Ghana under Ankrah

 

Economic Changes in place

The experience of the Ankrah and Afrifa governments illustrates the difficulties facing an African government attempting to salvage a ruined economy by relying on 'aid' from the West and in the absence of favourable world-market conditions for its few export commodities. The National Liberation Council (NLC) under the chairmanship of General Ankrah set itself the modest targets of restoring economic stability and democratic government.

 

 

GEN. AKUFFO was killed by firing squad on the command of the new regime.

The NLC's first preoccupation was the economy. There were inherited problems of bankruptcy, a national debt of over N(Z800 million, an acute shortage of essential commodities including foodstuffs, a deficit in the balance of trade of 4l per cent of total expenditure, a huge budget deficit and attendant problems of unemployment, corruption and nepotism.

An Economic Committee was set up under the chairmanship of E.N. Omaboe. The committee had high-quality civilian talent with two graduates each from London, Durham and Harvard and one from Cambridge. Aid vas taken from the West in the form of American powdered milk and corn, Canadian flour, and drugs from Britain and West Germany. The International Monetary Fund (IMF) gave a grant to pay off the arrears of short-term trade bills of the Nkrumah regime and also gave currency credit. Arrangements were made with creditor nations to reschedule Ghana's external debt repayments. Austerity measures were introduced and included cancellation of Nkrumah's Seven-Year Development Plan and work on prestige projects, and a cut in foreign missions of 40 per cent.

In the interests of efficiency, state corporations were given new managers and their redundant labour was dismissed. Stare-owned hotels were returned to, private ownership. The growth of the economy was stimulated in such a way as to bring down the cost of living: the 1966 budget abolished or reduced duties on essential food items and motor spirits; the price of cocoa was raised; a Two-Year Development Plan which concentrated on agriculture, fisheries and water supplies was launched; the devaluation of the cedi in l967 was linked with a 5 per cent increase in wages and salaries in the public sector; basic import items like drugs, chemicals and spare parts were put on open general licence.

The economic measures of the Ankrah government saved Ghana from total economic collapse, but they did not solve the country's economic problems and they failed to achieve any real economic growth. Unemployment got worse. The devaluation of the cedi led to an increase in the cost of imported goods. The prices of foodstuffs remained high.

The huge external debts of Nkrumah's regime were never repudiated and acted like a millstone round the neck of this and future governments. Police corruption remained untouched. Expenditure cuts in many sectors were offset by increased defence expenditure, as the NLC sought to secure its own power base. Army allocations went up by an annual 22 per cent. Even General Ankrah himself was forced to resign in April 1969 after confessing to collecting funds from foreign companies to organize a political party of his own in preparation for the return to civilian rule- Several high officials were convicted and imprisoned for bribery and corruption but these evils persisted, and at lower levels of the public service they remained endemic.

The NLC had much more success in restoring democracy to Ghana. Its very first political act was to release about 600 political detainees of the- Nkrumah regime; chiefs who had been 'destooled' for opposition to the CPP were restored; very few CPP members were dismissed from the public services; complete freedom of speech and the press was restored; and early preparations were made for a return to civilian rule.

National Movements and New States in Africa