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First Republic of Ghana (1960–1966)

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Republic of Ghana
1960–1966
Flag of Republic of Ghana
Top: Flag
(1960-1964)
Bottom: Flag
(1964–66)
Coat of arms of Republic of Ghana
Coat of arms
Motto: "Freedom and Justice"
Anthem: "God Bless Our Homeland Ghana"
Location of Republic of Ghana
Capital
and largest city
Accra
Official languagesEnglish
Demonym(s)Ghanaian
Dominant mode of productionSocialism
GovernmentUnitary one-party presidential republic
President 
• 1960 - 1966
Kwame Nkrumah
Speaker of Parliament 
• 1960 - 1965
Joseph Richard Asiedu
• 1965 - 1966
Kofi Asante Ofori-Atta
Chief Justice 
• 1960 - 1963
Kobina Korsah
• 1964 - 1966
Julius Sarkodee-Adoo
LegislatureParliament of Ghana
History
• Established
1960
• Dissolution
1966
Currency1960-1965:
Ghanaian pound
1965-1966:
Ghanaian Cedi
Preceded by
Succeeded by
Dominion of Ghana
Republic of Ghana


The First Republic of Ghana, officially known at the time of its existence as the Republic of Ghana, was a socialist state in West Africa from 1960 to 1966 established via popular referendum after the masses voted to end the Dominion of Ghana by transforming Ghana into a Presidential Republic. In the aftermath of the referendum, former Prime Minister Kwame Nkrumah would become the first President of Ghana. The Republic of Ghana was the first African nation south of the Sahara to obtain independence, and due to the successes of Nkrumah's socialist policies while in power, Ghana became a model-state for African independence movements and a hub for Pan-African philosophy.

History[edit | edit source]

1960 constitutional referendum[edit | edit source]

In the aftermath of the 1960 constitutional referendum, the Ghanaian electorate voted 88.47% in favor of the creation of the Republic of Ghana, thus officially abolishing the monarchy.[1] Prior to this development, Ghana was a formally independent British Dominion and the British Monarchy remained its head of state.

Government[edit | edit source]

Houses of Chiefs[edit | edit source]

For each region of Ghana, leaders of of the country's traditional communities are automatically appointed to a House of Chiefs. Houses of Chiefs are divided into a plethora of Traditional Councils consisting of specific tribes, and act as advisory boards to the government on matters effecting them.[2]

Supreme Court[edit | edit source]

The Supreme Court of Ghana was the highest court in the republic, and had original jurisdiction on all matters in which the enactment of policy was considered in excess of the powers granted by the National Assembly of Constitution of Ghana. Judges of the court were appointed by the President and were required to retire upon reaching the age of 65 years.[2]

National Assembly[edit | edit source]

The National Assembly was the unicameral legislature of the of Ghana and was elected following the its dissolution by the President if a new assembly wasn't elected within a period of 5 years. The parliament was responsible for electing the President of Ghana and its speaker, who was the presiding officer of the National Assembly. According to the 1960 constitution of Ghana, the National Assembly could consist of no less than 100 delegates.[2] As a means of eradicating corporate influence in politics, public officials were barred from taking part in business ventures.[3]

President of Ghana[edit | edit source]

The Presidency of Ghana lacked strict term limits as new presidential elections were only required on the event of the President's resignation, death or dissolution of parliament after its 5 year expiration date. As described in the constitution, the President is the commander-in-chief of the armed forces, has the power to appoint and dismiss cabinet members and can pass/veto legislation.[2]

1964 constitutional amendment[edit | edit source]

In 1964, the constitution was amended through national referendum, declaring the Convention People's Party the sole legal political party in the country and gave the Presidency the power to remove judges from office.[4] The result of the referendum was a 99.91% approval of the reform by Ghana's electorate.[5]

Administrative divisions[edit | edit source]

Economy[edit | edit source]

Planning[edit | edit source]

The Ghanaian economy under the first republic was transformed from a neo-colonized capitalist structure dependent on colonial powers for capital goods to a semi-industrialized developing economy with increasing self-reliance. Domination of Ghana's manufacturing sectors by State-Owned Enterprises and collectivization of agriculture would reach its peak in 1966 before immediately being dismantled through mass privatization following the overthrow of Nkrumah's government. Development of Ghana's economy was guided by state managed 5-year development plans.[6]

