Structural Adjustment Program in Ghana

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Structural Adjustment Program in Ghana

By | Jan. 2011
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Like the economy as a whole, the industrial sector in Ghana has been the subject of much inquiry (in chronological order, see Birmingham et al., 1966/7; Steel, 1977; Page, 1980; Andrea, 1981; Ewusi, 1986; Meier and Steel, 1989; Steel and Webster, 1990; Mosley, Harrigan and Toye, 1991; Sowa et al., 1991 and Rothchild, 1991). As mentioned already, industrial output as a whole has been growing since the adoption of the Structural Adjustment Programmes in Ghana. Within the industrial sector, it is small and medium scale industry that are increasing in proportion, and large scale industry that is static. The increase in output of the small and medium scale portion has been primarily through increase in the number of firms; entry into Ghanaian industry has been very rapid in recent years, but once established, the firms tend to remain fixed in size and employment. Large scale firms in Ghana have shown little resilience under the Structural Adjustment Programme. The liberalization of imports has permitted increases in foreign products with which they compete, often with disastrous results for the local industries. A headline from a newspaper (the Weekly Spectator, number 1233, Saturday, 9 November 1991) is 'factories collapsing... over 120 out of business'. The beginning of the article reads as follows: Over 120 industries in the country have closed down since 1988 due to their inability to sell goods they produce. The industries affected include those of garment, leather, agricultural, electrical, electronic, metal and pharmaceuticals. Prominent among them are the Match Factory, Crystal Oil Mills, Ever Ready Battery, Ayrton Drug manufacturing, all the machine shops, Ghana Candle and Brush Company. Others are the Glamour garment factory, Ghana Umbrella Factory, Benya distilleries, Baston Terrazo Works, Akropong farm ltd. and African Motors. A spokesman of the Association of Ghana Industries who disclosed these in an interview...
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