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Ghana

GANG INFORMATION
PROFILE
OFFICIAL NAME:
Republic of Ghana
Geography
Area: 238,538 sq. km. (92,100 sq. mi.); about the size of Illinois
and Indiana combined.
Cities: Capital--Accra (metropolitan area pop. 3 million est.).
Other cities--Kumasi (1 million est.), Tema (500,000 est.), Sekondi-Takoradi
(370,000 est.).
Terrain: Plains and scrubland, rainforest, savanna.
Climate: Tropical.
People
Nationality: Noun and adjective--Ghanaian(s).
Population (2005 est.): 22 million.
Density: 88/sq. km. (228/sq. mi.).
Annual growth rate (2004 est.): 2.7%.
Ethnic groups: Akan, Ewe, Ga, Moshi-Dagomba.
Religions: Christian 69%, Muslim 15.6%, traditional and indigenous
beliefs 8.5%.
Languages: English (official), Akan (which includes Asante Twi,
Akwapim Twi, Akyem, and Fanti) 49%, Mole-Dagbani 16%, Ewe 13%, Ga-Adangbe
8%, Guan 4%, others 10%.
Education: Years compulsory--9. Literacy--72.6%.
Health: Infant mortality rate (2003 est.)--64/1,000. Life expectancy--59.2
yrs. for women, 55.5 yrs. for men
Work force (11.1 million): Agriculture and fishing--47.9%; industry
and transport--16.2%; sales and clerical--19.3%; services--5.9%;
professional--8.9%; other--1.8%.
Government
Type: Democracy.
Independence: March 6, 1957.
Constitution: Entered into force January 7, 1993.
Branches: Executive--president popularly elected for a maximum of
two 4-year terms; Council of State, a presidential appointed consultative
body of 25 members required by the constitution. Legislative--unicameral
Parliament popularly elected for 4-year terms. Judicial--independent
Supreme Court justices nominated by president with approval of Parliament.
Subdivisions: Ten regions.
Political parties: New Patriotic Party, National Democratic Congress,
Convention People’s Party, People's National Convention, others.
Suffrage: Universal at 18.
Economy
GDP (2004): $8.7 billion.
Real GDP growth rate (2004): 5.8%.
Per capita GDP (2004): $395.
Inflation rate (2004): 12.6%.
Natural resources: Gold, timber, diamonds, bauxite, manganese, fish.
Agriculture: Products--cocoa, coconuts, coffee, pineapples, cashews,
pepper, other food crops, rubber. Land--70% arable and forested.
Business and industry: Types--mining, lumber, light manufacturing,
fishing, aluminum, tourism.
Trade (2003): Exports--$2.5 billion: cocoa ($818 million), aluminum,
gold, timber, diamonds, manganese. Imports--$3.3 billion: petroleum
($563 million), food, industrial raw materials, machinery, equipment.
Major trade partners--U.K., Germany, U.S., Nigeria, Togo, France,
Netherlands, Spain.
Fiscal year: Calendar year.
GEOGRAPHY
Ghana is located on West Africa's Gulf of Guinea only a few degrees
north of the Equator. Half of the country lies less than 152 meters
(500 ft.) above sea level, and the highest point is 883 meters (2,900
ft.). The 537-kilometer (334-mi.) coastline is mostly a low, sandy
shore backed by plains and scrub and intersected by several rivers
and streams, most of which are navigable only by canoe. A tropical
rain forest belt, broken by heavily forested hills and many streams
and rivers, extends northward from the shore, near the Cote d'Ivoire
frontier. This area produces most of the country's cocoa, minerals,
and timber. North of this belt, the country varies from 91 to 396
meters (300 ft.-1,300 ft.) above sea level and is covered by low
bush, park-like savanna, and grassy plains.
The climate is tropical. The eastern coastal belt
is warm and comparatively dry; the southwest corner, hot and humid;
and the north, hot and dry. There are two distinct rainy seasons
in the south--May-June and August-September; in the north, the rainy
seasons tend to merge. A dry, northeasterly wind, the Harmattan,
blows in January and February. Annual rainfall in the coastal zone
averages 83 centimeters (33 in.).
Volta Lake, the largest manmade lake in the world,
extends from the Akosombo Dam in southeastern Ghana to the town
of Yapei, 520 kilometers (325 mi.) to the north. The lake generates
electricity, provides inland transportation, and is a potentially
valuable resource for irrigation and fish farming.
PEOPLE
Ghana's population is concentrated along the coast and in the principal
cities of Accra and Kumasi. Most Ghanaians descended from migrating
tribes that probably came down the Volta River valley at the beginning
of the 13th century. Ethnically, Ghana is divided into small groups
speaking more than 50 languages and dialects. Among the more important
linguistic groups are the Akans, which include the Fantis along
the coast and the Ashantis in the forest region north of the coast;
the Guans, on the plains of the Volta River; the Ga- and Ewe-speaking
peoples of the south and southeast; and the Moshi-Dagomba-speaking
tribes of the northern and upper regions. English, the official
and commercial language, is taught in all the schools.
