THE IMPACT OF DEBT CRISIS ON GHANA'S FOREIGN POLICY

Since the mid 1980s, Ghana•s economy has witnessed the worst debt crisis in its history. '!his crisis has manifested in the form of increasing unemployment, doub+e digit inflation, virtual halt: in domestic capital accunulation, breakdown in the producti,ve apparatus and increasing income inequality. The central aim o£ this study, is to find out the impi:lct of this debt crisis on Ghana•~ foragnpolicy. M1Jre specifically, we are also interested in finding out whether any relationship exists between
the world Bank/IMF Economic Recovery Programme and the worsening Economic c.tisis in Ghana. 'Theoretically, we found~tioned this study on the Dependency Theory. '!his theoretical perspective helped us to understand the fact that Ghana•s
incorporation into the world capitalist system and its exploitation and subjugation within the system is the major cause of the country•s economic crisis• Methodologically, we relied on the.use of recent documents, relevant books,data from Government files, federal office of statistics and ~he multilateral Institutions. To ensure the reliability and validity of the study, we .relied on th~ ~!Jf-J of content. A)11;\l. yo is• '.Ihe study reve~od that trh~J:tJ J.s (fl direct relation.ship between Ghana•s reliance on IMF/World Bank Loans and her favourable Foreign Policy initiatives and eptions towards the West. · The implication is· that the world Bank now determines who gets what, how and when in Ghana.