The third Republic government headed by Dr. Hilla Limann faced a lot of tasks ahead.
On September 24th, 1979, Dr. Limann was inaugurated as the President of Ghana’s third Republic. He faced a daunting task.
The country’s economy was still in shambles. Production had declined steadily, to the point where the country’s industry operated at only 10 to 15 percent of capacity.
In 1979, the cocoa exports had sunk to 189,000 tons, their lowest since independence. Timber exports registered a similar decline, as did gold, diamonds, and the country’s mineral exports in general.
GDP fell by 12 percent in the country. While the population grew by 30 percent.
Prices of cocoa which earlier was rising began to fall again.
Essential commodity like oil prices also saw hiking in the international market.
Spare parts prices also raised due to the oil price hiked.
These hardship in the early part of the third Republic of Ghana meant a drastic measures need to be done to salvage the dying economy of the country.
In fact, crucial policies were needed to be put in place to overcome the problem.
Importantly, devaluation of the Ghana Cedi was required to combat the inflation that rapidly soared once that draconian measures that the past Armed Forces Revolutionary Council (AFRC) had imposed were lifted.
However, the Limann administration was terrified to do this, since similar action had brought down the Busia government down.
Instead, the PNP government was characterized by an inability to formulate policies.
It took them several months just to make ministerial appointments, and the government seemed to be waiting for foreign investors to come to Ghana’s aid.
In the meantime, the PNP government used the tax receipts that the AFRC had collected to pay for an import splurge that it hoped would satisfy the electorate.
Life under third Republic led by Dr. Limann caused the nation a lot.
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