Question

3. Discuss how unbalanced growth strategy can be applied to the Ghanaian economy and its economic implications. 4. Describe how the government can implement import substitution program and ensure that Ghanaians adhere to it.

Answer 1

3)

The Ghana economy can be developed through the unbalanced growth strategy. The resources are limited in the Ghana, thus all sectors can not be developed simultaneously.

Thus few strategically important sectors must be developed and these sectors would cause positive effects in the economy.

The infrastructure sectors and few heavy industries must be developed first as development of these industries is precondition for the economic development and growths.

The private sector would also find it profitable to make investment.

Thus eventually the growth rate would remain high for economy of Ghana.

2)

The import substitution means making production of such goods at home which were being hitherto imported. It improves the net export of country.

The Ghana economy is less developed and it is in the dire needs of the foreign exchange , the import substitution would enhance the foreign exchange reserves and industrial base will become strongers.

The first , government must impose the tariffs restrictions on the cheaper imports. Second, the domestic industries must be subsidized and tax holidays must be provided to these.