The essay argues that Jerry John Rawlings, the leader of the PNDC, has been consistent in his determination to address the plight of the poor in Ghana. Although the PNDC?s initial response to the country?s economic decline was carved along socialist lines, internal and external socio-economic realities pressured the military junta to dance to the tune of the IMF and the World Bank. Arguably, no Ghanaian leader before Rawlings could have successfully introduced IMF/World Bank prescriptions because of the political implication of these prescriptions. Since independence, domestic social forces have been concerned about the negative impact neo-liberal economic reforms. In order to avoid domestic discontent, the PNDC succeeded in revising politically sensitive prescriptions such as devaluation, withdrawal of subsidies, and privatization. I will not assess the impact of structural adjustment for two reasons. First, the actual impact remains a contentious issue among scholars and policymakers. Second, dealing with the impact would take us far from the task of understanding the initial decision to implement SAP.
The successor government was the National Liberation Council (NLC) under the leadership of General J. A. Ankrah. The NLC abandoned most of the industries established by Nkrumah with the support of the Eastern Bloc (Boafo-Arthur, 1999b: 47). The NLC immediately became pro-IMF and initiated Ghana?s first negotiation with the Bretton Woods institutions. Its standby agreement with the IMF covered trade liberalization, removal of subsidies, fiscal and monetary discipline, and most importantly, devaluation of Ghana?s cedi. Indeed, the NLC revised Nkrumah?s state-oriented approach to development and sought to empower the private sector to become the engine of economic growth. However, recognized professional bodies representing teachers, lawyers, and industrial workers resisted these market-oriented policies. These pressures forced the NLC to handover to Dr. K. A. Busia?s Second Republic in 1969. The Second Republic government was equally pro-IMF, and occupied itself with addressing the weaknesses in the private sector as well as reducing inflation. In other words, Busia?s approach was to use neo-liberal economic policies to bring back the economy on track. Its austerity budget of 1971 introduced taxes on imports, introduced a development levy, withdrew subsidies, liberalized trade, and abolished free education and transport. It also devalued the cedi by 44%. Again, major segments of the population were discontented and these austerity measures were cited by the military as reasons for toppling the Second Republic on January 13, 1972.
The National Redemption Council (NRC/SMC) of Col. I. K. Acheampong and F. W. K. Akuffo assumed office with a promise to capture the ?commanding heights? of the Ghanaian economy. Acheampong sought to rid the country of neo-liberal tendencies. The NRC abolished the development levy, restored full benefits to public sector workers, repudiated many of the country?s external debts, and revalued the country?s currency by 42%. The intention was to put the cedi back fairly close to where it was before Busia altered the exchange rate. The early years of Acheampong?s rule focused on achieving food sufficiency through Operation Feed Yourself (OFY). These decisions won immediate popular support, but eventually worsened the country?s economic position. Some observers have contended that economic mismanagement, corruption, and incompetence of the NRC/SMC, siphoned-off the country?s scarce resources. The foreign exchange realized from the unprecedented increase in world producer prices of cocoa was largely diverted (Shillington, 1992:21). It was in this era of economic uncertainty that Flight Lieutenant Jerry John Rawlings intervened in politics on June 4, 1979, in what Ghanaians describe as ?Rawlings? first-coming?. Rawlings and his supporters established the Armed Forces Revolutionary Council (AFRC) with the intention of cleaning-up the ?mess? created by the NRC/SMC. True to its promise, the AFRC fought corruption, profiteering, and mismanagement. To a great extent, the AFRC succeeded in suppressing these vestiges of exploitation before acting on its promise to hand power over to a civilian government of Dr. Hilla Limann in September 1979 (Gyimah-Boadi, 1993:6).
