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Periodical article | Leiden University catalogue | WorldCat |
Title: | Balance of payments constraint and economic development |
Author: | Manu, J.E.A. |
Year: | 1972 |
Periodical: | The Economic Bulletin of Ghana |
Volume: | 2 |
Issue: | 4 |
Pages: | 17-32 |
Language: | English |
Geographic term: | Ghana |
Subjects: | economic development balance of payments foreign investments |
Abstract: | Ghana has borrowed heavily from abroad to finance her development expenditures. The contention in this essay is that the preponderance of medium-term loans in her external debts has put such pressure on the balance of payments that future development is jeopardised. The conclusion is that there is a fundamental defect in using medium-term loans for long-term development projects which makes their repayments difficult in the long-run, and that their use has undermined Ghana's ability to service her external debt obligations and at the same time to achieve her growth potential. Part 1 of this essay describes briefly the course of the balance of payments from 1956 to 1968. Part 2 analyses the capital account for the same period. Part 3 is an estimation of the debt service ratio for the period 1970 to 1980, as well as of Ghana's ability to mobilise internally the required savings to service her debts. Notes, tables. |