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Economic Development of Ghana

One of the major characteristics of a developing country is dependence on a few agricultural or mineral products as mainstays in their economy. Like most developing countries in Africa, Ghana has relied mainly on cocoa, minerals, and timber as the main exports of its economy. The domestic economy continues to revolve around agriculture, which accounts for about 35% of GDP and employs about 55% of the work force, mainly small landowners. The volatile market prices for these commodities have left the economy vulnerable to the fluctuations in export prices.

Exports are a major factor in the countries development. As of 2000 Ghana’s main exports were minerals and cocoa. Diversification of exports from minerals and cocoa to fully manufacture and semi processed goods must steadily increase in order for their exports to keep pace with the rest of the world. With the increased money from trade the government can help the poor establish better sustainable living conditions and a better way to make a living for their family, since manufactured and processed exports are going to create more jobs. During the past 20 or so years, there has been a greater emphasis placed on non-traditional export items, such as: pineapples, bananas, flowers, wood products and leather products. Probably the biggest factor in the development of Ghana is foreign aid. It would be almost impossible for Ghana to become a prosperous nation without the help of foreign nations, since they can’t export what others won’t buy. Communication and cooperation between first world nations and third world nations in critical, because it keeps both parties up to date on what the other is in need of. Cooperation is a major factor because first world nations can’t ignore the needs of third world nations, because all nations are working together to make life better for their people. The exports of one nation are the needs of another nation and vice versa, without good communication and cooperation none of that would be possible. The International Monetary Fund (IMF) and the World Bank Group's International Development Association (IDA) have agreed to support a comprehensive debt reduction package for Ghana under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. Total relief of all of Ghana’s debt is worth approximately US$3.7 billion. Conditions of the debt relief include progress in privatizing state owned enterprises and achieving macroeconomic performance targets. The government of Ghana recently introduced Vision 2020, which is a plan that aims at making Ghana a middle income country through free market reforms by the year 2020. Key elements of the plan include a more friendly environment for foreign investment, renewed efforts to facilitate private-sector growth, and improvements in infrastructure and social welfare. By 2003, about two-thirds of 300 state-owned enterprises had been sold to private owners.

Kwadwo, Konadu-Agyemang and Sesime Adanu. 2003. The Changing Geography of Export Trade in Ghana under Structural Adjustment Programs: Some Socioeconomic and Spatial Implications. The Professional Geographer 55(4): 513-527.

http://www.nationsencyclopedia.com/Africa/Ghana-ECONOMIC-DEVELOPMENT.html

http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTDEBTDEPT/0,,contentMDK:20043927~menuPK:64166659~pagePK:64166689~piPK:64166646~theSitePK:469043,00.html

http://www.oecd.org/dataoecd/34/10/36740417.pdf