Lecture 11-Economic Recovery Program (ERP),SAP, and Poverty Reduction strategies.pptx - Economy of Ghana Lecture 11:Economic Policies and Ghana’s

Lecture 11-Economic Recovery Program (ERP),SAP, and Poverty Reduction strategies.pptx

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Economy of Ghana Lecture 11: Economic Policies and Ghana’s Economic Performance; ERP/SAP/HIPC/GPRS I/GPRS II/GSGDA I/GSGDA II Lecturer: Forster Shitsi Jnr.
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Course Objectives By the end of this lesson, you should be able to: 1. Explain the factors that influenced the decision of the government to implement the Economic Recovery Program and other economic policies in Ghana. 2. Discuss the objectives of the policies 3. Assess the success or otherwise of the policies 4. Explain the factors that influenced the decision to participate in the HIPC initiative
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Outline of Presentation The State of the Ghanaian Economy before the Economic Reforms Economic Recovery Programme (ERP-1983) Performance of the ERP: 1983-1986 Structural Adjustment Program (SAP) in Ghana The Heavily Indebted Poor Country (HIPC) Initiative Ghana Poverty Reduction Strategy (GPRS I, 2003-2005) Growth and Poverty Reduction Strategy (GPRS II, 2006-2009)
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The State of the Ghanaian Economy before the Economic Reforms From being a relatively affluent African country in the early 1960s, and still ranking as middle-income by the late 1960s, Ghana made the undesirable transition to a low-income country in the 1970s. Corruption, macroeconomic mismanagement, chronic overvaluation of the Cedi and an anti-agricultural bias policies were all at the root of poor economic performance. Between 1970 and 1983 real GDP at market prices fell by 11% (per capita incomes fell by even more), and did not recover until 1985 (Toye, 1991: 166).
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The State of the Ghanaian Economy before the Economic Reforms Triple digit inflation rates were recorded in 1981 and 1983. Export volumes in the early 1980’s were half what they were in 1970. The revenue base of government contracted as the economy stagnated. Government spending declined in real terms and as a share of GDP. As a consequence economic infrastructure were in a state of deterioration as there was not enough resources to maintain them and to construct new ones. In sum, Ghana was a chronic case of economic failure.
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Economic Recovery Programme (ERP-1983) Objectives The Government of Ghana initiated an Economic Recovery Programme (ERP) in 1983 as a direct response to the economic decline and poverty that plagued the country at the time.
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