In my third point of discussion of the standard of living in Ghana I must post this question. A question that everyone may ask Ghana’s government, “how did Ghana get into a deficit?” As I mentioned in an earlier blog, Ghana was once owned by the United Kingdom, but gained independence in 1957 about 55 years ago (CIA 2012). Since their independence there has been strengthening in their economy, but not enough. “Oil production at Ghana's offshore Jubilee field began in mid-December, 2010, and is expected to boost economic growth. President Mills faces challenges in managing new oil revenue while maintaining fiscal discipline and resisting debt accumulation. Estimated oil reserves have jumped to almost 700 million barrels. Ghana signed a Millennium Challenge Corporation (MCC) Compact in 2006, which aims to assist in transforming Ghana's agricultural sector. Ghana opted for debt relief under the Heavily Indebted Poor Country (HIPC) program in 2002, and is also benefiting from the Multilateral Debt Relief Initiative that took effect in 2006. In 2009 Ghana signed a three-year Poverty Reduction and Growth Facility with the IMF to improve macroeconomic stability, private sector competitiveness, human resource development, and good governance and civic responsibility. Sound macro-economic management along with high prices for gold and cocoa helped sustain GDP growth in 2008-11” (CIA 2012).
Lastly, culture plays a significant part in the country means and where the country can go in the future. Ghana does not have a set religion, but it is understood that 68.8% of the population identify as Christians. However, from the data collected from CIA I can interpret that there may be a language disparity due to lack in education and transportation, but English is the official language with only 36.6% speaking the language in the 2000 census. And with globalization on the rise this could explain the reason for English as the official language for economic purposes and to survive in this fast growing world economy. As a result, Ghanaians must learn how to stay connected with the world and adopt new standards of living because of the globalization of the Western world philosophies. Thus indicating, that as time travels forward we most likely will begin to see Ghana standard of living adapted to the way we live our lives in today here in America.
That's a really good question! I was wondering the same thing when I stumbled upon this information while I was researching. It almost seems as if their revenue is disappearing, which we know is not true. You would think with all the development that has taken place that Ghana would be blossoming economically.
ReplyDeleteOh one last thing. I understand using adaptation as a strategy for growing the economy, but I hope that doesn't push Ghanaians to abandon their unique identity and values in adapting western behavior.
ReplyDeleteKiara you are correct about the revenue, however, if we take a further look into the International Monetary Fund, also known as the IMF, we can interpret that Ghana will continue with a deficit because of the loans and the included interest the IMF is collecting each year. With this in mind, the IMF is also based in the US, so if globalization is occurring it is hurtful to see that we, Americans, have something to do with it.
ReplyDelete