INFORMATION TO USERS This manuscript has been reproduced from the microfilm master. UMI films the text directly from the original or copy submitted. Thus, sorne thesis and dissertation copies are in typewriter face, while others may be tram any type of computer printer. The quality of this reproduction is dependant upon the quality of the cOPY submitted. Broken or indistind print, colored or paor quality illustrations and photographs t print bleedthrough, substandard margins, and improper alignment can adversely affect reproduction. ln the unlikely event that the author did not send UMI a complete manuscript and there are missing pages, thase will be noted. Also, if unauthorized copyright mataria1had to be removed, a note will indicate the daletion. Oversize materials (e.g., maps, drawings, charts) are reproduced by sectioning the original, beginning at the upper left-hand corner and continuing fram left to right in equal sections with small overtaps. Photographs included in the original manuscript have been reproduced xerographically in this copy. Higher quality 6- x 9- black and white photographie prints are available for any photographs or illustrations appearing in this copy for an additional charge. Contact UMI directfy to order. Bell & Howell Information and Leaming 300 North Zeeb Raad, Ann Arbor, MI 48106-1346 USA 800-521-0600 NEOCIASSICAL ECONOMICS AND THE ROLE OF INFORMATION, COMMUNICATION, AND CULTURE IN SOCIO-ECONOMIC DEVELOPMENT: A CASE STUDY OF THE STRUCTURAL ADJUSTMENT PROGRAMME IN GHANA by Bernard lori Dasah Graduate Programme in Communication McGill University, Montreal March 1999 A Thesis submitted to the Faculty of Graguate Studies and Research in partial fulfillment of the requirements for the degree of Doctor of Philosophy. (c)Bernard Zori Dasah, 1999 National Library Bibliothèque nationale 1+1 of Canada du Canada Acquisitions and Acquisitions et Bibliographie Services services bibliographiques 395 Wellington Street 395. rue Wellington Ottawa ON K1A ON4 Ottawa ON K1A ON4 canada Canada Your file Votre "lferfJfIœ Our file Notre Tefereflcs The author has granted a non.. L'auteur a accordé une licence non exclusive licence allowing the exclusive pennettant à la National Library ofCanada to Bibliothèque nationale du Canada de reproduce, loan, distribute or sell reproduire, prêter, distribuer ou copies ofthis thesis in microfonn, vendre des copies de cette thèse sous paper or electronic fonnats. la fonne de microfiche/film, de reproduction sur papier ou sur fonnat électronique. The author retains ownership ofthe L'auteur conserve la propriété du copyright in this thesis. Neither the droit d'auteur qui protège cette thèse. thesis nor substantial extracts from it Ni la thèse ni des extraits substantiels may be printed or otherwise de celle-ci ne doivent être imprimés reproduced without the author's ou autrement reproduits sans son permISSion. autorisation. 0-612-55318-3 Canada ABSTRACT For close to two decades the leading international financial organizations, the World Bank and the International Monetary Fund, have imposed their structural adjustment programme on Third World countries, notably in Sub-Saharan African, creating forros of neoclassical financial management at an unsurpassed rate. However, the thesis argues that this approach does not distinguish adequately between policies favourable ta the growth and prosperity of developed countries and those pertaining ta developing countries in part because the paradigm has an impoverished notion of information, communication, and culture. By fostering this economic paradigm in developing countries, these organizations may, in effect, be imposing an inconsistent model on them in many respects. This thesis explores this conundrum with particular reference to the model's concepts ofinformation, communication, and culture and the consequences of these concepts on the application of the model in Sub­ Saharan Africa, spedfically in Ghana. The thesis emplcys case studies to demonstrate the impact of cultural imperatives on the neoclassical economic concepts of efficiency of competition, trade liberalization, currency devaluation, public expenditure reduction, and privatization promoted by the structural adjustment programme. It suggests that sorne of the failures of the programme may be ascribed ta the great differences between the imperatives of neoclassical economics and the cultural realities of Sub-Saharan Africa. The thesis takes the position that the incorporation of an understanding of culture and economy similar ta that of the communicologists' holistic and wider perspective on economics and economic systems would ameliorate many weaknesses of the structural adjustment programmes of the !MF and the World Bank and enhance the effectiveness of future