EDUCATION
Primary and junior secondary school education is tuition-free and
mandatory. The Government of Ghana's support for basic education
is unequivocal. Article 39 of the constitution mandates the major
tenets of the free, compulsory, universal basic education (FCUBE)
initiative. Launched in 1996, it is one of the most ambitious pre-tertiary
education programs in West Africa. Since the early 1980s, Government
of Ghana expenditures on education have risen from 1.5% to over
5% of GDP. Since 1987, the share of basic education in total education
spending has averaged around 67%. The units of the Ministry of Education,
Youth and Sports (MOEYS) responsible for education are: the Ghana
Education Service (GES), which administers pre-university education;
the National Council on Tertiary Education; the National Accreditation
Board; and the National Board for Professional and Technician Examinations
(NABPTEX). The West African Examinations Council (WAEC), a consortium
of five Anglophone West African Countries (Ghana, Nigeria, Sierra
Leone, Gambia, and Liberia) is responsible for developing, administering,
and grading school-leaving examinations at the secondary level.
Since 1986, pre-tertiary education in Ghana includes
six years of primary education, three years at the junior secondary
school level and three years at the senior secondary school level.
Successful completion of senior secondary school leads to admission
eligibility at training colleges, polytechnics, and universities.
In 2002 there were approximately 3.7 million students attending
schools at these three levels: 70% at the primary level, 24% at
the junior secondary level and 6% at the senior secondary level.
There are over five hundred public senior secondary schools in Ghana
that graduated a total of 90,000 students in 2004, representing
a huge expansion over the old system (which was transformed in 1987),
which consisted of three hundred institutions graduating 27,000
students a year. However, access to each successive level of education
remains severely limited by lack of facilities. Only about 30% of
junior secondary school graduates are able to gain admission to
senior secondary schools, and only about 35% of senior secondary
school graduates are able to gain admission to universities and
polytechnics, plus another 10-20% to diploma-level postsecondary
education. Private secondary schools play a very small role in Ghana,
with only a handful of institutions offering international curricula
such as the British-based A-levels, International Baccalaureate,
and U.S. high school. Combined, they graduate fewer than 200 students
a year.
Entrance to one of the five Ghanaian public universities
is by examination following completion of senior secondary school.
There are now five public and nine private degree-granting universities
in Ghana, along with ten public polytechnics offering the British
Higher National Diploma (HND), a three-year tertiary system in applied
fields of study. Ghana’s first private Catholic university
opened in 2003 in Sunyani. The polytechnics also offer vocational,
non-tertiary diploma programs. In addition, there are approximately
forty teacher-training colleges and fifteen nurses’ training
colleges. Private tertiary education is a recent but rapid development
in Ghana, meticulously regulated by the National Accreditation Board.
Over 5,000 undergraduates are now enrolled in secular degree-granting
programs in nine private institutions.
In 2003/4, new enrollments in public universities
totaled 18,149; new enrollments in private universities totaled
1,380; and new enrollments in polytechnics totaled 8,688, representing
an increase of 30% over the last five years. Total enrollment in
tertiary education has surpassed 100,000 for the first time in Ghana's
history.
HISTORY
The history of the Gold Coast before the last quarter of the 15th
century is derived primarily from oral tradition that refers to
migrations from the ancient kingdoms of the western Soudan (the
area of Mauritania and Mali). The Gold Coast was renamed Ghana upon
independence in 1957 because of indications that present-day inhabitants
descended from migrants who moved south from the ancient kingdom
of Ghana. The first contact between Europe and the Gold Coast dates
from 1470, when a party of Portuguese landed. In 1482, the Portuguese
built Elmina Castle as a permanent trading base. Thomas Windham
made the first recorded English trading voyage to the coast in 1553.
During the next three centuries, the English, Danes, Dutch, Germans,
and Portuguese controlled various parts of the coastal areas.
In 1821, the British Government took control of the
British trading forts on the Gold Coast. In 1844, Fanti chiefs in
the area signed an agreement with the British that became the legal
steppingstone to colonial status for the coastal area.
From 1826 to 1900, the British fought a series of
campaigns against the Ashantis, whose kingdom was located inland.
In 1902, they succeeded in establishing firm control over the Ashanti
region and making the northern territories a protectorate. British
Togoland, the fourth territorial element eventually to form the
nation, was part of a former German colony administered by the United
Kingdom from Accra as a League of Nations mandate after 1922. In
December 1946, British Togoland became a UN Trust Territory, and
in 1957, following a 1956 plebiscite, the United Nations agreed
that the territory would become part of Ghana when the Gold Coast
achieved independence.
The four territorial divisions were administered separately
until 1946, when the British Government ruled them as a single unit.
In 1951, a constitution was promulgated that called for a greatly
enlarged legislature composed principally of members elected by
popular vote directly or indirectly. An executive council was responsible
for formulating policy, with most African members drawn from the
legislature and including three ex officio members appointed by
the governor. A new constitution, approved on April 29, 1954, established
a cabinet comprising African ministers drawn from an all-African
legislature chosen by direct election. In the elections that followed,
the Convention People's Party (CPP), led by Kwame Nkrumah, won the
majority of seats in the new Legislative Assembly. In May 1956,
Prime Minister Nkrumah's Gold Coast government issued a white paper
containing proposals for Gold Coast independence. The British Government
stated it would agree to a firm date for independence if a reasonable
majority for such a step were obtained in the Gold Coast Legislative
Assembly after a general election. This election, held in 1956,
returned the CPP to power with 71 of the 104 seats in the Legislative
Assembly. Ghana became an independent state on March 6, 1957, when
the United Kingdom relinquished its control over the Colony of the
Gold Coast and Ashanti, the Northern Territories Protectorate, and
British Togoland.
