Date of Award
Master of Science in Economics (MSECO)
In the past eight years, Ghana, like the rest of the sub-Sahara nations, established economic relations with the bloc nations. The idea behind this move was that economic relations with other nations would extricate Ghana's economy from foreign dominance and eventually help realize both economic and political objectives set forth in the post-independence years.
The purpose of this study was to survey the economic exchanges between Ghana and the Soviet-bloc nations and to assess its impact on the Ghanaian economy.
The following conclusions were drawn after the study:
1) Ghana diverted a small but significant portion of her trade with the traditional traders to the Soviet-bloc nations and trade has increased in both volume and value. For example, Ghanaian imports from the bloc nations in 1961 were N¢18,721 and had reached a level of N¢101,027 in 1965.
2) That the trade has involved the primary raw materials from the area in exchange for manufactured goods from the bloc nations. Examples of the major raw materials were cocoa, hardwood, etc. and those for manufactured goods were tractors, transport equipment, agricultural machinery, etc.
3) Expanded trade and aid neither reduced Ghana's balance of payments deficits nor provided the much needed foreign exchange. From this we can see that trade and aid was not necessarily the final answer to Ghana's economic problems but that a realistic trade policy, as that adopted in the post-coup period, was needed to ensure economic stability and political neutrality.
4) All in all, Ghana's trade and aid experience with the bloc nations was very much similar to those which existed during the colonial economic period. This suggests that policies adopted by the newly emancipated underdeveloped countries will result only in marginal short-term changes as a result of the colonial heritage, geography and economic necessity .
Ansong, Kwadwo, "Ghana's Economic Relations with the Soviet-Bloc Countries: A Study of the Critical Period 1959-1965" (1968). Open Access Master's Theses. Paper 1355.