A comparative study of Brong Ahafo and Ashanti regional development corporations

One of the major contributions that the twentieth century has produce in concepts and techniques in the field of economics is that of “Economic Planning” which seeks to identify the resource potentials of an area in order to bring out a constructive programme for effective implementation. In Ghana, the need for and overall economic program whose function is to provide a consistent framework for different types of economic policies became apparent even before the country’s libration form colonial rule. To attain a rapid economic development for the country, Governor Guggisberg gave the nation its first development plan as early as the 1920’s. Though the plan set in motion the development of infrastructure, its aim and reaching a basis for industrial development was not wholly achieved. Then followed a series of planning techniques none of which could yield the anticipated level of development partly because Ghana, for many years sought to plan and develop its resources and needs sectorally. In this way, regional considerations were in most cases never given the due attention in the national planning decisions and their implementations. This led to the concentration of too much developmental effort in certain specified region like Greater Accra, Ashanti and Western to the neglect of others like the Volta, Brong Ahafo and the Upper Regions. This helped to create regional decadence and its attendant problem of rural-urban migration. To avert the growing regional inequalities which generally give rise to political pressures intended to reverse the traditional flow of resources to one particular region, and to help raise the per capita incomes in all regions to a level of approximate equality, the then National Libration Council government realized the need for national development through the regional levels. The rational behind this laudable idea is the regional development planning is seen to be cross function as it is at the regional level that cross-fertilization of development ideas, vertical and horizontal, thrives best. It comes as no surprise then when the government introduced the Regional Planning Committees (R.P.C.) in 1967 as a “modus Vivendi” to handle regional planning and development. For over half a decade that these committees were existence, on spectacular achievements were recorded in regional developments due to the lack of concern of the R.P.Cs were supplemented in 1973 by the creation Regional development Corporations with the objective of giving “each region the full scope to develop at an even pace… so as to promote balanced regional development”. To start with, the corporations’ operations were restricted to only sound commercial ventures. But the 1974/75-1979/80 Five-Years Development plan came to redirect their roles to cover increasing production and employment in the rural areas as well as to carry on any business of an industrial, commercial and agricultural nature. They were thus empowered to invest in venture like the production of agricultural raw material such as oil palm, citrus, poultry products, cattle, maize, cotton cultivation and many others. These were intended to feed the growing need for agro-based industries for the processing of raw materials for both home consumption and the expert. They would in this way be generating employment avenues for the people in their regions, be raising the rural income and productivity of the farmers within the region and finally be earning some foreign exchange for the country as a whole. Further, as instruments of development, the RDCs are expected to create a favourable innovation atmosphere that can attract investors from outside into their regions. This so becomes both economic and technological innovation processes on society, influence investment and in the long run, lead to change in the structure of the economic system which in a way may result in the development of the area. In order to accomplish this, they are expected to enter into joint ventures and partnerships with financial institutions, individuals and foreign companies for the operation and establishment of economic ventures for the production, processing and distribution of food and raw materials. To be precise, they are to utilise the resources of their various regions to their best advantage and to be a stepping stone for the overall development of the nation. But the question worth answering is - have the Corporations been able to live up to expectation since their inception?

Source: KNUST