NOTES

Two The First Eighteen Months of PNDC Rule

1. For a detailed discussion of these organizations see Ray (1986; Zeebo, 1991). The June Four Movement (JFM) and the National Democratic Movement (NDM), in particular, became very influential in 1982–1983. 2. Stool or customary lands are lands held in trust by chiefs (sometimes a head of family) of traditional states for their communities. Stools symbolize the authority of chiefs in southern Ghana. The deposition of a chief is called “destoolment.” In northern Ghana, the symbol of chiefly authority is the skin of an animal. According to Abdulai and Ndekugri (2007), over 90 percent of the total land area of Ghana is under the control of customary landholding institutions.

Three The Achievements and Limitations of Economic Reform

1. This replaced the old cash or chit system. Until now, produce-buying clerks had held back payments, sometimes for many months, abused funds, and paid farmers with phony checks. Under the new system, farmers promptly received checks that could be cashed at any bank. 2. I discuss additional factors that limited GEPC support of exporters and other thematic issues in chapter eight.

Four Strains in Government-Business Relations, 1983–1991

1. In 2001, the Asantehene gave expression to this view by publicly scolding some chiefs for doing a disservice to the institution of chieftaincy for their role in the P/NDC. The Akimhene followed suit. 2. Symbolically, Soviet and Chinese technical assistance personnel, some of their diplomatic staff and the entire official East German community were expelled within the first week of the coup (Esseks, 1975). 3. I am grateful to Richard Jeffries for this information. 234 Notes 4. Of the six private sector members of the PSAG, only one, A. Appiah-Menkah, could be identified with this group. Of the remaining five, two (I. E. Yamson and J. K. Richardson) were the Chair of the multinationals Unilever Ghana and Pioneer Tobacco Ghana, respec- tively. Alan Kyeremateng and P. K. Kludjeson were respectively managing directors of EMPRETEC and Kludjeson International. Both belonged to the younger generation of entrepreneurs. The sixth member, W. E. Inkumsah, though belonging to the older genera- tion of capitalists, had an unusually clean image. 5. The date of this issue of the Daily Graphic was accidentally cut off during photocopying.

Five Government-Business Relations in the Democratic Era

1. Chabal and Daloz have asserted that corruption is not really a domestic political issue in Africa “so long as its fruits are deemed to have been suitably and vigorously redistributed according to the logic of patronage” (1999, pp. 99–100). It is impossible to understand Ghanaian or, for that matter, Tanzanian politics on this basis. 2. The PNDC appointed one-third of assembly members. The remaining two-thirds were elected. 3. Reports of missing persons had persisted, much to the worry of Botchwey and other key regime members. 4. Marino Chiavelli, an Italian businessman, reportedly loaned $1 million to the People’s National Party during the Third Republic in return for the award of contracts (New African, December 1982, pp. 28–29). 5. GHACEM has plants in Takoradi and Tema. Both had contracted to purchase paper sacks from MWPS since the 1960s. It is not clear why only the contract with Tema (the bigger plant) was canceled (interview). 6. The Tyson chicken empire was very well connected to the Clinton administration, having done business in Arkansas while Clinton was governor there. I am grateful to Professor John Sidel for this information. 7. Having expanded into papaya and coconut cultivation and pineapple processing, he was upbeat about the future. 8. The Court ordered (i) the state-owned Ghana Broadcasting Corporation to accord equal access to both the ruling and opposition parties, (ii) the government to cease requiring prior police permission for public demonstrations, (iii) the regime not to celebrate December 31 (a highly partisan event) with public funds, and (iv) the government to change its practices in the election of district chief executives. 9. The opposition parties seeking avenues to gain publicity and to embarrass the leadership, seized on the latter’s sloppy handling of the tax. Rawlings personally distanced himself from the VAT debacle, saying that Finance Minister Kwesi Botchwey had created troubles for him (Afrani, 1995, p. 27). 10. The original members were the AGI, GNCC, the Ghana Employers Association, Ghana Association of Bankers, and the Federation of Associations of Ghanaian Exporters. New members include the Ghana Association of Consultants and Ghana Real Estate Developers Association. 11. The GNCC classified members into five groups: 1A, 1B, 1C, 2, and 3 based on turnover. As of 2000, annual subscription was C2.5 million; C1.875 million; C950,000; C450,000; C180,000, respectively (interview, GNCC officer). In early 2000, $1 was worth about C3,500. Later that year, the rate rose to $1 to C7,000. 12. A prime example was J. A. Addison’s donation of a large office complex to the AGI (inter- view, AGI officers). Notes 235 13. This section has benefited from the work of Elizabeth Hart and E. Gyimah-Boadi (2000). 14. This affected four categories of imports: luxury products not made in Ghana; agricultural- based products available in Ghana; industrial products made from imported raw materials; and other garments not cotton or used clothing.

Six The Changing Face of Ghanaian Business: The Rise of P/NDC Stalwarts

1. For alleged scandals involving NDC functionaries, see Ghanaian Chronicle, August 14, 2000; August 18, 2000; August 21, 2000. 2. Kwamena was minister of local government and rural development for years before serving as minister of regional cooperation in 2000. Kwesi was in charge of the Ghana Investment Promotion Centre. Ato headed the National Investigation Committee and the Internal Revenue Service during the PNDC era. 3. This allegedly included foreign interests. The NPP government ended Telekom Malaysia’s management of Ghana Telecom in 2001, citing nonperformance. The real reason was sus- picion that Telecom Malaysia fronted for some NDC leaders.

