Privatization and National Development: A Case Study of Ghana

Proponents of privatization claim that privatization can enhance efficiency, reduce public sector debt and consequently improve overall economic performance. However, in many developing countries, and Africa in particular, the evidence is mixed. An exploratory study is done from the perspective of citizens’ about the impact of privatization on the Ghanaian national economy. The findings of the study suggest that: 1) the privatization program is pro rich; it benefits the economic and political elites more than it benefits the nation as a whole; 2) there is a high level of corruption associated with the privatization process; and 3) Privatization is not considered as one of the most important tools needed for national development, though the survey finds that many respondents believe that there is the need for some reforms in the public sector to promote national development. The results of the study indicate that administrative and political problems cannot be overcome simply by reducing the size of the state bureaucracy, but rather making government more accountable in meeting the needs of its people.