Structural Adjustment and SocialDisequilibrium in Ghana: AnAssessment ofPAMSCAD Programme as a PolicyResponse Tool
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Title:
Structural Adjustmentand Social Disequilibrium inGhana: An Assessment of PAMSCAD Programme as a Policy ResponseTool
Author: Agyekum, Kwame Pius
Abstract:
Mostgovernments in Africa embarked upon structural adjustment programmes (SAP) in the mid 1980’s with the aim of stabilizingand improving their economies. Ghana’s adjustment started in 1983 with the view to halt and reverse the almost twodecades of stagnation and decay of the economy. SAPin Ghana made significant gainsat the macro economic levelinthe areasof: • export volumes (increased more than 10% from 1983); • inflation(dropped from 123% in1983 to 10.4% in 1983); • real per capita income (increased by 6.8% in1984); and • investment (increased more than two-and-half times). Despite the impressive macro-economic gainsat the national level,most vulnerablegroups were languishing inpoverty onthe ground. On realizing the socialdisequilibriumcreated by SAP and the predicament of the vulnerablegroups, the government instituted a Programme of Actionsof Mitigate the SocialCostsof Adjustment. (PAMSCAD) asa policy responsetoolto providequick reliefto the poor throughout the country PAMSCAD projects have been implemented in the country wellover eight years and the Secretariat which monitoredand coordinated activitiesfolded up inJune 1996. This research therefore was undertaken to assessthe levelof achievements and impacts of PAMSCAD projects on beneficiaries(the poor) at the micro level with Ejisu Juaben, Kumasi and Bosorntwi Atwima Kwanwoma districtsasselected cases. Case study approach was used and purposive sampling technique employed to select communitiesfor the study. Primary and secondary data for the study were gathered using formal and informal interviews. Five separate interview schedules (Appendix 3) were prepared and administered among the following: Small Scale Entrepreneurs and Peasant farmers whoreceived PAMSCAD Credit; Communitiesand individualbeneficiaries of PAMSCAD WATSANProjects; Implementing agencies and the PAMSCAD Secretariat. Focus group discussionwas alsoused. The study revealed moderate achievement level(65.4%) of all PANSCAD projectsin the country. Howeverthere was a low impact of PAMSCAD projects on beneficiaries. Among the three cases which were selected for assessment,the credit linescheme for the small scale enterprisessignificantly improved the quality of lifeof beneficiaries. The credit linescheme for peasant farmers, however, was a failure. The Hand dug wellsand. VIP latrines were notable to improvethe health status of beneficiaries. Problemswhich militated against high levelachievement and impact include: lack of staff for effective monitoring and coordination;lack of logistic support and funding from donors. Others include high default rate among peasant farmers; poor animation before projectimplementation and poor timing of projects etc. Two sets of recommendations (section 62) were made inthe light of the objectives, findings and problems of the study. The recommendations inter aliawere: i. Those which willimprovePAMSCAD Projectson the ground among which were: the need for an ex-post evaluationof PAMSCAD credit ceilings, identification of rightful PAMSCAD beneficiariesetc. ii. Those on policyreview to improve SAP inorder to reduce poverty and hardships associated with it. Examples include: the need to formally incorporate the well-being of the vulnerableininternational statements of future adjustment programmes, constant monitoring of livingstandards of the poor insociety and the formulation of sectoral policiesto promote opportunities, resourcesand productivity in smallscale sectorin agriculture, industry and services etc. It isexpected that the above recommendations when carefully implemented will goa long way to improveand ensure high level achievement and positiveimpacts of PAMSCAD Projectson the poor in the Ghanaian society both nowand inthe future,
Description:
Athesis submitted to the Board of PostgraduateStudies, Kwame Nkrumah Universityof Science and Technology, Kumasi, in partial fulfilment of the requirement for the award of PostgraduateDiploma in Architecture, 1997