Seven NDC-Business Relations: The Case of Brong-Ahafo

1. This was a political and military union consisting of all the chiefdoms in the then Ashanti under the leadership of the Ashanti king who was based in Kumasi. The British colonial practice of indirect rule employed indigenous chiefs as part of the administrative system, leaving chiefly power largely intact. This, however, caused many chiefs, especially those in the far-flung lands, to resent the control and authority of the Ashanti king. 2. The NDC’s success in BA was due to many factors. These do not, however, concern us here. 3. An example was the failed attempt by the Kumasi metropolitan assembly to sack its chief executive, Akwasi Agyemang, who purged the assembly of his perceived enemies (Ghanaian Chronicle, May 8, 2000). 4. Soon after his appointment, this former teacher, had acquired, among other assets, three houses, several cars and a construction firm, which was awarded the bulk of contracts in the district. He was also allegedly arrogant and abusive. In an act reminiscent of the Nkrumah era (see Jones, 1976), the DCE had a private dance band to entertain him (interviews con- ducted at Goaso, the district capital). 5. The rules governing timber operations underwent major and rapid changes in a few years as part of an effort, partly due to donor pressure, to save the industry. The practice of granting timber concessions that last for decades was ended and replaced by the grant of timber rights. The new timber regime allows timber rights to be revoked if a breach of the terms and conditions is deemed to have occurred. It also makes district officials, including the District Forestry Officer a vital part in the decision to grant or revoke timber rights. The rapid changes caused confusion, giving officials considerable leeway and discretion in applying the law. For changes, see the L. I. 1649, for details see Timber Resources Management Regulations, 1998. 6. In my interview with an officer with the DIC, he denied that political connections were relevant in deciding who SOEs were sold to, arguing: “how could we sitting here in Accra, 236 Notes know who J. Adom is and which political party he supports? The man simply submits better business plans than others, hence his success.” 7. In 1998, the government leased a jet for the President’s use without seeking parliamentary approval as mandated by law. Critics saw this as irresponsible because there was already a presidential jet (see Ghanaian Chronicle, February 18, 2000; Ghanaian Chronicle, editorial, February 21, 2000. 8. This was also true of the central government, which owed billions to contractors (see Ghanaian Chronicle, May 10, 2000). 9. Before the 1996 elections, 6.7 billion cedis was “paid” to contractors for the much-criticized Keta Sea Defense Project. The work was not done. Critics believed that the amount involved went into NDC campaign fund. A minister of state was later sacked in connection with this case (Oelbaum, 2002), but critics charged that this was because he had become politically expendable. Moreover, the contractors were not prosecuted. Nor was the money recovered. 10. Political tension pervaded Berekum in the run-up to the 2000 elections. Supporters of the MP and minister of state, J. H. Owusu-Acheampong, and those of his rival, Retired Captain N. Effa-Dartey, violently clashed in November. The MP accused a local radio station of “incitement” and it was shut down for two weeks. When Rawlings publicly criticized Effa- Dartey, whom he had reportedly sacked from the military, he revived the acrimony between himself and Effa-Dartey and gave what was essentially a local issue a national flavor.

Eight Constraints of the Institutional Environment on Capitalist Expansion

1. Until the Divestiture Implementation Committee was established, the SEC had overseen divestiture. The Executive Directive had and continued to be a leading figure in the dives- titure exercise. 2. Exporters were entitled to duty drawbacks, but a World Bank study found that it took eight months to four years to receive this. Given Ghana’s relatively high interest rates and the reliance on imported inputs in export production, exporters lost significant capital, making exporting unattractive. Indeed, some exporters canceled planned investments, citing taxa- tion and duty drawback as the major reasons (World Bank, 2001, p. 45). 3. A full list and discussion of all the alleged weaknesses of African capitalists is not my goal here. For a discussion, see Garlick (1967), Kennedy (1980), Iliffe (1980), and Forrest (1994).

Nine The Theoretical Implications of Ghana’s Experience

1. A report by The Economist in September 1989 noted that, in 1957, Ghana’s per capita income was $490 as against $491 for South Korea. By the early 1980s, Ghana’s annual income per head was $400, down by nearly 20 percent. During the same period, South Korea’s per cap- ita GDP was over $2,000. And, using 1987 statistics, the UNDP’s 1990 Human Development Report, noted that South Korea had an annual purchasing power per head ten times greater than that for Ghana—$4,832 versus $481 (Werlin, 1994). 2. Deraniyagala (2001) has expounded the sentiment that although the World Bank’s almost axiomatic view of the optimization potential of freely functioning markets and free trade has increasingly been questioned, including within the Bank itself, there has not been a remarkable departure from its earlier position. Notes 237 3. The World Bank and the IMF have spent considerable time and resources trying to curtail corruption in developing countries. Finance and Development, an IMF-affiliated publication, devotes much coverage to the ills of corruption and how to combat it. 4. The following underlines the problem. Following increases in chicken imports from about 5,000 metric tons in 1998 to 30,000 metric tons in 2001, parliament approved a doubling of the 20 percent import tariff on poultry as well as an increase in tariffs on rice from 20 to 25 percent. Pressure by international lenders forced the government to give in. “Our Highly Indebted Poor Country situation would not allow us to [subsidize or institute any form of protection]” Ghana’s Minister of Private Sector Development and President Special Initiative lamented (See http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel. php?ID=90051) “No Ban on Poultry Importation—Bartels” Accessed May 24, 2010.