Dr. Limann?s Third Republic, inherited a collapsing social infrastructure, shortage of foreign exchange, scarcity of consumer goods, and weak state institutions. Mismanagement under the NRC/SMC had resulted in an era in Ghanaian social life where ?destitution and despondency ? became the order of the day (Gyimah-Boadi, 1993:2), and Rawlings?s brief rule had not changed that situation fundamentally. Limann did consider seeking external assistance, including IMF loans, to resuscitate the economy. Domestic pressure groups such the Association of Registered Professional Bodies (ARPB), the National Union of Ghana Students (NUGS), and the Ghana Bar Association (GBA), once again, compelled the government to withdraw from the negotiation. As usual, these domestic groups were concerned about the negative impact of IMF prescriptions. In addition, the military concluded that the PNP was incompetent and ?dull?. Little wonder that Limann?s Third PNP was abruptly ended on December 31, 1981 by another coup led by Rawlings. In what is called his ?second coming,? Rawlings declared a ?revolution? and established the PNDC.
Fourthly, the PNDC?s own political survival was threatened by coup attempts in 1982 and 1983. Former members of the PNDC and its revolutionary organs, most notably Chris Atim and Alolga Akatapore staged these abortive uprisings. It was alleged that the American Embassies in Accra-Ghana and Lome-Togo funded these dissidents. Martinson (2000:144) speculates that the source of this intelligence was one Ms. Sharon Scranage, a female African-American CIA agent who served in Accra until 1985. Ms. Scranage was later convicted in the United States for having divulged CIA secret to her boyfriend, Michael Soussoudis. Michael Soussoudis is Rawlings? cousin. The PNDC was stunned by this information and the general reaction that followed the uprising. There is little doubt that Rawlings had the loyalty of the military, but it was wiser to avoid complacency. These threats increased the political pressure on the PNDC to speed up its efforts in searching for economic remedies. Knowing that Ghana had witnessed five successful coups and several abortive ones, Rawlings realized that he had to do something about the situation.
Last, but not the least, the PNDC?s inability to attract support from its Communist East, either in cash or in kind, was a motivation for neo-liberal economic reforms. The PNDC members who took trips to the USSR, Cuba, China, and Libya in a bid to attract economic support returned, ?empty- handed? (Boafo-Arthur, 1999b). The Communist East, particularly the Soviet Union (USSR) complained about the weak performance of their own economies and revealed their intention to reduce their external financial and material commitments to their allies. The USSR was in crisis because of its huge investments in technology and arms race needed to match-up with the US. Thus, the USSR had no choice but to advise Ghana to return to the IMF and the World Bank while holding on to the ?revolutionary ideals?.
In all of this, one thing was certain: the PNDC inherited virtually empty national coffers. Since empty coffers cannot support the transformation of an economy, the PNDC had no choice but to return to the Bretton Woods institutions for recovery. After all, ?if you can?t beat them, join them?.
The PNDC?s economic team was as intricate as the bureaucratic politics model suggests. The PNDC consisted of members of the revolution, leftist sympathizers, bureaucrats, and academics. Although the country?s economic problems were well understood by members of the PNDC, the decision on policy reforms was extremely difficult to reach. Some elements felt that poor economic performance and the threats to the PNDC?s were not enough to warrant an ideological shift. Thus, the initial years of the PNDC were characterized by struggles among the various members of the economic team and the bureaucrats as to which views were to drive the country?s economic agenda (Boafo-Arthur, 1999: 82).
Rawlings initially aligned himself with such individuals espousing variants Marxism-Leninism as Dr. Kwesi Botchwey, Totobi Quakye, Tsatsu Tsikata, Kojo Tsikata, P.V.Obeng, Dr. Joseph Abbey, Dr. Ammisah-Arthur, Chris Atim, Sgt. Alolga-Akatapore, and Brigadier Mensah-Nunoo. These individuals were respected scholars, bureaucrats, military personnel, and cadres of the revolution. Indeed, Botchwey, Ammisah-Arthur, Tsikata, and Abbey had served as professors before taking up senior bureaucratic positions. Others such as Chris Atim and Kwamena Ahwoi, were members of such revolutionary groups as the June Fourth Movement (JFM), the New Democratic Movement (NDM), the Peoples Defense Committee (PDC), and the Workers Defense Committee (WDC). These revolutionary organs were created to pursue the regime?s ideals of probity, accountability, and popular participation in national development effort. The revolutionary groups played a significant role in drafting the contents of SAP because their support was crucial for the political survival of the PNDC.
