For reasons unknown, the late former president Jerry John Rawlings unlike his predecessors and successors who are usually acknowledged for certain social interventions/programmes and infrastructural development in the country, Mr Rawlings is notoriously remembered for overthrowing then president Dr Hilla Liman in the 1981 June 4 Revolution.
It is as though Mr Rawlings did nothing to contribute to the socio-economic development of Ghana.
In this feature, norvanreports objectively tries to take a look at how the former president managed Ghana’s economy – from debt to GDP trends, fiscal deficits, inflation, economic reforms – the social programmes/interventions he undertook as well as the level of infrastructural development – roads, hospitals, schools and factories – attained during his 19-year long tenure.
Ghana’s economy under Mr Rawlings
Mr Rawlings in 1982 established the Economic Recovery Program (ERP) suggested by the World Bank and International Monetary Fund.
Funding provided by Ghana’s bilateral donors for the ERP reached $800 million in 1987 and 1988, and $900 million in 1989.
Policies implemented by the Rawlings Government from 1993-1994 sought to stabilize the economy and regain control over the budget deficit.
Economic growth within the period dropped from 5% in 1993 to 3.3% in 1994, fiscal deficit also dropped from 7.4% of GDP in 1993 to 3.8% of GDP in 1994.
Inflation reached 34.2% in 1994. Cedi depreciation against the dollar dropped from 64.3% in 1993 to 27.9% in 1994.
The Rawlings Government in 1995 signed on to a three-year (1995-1997) IMF-support program to ensure macroeconomic stability.
Economic performance in 1995-1996 did not significantly differ, on average, from that recorded in 1993-1994.
Real GDP growth averaged 4.3% in 1995-1996, the fiscal balance recorded a deficit of 4% of GDP in 1995, rising to 8.4% of GDP in 1996, caused mainly by revenue under-performance.
Inflation continued to rise and peaked at 70.8% in December 1995 before dropping throughout 1996, reaching 32.7% in December 1996.
Cedi depreciation that began in January 1994 slowed in the early part of 1995, but took an upward turn thereafter ending the year with a depreciation of 37.6% against the dollar.
Economic growth averaged 4.5% in 1997-1998, while the country witnessed some improvements in its fiscal position, as overall fiscal deficit reached 7.4% of GDP.
Growth of broad money supply dropped but interest rate remained stubbornly high, especially in 1997, despite the good performance of inflation during the year. The cedi however, witnessed a great deal of stability in 1998.
Ghana between 1999-2000 saw a sharp deterioration in trade caused by a sharp drop in the prices of cocoa and gold amidst a sharp increase in the price of crude oil.
Real GDP growth rate dropped from 4.6% in 1998 to 3.7% in 2000; the fiscal position deteriorated, with the fiscal deficit rising to 8.6% of GDP in 2000 due in part to the 2000 general elections and the huge interest burden resulting from the debt build-up dating back to the 1980s.
Although broad money supply growth increased during the period, the disinflationary trend that began in 1996 continued through the first half of 1999, causing inflation to hit a single digit of 9.4% in May 1999, for the first time since June 1992.
By end-December 2000, however, the inflation rate had risen back to 40.5% in response to the increasing rates of liquidity growth during the period.
Roads built by the Rawlings Government
The 78-kilometre Tema-Akosombo road that links the Harbour City to the inland port at Akosombo executed with a loan of 23.8 million deutsche marks from the German government with Rawlings’ Government providing the local component of 4.6 billion cedis.
Reconstructed the entire Kumasi city roads, Sekondi-Takoradi city roads and Accra city roads.
In Accra, these included the six-lane dual carriage road leading to the four-lane dual carriage road from the Tetteh Quarshie Interchange to the Independence Avenue.
Constructed the Kumasi-Sunyani asphalt road; the Kintampo-Tamale-Bolgatanga-Paga Faso asphalt road.
Donor funds secured by NDC and committed to specific trunk roads include;
- Accra-Yamoransa …………….$54.10 million (committed) for 76.7 km
- Kumasi-Anhwia Nkwanta……..$11.0 million (committed)
- Achimota-Apedwa………………$75.0 million (for 60 out of 90 km)
- Tema-Sogakofe ………………..$30.0 million (secured)
- Sogakofe-Aflao…………………$27.0 million (secured for 46 out of 70km)
- Apedwa-Bunso ………………..$14.0 million (secured)
- Awaso-Nobekaw ………………..$6.0 million (committed)
- Nobekaw-Gambia #2 …………….$4.0 million (committed)
- Kumasi-Techiman ……………….$ (secured)
- Axim-Junction-Takwa……………$ (secured)
- Bibiani-Abuakwa ……………….$ (secured)
- Takoradi-Agona Junction $14.29 million (committed)
- Bunso-Anyinam………………….$9.0 million (secured)
- Gyato-Zongo-Yeji ………………..$43.4 million (committed)
Agriculture, health and housing scheme under Mr Rawlings
Under the agricultural policy and programme of the NDC from 1994-2000, the World Bank’s 1999-2000 Development Report recognized Ghana’s Food Production Index of 148% from 1995-1997 as the third highest achievement in its record, after Jordan (157%) and China (156%).