In subsequent reorganizations, the country was divided
into 10 regions, which currently are subdivided into 138 districts.
The original Gold Coast Colony now comprises the Western, Central,
Eastern, and Greater Accra Regions, with a small portion at the
mouth of the Volta River assigned to the Volta Region; the Ashanti
area was divided into the Ashanti and Brong-Ahafo Regions; the Northern
Territories into the Northern, Upper East, and Upper West Regions;
and British Togoland essentially is the same area as the Volta Region.
Post-Independence Politics
After independence, the CPP government under Nkrumah sought to develop
Ghana as a modern, semi-industrialized, unitary socialist state.
The government emphasized political and economic organization, endeavoring
to increase stability and productivity through labor, youth, farmers,
cooperatives, and other organizations integrated with the CPP. The
government, according to Nkrumah, acted only as "the agent
of the CPP" in seeking to accomplish these goals.
The CPP's control was challenged and criticized, and
Prime Minister Nkrumah used the Preventive Detention Act (1958),
which provided for detention without trial for up to 5 years (later
extended to 10 years). On July 1, 1960, a new constitution was adopted,
changing Ghana from a parliamentary system with a prime minister
to a republican form of government headed by a powerful president.
In August 1960, Nkrumah was given authority to scrutinize newspapers
and other publications before publication. This political evolution
continued into early 1964, when a constitutional referendum changed
the country to a one-party state. On February 24, 1966, the Ghanaian
Army and police overthrew Nkrumah's regime. Nkrumah and all his
ministers were dismissed, the CPP and National Assembly were dissolved,
and the constitution was suspended. The new regime cited Nkrumah's
flagrant abuse of individual rights and liberties, his regime's
corrupt, oppressive, and dictatorial practices, and the rapidly
deteriorating economy as the principal reasons for its action.
Post-Nkrumah Politics
The leaders of the February 24, 1966 coup established the new government
around the National Liberation Council (NLC) and pledged an early
return to a duly constituted civilian government. Members of the
judiciary and civil service remained at their posts and committees
of civil servants were established to handle the administration
of the country. Ghana's government returned to civilian authority
under the Second Republic in October 1969 after a parliamentary
election in which the Progress Party, led by Kofi A. Busia, won
105 of the 140 seats. Until mid-1970, a presidential commission
led by Brigadier A.A. Afrifa held the powers of the chief of state.
In a special election on August 31, 1970, former Chief Justice Edward
Akufo-Addo was chosen President, and Dr. Busia became Prime Minister.
Faced with mounting economic problems, Prime Minister
Busia's government undertook a drastic devaluation of the currency
in December 1971. The government's inability to control the subsequent
inflationary pressures stimulated further discontent, and military
officers seized power in a bloodless coup on January 13, 1972.
The coup leaders, led by Col. I.K. Acheampong, formed
the National Redemption Council (NRC) to which they admitted other
officers, the head of the police, and one civilian. The NRC promised
improvements in the quality of life for all Ghanaians and based
its programs on nationalism, economic development, and self-reliance.
In 1975, government reorganization resulted in the NRC's replacement
by the Supreme Military Council (SMC), also headed by now-General
Acheampong.
Unable to deliver on its promises, the NRC/SMC became
increasingly marked by mismanagement and rampant corruption. In
1977, General Acheampong brought forward the concept of union government
(UNIGOV), which would make Ghana a non-party state. Perceiving this
as a ploy by Acheampong to retain power, professional groups and
students launched strikes and demonstrations against the government
in 1977 and 1978. The steady erosion in Acheampong's power led to
his arrest in July 1978 by his chief of staff, Lt. Gen. Frederick
Akuffo, who replaced him as head of state and leader of what became
known as the SMC-2.
Akuffo abandoned UNIGOV and established a plan to
return to constitutional and democratic government. A Constitutional
Assembly was established, and political party activity was revived.
Akuffo was unable to solve Ghana's economic problems, however, or
to reduce the rampant corruption in which senior military officers
played a major role. On June 4, 1979, his government was deposed
in a violent coup by a group of junior and noncommissioned officers--Armed
Forces Revolutionary Council (AFRC)--with Flt. Lt. Jerry John Rawlings
as its chairman.
The AFRC executed eight senior military officers,
including former chiefs of state Acheampong and Akuffo; established
Special Tribunals that, secretly and without due process, tried
dozens of military officers, other government officials, and private
individuals for corruption, sentencing them to long prison terms
and confiscating their property; and, through a combination of force
and exhortation, attempted to rid Ghanaian society of corruption
and profiteering. At the same time, the AFRC accepted, with a few
amendments, the draft constitution that had been submitted; permitted
the scheduled presidential and parliamentary elections to take place
in June and July; promulgated the constitution; and handed over
power to the newly elected President and Parliament of the Third
Republic on September 24, 1979.
The 1979 constitution was modeled on those of Western
democracies. It provided for the separation of powers between an
elected president and a unicameral Parliament, an independent judiciary
headed by a Supreme Court, which protected individual rights, and
other autonomous institutions, such as the Electoral Commissioner
and the Ombudsman. The new President, Dr. Hilla Limann, was a career
diplomat from the north and the candidate of the People's National
Party (PNP), the political heir of Nkrumah's CPP. Of the 140 members
of Parliament, 71 were PNP. The PNP government established the constitutional
institutions and generally respected democracy and individual human
rights. It failed, however, to halt the continuing decline in the
economy; corruption flourished, and the gap between rich and poor
widened. On December 31, 1981, Flight Lt. Rawlings and a small group
of enlisted and former soldiers launched a coup that succeeded against
little opposition in toppling President Limann.