Conclusion

1. Rawlings also famously leveled similar accusations against the IFIs and the donor commu- nity who withheld assistance from Ghana for failing to meet agreed-upon targets. BIBLIOGRAPHY

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Abbey, Joseph, 194 Agyemang, Akwasi, 145 abbreviations key, xi–xiii Agyemang-Duah, Baffour, 33 Accra, Ghana, 9–10, 26–27, 51, 66, 92, Ahwoi, Kwamena, 112, 148, 158 94, 96, 112–113, 116–117, 123, 125, Ahwoi brothers, 147 132, 135–136, 145, 149, 167, 179, aid donors, 1, 101–102, 144, 152, 179 193, 209, 235n6 Aidoo, Tony, 143 Accra Brewery, 125 Aikins, Addo, 39 Accra Metropolitan Assembly (AMA), 132 Akata-Pore, Allolga, 27, 41 Accra Municipal Assembly, 135–136, Akosombo Dam, 202 145–146 Akuafo Cheque, 47, 233n1 Acheampong, Ignatius Kutu, 20–23, 26, Akuffo, Fred (1978–1979), 26, 85 35, 84, 87, 93–94, 98–99, 103–104, Akuffo-Addo, Nana, 123–124 106, 109–110 A-Life supermarket chain, 150 Ada Co-operative Salt Miners Aliens Compliance Order, 83 Association (ACSMA), 95 Alliance for Change, 123 Ada Traditional Council (ATC), 94–95 Amissah Inquiry of 1986/1987, 95 Addison, J. A., 110, 115–116, 118, 121, Amponsah, N., 198–199 126–127, 200, 234n12 Amsden, Alice, 6, 63, 213–214, Addo, Edward, 153 216–217, 219 Addo, S. A., 145 Annan, D. F., 77 Adom, J., 173–174, 183, 235n6 Annan, Eddie, 157 African Capacity Building Initiative Ansah, Paul, 121 (1989), 192 Antwi, Kwaku, 174–177 African capitalism, 1, 2, 4, 7, 17–18, Apino Oil Palm Plantation, 90–91 101–102, 190–194, 203, 206, 208–209 Apino Soap, 155–156 See also capitalism (Ghanaian) Appenteng, S. C., 83, 87, 90, 94–98, African economy, 190–193 109, 114, 118–119, 149, 158, 200, African nationalists, 18 205, 207 Africanists, 2, 102 Appiah-Kubi, K., 152, 154 Afrifa, A. A. (1966–1969), 26 Appiah-Menkah, A., 37, 41, 87, 90–92, Agama, G. K., 129 114, 118–119, 121, 155–156, 234n4 agriculture, 2, 3, 21, 92, 118, 170, 221 harassment of, 90–92 254 Index Apraku, Ernest, 171–172 Bilson, John, 107 Armed Forces Revolutionary Council Black Star Line, 82 (June–September 1979) (AFRC), Boahen, A. A., 110–111, 113–114, 140 21, 24, 25–26, 110, 186 Botchwey, Kwesi, 54, 61–62, 64, 78, Arthur, P., 223 85–86, 89, 105, 125, 130, 149, 183, Aryeetey, E., 8, 55, 58–59 194, 234n3,9 Asamoah, Obed, 35 Bowditch, N., 38, 204, 206–208 Asante, Kwame, 93–94 Brautigam, D., 203 Ashanti Confederacy, 162 “bribe culture,” 195–196 Ashanti Goldfields Company (AGC), 47, Brong-Ahafo, Ghana, 9–10, 12, 51, 125, 134–135, 145, 151 161–164, 173, 177–179, 181–183, Ashanti nationalism, 108 185–186, 203, 209 Ashanti Oil Mills, 91 Brong Kyempim Federation (BKF), 162 Ashanti region, Ghana, 77, 94, 108–109, Bruce, Frank, 93 162–163, 235n1 Bucknor, Jude, 208 Asian financial crisis (1997), 16, 220 bureaucrats, 3, 10–11, 79, 88, 189–199, Asian tigers, 70–71, 80 203, 210, 217, 224 Assiseh, Vincent, 149 Burkina Faso, 164 Associations of the Committees for the Busia, Kofi, 20, 83, 90–91, 94, 108–111, Defence of the Revolution, 123 115, 162–163, 173 Association of Ghanaian Businessmen, Business Assistance Fund, 64, 86 81–82 Business Associations (BAs), 81–89, 125, Association of Ghana Industries (AGI), 127, 130–138, 170, 230 8, 58, 78–79, 86–87, 91, 124, older, 130–135, 230 130–133, 136–138, 208, 234n10,12 newer, 135–138 Association of Recognised Professional Bodies, 103 capitalism (Ghanaian), 4, 10–11, 13, Asuo Bomosadu Timbers and Sawmills 16–18, 23–24, 25, 30, 42–43, 45, Ltd. (ABTS), 171–172 49–50, 55–57, 60–61, 64, 67, 69, Atim, Chris, 27, 40–41 75–78, 80–83, 85–86, 90, 108–114, authoritarian regimes, 101–102 119–120, 134–135, 138, 146–147, Awoonor, Kofi, 35, 98–99, 200–201 150–151, 159–160, 161, 179, Ayitteh, Sherry, 133 189–211, 227 anticapitalist rhetoric, 75 Bangladesh, 218 and bureaucrats, 190–199 Bank of Ghana (BOG), 22, 37, 48, 57, and business activism, 81–82 64, 84, 128–129 “culture of,” 190 Bank for Housing and Construction and entrepreneurial weakness, (BHC), 150 203–210 Bartels, Kwamena, 93 and infrastructure, 202–203 Bates, Robert, 3, 22–23, 105 and the law, 199–202 Batsa, Kofi, 95 See also African capitalism; indigenous Bayart, J., 27, 141–142, 159 capitalism “belly politics,” 141–142 Caridem Corporation, 153 Berg Report (1981), 191 Carter Center, 113 Index 255 Cashew and Spices Products Limited constitutionalism, 120–121 (Cashpro), 147–148 “constructive contestations,” 15–16 cedi (C) currency, See devaluation Consultative Bodies (CB), 88–89 Centre for Policy Analysis (CEPA), 58 Convention People’s Party (CPP), Chang, H., 6, 213, 215–216, 218–220 18–19, 82, 108–109, 142, 158–159, Checkpoint Limited, 149–150 162, 184–187 chiefs, 33, 77, 162, 182, 233n2,1, 235n1 corruption, 19, 21, 24, 25–27, 30–31, See also stool 33–36, 38, 42, 49, 78–79, 86, 88, China, 58 90, 98–99, 101, 104, 113, 120, 127, Christian Council, 103, 107 141, 158–159, 167–168, 186, 193, Citizens’ Vetting Committee (CVC), 195–197, 200, 205, 217–219, 34–36, 77, 92, 104, 114 224–225, 229–230, 234n1 civil servants, 10–11, 13, 18–20, 49, 53, See also “bribe culture”; kalabule; 147, 189, 195, 224, 230–231 rent-seeking Clarke, Arden, 18 Council of Indigenous Business cocoa, 17–21, 28–29, 46–48, 52, 70, Associations (CIBA), 112, 128, 85, 94, 108, 134, 147–148, 137, 147 162–163, 207 coups, 19, 20, 27, 29, 84, 87, 95 Cocoa Marketing Board, 19, 49 and expansionism, 29 Cocobod, 47, 148 1966, 19 colonialism, 12, 17–18, 42, 81, 86, 1972, 20, 84 108–109, 166, 168, 235n1 1979, 27 Combined Farms, 116–117 1981, 87, 95 Commission on Human Rights and coup attempts, 32, 42, 77, 79, 91, Administrative Justice (CHRAJ), 36 120, 123 Commissioners Appointed to Enquire into 1982, 42 the Law of Insolvency in Ghana 1983, 32, 91 (1961), 200–201 Crabbe, Azu, 77 Comstrans, 147 credit, 12, 29–30, 57–58, 62, 67, 71–72, collective action theory, 71, 80, 81–83, 110, 126–127, 137, 144, 87–88, 131 153–154, 201–202, 217, Columbia, 134 220–221, 227 Commission for Africa, 225 cronyism, 16, 80, 86–87, 143, 158, 179, Commission on Human Rights and 186, 219 Administrative Justice, 159 Crook, R., 168 Committees for the Defence of the “culture of silence” (1980s), 79 Revolution (CDRs), 77, 106 Customs, Excise and Preventive Service Confederation of British Industry (CBI), (CEPS), 97 121–122, 125–126 “Confiscated Assets (Removal of Dadzie, Ato, 152 Doubt) Law,” 114 Daily Graphic, 11, 33, 91, 118, 144, congenial governance, 101–102 150, 152 constitutional rule (1992–1993), 7, 9, 11, Danquah, Boakye, 93, 108–111, 115, 12, 26, 45, 53, 103, 106–107, 111, 162, 173 114, 116, 120–121, 125, 200 Darko, Kwabena, 114, 116–118, 121, 207 256 Index De Soto, H., 199–200 district chief executive (DCE), 165–170, December Women’s Movement 172, 175–176, 179–186 (DWM), 106, 148–149, 153 Divestiture Implementation Committee Defense Committees (DCs), 31–34, (DIC), 89 40–42, 95 Doner, R., 219 Deraniyagala, S., 236n2 drought (1982–1984), 29 Divestiture Implementation Committee Durand, F., 134 (DIC), 151–157, 172–173, 195–196, Dutch Development Bank, 143 235n6, 236n1 Djentuh, Selassie, 146 East Asian NICs, 5, 7, 16, 63, 72, 132, Djentuhs Case, 138, 146 192, 195, 210–211, 213, 215–217, democratic era (government-business 219–220, 222, 224, 227–228, relations in), 101–139 230–231 antagonism toward business, 113–118 economic liberalization, 13, 20, 35, 42, business associations, 130–138 45–46, 56–59, 64, 86, 102, 119, consultation, 125–130 131, 161, 165, 214–215, 221 democratization, 103–111 economic recovery program (ERP), 42, impact of democracy, 120–122 46–73, 76–79, 196 elections controversy, 111–113 challenges of, 56–59 and Rawlings, 118–120 and domestic capital, 55–56 and VAT, 122–125 and incentives, 46–52 democratization, 2, 7, 12, 53–54, and industrial sector, 60–69 101–139, 159, 165–166, 179, 214, and NDC, 52–55 220, 230 and nontraditional exports, 69–72 domestic factor in, 103–106 and policy, 59–60, 68–69 process of, 106–108 economic reform, See neoliberal stabilization phase (1983–1986), economic reform 104–105 “economistic” approach, 191–192 transition to, 108–111 Edusei, Krobo, 185, 187 See also democratic era; elections elections, 12, 13, 27, 45, 53–54, 79, 83, Department of International 103, 108–109, 113, 116, 142, Development (DFID) (Britain), 144 146–147, 157, 162–163, 166–168, destoolment, 33, 233n2 175–176, 186, 221 devaluation, 20–22, 46–49, 56–57, 62, 1969, 83, 108–109 72, 92, 97 1992, 12, 45, 53–54, 103, 116, development theory, 18 146–147, 162–163 developmental state school, 6–7, 13, 63, 1996, 45, 53, 175, 186 192, 213–215, 223–224, 228 2000, 13, 142, 168, 176, 221 developing countries, 6, 13, 65, 70, 80, 2004, 163 200, 214–216, 219, 224, 237n3 2007, 157 See also