The macro-economic impact of two different industrial development pathways in Ghana

Cities have historically played an important role in driving the industrialisation and development of countries. In Africa, however, this has largely not been the case. If cities in Africa can be made more efficient and productive, this could have a significant impact on the development trajectory of countries like Ghana. This background paper The Macro-Economic Impact of Two Different Industrial Development Pathways in Ghana by by Abdul Malik Iddrisu and Williams Ohemeng (PLACEFEET) provides the Ghana Urbanisation Think Tank with policy-relevant research considering how urbanisation could be used to shape more sustainable industrial development in Ghanaian. This can inform the current review of Ghana’s National Urbanisation Policy (NUP). The background paper uses a social accounting matrix to compare the macro-economic implications of two industrial pathways — one based loosely on an a-spatial, extractive industry, industrial parks model that is similar to the OneDistrict-OneFactory model, the other focuses on meeting the growing demands of urban citizens for construction material, energy, water and sanitation services and food, with deliberate efforts to include renewable energy and low-carbon technologies. In broad terms the second pathway delivers higher economic multipliers, more work and employment and higher economic growth rates.