The divestiture on state owned enterprises: the Ghanaian approach

Abstract

Privatization is one of the much mentioned development concepts in developing economies today. Ghana is not left out, Ghana has brought several benefits to households and the Government alike, yet many still see it as a neocolonialist brainwash by which some very strategic industries are sold out to the private sector. Most often foreign nation-sapping capitalists do not only control the local economy and direct its functioning but also eventually repatriate their profits, and therefore bring the economy to point 'ZERO'. A few people also see the privatization of Ghanaian State Owned Enterprises as being effected at a ridiculously slow pace, which is itself devoid of transparency, not forgetting the notion that it is tantamount to selling the 'family silver'. Albeit, the experience of many developing countries like those in Latin America, the Caribbean, Hungary and a few success stories in Ghana attest to its beneficiality. Privatisation proceeds, which are often in billions of Cedis, have brought in much needed help which have produced the hospitals, rural development infrastructure and others. The practice of divestiture has also generated more employment and caused the injection of money into the local economy, setting in motion the multiplier effect