Economy of Democracy
There is an interesting article in today’s GRAPHIC written by one Larweh Therson-Cofie, entitled “A tale of two economies”
It compares Ghana to Malaysia from an economic perspective. It makes it’s comparison on the basis that both country’s were British colonies and both country’s achieved independence in 1957.
The direct comparisons were made between 1957 economic data and 1984 economic data.
Ghana Malaysia
Population 13.5 m 15.8m
Land Size 92.098 sq mi 127.316 sq mi
GDP $4.7b $29.8b
Per capita $420 $1.886
Reserves $631m $6.4b
Engaged in Agriculture 60% 21%
Engaged in Manufacturing 10% 32%
It was an interesting article and a comparison which leads one to ponder on why the difference.
Since 1957 Malaysia has been part of a stable political environment with very little upheavals. Ghana on the other hand was subjected to military rule for 21 years out of the 48 years of independence. Ghana is the second largest gold producer in Africa and has other mineral resources that would make a lot of country’s smile.
The conclusion of the article is that democracy promotes peace, political stability and rapid economic development.
Since democracy returned to Ghana in 1993, economic growth is now around 5.8%, inflation has dropped from 40% in 2000 to 14% in 2005 and interest rates have reduced from 50% in the late 1990’s to the current level of 22%.
These are positive results and with an election due in 2007, MP’s arrested for drug dealing in the USA and the President under pressure to defend accusations that he is the recipient of kick backs, one would hope and trust that the country will be in the state to continue economic growth and prosperity for all.
Corruption remains the biggest hurdle!
It compares Ghana to Malaysia from an economic perspective. It makes it’s comparison on the basis that both country’s were British colonies and both country’s achieved independence in 1957.
The direct comparisons were made between 1957 economic data and 1984 economic data.
Ghana Malaysia
Population 13.5 m 15.8m
Land Size 92.098 sq mi 127.316 sq mi
GDP $4.7b $29.8b
Per capita $420 $1.886
Reserves $631m $6.4b
Engaged in Agriculture 60% 21%
Engaged in Manufacturing 10% 32%
It was an interesting article and a comparison which leads one to ponder on why the difference.
Since 1957 Malaysia has been part of a stable political environment with very little upheavals. Ghana on the other hand was subjected to military rule for 21 years out of the 48 years of independence. Ghana is the second largest gold producer in Africa and has other mineral resources that would make a lot of country’s smile.
The conclusion of the article is that democracy promotes peace, political stability and rapid economic development.
Since democracy returned to Ghana in 1993, economic growth is now around 5.8%, inflation has dropped from 40% in 2000 to 14% in 2005 and interest rates have reduced from 50% in the late 1990’s to the current level of 22%.
These are positive results and with an election due in 2007, MP’s arrested for drug dealing in the USA and the President under pressure to defend accusations that he is the recipient of kick backs, one would hope and trust that the country will be in the state to continue economic growth and prosperity for all.
Corruption remains the biggest hurdle!
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