Ghana was drowning in debt just a few years ago. It still struggles with significant levels of existing debt, but has finally started to turn the corner thanks to an International Monetary Fund (IMF) austerity program. Ghana entered into a three-year program under the guidance of the IMF aimed at getting its economy back under control, and has announced that, despite early success, it will not quit its current program.
Ghana was to become the testing ground for Arthur Lewis’ ideas on economic development. The excitement surrounding Ghana’s independence in 1957 as tropical Africa’s ï¬rst decolonised territory captivated Lewis as thoroughly as it did African nationalists and Afrophiles around the world. Lewis, a St Lucian, went on to win the Nobel Memorial Prize in Economics in 1979.
While those in the developed world often complain about the price of petroleum, the markups experienced in nations like the United States and Germany may pale in comparison to the fees charged by a particular developing nation in Africa.
Ghana’s economy will expand in 2016 due to increased oil revenues and budget planning, according to Reuters. The West African country will abide by a budget deficit goal set by the International Monetary Fund, and the upcoming 2016 elections will fall under a strict budget regimen. President John Mahama agreed to lower election spending in return for a loan of $1 billion from the IMF. The organization set a deficit goal of 5.3 percent GDP for 2016.
