NEOLIBERAL ECONOMIC POLICIES IN GHANA AND ITS IMPACT ON THE PEOPLE
Even though there is an assumption of equality among states at the global level, the reality is that some states are more powerful than others. A subtle study of this order shows that it is usually controlled by the Global North led by the US hegemonic control. This global order/international order is so powerful on the less powerful states like those in Africa. The Berlin Conference of 1884 that led to the partitioning of Africa is a classic example of how powerful an international order is and how it shapes the fates of African States.
In the early 1980s, Ghana undertook economic reforms in its bid to salvage the economy and this decision had a dire consequences on education and health care. This paper seeks to focus on one of the international orders and its implications on Ghana’s healthcare and educational system.
Ghana had independence in an era where there was sovereign international order with fierce competition between the bipolar world with the USSR leading the East and The US leading the West. Sovereign international order was steered towards State-led development, modernisation and industrialisation.
This was spearheaded by the US to make an alliance and break the bipolar world into a unipolar world with only their hegemony. This era saw industrialisation and major state-led policies and projects in Ghana. This period saw The US giving development aid through the project of international development (PID) to African countries including Ghana just to make alliances and control their hegemony that was threatened by the Soviet influence.
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The liberal international order that emerged in the late 1970s and 2000s, saw the departure of the previous order where the state was in control of projects and markets to an order where the state promoted lasses faire policies with unrestricted transnational corporations that ended the golden age of capitalism. The consequence of the structural adjustment program adopted in Ghana under the liberal international order was so huge that it affected the internal policies in Ghana and changed the fortunes of many Ghanaians even though it appeared to be beneficial initially. The reforms in Ghana resulted in the divesture of many government assets through privatization coupled with the devaluation of the currency which had an enormous implication for the subalterns.
The liberal international order uses agencies such as the Bretton Woods institutions to promote its policies in emerging states like Ghana. These agencies, through projects of international development implement policies that changed local policies helping the subalterns. The structural adjustment programs implemented by the Rawlings-led PNDC in the 80s had an enormous effect on Ghanaians.
The Structural Adjustment Program(SAPs) and its implication on education and health.
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The structural adjustment policies under the economic recovery program implemented by the PNDC regime led to the commodification of education. The ordinary Ghanaian that could not pay to acquire knowledge had to drop out. The strict conditions attached to the SAPs prevented the northern sector to enjoy free education despite the unequal divide between the north and south. University education also went to cash and carry for only those who could afford to pay to study. This brought a burden on the poor Ghanaians because the government adopted liberal policies. This decision taken by the PNDC regime goes against the culture of the state taking care of educational costs including the provision of basic materials such as books, uniforms etc. This era also saw the reforms of educational curricula and the review of certain policies to subsidize the cost of educational learning materials.
The sudden change of educational policies in Ghana after the SAPs especially in the early 2000s can be attributed to the lack of interest on the part of the State to continue the implementation of the policy of SAPs imposes by the IMF as part it conditionality for economic recovery. The implementation of the Capitation Grant and Free SHS is an example of an attempt on the part of the Ghanaian government to go back to an era where the State pays for education. The neglect of the health care system and Ghanaians' inability to afford brought about epidemic outbreaks and those hit by it were the rural people and urban with fewer cases in city dwellers. Hospitals and clinics in villages did not have some essential drugs due to a lack of funding from the government. The high cost of living couples' unavailability resulted in deaths in villages and towns
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Under the Sovereign international order, the political climate that was in place was that of a radical nationalist government that prioritize the welfare of its citizens coupled with the socialist ideology policies the government was pursuing. The government took advantage of the sovereign order at that time and implemented health policies that were inclusive of every Ghanaian thus, the burden of health care was on the government, not Ghanaians. The government adopted the cash and carry system due to its implementation of the structural adjustment policy. The era of government providing free and universal healthcare was no more existential. This resulted in self-prescription and fewer Ghanaians who could afford to pay to seek health care thus, there was not enough data on disease in rural areas for governments.
State of health care after structural adjustment policy(Post-SAPs)
In August of 2003, the State passed the NHIS act which in a way sort to reduce the healthcare cost through an annual payment of premiums. This policy is in sharp contrast to the health policies that were implemented under the structural adjustment policies. The subsidies on essential drugs and the introduction of free maternal healthcare show that the SAPs policy was not in the interest of the people.
Again, the sudden departure of the structural adjustment policy in the 80s shows that the policy is not inherently Ghanaian but rather an international order policy under the project of international development (PID) that sort to keep Ghana(Africa) dependent on aid forever.
Conclusion
In conclusion, the world order that existed before the 1970s allowed for more intervention projects facilitated by Harry S. Truman's projects of international development(PID). Ghana at this era undertook massive developmental projects that ameliorate the lives of Ghanaians. However, this order fell and the liberal order came into existence with its agencies like the IMF and World Bank. In this period, Ghana adopted the IMF policy of structural adjustment programme through the Economic Recovery Programme(ERP). These policies brought a burden on the education and health sector due to the withdrawal of the government’s subventions. These policies crippled our health system and brought about cash and carry. Again, the commodification of education was also done under the structural adjustment policies(SAPs). Because such policies affected Ghana were not inherently Ghanaian policies, it can be argued that it was adopted due to the change from sovereign international order to liberal International order. This is why such policies never succeed.