East Asian NICs entrepreneurs District Assemblies (DAs), 104–105, 148, in the AFRC era, 26–27 165–168, 180–183 cultural factors, and growth, 13 District Assemblies Common Fund, harassment of, 89–100, 108, 120, 220 148–149, 181 and indigenous capitalism, 23–24 Index 257 local, 81 garment industry, 65–67 and particularistic relationships, Gbeho, Victor, 145 15, 17 Genoud, R. 18 and PDCs, 32 Gerschenkron, A., 216 “political entrepreneurs,” 88 GHACEM, 115–116, 121, 144, 200, and public tribunals, 38–39 234n5 and “renterism,” 210 Ghana Bar Association (GBA), 38, 103, strategies for, 177–178 106–107 weakness of, 203–210 Ghana Chamber of Commerce, 79 exchange rate, 2–4, 7, 19, 35, 48–50, Ghana Civil Aviation Authority, 117 54, 57 Ghana Employers Association, 62 “Export Ghana, Export More” slogan, Ghana Export Promotion Council 69–70 (GEPC), 13, 69–72, 136, 164, 189, Export News, 198 197–198, 228, 233n2 exports, 3, 5, 6, 13, 17–18, 28–29, Ghana Film Industry Corporation 46–47, 53, 56–58, 60–61, 63, (GFIC), 153 65–73, 85, 116–117, 122, 126, 132, Ghana Free Zone Board, 56 135–136, 142, 164, 189, 197–198, Ghana Governance and Business 204, 207, 215, 221–222, 228, Environment, 196–197 233n2, 234n10, 236n2 Ghana Governance and Corruption See also cocoa; gold; Nontraditional Survey, 196–197 Exports; timber Ghana Investment Promotion Centre (GIPC), 55–56, 87 Federation of Associations of Ghanaian Ghana National Chamber of Commerce Exporters, 198 (GNCC), 8, 86–87, 124, 130–133, Financial Times, 125 137–138 Fordwor, K. D., 114 Ghana National Petroleum Corporation foreign aid, 1, 51, 53–55, 59, 101, 116, (GNPC), 54, 97, 142, 149 126, 128–129 Ghana National Trading Company, 173 foreign exchange, 17–21, 23–24, 34, Ghana Palaver, 150 46–49, 52–54, 57, 60–61, 65–66, Ghana Private Road Transport Union 70, 85, 87, 131, 136, 165, (GPRTU), 137 224, 230 Ghana Stock Exchange (GSE), 151, 209 foreign exchange crisis (1990s), 52–54 Ghana Telecom, 125 foreign investment, 5–6, 45, 50, 55–56, Ghana Textile Printing (GTP), 34 60, 87, 121, 152 Ghana 2000 and Beyond (1993), 68 Forrest, T., 203 Ghana Union of Traders Associations Forum for Policy Dialogue, 128 (GUTA), 124–125, 133, 135–138 Fourth Republic, 54, 102, 114, Ghana: We Mean Business, 149 119–120, 151 Ghana—Vision 2020 (1995), 68–69, 227 Free Press, 129 Ghanaian Business Promotion Frimpong-Ansah, J., 118–119 Act, 84 Ghanaian Chronicle, 11, 117, 121, 136, Gariba, A., 41 142–143, 148, 150, 153–155, Garlick, P., 204, 206–209 180–181, 235n1,3, 236n7,8 258 Index Ghanaian Enterprises Decree (GED), imports, 3–6, 19–24, 26, 49–50, 56–57, 82–83 59–67, 69, 81–82, 84–85, 87, Ghanaian independence (1957), 17–18, 23 92–93, 110, 116, 127–128, 131–132, Ghanaian Manufacturers’ Association 135–137, 165, 201, 217, 221, 224, (GMA), 82–85 227, 235n14, 236n2, 237n4 Ghanaian Times, 11 import license, 19–21, 23–24, 26, 49, GIHOC Brick and Tile, 148, 153 81–82, 84–85, 87, 92, 131, 165, gold, 28, 47, 52, 55, 70, 81–82 224, 227 See also Ashanti Goldfields Company India, 218 Gold Coast Chamber of Commerce, 81 Indians, 81–82 Gold Coast Motors, 153 indigenous capitalism, 23–24, 55–56, Golden Beach Hotels, 157 72, 81, 112, 121, 127–128, 132–134, “golf girls,” 23 139, 147, 151–152, 189–211, 204, Great Britain, 93, 121–122, 125–126, 219, 228–230 144, 162, 215, 235n1 and the bureaucracy, 193–199 Green, D., 103–104 constraints on, 189–211 Grindle, M., 133 and entrepreneurial weakness, 203–210 Gross Domestic Product (GDP), 3, 5, 6, and infrastructure, 202–203 45, 50, 52, 56–58, 134 and the law, 199–202, 230 and agriculture, 3 preconditions for development, 190–193 and budget deficit, 52 See also Council of Indigenous and credit, 57–58 Business Associations and industrial sector, 56 Indonesia, 58 and investment, 55–56 Industrial Chemicals Limited (ICL), and manufacturing, 6, 56 92–93 in 1983–1990, 5, 134 industrial policy, 68–69, 218–224 in the 1990s, 5, 50 Industrial Policy Statement: A Strategy for and private sector, 45, 57–58 Industrial Regeneration (1992), 68 and public capital inflows, 134 industrial sector, 3, 5–6, 9, 13, 18–20, and revenue, 50 28–29, 46, 56–57, 60–69, 72, 82, Guinness, 173 92–98, 123, 126, 132, 200, Gyamfi, Kwadwo, 114 213–224, 228, 235n14 Gyimah-Boadi, E., 22–23 See also garment industry; mining; textile industry Handley, Antoinette, 15–16 