Agriculture[edit | edit source]

In 1961, a cooperative society was established to the network of private traders and middlemen who controlled internal marketing. Prior to this development, the Nkrumah government had created the Union of Ghana Farmers' Council (UGFCC) to cover agricultural workers' interests and organize farmers behind the Ghanaian government. As cocoa continued to be the major cash-crop of Ghana and the driving force in its industrialization program, the UGFCC became centered around cocoa growing regions and was made the monopoly buyer of cocoa in the country. During this period cocoa production an unprecedented level of 430 thousand tons despite world cocoa prices plummeting. The decline in global prices led to decreased economic growth in Ghana, resulting in the Ghanaian government requiring that farmers save 10 percent of their earnings in National Development Bonds, which would become redeemable in a decade. In 1963, this policy was replaced with a farmers' income tax charged at a flat rate equal to previous saving deductions. The government also started relying heavily on reserves from the Cocoa Marketing Board to pay for development projects while the producer price of cocoa decreased from 224 to 187 Cedis between 1961 to 1964.[7]

Industry and manufacturing[edit | edit source]

Since rising to power, Nkrumah's government and the ruling Convention People's Party considered eradicating the neo-colonial trade dependency on Western powers to be its top priority in order for Ghana to have true self-determination. The result of this was the exploitation of Ghana's vast natural resources like cocoa in an effort to fund industrialization projects to boost indigenous manufacturing capacities. Throughout most of the 60s, as the Nkrumah government continued to expand existing industries, build State-Owned Enterprises and joint ventures, as well as nationalize corrupt or failing industries; leading to rapid growth in Ghana's manufacturing sector and growth in state and joint ventures being 250% higher than private companies.[6] Over time indigenous entrepreneurship became well developed in farming, trading and small industrial sectors; and 'big push' policies implemented by the Convention People's Party proliferated large-scale state industries.

Although the Second Development Plan of 1959 argued that foreign private industrial firms were 'the principal agents of industrialization,' the document also acknowledged potential in developing Ghanaian small scale industries and reserved financial assistance to achieving this end. A government committee was thus created to manage the distribution of £250,000 in financial resources to indigenous small scale manufacturing. The Seven Year Plan of 1963 reaffirmed the state's position by declaring that Ghanaian investors had a role to play in the industrialization of Ghana. As stated:

"There is immense scope for small scale Ghanaian industrial establishments supplying many of the vital needs of the economy. Repair and maintenance, food processing and the production of numerous household necessities—all these are fields waiting for the enterprising Ghanaian businessman. Government will intensify its efforts in supplying all the assistance that it can command to any such businessman who comes to it with sound schemes and the ability to implement them"

The plan also promised assistance to successful small businessmen as a means of stimulating economic growth. Later that same year, the National Investment Bank (NIB) was created by the National Assembly for the purpose of providing counselling and loans to private and co-operative enterprises to build and assist entrepreneurship. NIB investments reached its peak in 1964 when it distributed over two million in credit to small and large scale industries, however 91% of available loans were given to SOEs. Due to extensive investment in the state, the state's share in overall manufacturing output increased from 12% to 20% in 4 years.

The rise in small-scale industry led to the rise in incomes, however these businesses also failed to supply enough goods to meet demand. Administrative circles believed that this would be remedied through co-operation between the state and foreign private sectors, which was to play the primary role in the development of capital goods production.

Another institution established to reach these development goals was the Industrial Development Corporation (IDC), which was charged for the purpose of investigating, formulating and executing projects for developing industries. The IDC operated in both Accra and Tamale, through which small-scale industrial goods gained market exposure. The IDC also helped small-scale industries gain exposure abroad by organizing their participation in expositions, like the the Homecrafts and Hobbies Exposition in London. Although the IDC was very active in marketing Ghanaian companies, the center-piece of its small industry promotion strategy was the Small Loans Scheme. The technical details of this scheme changed over time, however the basic principle of small industry promotion through credit provision remained constant. Through its Small Loans Scheme, the IDC disbursed an average of around £G50,000 a year to small industrial firms. Despite its successes, the IDC was actively criticized by members of the National Assembly for both being underfunded and not reaching its potential lending capacity. Both of which were identified as primary concerns surrounding the inefficiencies of the IDC by government officials.[3]

Infrastructure[edit | edit source]

Demographics[edit | edit source]