question archive READ THE FOLLOWING PASSAGE CAREFULLY AND ANSWER THE QUESTIONS THAT FOLLOW
READ THE FOLLOWING PASSAGE CAREFULLY AND ANSWER THE QUESTIONS THAT FOLLOW
Subject:EconomicsPrice:3.87 Bought7
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?
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Ans a.) Ghana is an African nation.There are a lot of notable phases in the growth of the economy of Ghana.The phases befor the reform of 1980 and the phases after the reform of 1980s.The management of the economy has done a great role in 1970 and 1960 as there were the development of industries and the growth was positive since 1984 but after that the share of industries in GDP keep on declining and rise of service sectors till 2013 the situation was much profitable but after that there were huge macroeconomic and fiscal issues , that are due to the internal and external factors .Some of them are high inflation , high debt upto 74 percent of the GDP.There were a rise in the fiscal deficit hence this lead to the intervention by the international monetary fund to restore the confidence and revenue growth generating industries are oil and gas.This stated poor management of ghana economy after 2013 in post reform era.
Ans b) The items that are rebased are petroleum , communication technology and construction to reflect the more accurate picture of the economy in the rebased year from 2006 to 2013.
Ans c) The five important natural resources of Ghana are gold , timber, rubber , bauxite petroleum.They can be preserved by keeping an eye on the usage and exports of the natural resources.As petroleum is a non renewal resources there should be a limit on the extration and production similarly while minning no adverse impact on the environment is to be allowed to be undertaken.The mining and extration of the natural resources should be regulated and for timber it is to kept that new plants should be planted.
Ans d ) Millenium development goals has resulted in the decrease in poverty to half. Although there is still a large number of people are living in poverty , that can be reduced by proper farming practices as well as land holdings , better employment programmes and increasing the education level.The sustainable development goals or SDG are related to people , planet , prosperity, peace and partnership.The SDG goals in Ghana regarding the nutrition are lacking behind as the people of the north ghana faces the shortage of food itmes.The condition for the availability of nutrition can be improved by keeping more area under agriculture and promoting livestock and adopting the modern agriculture practices and waste reduction.The overall heath condition in ghana has improved , the cases of HIV has reduced and the malnutrition is the significant concern.The education goal of MDG has achieved before the target date and is a role model for the entire continent and the natural resources such as forest , oceans and animal protection is gaining momentum , there is a decline in the inequality of male and female and the peace condition in the country is improving .
