Question

Question 2
Many development plans have been implemented in Ghana since the first development plan was launched by Sir Gordon Guggisberg in 1919. Most recently, Ghana launched a 40-year development plan by the Mahama- led administration and also a 7 – year development plan was launched by the Akuffo Addo-led administration. Most of these development plans have however failed to live up to their billing.
Required:
a. Discuss five major reasons why development plans have performed poorly over the post-independence era in Ghana.
b. Suggest any five practical measures that are needed to ensure the smooth operation of development plans in Ghana in the future.

Answer 1

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Please find below answer to your question

A) Why development plans have performed poorly over the post-independence era in Ghana.

Abstract : Despite its relative wealth in mineral and other natural resources, Ghana's economy has performed very poorly for much of the period since independence in 1957. ... As in many African countries, poverty is concentrated among farmers and those working in the informal economy, which is growing in size.

As in many African countries, poverty is concentrated among farmers and those working
in the informal economy, which is growing in size. There is a clear gender-dimension,
with relatively more women underpaid and working in precarious conditions

Following are the main reason for low economic performance over the post-independence era in Ghana.

1.Economic Difficulties

With 56 per cent of its 21 million people living in rural areas, Ghana’s economy remains
heavily reliant on farming. Subsistence agriculture accounts for 34 per cent of gross
domestic product and employs about 60 per cent of the work force. Apart from an
expansion of the service sector, there has been little change in the structure of the
economy since independence.

2. Persistent Poverty

Growth rates, especially when coupled with a rapidly expanding population, have
not been enough produce deep and widespread reductions in poverty. Measured against
the national poverty threshold, overall poverty levels decreased from 52 percent in 1991-
92 to 40 per cent in 1998-99. Extreme poverty declined from 37 per cent to 27 per cent
over the same period

3.Gender disparities

In addition to such education differences, poverty in Ghana has a significant gender
dimension. Females represent 50.5 per cent of the total population, with regional
variations ranging from 49 per cent to 52 per cent. Regions experiencing the least
reduction, or increases, in poverty tend to have female population in the range of 50-52
per cent. These regions also have greater rural populations.

4.National Priorities

The country’s key framework for policies and allocating resources is the Ghana Poverty
Reduction Strategy (GPRS). The first version of this strategy, referred to here as GPRS I,
covered the period 2003-2005. The poverty strategy seeks to foster private sector-led
growth while at the same time investing in human and physical infrastructure. It was
adopted in 2002 after a lengthy consultation process. Updating and revision of the GPRS
I began in late 2004, resulting in GPRS II covering 2006-2009.

The GPRS I is structured around five pillars:
· Macro-economic stability
· Productive and gainful employment
· Human resource development and basic services
· Programmes for the vulnerable and excluded
· Governance

5.Gaps in Strategy

Despite the inclusion of an employment chapter, there is no focus on employment targets.
Moreover, the strategy takes a fairly narrow and sectoral view of employment, seeing job
creation in agriculture and industry as a by-product of economic growth. Employment is
not consistently considered as a means to improve access to income and lower poverty
rates. In particular, there is not enough attention given to the growth and employment
potential of the informal economy. As a result, the constraints and obstacles faced by
people in informal employment are not addressed.

B) Practical measures that are needed to ensure the smooth operation of development plans in Ghana in the future

Abstract

The industrial sector, given the contribution it makes to GDP, continues to support the growth
of the Ghanaian economy. Industrial sector products are also crucial foreign exchange earners.
The sector also fulfills almost all of the nation’s power and water requirements at the household
and industrial level. In terms of its contribution to GDP, industry has overtaken agriculture since
2011 as the second largest sector. Tentative estimates for 2012 (GSS 2012) show that industry
contributed 27.6 per cent to GDP, making it the second largest after the service sector (49.3 per
cent) and exceeding agriculture (23.1 per cent).

Below are the practical measures that are needed to ensure the smooth operation of development plans in Ghana in the future

1.Decent Work Trends

The ILO decent work agenda provides a framework for development that promotes
opportunities for women and men to obtain decent and productive work in conditions of
freedom, equity, security and human dignity. It calls for policies and measures in four
inter-related areas:

· Respect for, and protection of, basic human rights at work;
· Promotion and creation of opportunities for full, productive and remunerative employment;
· Broad social protection;
· Sustained social dialogue among social partners representing workers, employers and government.

2.Changing Labour Landscape

The quick growth in Ghana’s population over the past 40 years has meant a rapidly
expanding work force, which is currently increasing by about 230,000 a year. This has
not been accompanied by a similar expansion in formal, waged employment

3.Quality of work

Job quality tends to be low in the micro and small enterprises operating in the informal
economy. Most workers and employers labour under unsafe and unhealthy conditions.
Remuneration is low, often below what is needed to escape poverty, working hours are
long and few receive paid leave. Workers seldom are given formal skills training or other
incentives to contribute to the success of enterprises. Most workers and employers are not
covered by health insurance or pensions schemes

4.Need of High Productivity

Some policies need to be changed which have negative impact on the productivity and competitiveness of the businesses and self employed people operating in the informal economy. Both workers and employers are
caught in a vicious cycle of low job quality leading to low productivity, leading to lower profits, greater poverty and again to lower job quality.

5.Focus of the Decent Work Pilot Programme

• A national component aimed at influencing the socio-economic policy environment for poverty reduction.
• A local component to develop and test an integrated approach to reducing poverty in the informal economy.

6.Priorities and Policy Responses

National Component

* More and better jobs in micro-and small enterprises – a strategy to address the problems of the informal economy
·* Developing skills
·* Ensuring that infrastructure projects create as many jobs as possible
* Integrating people with disabilities into the economy
* Increasing productivity and fair wealth distribution through a wages and incomes policy

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