What happened to Ghana?

In 1964, GDP per person was higher in Ghana than in South Korea; in 2013, it was more than 14 times smaller. This comparison, a version of which I used in the opening to my own masters thesis, has motivated a lot of economic research. The causes of South Korea's transformation are better known than the reasons for sub-Saharan Africa's relative stagnation: good quality basic education, high savings, foreign investment, less corruption and, critically, export manufacturing. Apart from those that have done it through oil or other natural resource endowments, there are virtually no countries that have transitioned from low income to upper middle income status without developing a vibrant export manufacturing sector.

Africa grew faster in the 2000s than it had in prior decades, and many are heralding a golden age for the continent. For now, it has been driven mostly by high commodity prices, although there are a number of countries that have made progress towards building the required pre-conditions, and in fact Ghana has done better than most—notably being a standout in terms of electoral conduct. There is huge diversity in African manufacturing, with output per worker in Kenya being three times higher than in neighboring Tanzania. Understanding the genesis of such differences is critical for Africans to see a sustained increase in living standards. One barrier is that many African firms are using technologies that generate low levels of value added, partly because they are reticent to invest in sophisticated machinery owing to a lack of skilled workers, precarious access to export markets and an uncertain business environment.

Changing the incentives that such firms face is a key challenge for African policymakers. Do you think it's possible for an African manufacturing boom in the next 5 years? Let me know your thoughts on Twitter @Baptist_Simon.

Best regards,
Simon Baptist
Chief Economist and Asia Regional Director

Ask Ghanaians, they will give you a better reply.

They got carried away eating Banku while South Korea was busy giving us Samsung, Sony and other technological innovations.

NeuroBoss: They got carried away eating Banku while South Korea was busy giving us Samsung, Sony and other technological innovations.

The same can be said of all african countries. Nigeria was richer, Liberia was richer than South Korea, Singapore, Malaysia and so many of the Asian tigers.

NeuroBoss: They got carried away eating Banku while South Korea was busy giving us Samsung, Sony and other technological innovations.

Sony is japan dumbazz.

Ashantiking:

Sony is japan dumbazz.

Do you have to call me by that name to correct that inclusion? You must be really pained.

Absolutely rubbish thread! what happaned to Ghana? how about what happened to the world's certified sh1thole and one of the world's top oil/gas producing nation's?UAE used its oil money to develop the country.what did your sh1thole use its oil money for?

Azontoghost happened to Ghana.

NeuroBoss:
Do you have to call me by that name to correct that inclusion? You must be really pained.

Yes, I have 2 because u were trying to be funny with wrong info. Forking Eba eater

Ashantiking:

Yes, I have 2 because u were trying to be funny with wrong info. Forking Eba eater

your case is pathetic!

OP, let that be an issue/ question for Ghanaians to both ask and answer on their own website.

Nigeria is our only priority.

Another Nigeria Ghana thread, i see you guys have nothing doing. Keep urselves busy by clicking the link on my signature and rate top Brands,Products and People in Nigeria. Together we can make Nigeria a better place. Make una leave Ghana matter for mathias

just wait until oxygen comes

Not only ghana. All black africa country has this poorvaty and backwardness sigdrum .

I don't just know what happens to black nations when God was sharing brains

Absolutely. Africa can develop a vibrant manufacturing base by developing its infrastructure. All that's needed is smart spending. A good transport network, electricity and water supply can set the continent rolling.
However, it's necessary that African countries develop technologies that are well adapted to the environment through research institutions. Research institutions are very critical in the drive towards industrialization.

.

NeuroBoss: They got carried away eating Banku while South Korea was busy giving us Samsung, Sony and other technological innovations.

I thought u were going to say whiles mumugerians were busy given the world samsung sony and other technological innovations.

NeuroBoss: They got carried away eating Banku while South Korea was busy giving us Samsung, Sony and other technological innovations.

You must be the first slowpoke of your parents.Whiles civilized countries are moving forward u fools are there eating eba.The women turn to men after eating eba whiles the men turn to boko.The women stinks like pooo whiles the boko men kills each other.....what a fuckedup zoo.KWASIA N U TALKING ABOUT GHANA.

Orikinla: What happened to Ghana?

