Ghana

Ghana performs relatively well for a sub-Saharan African country, ranking 86th overall, 79th for Economic Competitiveness, and 85th for Comparative Liveability. Ghana’s overall rank is reduced by its dependence on foreign aid, and by its low health-adjusted life expectancy.

Notoriously volatile in the early post-independence era, Ghana managed a successful transition to democracy in 1992, consolidated by a peaceful opposition victory in the 2000 presidential elections. Compared to most of its African peers, Ghana thus scores relatively well across most governance indicators.

This political stability also translates into remarkable economic growth. As Ghana’s traditionally turbulent relationship with international financial institutions has steadied, structural adjustment measures have finally started to pay off. Annual growth rates are above 5%. In addition, Ghana has experienced a degree of diversification, as shown by the lack of dependence on commodity exports (although foreign aid flows remain large compared to the size of the economy).

Ghana’s prospects for long-term growth are more worrying. A lack of capital investment will make wider economic diversification or enhanced productivity difficult. Furthermore, mass education levels are poor. This, added to the high cost of starting a business, constrains the entrepreneurship, an especially acute problem for a country at Ghana’s level of development.

Ghana’s stable and democratic political system protects relatively high standards of equality of opportunity. In addition, Ghanians report a high level of satisfaction with their freedom to choose how their lives turn out. Ghana outperforms most other African countries in this category. These extensive civil liberties are consistent with a widespread ethos of individualism.

According to the Gallup Poll, more than 95%^g of Ghanaians believe that they can get ahead through hard work -- one of the highest values in all countries sampled. Another positive factor is the warm climate, significant at these low levels of income.

This enthusiasm, however, stands in contrast to the realities of the Ghanaian job market. As subsistence farming remains the predominant form of employment, economic opportunities for young Ghanaians are severely restricted and unemployment stands at 11%. Average annual income is less than $2,500, which is higher than in neighbouring countries but well below the global mean. High levels of divorce mean that family life in Ghana scores very badly on the Index.

Like many other African states, Ghana therefore suffers from an exodus of its qualified workforce. Ghanaian doctors and nurses in particular often leave the country to work abroad, which causes acute shortages in the public health system and produces negative scores on the health indicators. Health-adjusted life expectancy is less than 50 years.