ABSTRACT
Foreign aid constitutes an important source of developmental funding for many African states including Ghana. In 2018, the government of Ghana announced an intention to pursue an Agenda to build ‘Ghana Beyond Aid’ through the prudent management of the countries resources. This work seeks to look at the sustainability of the “Ghana Beyond Aid” agenda by examining the interpretations and purpose of “Ghana Beyond Aid”, elite consensus on pursuing a “Ghana Beyond Aid” and the challenges and prospects of the agenda. The study employed the qualitative research methodology and relied on both primary and secondary data for the analysis. Primary data were sourced from the Ghana Beyond Aid Secretariat, Parliament, Civil society, Development partners, Academia, NDPC and Political parties via interviews. The study found that, “Ghana Beyond Aid”, is subject to so many interpretations which all reflect a decreasing relevance of aid relative to its contribution to development in a changing context of development cooperation. However, two broad interpretations have been derived: the literally concept, implying a complete cut or rejection of aid and the purposive concept, referring to the vision for Ghana to attain economic self-sufficiency and wean itself from aid dependency. Also, the study revealed an underlying consensus on the need for Ghana to strive for self-sufficiency in line with the purposive concept of ‘Ghana Beyond Aid’. It was however found that, forging a bi-partisan consensus on the implementation of the agenda across governments is difficult to reach due to the dangerously competitive nature of the country’s political template. ‘Ghana Beyond Aid’, the study showed, presents Ghana with the opportunity to make the most out of its resources to get out of aid dependency. It also calls for a commitment to increased domestic resource mobilization, accountable leadership, a fight against corruption and wastage.
CHAPTER 1 INTRODUCTION
Background to the Study
Several decades after their independence, most African countries are still struggling to find their feet on the development ladder. Poverty, diseases, illiteracy and inequality plague the continent. According to a 2018 World Bank report, Sub-Saharan Africa accounts for most of the world’s poor, the report adds that unlike most of the rest of the world where poverty is declining, the total number of poor in Sub-Saharan Africa is increasing (World Bank, 2018). The number of people living in abject poverty on the continent has increased from an estimated 278 million in 1990 to 413 million in 2015, and out of the world’s most poor 28 countries, 27 are found in Sub-Saharan Africa, all of them having poverty rates above 30 % (World Bank, 2018), For decades, Africa has remained the focus of the entire world with concerns about the levels of poverty, standard of living and conflicts on the continent.
The continent has received foreign aid from the rest of the world, especially the West in an effort to help Africa overcome its development challenge. Africa in the past fifty years has received in excess of one trillion dollars in development aid from the rest of the world, and several millions of dollars continue to flow into the continent in the form of aid annually (Moyo, 2009). In March 2017, the World Bank Group pledged a record $57 billion dollars in aid for Sub-Saharan African countries over the next three fiscal years. This World Bank Group financing is expected to support transformation in priority areas like health, education, water and access to power (Baden, 2017). Despite the huge
transfer of foreign aid to Africa for decades, the continent remains underdeveloped. The West has transferred more than $600 billion in development assistance to Africa so far (Akonor, 2008). More than half of the continent still relies on aid as the largest external source of financing their development. Aid has not done much in helping to change the destinies of many African states as underdevelopment and poverty is still widespread on the continent, while some states are considered to have failed (Andrews, 2009). Moyo (2009) asserted that foreign aid is not the potential solution to the development quandary of Africa, that it is rather the problem and not the solution to Africa’s development challenge. She maintains that, aid engenders a culture of dependency and promotes corruption which hampers growth and contributes to underdevelopment and economic problems in the aid reliant countries. She finally suggests complete end to aid to Africa within a specified period of time.
