Analysis of the Development Assistance in Africa: The Case of Ghana

Foreign aid the transfer of money and resources for development has traditionally been provided by powerful and wealthy countries to developing or poor countries. In Ghana, the European Union has been one of the main providers of aid since its inception. Ghana is one of the largest recipients of foreign aid in the EU. The main aim of EU foreign aid is to help developing countries achieve economic development. Although Ghana has traditionally received aid donations from the European Union for development since its independence, the country is still facing infrastructure and economic underdevelopment. Therefore, this study uses a single case study to examine and evaluate the contribution of foreign aid by answering the research question: why have economic conditionality policies not led to Ghana’s economic growth? To address this question, this study uses institutional theories, conditionality policy, and critical junctures to analyze the case. The study found that the conditions and...Show moreForeign aid the transfer of money and resources for development has traditionally been provided by powerful and wealthy countries to developing or poor countries. In Ghana, the European Union has been one of the main providers of aid since its inception. Ghana is one of the largest recipients of foreign aid in the EU. The main aim of EU foreign aid is to help developing countries achieve economic development. Although Ghana has traditionally received aid donations from the European Union for development since its independence, the country is still facing infrastructure and economic underdevelopment. Therefore, this study uses a single case study to examine and evaluate the contribution of foreign aid by answering the research question: why have economic conditionality policies not led to Ghana’s economic growth? To address this question, this study uses institutional theories, conditionality policy, and critical junctures to analyze the case. The study found that the conditions and principles that donors attach to foreign aid prevent it from achieving its intended result. In addition, foreign aid is not well directed by both donors because of their own agendas, which may not align with Ghana’s development agenda. Keywords: Foreign aid, Ghana, European Union, economic development, institutional theory Critical juncture, path dependency, conditionality policyShow less

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Analysis of the Development Assistance in Africa: The Case of Ghana