industrialization, 13, 18–19, 52–53, Hart, E., 87 62–63, 68, 213–224, 228 Hart, K., 203, 206 inflation, 19, 21, 24, 28, 46, 50, 52, 54, Heavily Indebted Poor Countries Initiative 57, 60, 63, 123, 129, 193, 202 (HIPC), 223 infrastructure, 3, 5, 7, 18, 29, 46, 50–51, Herbst, J., 90 53, 66, 103, 126, 179, 192, 202–203 Hutchful, E., 89–90, 159 Institute of Statistical, Social and hydroelectric power, 29, 51 Economic Research (ISSER), 58 interest rates, 52, 57–58, 60, 62, Ibrahim, Yusuf, 145–146 67–68, 71–72, 129, 137, 148, 208, Iliffe, J., 206 227, 236n2 Index 259 Internal Revenue Service (IRS), Kufuor, J. A., 222–223 116, 127 Kumasi, Ghana, 9–10, 113, 116, 145, International Finance Corporation 162, 167–168, 204, 235n1,3 (IFC), 117 Kumasi metropolitan assembly, 166–168 International Financial Institutions Kume Preko, 123 (IFIs), 13, 33, 45, 59, 80, 87–88, Kwahu people, 206–208 100–101, 110, 132, 213, 223, 237n1 Kwei, Amartey, 41 International Herald Tribune, 125 Kyere, Kwaku, 169–171 International Monetary Fund (IMF), 21–22, 28, 30, 40, 42, 45, 76, 110, Lall, Sanjaya, 5, 56, 60, 62, 64, 217 191, 200–1, 220–221, 237n3 Latin America, 16, 105 International Tobacco Ghana (ITG), leadership, 16–17, 29–31, 42, 68–69, 73, 89–90, 97–98 75, 78, 80, 85, 87, 89, 94, 109–112, interventionism, 2, 4, 7, 13, 46, 62–63, 122, 131–134, 152, 221, 225, 230 213–217, 223–224, 227–228 left-wing organizations, 27, 30, 33, Intravenous Infusions, 207–208 40–43, 75–77, 79, 128, 222 Ivory Coast, 21–22, 29, 203 Legon Observer, 82 Levantines, 81–82 Jantuah, F. A., 77 liberalists, 63, 80 Japan, 144, 201, 216 Liberia, 29, 54 Jeffries, R., 22–23, 46–47 Libya, 29–30 Jomo, K., 217–219 Limann (1979–1981), Hilla, 27, 32, Jonah, K., 119 85, 109 Jonah, Sam, 145–146 Lindsay, Ahomka, 98 Juapong Textiles, 65 List, Friedrich, 215–216 June Four Movement (JFM), 27–28, 39, 42, 106, 121, 233n1 MacGaffey, J., 205 MacIntyre, A., 217 kalabule, 21, 24, 26, 30, 35–37, 110 macroeconomic policies, 6–8, 12, 46, See also corruption 50, 52, 54, 58–60, 68, 72, 84, 223 Kang, D., 7 Malaysia, 58, 218 Kastena Air Processing, 93–94 Mali, 164 Kaunda, Kenneth, 18 Manu, Kwaku, 176–177 Kennedy, P., 203–204, 206, 208 manufacturing, 5–6, 12–13, 15, 28, Kente, Nnuro, 207 56–57, 59–62, 64–69, 82–84, 91, Kenya, 58 94, 115, 132, 144, 148, 155, Khan, M., 217–219, 223–224 203–205, 207, 213, 216, 227 Kicking Away the Ladder (2002), 215 manufacturing value added (MVA), Kilby, P., 203 5–6, 56 knowledge-based assets, 6, 215 market reforms, 12, 45, 51–52, 61, 72, Kowus Motors and International 75–77, 85, 101, 131–132, 139, 189, Tobacco Ghana, 98 191, 229 Kpordugbe, Peter, 144 Marris, P., 203 Kraus, Jon, 17, 30, 38, 51, 57–58, 77, Mauritius, 15–16, 67 132, 184 Maxfield, S., 16 260 Index media, See private media National Democratic Movement Mensah, A. H. O., 65–66, 87, 97–98, (NDM), 27, 42, 233n1 109, 114, 147, 158, 174, 205 National Development Planning methodology, 1–13, 165–166, 195–198 Commission, 130 book structure, 11–13 National Independence Party, 114, 116 interviews, 195–198 National Institutional Renewal premise and argument, 1–8 Programme (NIRP), 194–195 research methods, 8–11 National Investigations Committee Mills, John Evans Atta, 130, 142, (NIC), 36–38, 77, 96, 104, 114 170–171, 173, 176–177, 195 National Investment Bank (NIB), 83, Mim Timbers, 153 92–93, 144 Minerals and Mining Law, 47 National Liberation Council (NLC), mining, 5, 6, 28, 46–48, 55–56, 68, 82, 19–20, 23, 81–84, 151 85, 94–97, 114, 134 National Liberation Movement (NLM), See also gold; Vacuum Salt Products 108, 158–159, 162 Limited National Redemption Council (NRC), 20 Ministerial Conference of the National Reform Party (NRP), 143 Non–Aligned Movement, 54 National Union of Ghana Students Mkandawire, T., 228 (NUGS), 27–28 Mobutu Sese Seko, 193 neoclassical economics, 191 Moss, T., 209 neoliberal economic reforms, 1–4, 12, Movement for Freedom and Justice 14, 15, 17, 46–73, 132–133, 139, (MFJ), 104, 106 160, 213–215, 217, 220–221, Mugabe, Robert, 15 223–224, 227–228 Multi-Wall Paper Sacks (MWPS), 115 See also Economic Recovery Munufie, A. A., 163 Program; indigenous business; Museveni, Yoweri Kaguta, 122 structural adjustment neo-Marxism, 27–28, 30, 41–42, 75, Nartey, W. G., 94 77–78 National Commission on Democracy new institutional economics, 191, (NCD), 106, 110 