In 1964, GDP per person was higher in Ghana than in South Korea; in 2013, it was more than 14 times smaller. This comparison, a version of which I used in the opening to my own masters thesis, has motivated a lot of economic research. The causes of South Korea's transformation are better known than the reasons for sub-Saharan Africa's relative stagnation: good quality basic education, high savings, foreign investment, less corruption and, critically, export manufacturing. Apart from those that have done it through oil or other natural resource endowments, there are virtually no countries that have transitioned from low income to upper middle income status without developing a vibrant export manufacturing sector.

Africa grew faster in the 2000s than it had in prior decades, and many are heralding a golden age for the continent. For now, it has been driven mostly by high commodity prices, although there are a number of countries that have made progress towards building the required pre-conditions, and in fact Ghana has done better than most—notably being a standout in terms of electoral conduct. There is huge diversity in African manufacturing, with output per worker in Kenya being three times higher than in neighboring Tanzania. Understanding the genesis of such differences is critical for Africans to see a sustained increase in living standards. One barrier is that many African firms are using technologies that generate low levels of value added, partly because they are reticent to invest in sophisticated machinery owing to a lack of skilled workers, precarious access to export markets and an uncertain business environment.

Changing the incentives that such firms face is a key challenge for African policymakers. Do you think it's possible for an African manufacturing boom in the next 5 years? Let me know your thoughts on Twitter @Baptist_Simon.

Best regards,
Simon Baptist
Chief Economist and Asia Regional Director

I understand your frustration.You couldnt use your country in your research because of how useless your country mumugeria has become.Help stop the bombings n killings in your country so that u use it in your comparison next time.

overhypedsteve: Azontoghost happened to Ghana.

you miss me

AzontoGhost:
you miss me

tah! guess my phones word correction setting fell in love with ur username since our last encounter. so when i needed to say azonto happened to ghana. d mumu phone just use oversabi write ur name.and i ws just too lazy to modify it. i ws really tired yesterday and despite the call by many nairalanders urging me to help out in some ghanian threads yesterday i was just too lazy to fight.

Ghanaian cedi is the least performing currency in the whole world. Ebola is also ravaging the country but their inept media men have failed to make report on it.

osile2012: Another Nigeria Ghana thread, i see you guys have nothing doing. Keep urselves busy by clicking the link on my signature and rate top Brands,Products and People in Nigeria. Together we can make Nigeria a better place. Make una leave Ghana matter for mathias

I don taya oo! funny thing is that the certified sh1thole has far far more bigger problems -from Boko Haram to Ebola. yet they will rather run their filthy smelly mouths on Ghana that is doing relatively better.

The Ghanaian economy is growing at nearly 7%, foreign direct investment is 3rd highest in Africa, poverty has reduced from 52 percemnt in 1992 to 24% today, compared with 90% in the sh1thole, and yet these modafakas, 90% of whom cant even have ordinary electricity, will not mind their fvcking business,huh? so sad

OXYGEN01: I thought u were going to say whiles mumugerians were busy given the world samsung sony and other technological innovations.

the fooooooooooooools can't even provide ordinary electricity for their suffering population despite the country being a major oil and gas producer/exporter. SMH cursed country

OXYGEN01: I understand your frustration.You couldnt use your country in your research because of how useless your country mumugeria has become.Help stop the bombings n killings in your country so that u use it in your comparison next time.

^^^Dude, did you even notice the author of said article? Why are you guys so defensive? It's like the most ignorant Ghanaians ever have gathered on this thread!

OXYGEN01: I understand your frustration.You couldnt use your country in your research because of how useless your country mumugeria has become.Help stop the bombings n killings in your country so that u use it in your comparison next time.

Are you retar-ded or what?
Simon Baptist is not a Nigerian.

Simon Baptist is the Chief Economist at The EIU and also the Regional Director for Asia and the Access China service.

He is responsible for providing intellectual leadership for The EIU’s coverage and ensuring that economic and political analysis and forecasts are the best available for international decision-makers, and for managing an international team of economists and editors.

Simon is an experienced economist who has previously spent time as a lecturer at Oxford University, where he also completed his doctorate, and as an economics consultant advising many governments, multinational corporations and international organisations around the world.

His specialist topics include economic growth and policy, international competitiveness, productivity, commodities, energy and the environment.
Media appearances

Simon Baptist reviews the recent G20 meeting on Dukascopy TV

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