The PNDC established the Committee of Secretaries to be responsible for Ghana?s major ministries and departments. These included the Ministries of Finance and Economic Planning, Trade and Industry, Mobilization and Social Welfare, Agriculture, Foreign Affairs, Lands and Forestry, Education, and Youth and Sports. Chief directors of these ministries and departments who were career civil servants reported to the PNDC secretary responsible for the ministry. These secretaries were either members of the Committee of Secretaries (CS) and or the PNDC. The members of the PNDC could hardly exceed ten. To appreciate the bureaucratic politics involved in Ghana?s decision to opt for SAP therefore one needs to focus on the PNDC, the Economic Management Team, the Committee of Secretaries, and bureaucrats at the Ministries of Finance, Trade, Agricultural, and Employments and Social Welfare.
Once it appeared likely that SAP would be adopted, each participant sought to reduce its perceived losses from adjustment while stressing what it perceived as beneficial. Arguably, the negotiations within the government did not only focus on how to preserve the vitality of the bureaucrats and professionals, but also took into account the need to fulfill the various promises the regime had made to Ghanaians. Little wonder that the participants focused on increasing producer prices, provision of social infrastructure, and other programs necessary to mitigate the social cost of adjustment (PAMSCAD). In all of this, whether a group supports or opposes SAP depends on where it stood on the anticipated costs and benefits of such neo-liberal economic reforms (Baofo-Arthur, 1999:62).
In terms of policy preference, the PNDC could be grouped into two: ?neo-Marxists? and ?pragmatists?. The first group was made up of such left-wing critics of SAP as Brig. Mensah-Nunoo, Zaya Yeebo, Chris Bukari Atim, Sgt. Alolga Akatapore, Akwasi Adu, and Taata Ofosu. They were involved in SAP discussions because they are sector secretaries, PNDC members, leaders, and sympathizers of the revolution. Their leftist views reflected the various units they represented. They argued that a decision to implement neo-liberal economic policies would amount to a contradiction of the PNDC?s original ideological posture. No wonder they vociferously opposed any dealings with the IMF and the World Bank. They insisted on the need for the PNDC to hold on to Ghana?s ?heritage? of rejecting imperialist policies and to concentrate on popular participation and mobilization (Hutchful, 2002:141-143). The leftists in the PNDC yearned for a return to an era when Ghana was in the forefront of the struggle to end colonialism. Consequently, they believed that major components of SAP such as privatization, had the potential of squeezing-out the domestic industries, making it extremely difficult, if not impossible, for local entrepreneurs to compete with their foreign counterparts. Privatization, they argued, would reverse Ghana?s post independence emphasis on ?state-oriented? policies, which helped in reducing the exploitative posture associated with the private sector. In addition, they emphasized that liberalization of prices was not in the interest of the PNDC because price control helped to check the profiteering associated with scarce commodities. The PNDC?s initial approach to pricing was to designate basic commodities such as canned fish, sugar, detergents, and evaporated milk, among others as ?essential commodities?. Special arrangements were therefore made to import these items, which were then sold at ?fair? and ?controlled? prices to avoid profiteering (Brydon and Legge, 1996:11). Furthermore, the opponents of IMF/ SAP insisted that withdrawal of subsidies on products was likely to increase consumer prices, which would increase the burden on the ordinary Ghanaian. These leftists felt SAP would defeat the revolutionary ideals of refocusing attention to the suffering rural population who had been ignored by urban-oriented programs of previous governments.
The other group in the PNDC?s economic teams was made up of ?pragmatists? such as Dr. Botchwey, Dr. Abbey, Dr.Amissah-Arthur and Rawlings. Some of these individuals had served in various professional positions such as economists in the ministry of finance, senior officials of the Central Bank, Bank of Ghana (BOG), and others were university professors. By the end of 1982, these individuals within the PNDC felt the need to reconcile the pressures of pragmatism and revolutionary idealism. In a series of public broadcasts between 1982 and1983, both Rawlings and finance minister Botchwey blamed their leftist friends for their delay in salving Ghana?s economy. They contended that the country?s steady economic decline needed to be addressed, and that the longer the PNDC waited, the more difficult it would be to address the decline (Ahiakpor, 1991:598; Shillington, 1992:111). By January 1983, Dr. Botchwey, a staunch critic of IMF policies in his teachings at the University of Ghana revised his views and admitted that implementing SAP was necessary to promote social justice, which is central to the PNDC?s goals (Jebune and Oduro, 1993:29).