213–214, 220 National Democratic Congress (NDC), New Patriotic Party (NPP), 8, 13, 53, 12–13, 52–55, 102–103, 112–113, 110–120, 123–124, 142, 144, 115–118, 120–121, 123, 125, 147–149, 155, 158–159, 163, 127–129, 131, 133, 137, 141–160, 169–175, 177–178, 183–184, 213, 161–187, 209–210, 221–223, 229 221–224, 235n3 and Brong-Ahafo, 161–169 newly industrialized countries (NICs), business relations, 161–187 See East Asian NICs businesspeople and politics, 184–187 Nigeria, 17, 29, 83, 92, 115–116, case studies, 169–177 121–122, 203, 207 context of study of, 164–165 Nkrumah, Kwame, 4, 18–19, 23, 81, 83, and contractors, 179–184 108–109, 111–113, 119, 142, 148, entrepreneurial strategies, 177–178 151, 158–159, 162, 186–187, 235n4 and the local level, 165–169 and the Convention People’s Party, See also P/NDC 158–159 Index 261 and economic statism, 18 Philippines, 219 and “one-party state,” 108–109 Piers Hotel (1999), 138, 145, 200 NDC, See National Democratic P/NDC, See Provisional National Congress Defence Council and the National Nontraditional Exports (NTEs), 48, 58, Democratic Congress 69–72, 117, 135 PNDC, See also Provisional National North, Douglas, 190–191 Defence Council Nunoo-Mensah, Joseph, 41 Popular Front Party, 109, 162 Nyerere, Julius, 18 Private Enterprise Foundation (PEF), 6, 58, 65, 117, 128–130, 133, 137 Obeng, P.V., 64, 194–195 private media, 103, 120–121 Obo Trading Company, 208 private property, 25, 32–34, 42–43, 64, Oelbaum, Jay, 127, 148, 179 89, 97–99, 103, 114, 138, 145, Ofori-Atta, Jones, 208 199–200, 206–207, 214, 220, 230 oil, 22, 29–30, 52, 54 seizure of, 32, 97–99, 114, 138, 145, Oquaye, M., 127–128, 201–202 200, 206, 230 Osei, Isaac, 207 private sector, 1, 5, 12, 23–24, 25–26, Osei-Wusu, W., 144 34, 42–43, 45, 49–50, 55–60, 68, Overseas Development Institute, 72, 75–80, 82, 84–85, 88–89, 118, 54, 57 121–122, 125–129, 147, 151, 164, Overseas Economic Cooperation Fund 190–191, 194–195, 198, 200, 204, (OECF), 204 214, 220–222, 234n4, 237n4 Owusu, A. A., 208 and policy implementation, 59–60 Owusu, Victor, 109, 163 relations with, 77–80 Owusu-Acheampong, J. H., 170, Private Sector Advisory Group (PSAG), 236n10 89, 126, 234n4 Private Sector Consultative Committee Pakistan, 218 (PSCC), 88 para-statals, 18–19, 24, 61, 77 Private Sector Roundtable (PSR), patronage-based politics, 1–4, 13, 126–128 15–16, 84, 101–102, 133, 152, 165, privatization, 5, 19–20, 23–24, 25–26, 168, 174, 180, 184–186, 209–210, 49, 59, 81, 126, 150–157, 199, 224, 234n1 214, 220 People’s Defence Committee (PDC), Progress Party (PP), 20, 23, 83–84, 109, 32–34 151, 162 People’s National Party (PNP), 21, Provisional National Defence Council 27, 40 (PNDC) People’s/workers’ defense committees background of, 25–28 (P/WDC), 33 and business, See PNDC-business Pepera, Paul, 122 relations Peperah, Peter, 153 and the Citizens’ Vetting Committee, Peprah, Kwame, 53, 152 34–36 “performance legitimation,” 103–104 decentralization reform (1988), 165–166 personal rule, 3–4, 16, 17, 135, 146, 160 and the Defense Committees, 31–34 Peru, 134, 200, 202 and devaluation, 48 262 Index Provisional National Defence Council Ramsay, A., 219 (PNDC)—Continued Rankin, N., 65 dual power structure of, 40–41 Rathbone, R., 112, 158, 184 economic challenge to, 28–31 Rawlings, Jerry John and economic reforms, 76–77 business advocacy before, 81–85 and the legal system, 200, 202 character of, 30 and the National Investigations and construction boom, 179 Committee, 36–38 and cronyism, 185–186 and private property, See private and “culture of silence,” 103 property, seizure of and entrepreneurs, 118–120 and Public Tribunals, 38–39 and Fidel Castro, 86 and revenue mobilization, 50 lack of citizen knowledge about, 17 and structural adjustment, 42 and “mobocracy,” 33 PNDC-business relations (1983–1991), See also Armed Forces Revolutionary 75–100, 200 Council; entrepreneurs, harassment and Business Associations, 85–88 of; National Democratic Congress; business advocacy before Rawlings Provisional National Defence era, 81–85 Council consultations, 79–85 Rawlings, Nana, 148–149, 153, 158, 228 and consultative bodies, 88–89 Ray, Donald, 36 economic reforms, 76–77 Reindorf, Joe, 95–96 and “free rider” problem, 80 rent-seeking, 217–220, 224 implications of, 98–99 Riddell, R., 62 and the private sector, 77–79 Riggs, F., 203 