READ THE FOLLOWING PASSAGE CAREFULLY AND ANSWER THE QUESTIONS THAT FOLLOW

Subject:EconomicsPrice:3.87 Bought7

Share With

READ THE FOLLOWING PASSAGE CAREFULLY AND ANSWER THE QUESTIONS THAT FOLLOW. ORIGINALITY WILL BE REWARDED (PLAGIARISM PUNISHED). Ghana's economy has gone through some notable phases. One related to the period before the economic reforms of the 1980s, the era of Economic Recovering and Structural Adjustment programmes, and the reestablishment of constitutional rule in 1993 (Osei and Quartey, 2012). According to them, there were two similarly sharply contrasting economic performances. Prior to the economic reforms in the early 1980s, the economic growth was oscillatory and often negative within the period. The 1960s and 1970s marked an era of rapid industrialization using a variety of control measures and state intervention while from 1984 onwards, growth has been positive and steady but with declining industry share in GDP, with services taking a lead role (Osei and Quartey, 2012). In recent years, macroeconomic fiscal instability has undermined growth. After a prolonged period of sustainable and inclusive growth in 2000-2013, significant external and domestic shocks, amplified by recurrent policy slippages, have created sizeable fiscal and external imbalances. High inflation, exchange rate volatility and rapid debt increases to about 74 percent of GDP (Bank of Ghana, 2020). In 2016, the fiscal deficit reached 9.3 percent of GDP, while public debt increased to about 74 percent of GDP (Bank of Ghana, 2020). According to Bank of Ghana, domestic payment arrears and contingent liabilities from the enerEy sector, state-owned enterprises (SOE) presented additional debt sustainability risks. They further indicated that during 2016, real GDP growth decelerated to 3.5 percent, the lowest level in two decades. The international Monetary Fund (IMF) program and the exit remains critical in anchoring policy reform and restoring investor confidence. Ghana's recent growth performance has benefitted from the Tweneboa -Eyenra Ntomme (TEN) oil field coming on stream and Sankofa gas field. The TEN oil field, is expected to produce between 20,000 to 23,000 barrels of oil per day. The Sankofa field is expected to deliver an additional 30,000 barrels per day of oil and 180 million cubic feet (5.07 million cubic metres) per day of gas to Ghana. Rebasing has subsequently been done in many periods following changing items in baskets and the change of the base year which have resulted in the increase in GDP of the country and reduce the debt to GDP ratio. However, there are concerns about the rate of debt accumulation between 2017 and 2020.

(a) Do you think that the management of the economy were up to task the period before the reforms and after? Explain your answer

(b) Which items were added in the recent rebased GDP?

(c) Mention five natural resources in Ghana and explain how they should be managed.

(d) How can MDGs and SDGs have an impact on poverty in Ghana?