Keyword

Commodities, Enterprise, Government Intervention, Implementation, PSI

Abstract

The government of Ghana in line with the vision of propelling the country’s economy to a middle-income status identified certain sectors of the economy for wealth creation since 2001. This was christened "President’s Special Initiative” (PSI) where certain commodities were earmarked for intervention and they include: cassava & starch, textiles & garments, oil palm, salt, among others. The objective of this paper was to find out whether it is justifiable for governments to intervene in enterprises especially in developing countries, as a tool for economic growth. Therefore three (3) of the commodities from the PSI were assessed in order to determine the impact of government intervention. The methodology used was performance plausibility assessment technique using previous economic growth as historical control. The paper revealed that, there is significant economy growth from inception of PSI from 2001 to 2006 and it could be attributed to cumulative effect of the intervention by the government, yet it was apparent that the set targets by government were not achieved fully. The paper concluded that contrary to opponents of government intervention theory, it is possible for governments in developing countries to intervene in enterprise development but must have clear flexible framework of implementation through increase participation by all stakeholders. The authors recommended that, further research is needed to establish efficiency of government intervention in developin


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