The PNDC Era
Rawlings and his colleagues suspended the 1979 constitution, dismissed
the President and his cabinet, dissolved the Parliament, and proscribed
existing political parties. They established the Provisional National
Defense Council (PNDC), initially composed of seven members with
Rawlings as chairman, to exercise executive and legislative powers.
The existing judicial system was preserved, but alongside it the
PNDC created the National Investigation Committee to root out corruption
and other economic offenses; the anonymous Citizens' Vetting Committee
to punish tax evasion; and the Public Tribunals to try various crimes.
The PNDC proclaimed its intent to allow the people to exercise political
power through defense committees to be established in communities,
workplaces, and in units of the armed forces and police. Under the
PNDC, Ghana remained a unitary government.
In December 1982, the PNDC announced a plan to decentralize
government from Accra to the regions, the districts, and local communities,
but it maintained overall control by appointing regional and district
secretaries who exercised executive powers and also chaired regional
and district councils. Local councils, however, were expected progressively
to take over the payment of salaries, with regions and districts
assuming more powers from the national government. In 1984, the
PNDC created a National Appeals Tribunal to hear appeals from the
public tribunals; changed the Citizens' Vetting Committee into the
Office of Revenue Collection; and replaced the system of defense
committees with Committees for the Defense of the Revolution.
In 1984, the PNDC also created a National Commission
on Democracy to study ways to establish participatory democracy
in Ghana. The commission issued a "Blue Book" in July
1987 outlining modalities for district-level elections, which were
held in late 1988 and early 1989, for newly created district assemblies.
The government appointed one-third of the assembly members.
The Fourth Republic
Under international and domestic pressure for a return to democracy,
the PNDC allowed the establishment of a 258-member Consultative
Assembly made up of members representing geographic districts as
well as established civic or business organizations. The assembly
was charged to draw up a draft constitution to establish a Fourth
Republic, using PNDC proposals. The PNDC accepted the final product
without revision, and it was put to a national referendum on April
28, 1992, in which it received 92% approval. On May 18, 1992, the
ban on party politics was lifted in preparation for multi-party
elections. The PNDC and its supporters formed a new party, the National
Democratic Congress (NDC), to contest the elections. Presidential
elections were held on November 3 and parliamentary elections on
December 29, 1992. Members of the opposition boycotted the parliamentary
elections, however, which resulted in a 200-seat Parliament with
only 17 opposition party members and two independents.
The constitution entered into force on January 7,
1993, to found the Fourth Republic. On that day, Flt. Lt. Jerry
John Rawlings was inaugurated as President and members of Parliament
swore their oaths of office. In 1996, the opposition fully contested
the presidential and parliamentary elections, which were described
as peaceful, free, and transparent by domestic and international
observers. In that election, President Rawlings was re-elected with
57% of the popular vote. In addition, Rawlings' NDC party won 133
of the Parliament's 200 seats, just one seat short of the two-thirds
majority needed to amend the constitution, although the election
returns of two parliamentary seats faced legal challenges.
The December 2000 elections ushered in the first democratic
presidential change of power in Ghana's history when John A. Kufuor
of the New Patriotic Party (NPP) defeated the NDC's John Atta Mills--who
was Rawling's Vice President and hand-picked successor. Kufuor defeated
Mills by winning 56.73% of the vote, while the NPP picked up 100
of 200 seats in Parliament. The elections were declared free and
fair by a large contingent of domestic and international monitors.
After several by-elections were held to fill vacated seats, the
NPP majority stood at 103 of the 200 seats in Parliament, while
the NDC held 89 and independent and small party members held eight.
In December 2004, eight political parties contested
parliamentary elections and four parties, including the NPP and
NDC, contested presidential elections. This election was reported
to have a remarkable turnout of 85.12% according to the Election
Commission. Despite a few incidents of intimidation and minor irregularities,
domestic and international observers judged the elections generally
free and fair. There were several isolated incidents of election-related
violence, but the election was generally peaceful in most of Ghana.
John Agyekum Kufuor was re-elected president with 52.45% of the
vote against three other presidential candidates, including former
Vice-President John Atta Mills of the NDC. Thirty constituencies
were created in the period between the 2000 and 2004 elections,
resulting in a 230-member Parliament.
GOVERNMENT AND POLITICAL CONDITIONS
The 1993 constitution that established the Fourth Republic provided
a basic charter for the republican democratic government. It declares
Ghana to be a unitary republic with sovereignty residing in the
Ghanaian people. Intended to prevent future coups, dictatorial government,
and one-party states, it is designed to establish the concept of
power sharing. The document reflects lessons learned from the abrogated
constitutions of 1957, 1960, 1969, and 1979, and incorporates provisions
and institutions drawn from British and American constitutional
models. One controversial provision of the constitution indemnifies
members and appointees of the PNDC from liability for any official
act or omission during the years of PNDC rule. The constitution
calls for a system of checks and balances, with power shared between
a president, a unicameral parliament, an advisory Council of State,
and an independent judiciary.
Executive authority is established in the Office of
the Presidency, together with his Council of State. The president
is head of state, head of government, and commander in chief of
the armed forces. He also appoints the vice president. According
to the constitution, more than half of the presidential-appointed
ministers of state must be appointed from among members of Parliament.
