An Examination of Ghana’s Foreign Aid Utilization under the PNDC and NDC Governments (1982-2000)

Abstract

This study examines Ghana’s foreign aid utilization for the period 1982 to 2000 under the PNDC and NDC administrations led by Flt Lt. J.J. Rawlings in relation to economic growth and development, based on the dependency theory. The study employs primary and secondary data in examining aid in Ghana. Ghana, in the 1980s, became one of the firm economic reformers in Sub Saharan Africa. From a declined economy, Ghana recovered with improved growth under the Provisional National Defense Council (PNDC). This exceptional record in Sub-Saharan Africa came along with increased foreign aid receipts from the donor community. Aid utilization was executed by high level of technocratic policymakers under one political leadership. However, the slow pace of economic development in the 1990s coincided with calls for strong institutional capacity and increased democratization. Under the National Democratic Congress (NDC), economic growth was unimpressive. Utilization of aid under this period recorded relatively lower gains as ownership of programmes waned to a considerable degree.