External Aid Inflows and the Real Exchange Rate in Ghana
Source: African Economic Research Consortium
Since the early 1980s when Ghana began measures to halt the downturn of the economy and move on a path of sustained growth and development, the country has attracted tremendous donor assistance. From about 4% of GDP in 1980, official development assistance rose to 10% in 1990 and has generally remained at that level ever since. This overwhelming dependence on external aid inflows has made the Ghanaian economy vulnerable to policy conditionalities that accompany such assistance.
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