Strong democracy, weak state: The political economy of Ghana’s stalled structural transformation

cg.authorship.typesCGIAR single centreen
cg.contributor.crpPolicies, Institutions, and Markets
cg.contributor.donorUnited States Agency for International Developmenten
cg.coverage.countryGhana
cg.coverage.iso3166-alpha2GH
cg.coverage.regionAfrica
cg.coverage.regionWestern Africa
cg.coverage.regionSub-Saharan Africa
cg.creator.identifierDanielle Resnick: 0000-0001-6285-3461
cg.identifier.projectIFPRI - Ghana Strategy Support Program
cg.identifier.projectIFPRI - Development Strategy and Governance Division
cg.identifier.publicationRankNot ranked
cg.number1574en
cg.placeWashington, DCen
cg.reviewStatusInternal Reviewen
dc.contributor.authorResnick, Danielleen
dc.date.accessioned2024-06-21T09:24:18Zen
dc.date.available2024-06-21T09:24:18Zen
dc.identifier.urihttps://hdl.handle.net/10568/148303
dc.titleStrong democracy, weak state: The political economy of Ghana’s stalled structural transformationen
dcterms.abstractWhat are the political and institutional prerequisites for pursuing policies that contribute to structural transformation? This paper addresses this question by focusing on Ghana, which has achieved sustained economic growth in recent decades and is broadly lauded for its environment of political pluralism, respect for human rights, free and fair elections, and vocal civil society. Yet, despite these virtues, Ghana remains unable to achieve substantial structural transformation as identified as changes in economic productivity driven by value-added within sectors and shifts in the allocation of labor between sectors. This paper argues that Ghana is strongly democratic but plagued by weak state capacity, and these politico-institutional characteristics have shaped the economic policies pursued, including in the agricultural sector, and the resultant development trajectory. Specifically, three political economy factors have undermined Ghana’s ability to achieve substantive structural transformation since then. First, democracy has enabled a broader range of interest groups to permeate policymaking decisions, often resulting in policy backtracking and volatility as well as fiscal deficits around elections that, among other things, stifle credit access for domestic business through high interest rates. Secondly, public sector reforms were not pursued with the same vigor as macroeconomic reforms, meaning that the state has lacked the capacity typically necessary to identify winning industries or to actively facilitate the transition to higher value-added sectors. Thirdly, successive governments, regardless of party, have failed to actively invest in building strong, productive relationships with the private sector, which is a historical legacy of the strong distrust and alienation of the private sector that characterized previous government administrations.en
dcterms.accessRightsOpen Access
dcterms.bibliographicCitationResnick, Danielle. 2016. Strong democracy, weak state: The political economy of Ghana’s stalled structural transformation. IFPRI Discussion Paper 1574. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/148303en
dcterms.descriptionSupport for this research was kindly provided by USAID through Ghana’s Strategy Support Program (GSSP)en
dcterms.extent40 pagesen
dcterms.isPartOfIFPRI Discussion Paperen
dcterms.issued2016-12-02
dcterms.languageen
dcterms.licenseCC-BY-4.0
dcterms.publisherInternational Food Policy Research Instituteen
dcterms.relationhttps://hdl.handle.net/10568/150419en
dcterms.relationhttps://doi.org/10.2499/p15738coll2.133730en
dcterms.relationhttps://hdl.handle.net/10568/146277en
dcterms.relationhttps://doi.org/10.1016/j.landusepol.2016.07.029en
dcterms.replaceshttps://ebrary.ifpri.org/digital/collection/p15738coll2/id/130949en
dcterms.subjectdemocracyen
dcterms.subjecteconomicsen
dcterms.subjectstructural dynamicsen
dcterms.subjectstateen
dcterms.subjectgovernanceen
dcterms.typeWorking Paper

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