Barriers to Economic Development in Ghana

Economic growth is an increase in the capacity of an economy to produce goods and services from one period of time to another. In simple terms, it refers to an increase in aggregate productivity.

Assess the significance of three factors which might limit economic development in the developing countries.

Economic Development: Growth is associated with structural, social change and change in the important institutions of the economy.

Also, the Ghana people try to get public health and nutrition got improved around the country. Ghana is about 53% urban and 46% rural and these areas are varied in many ways. Two thirds of the population is about under 30 and life expectancy has been risen over the years. It is about 64 years for males and 69 years for females. Also, a lot more schools were made when they got independence and more people started to speak English.

Economic growth is best defined as a long-term expansion of the productive potential of the economy. Sustained economic growth should lead higher real living standards and rising employment. Short term growth is measured by the annual % change in real GDP.

Economic growth is defined as the rate of growth of the whole income of a nation and is the most efficient indicator of an economy 's health... And wealth.

Economic growth, put simply, is “an increase in the amount of goods and services produced per head of the population over a period of time”; development is inextricably linked with this economic growth. By utilising theories of economic growth and development we can see how the Chinese and Sub-Saharan African economies have emerged, but, more notably, we can use these to look at patterns from past and present to show their experience and the implications of this growth for the future.

Assess the significance of three factors which might limit economic development in the developing countries.

Dominated by agriculture grown for export markets since colonial times, the economy of this West African nation is beginning to diversify (Michael Radu). According to statistics provided by the International Monetary Fund, in 2006 revenues from oil and refined products surpassed earnings from the nation’s biggest cash crop, cocoa (African Studies Center). The government in 2011, predicted that the nation’s biggest source of wealth would be petroleum resources. Currently more than 30 international mining companies are mining and exploring reserves of gold. Political stability will determine is multinational energy and mining companies can assist with bringing gold, natural gas, diamonds, nickel, oil, and other natural resources. Foreign investments have slowed down due to political instability, which contributed to the country’s initial financial success. Economic growth has come to a standstill. Although the GDP growth rate improved from about 2% in 2008 to 4% in 2009–2011, per capita income has continuously dropped since 1999, with a slight improvement in 2009–2010 (Central Intelligence

The population growth rate for Ghana is 2.19% with 38.7% of the population falling between zero and fourteen years of age. Therefore, the population pyramid definitely shows that Ghana has developing issues (Index mundi, 2013). Having a high birth rate and being a pre-industrialized country proves that Ghana is going through the demographic transition at a slow pace. With such a large sector of the population being children, there are major issues for education and being able to budget for education. Also, consumption is increasing with this population growth which will eventually reduce savings and investment with more mouths to

From various perspectives the two nations has centered, Ghana and Côte d'Ivoire, catch the differing qualities of involvement in Africa since freedom. The regular picture painted of a landmass subject to political unsteadiness, buried in destitution and stagnating is a long way from reality. For over two decades Côte d'Ivoire was a standout amongst the best nations in the creating scene. Ghana's recuperation, both financial and political, since the breakdown of the mid 1980s has been amazing. In any case, on account of Côte d'Ivoire achievement was not kept up, and on account of Ghana the economy stays a long ways behind those similarly poor at the season of freedom however now with high livelihoods.

In conclusion, the various aspects of the economy have been tackled with a keen eye on the production output performance analysis. This includes the various factors of the economy, such as real GDP, real GDP growth rate and real GDP per capita analysis. Furthermore, the labor market analysis of the Kenyan economy has been scrutinized. This takes into consideration the unemployment and the various types of unemployment in the Kenyan economy. The development spectrum is well shown by the population factors and it’s GDP. The GDP stands at $14.9 billion with a 5.6% growth and 5.5% 5-year compound annual growth and a capital of $3208 per capita. The unemployment rate is at 9.2 % and an inflation of 6.6%. Overall economic freedom is limited by weak protection of property rights and by extensive corruption. Corruption is perceived as pervasive, and the judicial system remains vulnerable to political influence. An expected growth of economy is highlighted by the discovery of oil which has become an opportunity for rising Kenya’s growth, which is aimed at achieving country’s vision 2030

The land and climate of West Africa had a big effect on the developing Kingdoms. Ghana was the first of three West African Empire to exist. The land occupied by the Kingdom of Ghana had so much gold that Arab merchants from North Africa carried salt, copper, clothing, tools and dried fruits to Ghana by camel caravans to trade. Due to its hot climate, developing the cities there was difficult because there was no good form of building other than sun-dried mud. By Ghana becoming a trading center, the power of the Kingdom grew. Taxing people on entering and leaving the country was one way the Kingdom got richer. Ghana’s monarch had laws stating that people were not allowed to own any form of gold, except gold dust. So it was really the climate

Economic growth is a necessary but not sufficient condition of economic development. There is no single definition that encompasses all the aspects of economic development. The most comprehensive definition perhaps of economic development is the one given by Todaro: ‘Development is not purely an economic phenomenon but rather a multi – dimensional process involving reorganization and re orientation of the entire economic and social system. Development is a process of improving the quality of all human lives with three equally important aspects. These are: 1.

This can be measured by the following formula; Per capita nominal GDP = Nominal GDP / Population, Per capita real GDP = Real GDP / Population. Seven factors determine economic growth. Natural resources such as land, mineral deposits, waterways; climatic conditions provide an essential foundation to economic growth. Combined with the other resources of capital, labor and enterprises, natural resources can be developed and organized to increase the productive capacity if the nation. Consequently the quality and size of the labor force is a major determinant of economic growth. Education and vocational training are essential the growth potential of a nation. The promotion of education and job training schemes increase the knowledge, skills and flexibility of the workforce that contributes to potentially higher levels of productivity and efficiency. Whether from natural increase or immigration population growth can cause a higher level of economic growth. An increasing population requires increased public spending on housing, education and other social needs while businesses expectations of