The role of foreign aid on the economic development of Ghana

Ghana since the 1960s has sourced foreign aid from international donors for economic growth and development. The contribution of foreign aid to Ghana’s GDP constituted about 0.002% after its introduction in the 1960s. Foreign aid rose up to US$ 1306.93 million in 2008, thereby making Ghana one of the consistent countries to receive foreign aid from international donors. The increasing rate of foreign aid in Ghana has alarmed most researchers to argue on the impact of foreign aid on the development of economic growth and stability concerning poverty mitigation in the country. The fundamental reason for the study is to assess the impact of foreign aid on the economic progress of Ghana in the areas of education, health and agricultural. The study adopted a mixed research method approach. Therefore, the data used qualitative and quantitative metrics to assess the effectiveness of foreign aid in Ghana. The study also revealed that aids come in the form of funds which are mostly diverted into the educational system, health and rural development including the agricultural sector, transport, power and housing. Nevertheless, the study found that the USA support Ghana in terms of humanitarian needs like prevention of natural disasters, crisis and related national conflict. They also include aids like provision of food, healthcare services, water, sanitation and other destructions. Furtherance, the study indicated the US provided food aid to Ghanaians especially when there is hunger in the country. Food aid primarily deals with the provision of foodstuffs and related materials to the lacking economy. With regards to food aid, recipient countries can use some of the attached materials to support the agricultural industry in the country which would ensure that productivity is enhanced and improved to achieve domestic food security as well as enhancing the performance of the agricultural sector thus promoting the competitiveness of the sector. Education is one of the fundamental elements of socio-economic development, and therefore the government must ensure that the education system is enhanced so that teaching and learning can be efficient in enabling the individual to acquire the knowledge and skills required to assist in economic development. This study has implications on the policies concerning human rights, civil liberties, education, health, corruption elimination, good governance, and ultimately sustainable economic growth. The study would also serve as an empirical review for future searchers in related fields since it gives relevant information on foreign aid and its impact on economic growth