1999, and remained strong in 2000, at around 5%. Inflation has increased from moderate levels in 1998-99 to around 30-40% currently. The relative stability of the cedi, which averaged C2370:$US1 in 1998, has declined in line with inflation differentials to be around C7000:$US1 recently. There are currently over 25 Australian companies with ongoing operations (mainly mining related) in Ghana, and a resident Australian community totaling around 500. The success of their activities has had the effect of encouraging Australian companies to venture further afield to other parts of West Africa, using Accra as a base.
Figures are not available for Australian investment in Ghana but it is reliably estimated at $A1billion, primarily in gold mining, exploration and support operations. The following are the main Australian firms with operations in Ghana: Minproc Engineering (Perth), African Mining Services Ltd (Ausdrill-Eltin joint venture), Bayswater Contracting, Lycopodium Pty Ltd, Ranger Minerals Ltd, and Resolute Ltd. Australian companies mine 25% of the gold produced in Ghana and are heavily engaged in exploration and contracting to other mining companies, such as the giant Ashanti Goldfields Corporation. In 1997/98, Australian exports to Ghana (industrial machinery, civil engineering equipment, heating/cooling equipment, chemicals etc) totalled A$62.9 million. Australian imports from Ghana (mainly cocoa and wood products) during the same period totalled A$ 6.1 million. As Ghana's economy develops, there are likely to be increasing opportunities for Australian exporters in areas such as food and beverages, environmental services, agricultural and textile manufacturing. The Ghana Investment Promotion Centre (GIPC) governs almost all investments within the country except for the mining and petroleum industries. The latter are handled by the Ministry of Lands, Forestry & Mines, and particularly the Minerals Commission. During the year 2000, the GIPC registered 180 projects in various sectors including manufacturing, service, tourism, building and construction, agriculture and general trading. These projects were estimated to cost US$132 million and to generate employment opportunities for some 9,700 Ghanaians, and 80% were located in the Accra region. Between September 1994 and December 2000, a cumulative total of 1160 projects made up of 397 wholly foreign-owned (estimated at US$1.32 billion) and 763 foreign-Ghanaian joint ventures (estimated to cost US$0.28 billion) were registered. These investments were expected to generate a total employment of 63,800 Ghanaians and 4,040 non-Ghanaians mainly in the manufacturing (21,800), agriculture (10,600), building and construction (10,800) and services (13,500) sectors. Great Britain remains the major source of GIPC-registered foreign investments into the country with 116 projects since 1994, followed by China and India with 93 each, then the USA (82), Germany (79), and Lebanon (63). Lower down the scale are Canada (23), South Africa (20) and Australia (18). Mining investment does not form part of these figures.
References:
http://www.ashanti.com.au/pb/wp_c168f63a.html#Republic%20of%20Ghana%20:%20Summary%20Facts
https://www.cia.gov/cia/publications/factbook/geos/gh.html