Posted by: bklunk | December 11, 2006

At Last, Some Good News

rnarriaga finds this interesting piece. Jeffrey Sachs, the author of The End of Poverty, is also impressed with Ghana’s approach.Thomas Awiapo and Family

Ghana – An HIPC Success Story

An article originally published in a daily Ghanan newspaper, Accra Mail, and also posted on allAfrica.com, describes how the HIPC initiative for Ghana was initially met with resistance by various groups within Ghana, but is now viewed as a catalyst for attracting foriegn investments to help build the country’s economy.

The article does a good job identifying the systemic, state, and individual actions and environments that led to the official recognition in 2001 by the IMF of Ghana as a heavily indebted poor country. Systemically, the article outlines the international communities’ creation of the HIPC initiative in 1996 that has created opportunities for heavily indebted countries to recieve assistance in reducing the amount of their debt. State actions by Ghana’s government to seek official designation by the IMF as a HIPC, was initially resisted by groups that feared the designation, “…would scar and haunt Ghana in the financial world since no reputable investor would consider the country investment or loan worthy”. Never the less, when IMF directors declared that Ghana was, “eligible for assistance under the enhanced HIPC Initiative in view of her ‘high level of indebtedness and external vulnerability'”, it was President Kufuor’s decision to accept the official designation and the relief funds that followed.

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