Roskilde University Donor, dollars, and development insights into the impacts of Danida's private sector development programme in Ghana Kragelund, Peter Publication date: 2005 Citation for published version (APA): Kragelund, P. (2005). Donor, dollars, and development: insights into the impacts of Danida's private sector development programme in Ghana. Roskilde Universitet. General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. • Users may download and print one copy of any publication from the public portal for the purpose of private study or research. • You may not further distribute the material or use it for any profit-making activity or commercial gain. • You may freely distribute the URL identifying the publication in the public portal. Take down policy If you believe that this document breaches copyright please contact [email protected] providing details, and we will remove access to the work immediately and investigate your claim. Download date: 03. Oct. 2021 Donor, Dollars, and Development Insights into the Impacts of Danida’s Private Sector Development Programme in Ghana PhD dissertation by Peter Kragelund International Development Studies Roskilde University Acknowledgements The journey of writing a PhD thesis has sometimes seemed long and cumbersome, but it has mostly been filled with satisfaction and joy, not least during periods of fieldwork in Ghana, which were filled with daily encounters with remarkable people. However, things started in Denmark while I was employed at the Centre of African Studies, University of Copenhagen, when my attention was diverted away from Latin America to Sub-Saharan Africa. Several internationally well- established researchers passed by this small centre in the heart of Copenhagen, and affiliations with international networks gave me the possibility to attend several conferences. Life at the Centre was interesting, but I longed for a life involving more theoretical and empirical reflection and was therefore happy to acquire the privilege of beginning the process of writing a PhD thesis some four years ago. This thesis is the result of a generous grant from the Centre for Development Research (now Danish Institute for International Studies) and International Development Studies, Roskilde University Centre. Moreover, the Research Council for Development Research provided financial support for one period of fieldwork in Ghana. I express my gratitude to all of them. However, I would never have been able to finalise this study without support from several people. Therefore, I would like to begin by thanking everybody who helped me along the way. In Ghana, I would first like to express my sincere gratitude to all the people I interviewed in various Ghanaian small enterprises, public and private institutions and the donor community. Without them, this thesis would not have existed. Furthermore, I would in particular like to thank Elsebeth Tarp, Stella Damoah and Carsten Bondersholdt of the Royal Danish Embassy, Accra, for their hospitality; Happy Dide of the School of Administration, University of Ghana, Legon, for her kindness and readiness to help in all matters; fellow PhD researcher Bedman Narteh for good companionship and fruitful discussions; Dr Samuel Buame and Dr Seth Buatsi and other researchers at the School of Administration, University of Ghana, Legon, who took great interest in discussing the role of the private sector in Ghana with me; Charles Owusu, who gave me great insights into the real world of Ghanaian management; Mary Coffie of Denmark House, for keeping me company during long hours of writing up interviews; Jan Petersen, a crazy Swede, who introduced me to Accra’s nightlife; and Pernille Bengtsen and Mikkel Schmidt-Hansen for letting me stay in their home in Accra when other options were lacking. Many people made an effort to instruct me during the course of this project. Two people, of course, come first to my mind, namely my two supervisors, Steen Folke and Laurids Lauridsen, who have patiently pushed me when necessary, repeatedly pointed my too great interest in pre-colonial history out to me, and iii always provided me with new insights and timely criticism. I also thank Christian Lund and Fiona Wilson, the prime movers of the PhD seminars at the Graduate School of International Development Studies, who time and again have emphasised the importance of roadmaps and of not letting anyone (else) in the driving seat, as well as the difference between one’s own understanding of a subject and how this subject is communicated to the reader (even though I am not sure that I in fact did maintain this distinction throughout the thesis). In addition, I would like to thank fellow PhD researcher Ivan Nygaard for his always pleasant comments and advice for improvements to my draft chapters; Peter Gibbon for his constructive management of the research group on the ‘Political economy of globalisation’, which gave me great insights into the research process as such; and John Kuada and Olav Jull Sørensen, of Aalborg University, for including me in their research activities in Ghana. In the greater part of the process, however, I have been unaided, but definitely not lonely. Colleagues from the Danish Institute of International Studies and International Development Studies, Roskilde University, made sure that everyday life was pleasant in both institutions. Finally, I could not have done this without the support of my family, Jeanette, Sebastian and Selma, who were tolerant when I was away physically and mentally, while at the same time insisting that I diverted my attention away from my work from time to time and thus put the whole process into perspective. iv Abbreviations AFRC Armed Forces Revolutionary Council AGI Association of Ghana Industries AID Aid Impact: Development Interventions and Societal Processes APDF African Project Development Facility BS Business System BSPS Business Sector Programme Support BSSP Business Sector Support Programme B-t-B Business-to-Business CIBA Confederation of Indigenous Business Associations CIDA Canadian International Development Agency CPP Conventions Peoples Party DAC Development Assistance Committee Dda Dutch development agency Dfid Department for International Development DI Confederation of Danish Industries DIC Divesture Implementation Committee DIPO Danish Import Promotion Office DKK Danish Krone EIA Environmental Impact Assessment EIB European Investment Bank ERP Economic Recovery Programme ESAF Enhanced Structural Adjustment Facility FDI Foreign Direct Investment FSC Forest Stewardship Council GDP Gross Domestic Product GIHOC Ghana Industrial Holding Corporation GIPC Ghana Investment Promotion Centre GNCCI Ghana National Chamber of Commerce and Industry GPRS Ghana Poverty Reduction Strategy GTZ Deutsche Gesellschaft für Technische Zusammenarbeit GVC Global Value Chain HIPC Highly Indebted Poor Countries HVR Danish Federation of Small- and Medium-sized Enterprises IBE International Business Environment IC Investment capabilities v IFC International Finance Corporation IFU Investment Fund for Developing Countries IMF International Monetary Fund IPR Intellectual Property Rights ISO International Organization for Standardization KfU Danish Centre for Technology Transfer LC Linkage capabilities LDC Least Developed Countries LFA Logical Framework Approach MCP Mixed Credit Programme MDG Millennium Development Goals MOTI Ministry of Trade, Industry and Special Presidential Initiatives NDC National Democratic Congress NLC National Liberation Council NPP New Patriotic Party NRP National Redemption Party NUGS National Union of Ghanaian Students ODA Official Development Assistance OEM Original Equipment Manufacture PC Production capabilities PEF Private Enterprise Foundation PFP Partnership Facility Programme PNDC Provisional National Defence Council PNP Peoples National Party PP Progress Party PPP Public Private Partnerships PRGF Poverty Reduction and Growth Facility PRSP Poverty Reduction Strategy Paper PSD Private Sector Development PSDP Private Sector Development Programme PSI President’s Special Initiatives R&D Research and Development SIA Social Impact Assessment SMC Supreme Military Council SOE State-owned enterprise SSA Sub-Saharan Africa vi TAI Technology Achievement Index TFP Total Factor Productivity U.A.C. United Africa Company UNCDF United Nations Capital Development Fund UNDP United Nations Development Programme USAID US Agency for International Development vii Contents: 1. Development aid to the private sector in developing countries................. 8 1.1 Development aid to the private sector..................................................... 9 1.1.1 Financing development: the role of the private sector............................................ 10 1.1.2 The changing role of the private sector in development aid ................................... 12 1.1.3 Danish development aid to the private sector ......................................................... 16 1.2 Available information regarding the PSDP in Ghana ........................... 20 1.2.1 ‘Reasonably successful…but showing limited concern for broader development aspects’: evaluation-based knowledge regarding the PSDP ...................................................... 21 1.2.2 PSDP collaborations as an example of strategic