Funded numerous irrigation programs in the lower Volta through the inception of the Kpong Dams and Kpong Farms – a subsidiary of VRA.
Took a loan facility of US$20.2 million from the African Development Bank and another US$30.0 million from the Citibank of United States of America in 1999 to support the agricultural sector.
Started the expansion project and renovation of the 37 Military Hospital.
Constructed the modern regional hospitals at Cape Coast, Ho and Sunyani. Numerous modern district hospitals were constructed in the district capitals all over the country.
26 new health centres completed in 1998 amounting to 225.6 billion cedis with ¢33.9 billion coming form the Government and the remaining ¢191.7 billion from development partners.
Completed the Maternity Block at the La Polyclinic as well as the Non Trauma Emergency Unit at the Korle-Bu Teaching Hospital at a cost of ¢903 million and ¢760 million respectively. Five rural health centres were constructed at a cost of ¢984 million.
Establishment of the Cardiothoracic Surgery Facility, which was championed by Dr. Frimpong Boateng.
Oversaw the construction of housing estates at Adenta, Sakumono, Lashibi and on the Spintex road as well as some of the SSNIT Estates.
Taxes introduced by the Rawlings Government
Passed the value added tax (VATR of 10% in 1998 and 12.5 in 2000) to secure government revenue base.
Passed the Ghana Educational Trust Fund (GET Fund) that is today educating millions of Ghanaians.
The creation of District Assemblies’ Common Fund, the Road Fund, the EDIF and the Energy Fund.
Schools built by Mr Rawlings
Established the University for Development Studies (UDS) with the $50,000 cash prize for wining the Hunger Award.
Upgraded the Winneba Advanced Teacher Training College into a full-fledged public University of Education, Winneba.
Introduced the policy of allowing the establishment of private tertiary institutions, including Universities, to supplement the public sector Universities.
Implemented the policy of one region, one Polytechnic.
Built 220 Senior High schools by making sure every district had at least two senior secondary schools.
Establishment of 20 Technical/Vocational Resource Centres in 14 districts namely, Kpando, Afram Plains, Abura-AsebuKwamankese, Nzema, Accra, Hohoe, Keta, Kwahu South, Kwaebibirem, Bawku East, Shama Ahanta East, Kumasi, Wa and Tema,
Energy sector reforms
In 1996, the Tema Oil Refinery Ltd. began to procure and process crude oil for its own account as a result of an industrial restructuring programme.
Contracted $200 million loan facility from a Korean consortium in 1997 to increase the installed capacity of the Tema Oil Refinery (TOR) by 60% from 28,000 to 45,000 barrels per day.
Plant configuration was changed from a simple hydroskimming to a modern complex refinery with the commissioning of a 14,000 bpsp Residual Fluid Catalytic Fluid Catalytic Cracking (RFCC) unit to convert low value residuum into high value LP Gas and Gasoline, Kerosine, aviation turbine kerosene, automotive gas oil (diesel), premix fuel, Premium Gasoline, Residual.
West Africa gas pipeline,In 1995, Ghana led the four member states, Togo, Benin, and Nigeria to sign Heads of Agreement for the supply of transmission. In 1996, independent feasibility study was undertaken by a German company which concluded that the WAGP was feasible and economically viable.
In 1999, the four member states appointed a consortium of public and private companies which included Ghana Petroleum Corporation, Shell of Nigeria, and Societe Togolaise/Beninoise du Gaz. In 2000, an inter-governmental Agreement was signed by the four states to facilitate the pipeline development by harmonizing their legal, regulatory, and fiscal regimes.
Loans contracted and bequethed to the NPP by Mr Rawlings
Here are some list of loans contracted by P/NDC in 2000 for projects bequeathed to the NPP.
- Korle Lagoon Rehabilitation Project …………………… $5 million
- Korle Lagoon Rehabilitation Project Phase II…………….$37.15 million
- Small Farms Irrigation Project II ………………………….$9.5 million
- Volta Lake Debris & Shoal Removal and Dredging……..$3.75 million
- Sogakofe District Hospital……………………………….. $19.5 million
- District Towns III …………………………………………$5.2 million
- National Functional Literacy Project …………………..…$30.7 million
- Urban V Project ……………………………………..…….$10.5 million
- Economic Reform Support Operation ……………………$50.4 million
- Akwapim Ridge Water Supply Project ……………………$4.999 million
- Achimota-Anyiman Road Rehabilitation Project…………..$7.0 million
- Poverty Reduction Project ……………………………… $2.3 million
- Akwapim Ridge Water Supply System …………………..$5.2 million
As reported by norvanreports on Thursday, November 12, 2020, Mr Rawlings passed on in the early hours of Thursday morning at the Korle-Bu Teaching Hospital, after a short illness.
The nation was thrown into a state of shock following the announcement of his demise.
He was survived by his wife, the former First Lady Nana Konadu Agyeman Rawlings and four children.
He was the first Presidential Candidate of the NDC and won two elections (1992-2000) when Ghana came under constitutional rule in 1992, marking the commencement of the Fourth Republican multi party democratic state.