Purpose - This paper has examined the effectiveness of foreign aid on Ghanaian economy under different political regimes.Design/methodology/approach - Using vector error correction and co-integration models on the annual data set over a period of 35 years, the authors demonstrate that foreign aid has had varied impacts on economic growth depending on the political ideology of the government in power.Findings - With capitalist political philosophy, foreign aid improves private sector growth through infrastructural development. On the other hand, a government with socialist philosophy applies most of its foreign aid in direct social interventions with the view of improving human capital. Thus, each political party is likely to seek foreign aid/grant that will support its political agenda. Overall, the results show that foreign aid has a positive impact on the growth of the Ghanaian economy when there is good macroeconomic environment.Practical implications - This implies that the country experiences economic growth when there are sound economic policies to apply foreign aid.Originality/value - The practical implication of the findings of this paper is that donor countries and agencies should consider the philosophy of the government in power while granting aid to recipient countries, especially in Africa. The results are robust to different proxies and models.

This paper assesses the degree to which the L’Aquila Food Security Initiative (AFSI) has been implemented in Ghana within the framework of managing for development results (MfDR), and to evaluate progress in various outcomes, including economic governance, agricultural growth, poverty, and food and nutrition security. The MfDR approach, which has gained widespread support globally for obtaining results, is endorsed by the government of Ghana and reflected in the Ghana Aid Policy and Strategy.

Seminar paper from the year 2024 in the subject Sociology - Economy and Industry, grade: Level 600, University of Ghana, Legon (School of Social Science), course: Sociology, language: English, abstract: This term paper examines the impact of foreign aid on Ghana's economic development, exploring both positive and negative aspects of aid inflows. Ghana, like many other developing nations, has been a recipient of foreign aid aimed at fostering economic growth, poverty reduction, and sustainable development. The paper analyses the historical context of foreign aid to Ghana, evaluates the effectiveness of aid programs, and considers the potential challenges associated with aid dependency. By synthesizing existing literature and empirical evidence, this study aims to provide a comprehensive understanding of the nuanced relationship between foreign aid and economic development in Ghana.

Master's Thesis from the year 2010 in the subject Politics - Topic: Development Politics, grade: 1,0, University of Birmingham (International Development Department), language: English, abstract: This paper deals with the aid instrument budget support and discusses its strengths and weaknesses in terms of the expected effects of the instrument in areas such as donor harmonisation, ownership, aid effectiveness and accountability. By presenting the international context in which the rise of program-based approaches, such as budget support, took place and by summarizing the actual debate about the instrument and its effectiveness, the paper elaborates a set of assumptions and hypothesises which are affecting the overall performance of the instrument and have to be addressed based on the specific country context. In consequence, it examines and tests these assumptions by critically analyzing the Multi Donor Budget Support in Ghana based on a field study conducted in Accra in July 2010. The central argument of the paper is that general budget support can be one of the most effective aid instruments available at the time, as long as problems inherent to the instrument are addressed and tackled to prevent negative side effects. It comes to the conclusion that the MDBS in Ghana, although there is still room for improvement and entry points for critique, is a functioning example on how to acknowledge and implement the principles of the Paris Declaration on Aid Effectiveness and the Accra Agenda for Action. Especially the quality of the policy dialogue and initiatives taken to avoid negative side effects in areas such as domestic as well as mutual accountability and ownership could become valuable examples for others to follow.

As part of the Aid and Reform in Africa research project of its Development Research Group, the World Bank Group presents the May 1999 draft of a paper about economic conditions and economic reforms in Ghana. Yvonne M. Tsikata wrote the draft, and focuses on the real causes of economic policy reform in Ghana. She explores whether the financial aid that Ghana has received from the international donor community has encouraged or retarded reforms. A summary and a full-text version in PDF format of the paper are available.

This volume reports on the findings of an international research project on aid effectiveness in Africa.