Political Settlements and Structural Change: Why Growth Has Not Been Transformational in Ghana

Abstract

This chapter explores the extent to which political settlements interacting with the rents space affect the nature of the deals space and consequently help explain economic growth in Ghana. The discussions are centred around four break points and therefore five growth episodes for Ghana: pre-1966, 1966-74, 1974-83, 1983-2001, and 2001-14. First, there are signs that the post-2001 period has been more ordered and open than the first twenty-five years after independence. Second, the political settlement has also changed somewhat over the years, from a dominant to a more competitive type. However, it is argued that political patronage remains rife. Third, the chapter finds that the interplay of political settlements and rent space has been important in shaping the nature of the deals space in Ghana. Finally, it highlights two types of positive and negative feedback loop relating to these variables over the years.