Economic Growth without Structural Transformation: A Review of Industrial Policy in Ghana

Abstract

The present review examines Ghana's past experience with industrial policy implementation, and pinpoints the factors that led to their failure to produce the desired outcome, shedding light on the challenges encountered and their implications for future policy endeavors. Furthermore, the review delves into the current development policy and how it has not been successful in promoting economic growth or transforming the structure of the economy. Noteworthy obstacles faced by the country include limited diversification, heavy dependence on commodities, and a relatively weak manufacturing sector. To overcome these obstacles, this review argues for a return to industrial policy implementation in Ghana. The current shifts in the global context, coupled with the enhanced state of fundamental institutions and favorable macroeconomic conditions in Ghana, present an opportune moment for the implementation of industrial policies. By tackling these issues head-on, Ghana can achieve sustainable economic growth and develop a more resilient and diversified economy.

Keywords

• Economic transformation
• Economic Development
• Structural change
• Industrial policy

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