Legislative functions are vested in Parliament, which
consists of a unicameral 230-member body plus the Speaker. To become
law, legislation must have the assent of the president, who has
a qualified veto over all bills except those to which a vote of
urgency is attached. Members of Parliament are popularly elected
by universal adult suffrage for terms of 4 years, except in wartime,
when terms may be extended for not more than 12 months at a time
beyond the 4 years.
The structure and the power of the judiciary are independent
of the two other branches of government. The Supreme Court has broad
powers of judicial review. It is authorized by the constitution
to rule on the constitutionality of any legislation or executive
action at the request of any aggrieved citizen. The hierarchy of
courts derives largely from British juridical forms. The hierarchy,
called the Superior Court of Judicature, is composed of the Supreme
Court of Ghana, the Court of Appeal, the High Court of Justice,
regional tribunals, and such lower courts or tribunals as Parliament
may establish. The courts have jurisdiction over all civil and criminal
matters.
The government of John A. Kufuor appears to enjoy
broad support among the Ghanaian population as it pursues a domestic
political agenda based upon public commitment to the rule of law,
basic human rights, and free market initiatives. So far, the government
has taken steps to strengthen freedoms of expression by repealing
colonial-era criminal libel laws, dropping a number of libel suits
against journalists, abolishing sometimes abusive community tribunals,
and introducing legislation to establish a juvenile justice system.
As part of its anti-corruption efforts the Kufuor government has
pursued some high-profile cases, including the prosecution of its
Minister of Youth and Sports and several former high-level government
officials. On September 3, 2002, Ghana inaugurated its National
Reconciliation Commission, a South Africa-style commission established
to investigate human rights abuses under Ghana's former military
regimes. The National Reconciliation Commission completed its hearings
in July 2004 and submitted its final report with recommendations
in October 2004. The government responded with a White Paper in
April 2005, accepting the recommendation to establish a Reparation
and Rehabilitation Fund for victims of abuse, as well as directing
security forces to study carefully the various recommendations on
recruitment, training and deployment.
Principal Government Officials
President--John Agyekum Kufuor
Vice President--Alhaji Mahama Aliu
Senior Minister--Joseph Henry (J.H.) Mensah
Minister of Foreign Affairs--Nana Akufo-Addo
Minister of Defense--Kwame Addo-Kufuor
Minister of Finance and Economic Planning--Kwadwo Baah-Wiredu
Minister of Trade & Industry--Alan Kyerematen
Minister of Justice and Attorney General--Joe Gartey
Minister of Interior--Kan Dapaah
Chief Justice of the Supreme Court--Justice George Acquah
Speaker of Parliament--Ebenezer Begyina Sekyi Hughes
Ambassador to the United States--Fritz Kwabena Poku
Permanent Representative to the United Nations--Nana Effah-Apenteng
Ghana maintains an embassy in the United States at
3512 International Drive, NW, Washington, DC 20008 (tel. 202-686-4500).
Its permanent mission to the United Nations is located at 19 E.
47th Street, New York, NY 10017 (tel. 212-832-1300).
ECONOMY
By West African standards, Ghana has a diverse and rich resource
base. The country is mainly agricultural, however, with a majority
of its workers engaged in farming. Cash crops consist primarily
of cocoa and cocoa products, which typically provide about two-thirds
of export revenue, timber products, coconuts and other palm products,
shea nuts (which produce an edible fat), and coffee. Ghana also
has established a successful program of nontraditional agricultural
products for export including pineapples, cashews, and pepper. Cassava,
yams, plantains, corn, rice, peanuts, millet, and sorghum are the
basic foodstuffs. Fish, poultry, and meat also are important dietary
staples.
Minerals--principally gold, diamonds, manganese ore,
and bauxite--are produced and exported. Exploration for oil and
gas resources is ongoing.
Ghana's industrial base is relatively advanced compared
to many other African countries. Industries include textiles, steel
(using scrap), tires, oil refining, flour milling, beverages, tobacco,
simple consumer goods, and car, truck, and bus assembly. Tourism
has become one of Ghana's largest foreign income earners (ranking
third in 2003 at $600 million), and the Ghanaian Government has
placed great emphasis on further tourism support and development.
Economic Development
At independence, Ghana had a substantial physical and social infrastructure
and $481 million in foreign reserves. The Nkrumah government further
developed the infrastructure and made important public investments
in the industrial sector. With assistance from the United States,
the World Bank, and the United Kingdom, construction of the Akosombo
Dam was completed on the Volta River in 1966. Two U.S. companies
built Valco, Africa's largest aluminum smelter, to use power generated
at the dam. Aluminum exports from Valco used to be a major source
of foreign exchange for Ghana. The plant, which closed for production
in May 2003, was sold to the Government of Ghana in October 2004,
and subsequently reopened on a reduced scale in September 2005.
Many Nkrumah-era investments were monumental public
works projects and poorly conceived, badly managed agricultural
and industrial schemes. With cocoa prices falling and the country's
foreign exchange reserves fast disappearing, the government resorted
to supplier credits to finance many projects. By the mid-1960s,
Ghana's reserves were gone, and the country could not meet repayment
schedules. The National Liberation Council responded by abandoning
unprofitable projects and selling some inefficient state-owned enterprises
to private investors. On three occasions, Ghana's creditors agreed
to reschedule repayments due on Nkrumah-era supplier credits. Led
by the United States, foreign donors provided import loans to enable
the foreign exchange-strapped government to import essential commodities.
