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Despite Ghana's strong democratic track record in recent decades, the economy remains underdeveloped. Industrial policies are necessary to transform the colonial trading economy that Ghana inherited at independence, but successive governments have been unwilling or unable to implement them. In this highly original interpretation, supported by new empirical material, Lindsay Whitfield exposes the reasons for why the Ghanaian economy remains underdeveloped and sets her theory in the wider African context. She offers a new way of thinking about the political economy of Africa that charts a clear path away from defining Africa in terms of neopatrimonial politics and that provides new conceptual tools for addressing what kind of business-state relations are necessary to drive economic development. As a study of Ghana that addresses both the economy and politics from early colonialism to the present day, this is a must-read for any student or scholar interested in the political economy of development in Africa.

The volume examines negotiations between rich countries and African governments over what should happen with money given as aid. Describing the history of aid talks the volume presents eight studies of the strategies of negotiation tried by particular African countries. - ;This book presents an original approach to understanding the relationship between official aid agencies and aid-receiving African governments. The first part provides a challenge to the hazy official claims of aid donors that they have stopped trying to force African governments to do what 'we' think is best for 'them' and i.

"Industrial Policy and Development in Africa" published on by Oxford University Press.

The nascent Ghanaian horticulture export sector, which emerged in the mid-1980s, has been ignored by ruling elites, especially after the return to multiparty democracy in 1993. Ruling elites across the two party governments between 1993 and 2008 did not actively pursue initiatives to support the industry. Without sustained political support, the types of public-private coordination of actions and investments needed to help the sector expand and upgrade were not forthcoming in an effective and timely manner. This private sector-driven non-traditional export sector constitutes a neglected opportunity for export diversification and building a new agro-industry, and also highlights some of the factors explaining why the country's economy was still dependent on the traditional exports of cocoa and gold by the close of the 2000s. The political challenges to changing the productive structure in Ghana can be found in the characteristics of ruling coalitions - vulnerability of the ruling elite in power, the high fragmentation within ruling coalitions, and their existing sources of and strategies for financing the state and the ruling coalition, combined with the country's existing economic structure as well as the size and capabilities of domestic capitalists. The characteristics of ruling coalitions in Ghana shaped the incentives facing ruling elites such that the ruling elites were not sufficiently compelled to support new productive sectors, such as horticulture export, which did not (yet) provide substantial revenues.

Since the Fourth Republic was inaugurated in 1993, politics in Ghana has been increasingly characterized by competitive clientelism. Ruling coalitions are characterized by a high degree of vulnerability in power due to a strong opposition party, by strong lower-level factions within the ruling coalition due to their importance in winning elections, and by a high degree of fragmentation among the ruling elite. These characteristics, combined with a weak domestic capitalist class and high inflows of foreign aid, have led the ruling elites across political parties to pursue and implement policies that have a short time horizon, that do not significantly shift the allocation of resources towards building productive sectors, and which are often plagued by problems of enforcement. The results have led to growth without economic transformation. In particular, the country has witnessed recurrent macroeconomic instability, a haphazard process of privatization of state-owned enterprises, and no serious attempt to build up productive sectors outside of cocoa and gold.

Ghana has exhibited rather strong economic growth since the 1980s, but little transformation of the productive structure of its economy. The paper argues that ruling elites' policy choices are shaped by their political survival strategies. In turn, these strategies are shaped by (1) the characteristics of the ruling coalitions, which include a high degree of vulnerability in power, strong lower-level factions of the ruling coalition, and a substantial amount of fragmentation among the higher factions of the ruling coalition; (2) the weak capabilities and political influence of the nascent productive capitalists; and (3) easy access to financing for the state and the ruling coalition from foreign aid, mining and cocoa bean exports. As a result, ruling elites' policy actions did not prioritize the development of new productive sectors (or upgrading of old ones), but were geared towards delivering benefits to the higher and lower levels of the ruling coalition, as well as delivering a small amount of visible goods and services to as much of the population as possible in an effort to 'swing' voters their way at election time. Neither of these political survival strategies resulted in significant productive sector investments.

Everyone knows that aid is not working as intended, and that something must change. The big question is how to change the status quo. The current international aid debate is characterized by dichotomies and over-simplified generalizations. In order to push the debate forward and identify solutions we must first reframe the aid debate. The most important factors undermining aid's effectiveness need to retake center stage in the debate. These include: what is economic development and the role of aid in achieving it; the politics of aid relationships in aid dependent countries and have they generate perverse incentives; and the everyday practices and bureaucratic routines of aid agencies and how they diminish the impact of aid. Based on a reassessment of why aid is working, and on assessment that reforms inspired by the Paris Declaration have largely failed, the paper concludes with a different approach to changing the way donor countries think about aid and the way bilateral and multilateral agencies give aid.

This paper describes and explains the impact of the international-driven 'New Poverty Agenda' in Ghana, focusing on the impact of the Poverty Reduction Strategy Papers (PRSPs) adopted by the New Patriotic Party government in power from 2001 until 2008. The paper argues that the New Poverty Agenda has had some impacts, but not they have been limited and not necessarily helpful in achieving long term poverty reduction. The PRSP was seen by the government in Ghana as necessary to secure debt relief and donor resources, and the strategies produced by the government contained broad objectives rather than concrete strategies on how to achieve those objectives and thus had little impact on government actions. The paper discusses what was actually implemented under the NPP government and the factors influencing those actions. It highlights the constraints Ghanaian governments face in pursuing economic transformation within contemporary domestic and international contexts.