Legitimizing Local Governance and Development Reforms in Ghana

Over the past decades, Ghana has witnessed some good economic growth (GDP). Resulting largely from the extractive industry, this growth has had little impact on the average Ghanaian. The largest contributor to Ghana’s GDP, the services sector (50.6%—2014 Budget), is heavily patronized by foreign investors and multinational organizations, hence, a chunk of the benefits of increasing growth in the sector eludes Ghanaians altogether. A good number of the service subsectors depend heavily on importation of several commodities which suggests that the growth in the sector also worsens the country’s trade deficit and balance of payments. Overall there has been reduction of poverty, the northern part of the country has become much poorer compared to the south and there is a growing gap between the rich and the poor. The agricultural sector which employs majority of Ghanaians (55.1%—Ghana Living Standards Survey 5), and can be strategically employed to promote general economic growth and tackle specific issues such as women economic empowerment and youth unemployment, is in a state of stagnation. In light of the above, this chapter critically examines the implications of local government reforms on sustainable development in Ghana to draw lessons for other African and developing countries.