Prime Minister Busia's government (1969-72) liberalized
controls to attract foreign investment and to encourage domestic
entrepreneurship. Investors were cautious, however, and cocoa prices
declined again while imports surged, precipitating a serious trade
deficit. Despite considerable foreign assistance and some debt relief,
the Busia regime also was unable to overcome the inherited restraints
on growth posed by the debt burden, balance-of-payments imbalances,
foreign exchange shortages, and mismanagement.
Although foreign aid helped prevent economic collapse
and was responsible for subsequent improvements in many sectors,
the economy stagnated in the 10-year period preceding the NRC takeover
in 1972. Population growth offset the modest increase in gross domestic
product, and real earnings declined for many Ghanaians.
To restructure the economy, the NRC, under General
Acheampong (1972-78), undertook an austerity program that emphasized
self-reliance, particularly in food production. These plans were
not realized, however, primarily because of post-1973 oil price
increases and a drought in 1975-77 that particularly affected northern
Ghana. The NRC, which had inherited foreign debts of almost $1 billion,
abrogated existing rescheduling arrangements for some debts and
rejected other repayments. After creditors objected to this unilateral
action, a 1974 agreement rescheduled the medium-term debt on liberal
terms. The NRC also imposed the Investment Policy Decree of 1975--effective
on January 1977--that required 51% Ghanaian equity participation
in most foreign firms, but the government took 40% in specified
industries. Many shares were sold directly to the public.
Continued mismanagement of the economy, record inflation
(more than 100% in 1977), and increasing corruption, notably at
the highest political levels, led to growing dissatisfaction. The
post-July 1978 military regime led by General Akuffo attempted to
deal with Ghana's economic problems by making small changes in the
overvalued cedi and by restraining government spending and monetary
growth. Under a one-year standby agreement with the International
Monetary Fund (IMF) in January 1979, the government promised to
undertake economic reforms, including a reduction of the budget
deficit, in return for a $68 million IMF support program and $27
million in IMF Trust Fund loans. The agreement became inoperative,
however, after the June 4 coup that brought Flight Lieutenant Rawlings
and the AFRC to power for 4 months.
In September 1979, the civilian government of Hilla
Limann inherited declining per capita income, stagnant industrial
and agricultural production due to inadequate imported supplies,
shortages of imported and locally produced goods, a sizable budget
deficit (almost 40% of expenditures in 1979), high inflation, "moderating"
to 54% in 1979, an increasingly overvalued cedi, flourishing smuggling
and other black-market activities, high unemployment, particularly
among urban youth, deterioration in the transport network, and continued
foreign exchange constraints.
Limann's PNP government announced yet another (2-year)
reconstruction program, emphasizing increased food production, exports,
and transport improvements. Import austerity was imposed and external
payments arrears cut. However, cocoa production and prices fell,
while oil prices soared. No effective measures were taken to reduce
rampant corruption and black marketing.
When Rawlings again seized power at the end of 1981,
cocoa output had fallen to half the 1970-71 level and its world
price to one-third the 1975 level. By 1982, oil would constitute
half of Ghana's imports, while overall trade contracted greatly.
Internal transport had slowed to a crawl, and inflation remained
high. During Rawlings' first year, the economy was stagnant. Industry
ran at about 10% of capacity due to the chronic shortage of foreign
exchange to cover the importation of required raw materials and
replacement parts. Economic conditions deteriorated further in early
1983 when Nigeria expelled an estimated 1 million Ghanaians who
had to be absorbed by Ghana.
In April 1983, in coordination with the IMF, the PNDC
launched an economic recovery program, perhaps the most stringent
and consistent of its day in Africa, aimed at reopening infrastructure
bottlenecks and reviving moribund productive sectors--agriculture,
mining, and timber. The largely distorted exchange rate and prices
were realigned to encourage production and exports. The government
imposed fiscal and monetary discipline to curb inflation. Through
November 1987, the cedi was devalued by more than 6,300%, and widespread
direct price controls were substantially reduced.
The economy's response to these reforms was initially
hampered by the absorption of 1 million returnees from Nigeria,
compounded by the decline of foreign aid and the onset of the worst
drought since independence, which brought on widespread bushfires
and forced closure of the aluminum smelter and severe power cuts
for industry. In 1985, the country absorbed an additional 100,000
expellees from Nigeria. In 1987, cocoa prices declined again; however,
infrastructure repairs, improved weather, and producer incentives
and support revived output. During 1984-88 the economy experienced
solid growth for the first time since 1978. Renewed exports, aid
inflows, and a foreign exchange auction eased hard currency constraints.
Since an initial August 1983 IMF standby agreement,
the economic recovery program has been supported by three IMF standbys
and two other credits totaling $611 million, as well as $1.1 billion
from the World Bank, and hundreds of millions of dollars more from
other donors. In November 1987, the IMF approved a $318-million,
3-year extended fund facility. The second phase (1987-90) of the
recovery program concentrated on economic restructuring and revitalizing
social services. The third phase (which began in March 1998) focused
on financial transparency and macroeconomic stability.