See also entrepreneurs, harassment of Rock, M., 219 Provisional National Defence Council Rothchild, D., 22 and the National Democratic Rothmans International, 97–98 Congress (P/NDC), 7, 73, 112, RT Briscoe Motors, 154 128, 141–160, 194–195, 200, 204, 214, 221–223, 229, 233n1 Saaka, Y., 107 analogy with CPP, 158–159 Safo, Osei, 116–118, 121, 138, 200 and Augustus Tanoh, 142–145 Safo-Adu, K., 89–90, 92–94, 110 and the Djentuh case, 146 Sandbrook, R., 127 “Mr. Fix-It” of, 194–195 Scanstyle, 122, 153 and privatization, 150–157 Schneider, B., 16 rise of P/NDC insiders in business, Selormey, Victor, 204 146–150 Serious Fraud Office (SFO), 114–115, and Yusuf Ibrahim, 145–146 128, 138, 143, 150, 154, 157, Public Sector Reinvention and 159, 183 Modernisation Strategy (1997), Siaw, J. K., 27 194–195 Sikpa, Anthony, 37 Public Tribunals (PTs), 38–39, 91, 114, 138 Sixth Annual Conference of District Chief Executives (1999), 167 Quaidoo, K. K., 82 Social Security and National Insurance Quakyi, K. T., 153 Trust (SSNIT), 97–98 Index 263 socialism, 4, 18, 23–24, 28, 81, 84, tax rebates, 69 108–109, 185 See also value-added tax Soderbom, M., 65 Taylor, Scott D., 15–16, 135 Somerset, A., 203 Teal, F., 65, 67 South Africa, 15–16 Techiman, Ghana, 163–164, 173 South Korea, 7, 73, 218, 224, 236n1 telecommunications, 51, 149, Standard Chartered Bank, 125 202–203, 220 standard of living, 21, 24 terms-of-trade shock, 52 Star Chemicals Company Limited textile industry, 65–67 (SCCL), 94 Thailand, 58, 219, 224 State Enterprises Commission, 196 Third Force Party, 107 State Gold Mining Corporation, 82 Third Republic of Ghana (1979), 21 state-owned enterprises (SOEs), 49–50, 31 December Women’s Movement, See 150–156, 172, 235n6 December Women’s Movement statism, 18, 21, 24, 84, 193, 195 Thompson, N., 204 Stewart, F., 62 Thompson, S., 204 stool, 33, 96, 233n2 Thorp, R., 134 The Stolen Verdict, 113 timber industry, 28–29, 46–48, 51, 67, structural adjustment, 1, 5, 7, 12, 78–79, 81, 85, 134, 153, 164, 40–43, 45, 50, 56, 60, 75–76, 105, 169–171, 176, 203, 235n5 214, 220, 224 Timber Resources Management Act subsidies, 6–7, 48–50, 63–64, 71, 73, 79, (1997), 67 127, 215, 217–218, 221, 237n4 Timber Utilization Contract, 67 Sunyani Complex, 173 Twi language, 9 Supreme Military Council (SMC), 20, Togo, 21, 29 23, 25–26, 104 trade liberalization, 46, 59, 61–62, Supreme Military Council II (SMC II), 64–66, 135, 137–138, 227 21, 26 Trades Union Congress (TUC), 20, 104 Swimming Upstream (1998), 114 transaction costs, 6–7, 199, 214, 217, 220 Taiwan, 7 Transport and Commodity General Tangri, R., 90 (T&CG), 142–144 Tanoh, Augustus, 142–145 Tsikata, Fui, 27, 95–96, 149 Tanoh, Nathaniel, 144 Tsikata, Kojo, 27, 41, 112, 153 Tanoso Tile and Brick Factory Tsikata, Tsatsu, 27, 54, 97, 149, 158 (TTBF), 170 Tyson Foods, 116, 234n6 Tanzania, 18 TATA Brewery, 27 Uganda, 154 Tawiah, Ebo, 78, 112, 151, 153 Unilever, 156, 234n4 taxation, 4, 35–36, 47–48, 50, 53–54, 58, United African Company, 34 68–69, 90, 92–93, 96–98, 122–125, United Gold Coast Convention 127, 132–138, 147, 149, 197, 209, (UGCC), 108, 158 220–221, 223, 234n9, 236n2 United Nations Educational, Scientific corporate tax, 4, 50, 58, 68, 97, 223 and Cultural Organization tax evasion, 35–36, 90, 92–93 (UNESCO), 98 264 Index United Nations Industrial Development West Africa, 11 Organization (UNIDO), 66 Westel, 149 United Nations Security Council and Williams, Ameto, 95 General Assembly, 142 Wontumi, Andrews, 93 United States, 101, 144, 201, 203, World Bank, 1–2, 5, 7–8, 10, 22, 28, 33, 207, 215 45, 47, 50, 52–59, 62–64, 66–68, University of Ghana, 27, 121, 201 70, 76, 78, 86, 88–89, 92–93, 99, University Teachers Association of 101, 110, 122, 126, 129–130, 132, Ghana (UTAG), 106–107 149, 152, 157, 191–192, 196–199, USAID, 116, 128–129 202–203, 207, 213–214, 217, 220–221, 223–224, 228, Vacuum Salt Products Limited (VSPL), 230–231, 237n3 11, 32, 90, 94–97, 149, 208 WorldSpace, 144 value-added tax (VAT), 53–54, World War II, 81 122–125, 133, 136, 138, 197 Workers’ Defense Committees (WDCs), Venezuela, 134 33–34 Volta dam, 29 Yakubu, Hawa, 123 Wade, Robert, 6, 63, 214, 217 Yeebo, Zaya, 35, 41 wages, 3, 20, 29, 51, 57, 67, 156, 193–194, 221 Zaire, 192–193, 205 Weber, Max, 4, 102, 192, 199 Zambia, 15–16, 18, 58 Wereko-Brobbey, Charles, 123–124 Zimbabwe, 15, 58, 102