Ghana’s Economic Downturn Under Nkrumah: Insights from Dr. Busia

Former Prime Minister Dr. Kofi Abrefa Busia criticized the significant economic downturn in Ghana during Kwame Nkrumah’s regime, highlighting a plunge in financial reserves from over £200 million to a debt exceeding £250 million. He described the severe implications of inflation, unemployment, and food shortages during this period. Dr. Busia’s own rule ended with a military coup in 1972.

In an interview conducted with the British media at the Ghana High Commission in London, Dr. Kofi Abrefa Busia, former Prime Minister of Ghana, elaborated on the economic crisis confronting the nation during his tenure. He held Kwame Nkrumah’s administration accountable for severe economic mismanagement which led to drastic inflation rates of approximately 117 percent, unprecedented unemployment levels, food shortages, and various other economic adversities.

Dr. Busia highlighted that Ghana had initially been in a robust financial state at the time of independence, boasting reserves exceeding £200 million. Unfortunately, by the conclusion of Nkrumah’s rule in 1966, the country found itself encumbered with debts surpassing £250 million, a significant downturn that raised concerns about financial transparency and record-keeping.

Responding to inquiries regarding the economic struggles his government encountered, Dr. Busia stated, “First, take the economic problem. At independence, we had more than £200 million in reserves, but by the time of the coup and the end of Nkrumah’s regime, we had accumulated a debt of over £250 million. In fact, we do not yet know exactly how much Ghana owes because certain agreements were signed, and we have not been able to gather all the facts and figures concerning them.”

Further explaining the challenges, Dr. Busia pointed out the shortages of food and essential goods as critical issues, adding, “We also face shortages of food, essential goods, and other items. Additionally, on a political level, we must address the fact that democratic rule was completely shattered.”

It is noteworthy that Dr. Busia’s own leadership was cut short when he was overthrown in a military coup led by Colonel Ignatius Kutu Acheampong on January 13, 1972. This event marked a tumultuous transition in Ghana’s governance.

The statements made by Dr. Kofi Abrefa Busia not only reflect the economic turmoil that Ghana endured under Kwame Nkrumah’s administration but also emphasize the importance of effective governance and accountability in managing a nation’s finances. The profound declines in reserves and the accompanying increase in debt illustrate the dire consequences of economic mismanagement, while the subsequent collapse of democratic governance underscores the significance of political stability in fostering economic resilience.

Original Source: www.ghanaweb.com