Ghana opted to seek debt relief under the Heavily
Indebted Poor Country (HIPC) program in March 2001 and reached decision
point in February 2002. Ghana, the International Monetary Fund (IMF),
and the World Bank Group's International Development Association
(IDA) agreed in February 2002 to support a comprehensive debt reduction
package for Ghana under the enhanced HIPC Initiative. Ghana reached
HIPC completion point in July 2004 and total relief from all of
Ghana's creditors will be approximately $3.5 billion over 20 years.
The Government of Ghana, working with multilateral lending institutions,
developed a detailed plan to use funds made available through debt
relief under the enhanced HIPC Initiative for increased expenditures
on education and health programs to improve services and infrastructure
in the rural sector, and improved governance. A portion of the relief
will be used to further reduce the heavy burden of domestic public
debt. As part of the agreed-upon plan, Ghana in 2002 and 2003 raised
electricity, fuel, and municipal water rates to market prices, and
took additional revenue-enhancing measures (i.e., more taxes) to
stabilize its fiscal position. Ghana again raised pump prices for
gasoline, kerosene, and diesel in February 2005. A key goal for
the government remains oil sector deregulation.
Ghana’s stated goals are to accelerate economic
growth, improve the quality of life for all Ghanaians, and reduce
poverty through macroeconomic stability, higher private investment,
broad-based social and rural development, as well as direct poverty-alleviation
efforts. These plans are fully supported by the international donor
community. Privatization of state-owned enterprises continues, with
over 300 of about 350 parastatal enterprises sold to private owners.
Other reforms adopted under the government's structural adjustment
program include the elimination of exchange rate controls and the
lifting of virtually all restrictions on imports. The establishment
of an interbank foreign exchange market has greatly expanded access
to foreign exchange.
The government repealed a 17% value-added tax (VAT)
shortly after its introduction in 1995 because of widespread public
protests. The government reverted to several previously imposed
taxes, including a sales tax, and reintroduced a 10% VAT in 1998
after an extensive public education campaign. The VAT was raised
to 12.5% in 2000. The government added a 2.5% National Health Insurance
levy on top of the VAT in August 2004.
FOREIGN RELATIONS
Ghana is active in the United Nations and many of its specialized
agencies, as well as the World Trade Organization, the Nonaligned
Movement, the African Union (AU), and the Economic Community of
West African States (ECOWAS). Generally, Ghana follows the consensus
of the Nonaligned Movement and the AU on economic and political
issues that do not directly affect its own interests. Ghana plays
an increasingly active role in subregional affairs. In February
2002, Ghana’s former Deputy Foreign Minister, Mohammed Ibn
Chambas, assumed the office of ECOWAS Executive Secretary. In February
2003, President Kufuor became the Chairperson of ECOWAS heads of
state, taking on a strong role in the Cote d'Ivoire and Liberian
peace and reconciliation processes. Kufuor was reelected to a second
year in December 2003. His tenure expired in January 2005. Ghana
took a seat on the UN Security Council in January 2006.
Ghana has been extremely active in international peacekeeping
activities under UN auspices in Lebanon, Afghanistan, Rwanda, the
Balkans, and Pakistan, in addition to an 8-year subregional initiative
with its ECOWAS partners to develop and then enforce a cease-fire
in Liberia. In January 2003, Ghana sent a company of troops to Cote
d'Ivoire as part of the ECOWAS stabilization force and sent another
contingent to Liberia in July of 2003; the United States provided
logistical assistance to Ghana in these efforts. Ghana has current
deployments to Cote d'Ivoire, Liberia, Sierra Leone, Lebanon and
Congo with numerous small troop deployments in the role of UN observers
in many other crisis locations around the world. Additionally, Ghana
sent some troops to a French-sponsored RECAMP Exercise in Benin,
clearly highlighting the key role that peacekeeping operations have
in the Ghana Armed Forces. Ghana maintains friendly relations with
all states, regardless of ideology.
U.S.-GHANAIAN RELATIONS
The United States has enjoyed good relations with Ghana at a nonofficial,
personal level since Ghana's independence. Thousands of Ghanaians
have been educated in the United States. Close relations are maintained
between educational and scientific institutions, and cultural links,
particularly between Ghanaians and African-Americans, are strong.
After a period of strained relations in the mid-1980s,
U.S.-Ghanaian official relations are stronger than at any other
time in recent memory. Through the U.S. International Visitor Program,
Ghanaian parliamentarians and other government officials have become
acquainted with U.S. congressional and state legislative practices
and have participated in programs designed to address other issues
of interest. The U.S. and Ghanaian militaries have cooperated in
numerous joint training exercises, culminating with Ghanaian participation
in the African Crisis Response Initiative, an international activity
in which the U.S. facilitates the development of an interoperable
peacekeeping capacity among African nations. U.S.-Ghanaian military
cooperation continues under the new African Contingency Operations
Training and Assistance program; Ghana was one of the first militaries
to receive ACOTA training in early 2003. In addition, there is an
active bilateral International Military Education and Training program.
Additionally, Ghana is the site of a U.S.-European Command-funded
Exercise Reception Facility that was established to facilitate troop
deployments for exercises or crisis response within the region.
The facility is a direct result of Ghana’s partnership with
the United States on a Fuel Hub Initiative. Ghana is one of few
African nations selected for the State Partnership Program, which
will promote greater economic ties with U.S. institutions, including
the National Guard.
The United States is among Ghana's principal trading
partners. The Office of the President of Ghana worked closely with
the U.S. Embassy in Accra to establish an American Chamber of Commerce
to continue to develop closer economic ties in the private sector.