Ghana since the 1960s has been receiving foreign aid to finance its development, despite the countries rich natural resources such as gold, cocoa, timber, oil, bauxite, arable land and manganese, among others. At Ghana’s 61st Independence Day celebration, President Nana Akufo-Addo announced an agenda to build “Ghana beyond aid” through the prudent management of the country’s resources (Independence Day Speech, 2018). The “Ghana beyond aid” charter committee was inaugurated to draft a “Ghana Beyond Aid Charter” which sets out the true meaning, purpose and calendar of implementation to enable Ghana reach the goal of weaning itself completely from reliance on foreign aid for her development (Office of the President, 2018). This study forms part of studies to examine this development agenda. It is timely to examine the prospects and challenges of
such a development agenda that has been launched amidst high expectations, fanfares and misgivings.
Problem Statement
In spite of Ghana’s rich resource potential, the country since the 1960s has been receiving foreign assistance to fund her development. According to Osei (2012), external aid is a key source of Ghana’s development finances. Like many other countries receiving support, Ghana receives support in the form of budget and project assistance. The net Official Development Assistance to Ghana rose from less than 300 million dollars in 1990 to around 928 million dollars in 2004. In the 2005-06 period (during which Ghana was subject to HIPC), the aid decreased, but since then has risen, to about 820 million dollars in 2009 (Osei, 2012). Agoe (2013), notes that about 40 percent of Ghana’s budget is donor funded.
President Nana Akufo Addo has declared an agenda to build “Ghana beyond aid” by the prudent management of the country’ natural resources to fund her development and wean the country off aid completely. This policy agenda of the president is similar to other development plans that have been pursued in the past but failed, such as, “the import-substitution industrialization policy” pursued by Ghana at the time of independence, “the Ghana Vision 2020” which had as its goal to improve the overall well-being of the citizens and to eradicate all forms of poverty and deprivation by 2020 (National Development Planning Commission, 1995), and quite recently, the 40 Year Development Plan. According to Osei and Domfe, 2016), the Ghana Vision 2020 biggest setback was its inability to fuel up sufficient social interest while a change of government
in 2001 saw the agenda being discontinued and replaced with the Ghana Poverty Reduction Strategy 1 (GPRS1). Development strategies have not produced the needed benefits to Ghana due to a lack of continuity in the implementation of the plans and policies by successive governments (Institute of Economic Affairs Ghana, 2015). Indeed, the main constraints of nearly all development plans in Ghana were the lack of joint political will and dedication to their implementation, restricted stability and continuity in the lives of the plans and a lack of clear and adequate means of financing right from the beginning (Osei and Domfe, 2016). According to (Osei , 2015), scholars Whitfield (2009); Frimpong (2007); Svanikier (2007) assert that an underlying elite consensus largely accounts for the success of democracy in Ghana and South Africa. Elite consensus which immune leaders from punishment by the electorates is the reason why leaders were not making attempts to exit Afghanistan but were rather increasing their troops (Kreps, 2010). It is therefore timely, to examine the prospects and challenges that come with “the Ghana beyond aid agenda” in order to identify possible obstacles that need to be considered from the onset to ensure successful execution of the agenda.
Research Questions
- What is the interpretation and purpose of ‘Ghana beyond aid’?
- Is there elite consensus in building ‘Ghana beyond aid’?
- What are the challenges and prospects of building ‘Ghana beyond aid’?
Research Objectives
The general objective is to examine the feasibility of the “Ghana beyond Aid” agenda. The specific objectives include the following:
- To examine the interpretation and purpose of ‘Ghana Beyond Aid’
- To examine whether there exists elite consensus on the ‘Ghana Beyond Aid’
- To examine the challenges and prospects of pursuing ‘Ghana Beyond Aid’
Scope of the Study
This study will trace briefly Ghana’s history with aid from the 1960s-2017 and the forms and composition of aid that Ghana receives. The study will examine the ‘Ghana Beyond Aid’ to determine the interpretation and purpose. It will also examine elite consensus on building ‘Ghana Beyond Aid’, identifying the challenges and prospects of pursuing a beyond aid agenda.
