Ghana and Côte d’Ivoire: Changing Places

Abstract

The economic histories of Ghana and Côte d’Ivoire since their independence have been dramatically different. In the period from 1970 Ghana experienced a sustained collapse in its economy such that by 1983 its level of real GDP per person had fallen by some 40%, its currency was worthless and the third attempt at democratic government had ended with a fourth military coup in 15 years. In contrast, Côte d’Ivoire had enjoyed more or less uninterrupted growth such that by 1980 real GDP per person was twice its 1960s level. However, the period since the mid-1980s has seen a remarkable reversal of fortunes. From 1983 Ghana has experienced sustained recovery, while Côte d’Ivoire has seen large falls in income, its first coup in 1999 and a decline into civil war and ethnic unrest. From being among the least successful Ghana has gone to being among the most successful of African countries, changing places with Côte d’Ivoire which has seen its economy transformed from one experiencing rapid growth to stagnation in a country ravaged by a bitter civil war. This article seeks to document and explain this extraordinary reversal of fortunes.