Major U.S. companies operating in the country include ACS, CMS Energy,
ExxonMobil, Coca Cola, S.C. Johnson, Ralston Purina, Star-Kist,
A.H. Robins, Sterling, Pfizer, IBM, 3M, Motorola, Stewart &
Stevenson, PriceWaterhouseCoopers, and National Cash Register (NCR).
Several U.S. firms recently made or are considering investments
in Ghana, primarily in gold mining, wood products, and petroleum.
U.S. mining giant Newmont entered Ghana’s mining sector in
2004 and intends to invest up to $1 billion. In late 1997, Nuevo
Petroleum concluded an oil exploration agreement accounting for
the last of Ghana's offshore mineral rights zones. Several other
U.S. oil companies also are engaged in offshore exploration, but
so far with little success.
U.S. development assistance to Ghana in fiscal year
2005 totaled more than $50 million, divided between small business
enterprise, health, education, and democracy/governance programs.
Ghana was the first country in the world to accept Peace Corps volunteers,
and the program remains one of the largest. Currently, there are
more than 150 volunteers in Ghana. Almost half work in education,
and the others in agro-forestry, small business development, health
education, water sanitation, and youth development. Ghana continued
negotiations in 2005 on an aid compact with the Millennium Challenge
Corporation. Ghana is a Millennium Challenge Account-eligible country.
The government of Ghana and the Millennium Challenge Corporation
currently are negotiating signature of a $517 million Compact focusing
on agro-business expansion.
Principal U.S. Officials
Ambassador--Pamela E. Bridgewater
Deputy Chief of Mission--Jerry Lanier
Director, USAID Mission--Sharon Cromer
Defense Attaché--Lt Col Thomas Bruce
Foreign Commercial Service--Diane Jones
Public Affairs Officer--Mary Johnson
Political Counselor--Scott Ticknor
Economic Counselor--Chris Landberg
Management Counselor--Judith Francis
Consul--Nan Stewart
Deputy Consul--Simon Hankinson
The U.S. Embassy is located on Ring Road East, near
Danquah Circle, Accra (tel. 233-21-775347/8/9). The mailing address
is P.O. Box 194, Accra, Ghana. For American citizen services and
visa questions, the Embassy consular section telephone number is
233-21-776602.
TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program provides
Consular Information Sheets, Travel Warnings, and Public Announcements.
Consular Information Sheets exist for all countries and include
information on entry requirements, currency regulations, health
conditions, areas of instability, crime and security, political
disturbances, and the addresses of the U.S. posts in the country.
Travel Warnings are issued when the State Department recommends
that Americans avoid travel to a certain country. Public Announcements
are issued as a means to disseminate information quickly about terrorist
threats and other relatively short-term conditions overseas that
pose significant risks to the security of American travelers. Free
copies of this information are available by calling the Bureau of
Consular Affairs at 202-647-5225 or via the fax-on-demand system:
202-647-3000. Consular Information Sheets and Travel Warnings also
are available on the Consular Affairs Internet home page: http://travel.state.gov.
Consular Affairs Tips for Travelers publication series, which contain
information on obtaining passports and planning a safe trip abroad,
are on the Internet and hard copies can be purchased from the Superintendent
of Documents, U.S. Government Printing Office, telephone: 202-512-1800;
fax 202-512-2250.
Emergency information concerning Americans traveling
abroad may be obtained from the Office of Overseas Citizens Services
at (202) 647-5225. For after-hours emergencies, Sundays and holidays,
call 202-647-4000.
The National Passport Information Center (NPIC) is
the U.S. Department of State's single, centralized public contact
center for U.S. passport information. Telephone: 1-877-4USA-PPT
(1-877-487-2778). Customer service representatives and operators
for TDD/TTY are available Monday-Friday, 8:00 a.m. to 8:00 p.m.,
Eastern Time, excluding federal holidays.
Travelers can check the latest health information
with the U.S. Centers for Disease Control and Prevention in Atlanta,
Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site
at http://www.cdc.gov/travel/index.htm give the most recent health
advisories, immunization recommendations or requirements, and advice
on food and drinking water safety for regions and countries. A booklet
entitled Health Information for International Travel (HHS publication
number CDC-95-8280) is available from the U.S. Government Printing
Office, Washington, DC 20402, tel. (202) 512-1800.
Information on travel conditions, visa requirements,
currency and customs regulations, legal holidays, and other items
of interest to travelers also may be obtained before your departure
from a country's embassy and/or consulates in the U.S. (for this
country, see "Principal Government Officials" listing
in this publication).
U.S. citizens who are long-term visitors or traveling
in dangerous areas are encouraged to register their travel via the
State Department’s travel registration web site at https://travelregistration.state.gov
or at the Consular section of the U.S. embassy upon arrival in a
country by filling out a short form and sending in a copy of their
passports. This may help family members contact you in case of an
emergency.
Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov,
the Department of State web site provides timely, global access
to official U.S. foreign policy information, including Background
Notes and daily press briefings along with the directory of key
officers of Foreign Service posts and more.
Export.gov provides a portal to all export-related
assistance and market information offered by the federal government
and provides trade leads, free export counseling, help with the
export process, and more.
STAT-USA/Internet, a service of the U.S. Department
of Commerce, provides authoritative economic, business, and international
trade information from the Federal government. The site includes
current and historical trade-related releases, international market
research, trade opportunities, and country analysis and provides
access to the National Trade Data Bank.
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