From a ‘success’ story to a highly indebted poor country: Ghana and neoliberal reforms

Abstract

Drawing on the experience of Ghana, which the World Bank itself proclaimed as an African success story in the early 1990s, this paper sheds important light on why neoliberal policies have had limited success in Africa and what strategies are likely to be necessary to foster growth and industrialisation in Ghana and elsewhere in Africa. In 2001, a few short years after being proclaimed as an economic miracle, Ghana joined the growing ranks of highly indebted poor countries (HIPC) – an especially humbling development for this once proud nation. Why did Ghana's economy collapse after recovering so well? Ghana's experience highlights both the promise and limitation of neoliberal reforms.