10PMEÎÎT PLAN
C O
N S O L I D A T I O N
2 : 1
DEV*P L A N
[ D D R V B L O P M E N TP L A N
A gricultu re 5*5 5*2 5*9 In d u stry # Mining 3*5 8*1 15*3In fra s tru c tu re &
P ublic Services 45*5 44*8 36*2
Education 13*9
9 * 7
9 * 2
H ealth & Other
S o cial Services 12.7 13*0 16,0
C en tral Govommont
1 8 * 9
12*2 17.4T otal 100*0 100*0 100.0
Sources; From Tables 5*1, 5*5 and 5*6
Towards the c lo sin g years o f th e F ir s t Development Flan^oxporience d id n o t support P ro f, Lowis’s p o in t th a t the p ro v isio n o f 800 by tho govommont would au to m atically a t t r a c t now in d u s trie s in to the country. R ather in s p ite o f a l l the p u b lic se rv ic e s th a t were made a v ailab le and th e assurances given to p riv a te in v esto rs# in d u s tria l expansion took place f a r too slowly# But th is u n s a tisfa c to ry development l a te r ascrib ed by P ro f. Lewis to a d iffe re n t cause* In an address to the Economic S o ciety o f
Gliana in 1959 he s a id ;
I thiïûc th a t Ghana’s experience under the F i r s t Development Flan proves my p ro p o sitio n th a t p o licy i s more im portant than
oxpondituro. VOry la rg e sums o f money wero sp en t by tho Govommont b u t sin ce the in d u s tria l# a g ric u ltu ra l# mining and housing p o lic ie s wore inappropriate# very l i t t l e in crease in productive cap acity ro su lto d from th ese largo expend! turosi, Thoro was romarkablo in crease in public f a c iliti o s ,, such as roads# schools# e le c tr ic power, w ater supplies# and so on# b u t rem arkably l i t t l e in crease in tho output of commodities." 49
4^m y *it
-tiOW3.s, A ssessing a l^vçlopmont fion^ in Éwnomic B u lletin7 o l.5 Nos 6-7 1959# re p rin te d in î* tA v in g sî^^"T e5 n^M id m ic P o llev fo r Dovolonmcnt . Fonguin,1971 pp.405-417.
In viow o f tho fa c t th a t tho m asu res wliich the Govommont took In o rd er to a ttm o t p rlv ato in v o ato rs in to th e c o m tiy were in lin e w ith Prof# Lewis’8 o m advice i t seems then th a t h is c ritic is ® was soimwhat unkind* As a m atter o f fa c t when 800 is undertaken as a p re -re q u is ite fo r
WA
i t is n o t cosy to dotormino du rin g tho period o f i t s p re v isio n whotïier i t has bocoisD excessive o r i t i s s t i l l inadequate o r Is ju s t rigJitj» I t i s only in the lig h t o f the subsequent dovolopmont o f DBA th a t on ev alu atio n o f i t s e x te n t can he mado*^^ I t seem th a t any government th a t wishes to avoid b ein g c r itic is e d o f having provided excessive 800 when s a tis fa c to ry amount o fWA
does n o t omergc has only one o th er approach to adopt and th a t i s Hirsohimin’s **filling»in" s tra te g y.On the question o f p u b lic ownership i t was in d ic a ted by Prof* Lewis in h ie ro p o rt th a t a govommont could properly go l>oyond tho p ro v isio n o f 80G and engage in DBA fo r the pinrposo o f pioneorS.ngt whoro p riv a te e n tre - pronours fo r lack o f e ith e r oxporionoe o r confidence a re proven tod from invosting#^^ This view is also subsoribod to by Hirschmon* As ho puts i t :
"*•** in imdor-dovolopod coim trios pu rely perm issive soquonco may
ho
in e ffe c tiv e in inducing growth; and th a t in som coses the govommont may w ell have to taJco the f i r s t step in tho more com p u lsiv e soquoncos th a t may bo in d ic a ted , fo r example, through a c tiv e loodorship mid in d u s tria lis a tio n ? 52In
dealing w ith tho p io neerin g ro le o f tho govommont in, aohieving succossful in d u s tria lis a tio n Prof* I*owis c ite d tho Japanese exporionoo*Thoro the govommont adopted tho p o lic y o f honding-ovor in d u s tria l o n to rp riso s % As an eeonomio ad v iso r to the Ghana Govommont a t tho time tho Second
Development Plan was under p ro p aiatio n Prof* le w is, who-was n o t a mombor of the Planning Oommittoo, was try in g by th is c ritic is m try in g '"
to porsuado tho Govommont to incroaso tho a llo c a tio n to tho in d u s tria l se c to r under tho plan and to p a rtlo lp a to in i t.