Rawlings, Botchwey, and other ?pragmatists? on the economic team blamed the uncompromising leftists for the mistakes of the PNDC?s economic failures. They further indicated in their televised interviews that the government was no longer going to postpone its determination to address the country?s economic crisis. The regime was under pressure to provide relief to an economically starving population and to fulfill the promise of economic stability it had made in the heat of the revolution (Bawumia, 1998:56).
Profound cleavages and competition emerged within the ruling PNDC and among its members? respective supporters in the society over which ideological group would determine policy preferences and directions (Boafo-Arthur, 1999:82). The struggle within the government was so acrimonious that there was a series of abortive coup attempts by the leftist elements of the PNDC in late 1982 and 1983. At the end of the game, however, the ?pragmatists? led by Rawlings and Dr. Botchwey triumphed.
Neo-liberal economic reforms were accepted not only because the uncompromising ?left-wingers? resigned or were forced into exile, but also more importantly, because implementing the particular structural adjustment agreement reached with the IMF and the World Bank was perceived as a reasonable compromise among the leading policy advisers on the economic management team. The initial resistance demonstrated by the erstwhile leftist members of the team compelled the PNDC and the Bretton Woods institutions to reexamine several aspects of SAP. Thus, the specific sets of prescriptions adopted by Ghana did not reflect the full demands of the Bretton Woods institutions. Trade liberalization, was revised to focus on such areas of agreement as tariffs and import licensing while privatization, which was highly controversial, was limited to non-performing enterprises in non- strategic sectors. With regard to devaluation, the PNDC and the IFIs settled on a multiple exchange rate as a transition to full devaluation of the cedi. Such a compromise was necessary because previous attempts to devalue the country?s currency resulted in military intervention (Martin, 1991: 238-239).
The decision to implement SAP therefore was the outcome of varying ability of the various participants to demonstrate their prominence in negotiation. It is arguable that because economists and bureaucrats dominated the ?pragmatist? group, they were likely to back their arguments with reliable and verifiable data. It appears easier to prove the modernization impact of the global economy. As suggested by the bureaucratic analysts, advisers with high status or power can guide or even dictate the decision-making process whereas the less powerful can be easily marginalized. The consensus in the economic negotiation was that the government could not rely on domestic sources to solve the country?s problem. It is difficult to prove a counterfactual, but it is reasonable to infer that Ghana?s economy would have headed for total collapse if the PNDC had not opted for reforms in 1983. As an illustration, neighboring West African countries such as Sierra Leone, Gambia, Senegal, and Niger who opted for SAP couple of years after Ghana?s decision, did so at a time when their economies had deteriorated from bad to worse.
The PNDC had an easier time adopting SAP than predecessor governments because the impressive achievement of countries such as Taiwan, South Korea, Singapore, Brazil, and Mexico challenged the classic dependency views that countries like Ghana cannot develop within the international capitalist economy (Dzorgbo, 2001:14). Rawlings and his advisers were more optimistic about the dynamic impulse of the developing world. They often asked: how does one account for the marked difference between Ghana and South Korea when by the late 1950s and 1960s per capita income in both countries was comparable? Although Ghana?s position was weak vis-a-vis the Bretton Woods institutions, it was still possible to make the best out of the situation. Indeed, the ?associated-dependent development? variant of dependency theory offered by Cardoso and Faletto (1979) suggests the possibility for development even in an unequal relationship. By 1983, therefore Rawlings conceded that the world had become more complex than classic dependency theorists such as Andre Gunder Frank (1966) and Walter Rodney (1972) sought to portray. International trade was no longer a zero-sum in which the South was exploited for the sole benefit of the industrialized North (Munck, 1999: 60). The PNDC concluded that an agreement between Ghana and the IMF could be beneficial to Ghana. Even if the IMF and the World Bank had little to offer Ghana, it was still better to negotiate with them than choosing to ignore the crisis. As observed earlier, the PNDC was able to modifying specific SAP requirements.
