Impact of Saps on Manufacturing in Ghana

CHAPTER ONE

INTRODUCTION

Ghana is a country with a land area of 228,000 square kilometers, located in the West African sub-region with a population of 21.7 million (2004) that grows at an annual rate of 2.4%. Ghana has a national per capital income of $298 as of 2002 while the annual GDP growth was 4.3% from 1990-2000, rising to 4.9 for the period 2000-2004.(world development indicators 2006). At independence in 1957, Ghana had one of the strongest economies in Africa with a high annual domestic growth rate of about 6% as well as substantial foreign exchange reserves.

Since the early 1960s, there has been debate over the appropriate trade policy for developing countries (Ishrat & Rashid, 1996). The contention has been between free market advocates and trade protectionists. While the free market proponents support an outward-looking, export-oriented