Introduction:

This primary source analysis examines a document about the structural adjustments established in Ghana during the 1980s, a critical period when the country faced profound economic challenges. A Ghanaian economist wrote the document and provided firsthand insights into the policies implemented to address the economic crisis that was crippling the country. During this time, Ghana struggled with hyperinflation, falling GDP, and a collapsing industrial sector which triggered outside intervention from financial institutions globally, notably the World Bank. The structural adjustment programs (SAPS) were deployed to stabilize the Ghanaian economy. The strategies from SAPS devalued the currency, reconfigured trade in the country, and restructured the public sector.

This document was produced for policymakers, economists, and those with expertise in national development but is also a critical piece for those studying the history of African economics and post-colonial nation-building. The document uses data and case studies as a means to outline the rationale behind the implementation of such reforms and evaluates the impact of the tactics used highlighting both the successes and failures. While the goals of the reforms implemented were to stabilize the economy and spur growth, the authors also include the many drawbacks that came with the reforms. Significant social costs were created as a result of the reforms such as an increase in unemployment and reduced access to essential services which in most cases affects those in Ghana’s most vulnerable populations. This source is important for understanding the greater effects of the economic reforms implemented in post-colonial Ghana and broader Africa as it highlights the many complications between achieving economic development and social welfare.

Analysis:

The structural adjustments implemented during the 1980s in Ghana are representative of a key moment in the country’s history. This source covers the reforms, explaining the reasons for the implementation as well as the impact that they had on Ghana. At the time, Ghana was dealing with an economic crisis in the form of high rates of inflation, a failing industrial sector, and a weak agricultural market. During this time, Ghana went to the International Monetary Fund (IMF) and the World Bank for help, these two institutions assisted them in implementing structural adjustment programs (SAPs) to stabilize the economy, emphasizing the importance of actions such as lowering government spending, devaluation of their nation currency, and opening up to international trade. This document illustrates both the benefits and drawbacks as a result of the reforms. Some of the benefits of the SAPs were that they successfully addressed some of the immediate fiscal issues, were able to stabilize the inflation issue, and brought in new foreign investments. The SAPs helped certain industries such as the cocoa industry as it became more internationally focused on increasing exports. On the other hand, there were also many drawbacks mentioned in the document. There was an increase in layoffs, reduced government subsidies in essential services, and the cost of living rose which mainly impacted those of poorer socioeconomic status in Ghana. As a result, the document highlights the debate on whether or not the economic upturn was worth the cost that much of the population had to pay in their daily lives. This primary source is significant because it provides valuable insight into the complexities between local governance and global economic powers in Africa's history. The example in Ghana stands as s testament to the many obstacles faced by post-colonial nations as they sought out reforms to solve their problems. These reforms illustrate the broader ideological changes that trended more toward market-based solutions rather than state-led development in post-colonial Ghana. This source provides a perspective into the trouble when balancing the goals of policymakers with the long-term implications of their decision as African nations developed in the late 20th century.

Worger, William H., Nancy L. Clark, and Edward A. Alpers. "Structural Adjustment in Ghana (1983–1989)." In Africa and the West: A Documentary History. Vol. 2, From Colonialism to Independence, 1875 to the Present, [insert page numbers]. New York: Oxford University Press, Inc., 2010.

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2. Kamarck, Andrew M. The Economics of African Development. New York: Praeger, 1967.