The military came into power accusing the Third Republic government of incompetence and inability to improve the situation of the rural poor. It was for these views that ?Junior Jesus? Rawlings intervened in Ghanaian politics. Rawlings had no justification, whatsoever, for failing to rescue Ghanaians for the second time. The military junta?s delay in ameliorating the plight of Ghanaians could result in both rural and urban discontent. Even without democratic elections, the PNDC needed rural and urban support to survive in office. The Association of Recognized Professional Bodies (ARPBS), the Ghana Bar Association (GBA), National Union of Ghana Students (NUGS), and others, while condemning the military?s human rights records, traced economic hardships to the NRC/SMC era (Dzorgbo, 2001:293). Although most of these interest groups had always opposed IMF policies, they came to a realization that something had to be done.
The military?s polemics of probity and accountability had found widespread favor, but without economic and social progress, they were meaningless. Suffice it to add that the plight of the rural population in the early 1980s was the worst in the country?s recent history. Although the military was unwilling to please the smaller urban population, it could not in any away ignore the needs of the rural majority. The PNDC?s success and stability relied heavily on rural support. Knowing that the praise and blame rested squarely on the leader, Rawlings could not have cited bureaucratic hurdles as rationale for failing to address Ghana?s economic decline. Asking critics of SAP to halt the ?populist nonsense? was a reminder that the leader?s values could not be obscured by bureaucratic politics. Indeed, responsibility for failure to act would rest on the leader of the PNDC and not the bureaucrats. Leaders do rely on their own judgment in accepting or rejecting views, and are aware that, as Redd (2002: 243) noted, some advisers are not motivated by genuine interest to help the leader to decide. Above all else, a leader?s calculations are based on the political consequences of policies. Although the imperatives of organizational behavior limit a leaders ability to implement a policy, they do not in any significant way extend to policy formulation (Krasner, 1972:178). With regard to implementation, bureaucrats could facilitate or frustrate specific policies. As the founder and leader of the military government, Rawlings could not in anyway be considered merely primus inter pares. His advisers served at his will and only asked for advice whenever necessary. The dismissal of Ms. Aanaa Enin from the PNDC in 1989 is one example. The admission of Mahama Iddrissu, Justice Daniel Francis Annan, and Kojo Tsikata, who were not part of the revolution until much later, is another illustration. Indeed, Rawlings had the ability and power to reorganize the PNDC in any manner, giving him in fact total control and influence on the policy-making process. The PNDC leader was no doubt the ?king? in the discussion on whether to accept SAP. Since Parliament was dissolved and the Judiciary organ of government was dormant, Chairman Rawlings had no effective political competition within the government. As Hutchful (2002:146) rightly conveys, the meetings of the PNDC were not held to carefully deliberate on policies, but rather to ratify Rawlings? decisions. Rawlings? perspectives influenced the weight attached to specific issues by the economic team. Hutchful (2002:145) demonstrates this viewpoint when he reminds us of the view among the IMF and World Bank staffs that, ?all that was needed was Rawlings? personal commitment to ensure that a policy will be carried?. In all of this, the contention is that Ghana opted for SAP because Rawlings felt it was a good idea and the economic team shared this view.
Thus the bureaucratic politics model obscures the power of the leader in selecting his advisers and in defining their influence in the policy-making arena (Krasner (1972:160). Rawlings? experience with the Ghanaian bureaucrats and economic experts makes one reject the claim that it is extremely difficult, if not impossible for a leader to control his advisers. The PNDC without Rawlings can be equated to a ? Hamlet without the Prince?. Even the formation of the economic management team to discuss SAP was a clear indication that the leader could go outside the regular bureaucracy to brainstorm on economic reforms. If a leader has an interest in an issue, his values are more likely to shape the outcome. The Ghanaian case suggests that the leader could look elsewhere for alternatives or may even rely on his or her own accumulated experience to decide on an issue. It is when there are few areas to exploit for views that the leader is entangled in a bureaucratic web.
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