3 U
U »
Loif5.s, In d M triq l^ s a tiq n and tho Gold Goast* o p ,e it pp. 110 12to p riv a te owners once the v estu res had boon suocossftilX y e sta b lish e d , The government’s pioneering e f f o r ts 3n s o ttin g up DBAs was to provide oxporionco and confidonoo whoro thoy tmre lack in g. In tho oaao o f Ghana
the government would have had to r e l y on foroignors to provide the oxporionco# But i t appears th a t booauso o f the unfavourablo views o f
in d u s tria l prospoote in a tro p ic a l country lik o Ghana, then being w idely
33
held in induo t r i a l ioo d c o u n trio s, foreign inveotm m t in the country’s m anufacturing se c to r took p3aoo a t a very low lovol#
AcGOrding to t h i s view one cannot th erefo re unrosorvodly osoribe tho f a ilu r e o f tho e o im try ’s m anufacturing aootor to expand a s ra p id ly as one would have wished to tho p u rs u it o f in ap p ro p riate p o lic ie s ra th e r than to the adoption o f a s tra te g y o f economic dovelopmont th a t was n o t ju s t r ij^ t* I t would appear th a t fb r an oconomy to secure tîio app ro p riate 800-DPA mix the objoctivo should bo "to o b tain in c re asin g outputs of DPA a t minimum co sts in terms o f rosouroes devoted to both
WA
and SOO*(ix ) Tho P lan s. Trade M b o ra llsa tio n and Dwindling
^oTolm
Bxohaugo Eogorvos Soon a fto r i t a tta in e d comploi» independoace Ghana beoamo a c o n tra c tin g p a rty to th e Oonoral A{?poomont on T a riffs and Trade and in conform ity w ith tho ru le s and re g u la tio n s o f the o rg an isatio n i t s ta rto d to I n itia te changes in i t s tra d e p o licy , M u ltila te ra l tra d e onDon-discriminatory
b a sis\m&
opted fo r and in consequence tho country undertook a gradual dism antling o f the machinery o f im port lic e n sin g which had been in operatio n since th e beginning o f tho second world war, The process o f trad e lib e r a lis a tio n was undertaken w ith such re so lu tio n th a t by 1959 a l l im ports from d o lla rsources had boon placed o n Open General Licence w ith the major exception o f such item s as explosives# arms m d ammualtion# tobacco# oinomatographlo film s and petroleum p io d u cts, Even w ith re s p e c t to those gcode^approved 53* Boo - Chapter 6 fo r tho view» once hold on the ap p ro p riate p laces
q u a n titie s
o o u l d
bop r o c u r e d
from abroadw i t h t h e
g ra n t o fS p o o i f L C
Im port M conco,G o m m r o i a l
tra n sa c tio n sw i t h
Japan, one o f the coim tiy’s im portant su p p lio ra from o u tsid et h o
s te r lin g Area, wore on' à s lig h tly 'c liffo to iit fboting* airjtna’s merchandiso im ports from Japanw o r e
e la ssifie c tI n t o t w o
catog^rios# one com prising a l l kinds o fi n d u s t r i a l
maehinory and the o th e r embracing a l l o th e r goods. % 1959 a l l Item sI n
thof o r m e r
categoryh a d
been put on Open GeneralM o o n o o #
b u ti t e m s o f
the l a t t e r category conttnuodt o h o
d e a ltw i t h
by sp o c lfie licensing#t h o u g h o n
more lihom X termst h a n
before*B y I 9 6 0 f u r t h e r
advances int h o H b o r a l l s a t l o n
process had re su lte di n t h o
v i r t m l removal o f a l l c o n tro lso n t h e
im portation o f goods froma l l
d o lla r sources*B o r n a n t s o f
c o n tro lso o n t i n u o d
to be exorcised e ith e rf o r
so o u rlty reasons (as int h o
caso o f ammunitions) orI n t o n d o d
fo r thew M o v o m m t o f
a f a ir e r d is trib u tio na m o n g
im porterso f
scarcec o m u m o r
g o o d s
lik es u g a r
which couldb o o b t a i n e d
only through the systemo f
in te rn a tio m l agreements*% e m otivating fa c to rs
b e h i n d G h a n a ’ s
trad e p o lic ya f t o r
195?c o n #
i n
b rief#b o
said to bo duep a r t l y
to thec o u n t r y ’ s d e s i r e t o
abide by tho ru le s and re g u la tio n s o f GATT a f te r i t liadb e c o m e a
membera n d
p a rtly to an in h eren tu r g e
to r idi t s e l f o f
tho co lo n ial tra d e^ p o l i c y
which had boon pursuedb y
the B ritis h when they exercisedp o l i t i c a l
c o n tro lo v e r
the country* In the process