structural adjustment programmes. ü RÉsUME~ Pendant presque deux décennies, les grandes institutions financières internationales, la Banque mondiale et le Fonds monétaire international ont imposé leur programme d'ajustement structurel aux pays du Tiers-Monde, notamment en Afrique du sud du Sahara. Ce programme a contribué à rapparition, à un rythme inégalé, de méthodes de gestion financières néo-classiques. Toutefois, la présente thèse argumente que cette approche ne fait pas de distinction adéquate entre les politiques qui favorisent la croissance et la prospérité des pays développés et les politiques qui s'appliquent aux pays en voie de développement, en partie, en raison du fait que le paradigme répond â une notion appauvrie d'information, de communication et de culture. En encourageant ce paradigme économique dans les pays en voie de développement, ces institutions risquent en effet d'imposer un modèle inconséquent sur ces pays et ce, de nombreuses façons. La présente thèse examine cette question et s'attarde tout particulièrement aux concepts d'information, de communication et de culture du modèle ainsi qu'aux conséquences de ces concepts sur l'application du modèle en Afrique du sud du Sahara, particulièrement au Ghana. La thèse repose sur tles études de cas pour démontrer l'impact des impératifs culturels sur les concepts économiques néo-classiques de concurrence, de libéralisation des échanges, de dévaluation monétaire, de réduction des dépenses publiques et de privatisation encouragés par le programme d'ajustement structurel. La présente thèse évoque l'idée que certains des échecs du programme peuvent en fait être attnbués aux différences de taille entre les impératifs de l'économie néo-classique et les réalités culturelles d'Afrique du sud du Sahara. La présente thèse juge que l'intégration d'une meilleure compréhension de la culture et de l'économie, comme le veut la perspective holistique et plus ouverte des communicologistes face â l'économie et aux systèmes économiques, pallierait les nombreuses faiblesses des programmes d'ajustement structurel du FMI et de la Banque mondiale et améliorerait l'efficacité des programmes d'ajustement structurels futurs. ili • ACKNOWLEDGEMENT This dissertation was prepared under the supervision ofProfessors David Crawley and Robert Babe. 1 thank them for their encouragement, guidance, and intellectual support. 1 thank Ms. Lise Ouimet of the Graduate Programme in Communication. She was always willing, no matter the CÎreumstances, ta answer my numerous questions. 1 also extend my gratitude ta the Canadian International Development Agency (CIDA) for the use of relevant documents on the Ghana Upper Regions' Water Programme. In this context, the assistance of Ms. Bohdana Dutka, Senior Development Officer, West African Programme, and Mr. Chandra Thiruchittampalam, Water Specialist, is sincerely acknowledged. The research in Ghana would not have been possible without tv,'o contracts from the World Bank. 1 express my gratitude ta Mr. Mamadou Dia, Chief, Institutional Development and Management Division, Technical Department, Africa Region and Mr. Paul Berminghan, Principal Financial Analyst, (Energy, Mining, and Telecommunication), under whose directorships the contracts were awarded. A number of people were of invaluable assistance ta me in Ghana. While 1 cannat mention ail by name, sorne deserve special attention. 1 thank Mr. Edward K. Saliah, Minister of Transport and Communication for his personal assistance; Mr. E. A. Kwakyi~ Director of Planning, Minister of Transport and Communication, for providing logistical support; and Mr. Hudu Sitaa of the Ministry of Finance and Economie Planning, for assisting in identifying and obtaining relevant documents. Finally, 1thank my family for their patience, understanding, and unflinching support. iv TABLE OF COl'lENTS Page ABSTR.A.CT •••••.•••.•••.••••••••••••••••..•••••••••.• . ••••••••• •• i RÉsUlvlÉ •.•••.•.•.••..•.•.•••.•••••..•....•..••.••••..•.....••. .. ii ACKN"O'WLEDGEMENT ................................... .. üi INTRODUCTION ........••.•...................................... 1 PARTI CHAPTERONE 1.0 CONCEPTUAL UNDERSTANDING OF INFORMATION/COMMUNICATIONS IN ECONOMICS ... .. 9 1.1 Neoclassical Economist's Concept of Information. ................... .. 9 1.1.1 Radical Individual Self-interest ................. .. 9 1.1.2 Priee Direeted System Il 1.1.3 Perleet Competition .................................... .. 13 1.1.4 Blind ~pots 14 1.1.4.1 Perleet knowledge assurnption ....................... .. 14 1.1.4.2 Viability of equilibrium theories ...................... .. 16 1.2 Imperfect Information Models ............... .. 17 1.2.1 The Models ............... .. 17 1.2.2 Imperfeet Information and Markets 18 1.2.3 Maxim of Non-Diseontinuities