Home | Goldstreet Business
Monday, June 27, 2022
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
Gold Business Logo
No Result
View All Result
Home Business Economy

Biden’s presidency opens the door for bigger economic relations between Ghana and America.

A president Joe Biden administration in the United States would be welcomed by Ghanaians who are looking forward to both increased aid and increased trade with the world’s biggest economy, reports TOMA IMIRHE

November 9, 2020
in Economy, International, Investment, Opinion, Top Stories
0
Biden’s presidency opens the door for bigger economic relations between Ghana and America.
Share on FacebookShare on Twitter

As Americans went to the polls last week to decide who will be their executive president for the next four years, lots of Ghanaians followed the voting as  closely as if had been for the election of their own leaders. This was for good reason; not only is the United States   major business and economic development partner of Ghana’s but as the largest economy in the world, its influence on global economic trends and trajectories is truly huge.

However, just as with their domestic elections, Ghanaians were being driven more by sentiments than by hard data and facts in making their choice as to whom they wanted to win today’s United States Presidential election.

RELATED POSTS

Finance, Risk, and Financial Risk Management: From a Business Manager’s Standpoint

MTN Ghana extends coverage to 5.3 million Ghanaians in 2021- CEO

Most Ghanaians have sided with Joe Biden, the former Vice President of the United States during the Barrack Obama administration. The reasons are altogether expected. Now they  seem to have got their way, with Joe Biden sweeping to victory in a closely contested election.

Biden was the vice presidential choice of the first African American to occupy the Oval Office and indeed, African American’s in general are solidly behind him led of course by former President Obama himself. On the other side of the divide was incumbent President Donald Trump, who has been painted as a racist by America’s political class, a colouring which he helped with himself when he described African countries as “shit hole” countries in 2017.

Ghanaian’s natural inclination towards Biden is intensified by the goodwill shown towards Africa – and Ghana in particular – by the Obama administration, which reflected in several economic assistance programmes and in Obama’s choice of Ghana as one of the first places he visited upon assumption of office.   Conversely, their personal dislike of President Trump has been intensified by the visa restrictions thrown on Ghana in February 2018, in America’s reaction to the African country’s disputing the citizenship of some  alleged Ghanaians who were being deported at the height of the Trump administration’s clamp down o0n illegal immigrants.

To be sure, Trump’s often hostile rheotic against Africans, Ghanaians inclusive have been supported by actual unfriendly public policy action. For instance, over the past couple of years, American assistance to Ghana channeled through the State Department and the United States Agency for International Development has been cut considerably; from US$143 million in 2018 to an approved allocation of US$74.0 million in 2019 and just US$62.8 million in 2020.

Similarly, special economic assistance programmes by the US for Ghana have suffered budgetary allocation cuts to. Thus programmes such as the Young African Leaders Initiative, Power Africa, and the likes have  been down-scaled.

Actually, the budgetary cuts could have been deeper if not for bipartisan support for US economic aid to Africa on both Capitol Hill, in the form of congressional support and at the State Department where career diplomats  have stood up for African beneficiaries of American largesse. However that support has ensured that no economic assistance programmes inherited by the Trump administration have been thrown out altogether.

But using this to paint a picture of friendliness versus hostility among Ghanaians with regards to who they should support would not only be simplistic; it might actually be outright wrong.

The true situation is that The Trump administration has adopted a deliberate strategy of replacing aid with trade and investment opportunities between the two countries. Most instructively, it has replaced the Overseas Private Investment Corporation with the (International) Development Finance Corporation, a state institution with twice the size of OPIC’s upper limit on investments abroad, this having been raised from the erstwhile US$29 million to US$60 million. Instructively Africa remains the biggest beneficiary of such investments.

This is part of a wider initiative by the Trump administration which it calls Prosper Africa which aims to significantly grow trade and investment flows between the two continents and Ghana’s failure to benefit from this initiative cannot be blamed on  the US alone; Ghanaian exporters have been inconsistent in their attempts at winning American markets, peaking at US$779 million in 2011 but falling to US$574 million by 2018, a year in which total two way trade between the two countries was US$1.3 billion, but leaving Ghana with a US$195 million trade deficit.

When accused of replacing direly needed development aid with trade and investment flows between two very unequal partners – which could cost Ghana dearly – US officials have pointed out that this is in line with the country’s own national vision of Ghana beyond aid.

Interestingly, the Ghana beyond aid mantra has reportedly resonated among Trump administration officials whose leader has loudly advocated that every country should – just like him –prioritize themselves rather than any bilateral or multilateral goals.

None of this though made Donald Trump nearly as intensely supported in Ghana as Joe Biden on US election day.

Biden wants an America that resumes its leadership of global multilateralism and this means aid rising again alongside increasing trade.

But this may not necessarily mean an immediate return to pre-Trump levels of bilateral aid from America. Democratic party legislators have been pushing for major increases in economic stimulus spending for small businesses and lower- and middle-class households and with Biden in the White House, they will have their way.

But even America does not have the financial wherewithal to implement a new US$2.2 trillion domestic stimulus package and at the same time raise its economic aid to needy emerging market economies back to their previous levels. However, Biden could be expected to leverage on Trump’s new initiatives to increase trade to give countries like Ghana with a lift.

Importantly, this approach would be given further impetus by Biden’s expected efforts to restore American influence in Africa in response to China’s aggressive expansion across the continent with regards to economic relations. Indeed Africa will be a major economic battlefield between the world’s two biggest economies as they take a step back from the direct trade war between each other.

This represents a major opportunity for Ghana, which is a major target of China’s because of its natural resources.  Ghana would be smart to play one against the other where possible in order to secure infrastructure deals, replete with credit financing on concessionary terms.

   Ultimately Ghana stands to gain from increased trade with America as promoted by the Trump administration over the past four years while also benefitting from a partial return to the economic aid it was receiving up to the end of the Obama administration. Put together this may mean bigger economic relations with America than ever before.

facebookShare on Facebook
TwitterTweet
ShareTweetShare

Related Posts

Finance, Risk, and Financial Risk Management: From a Business Manager’s Standpoint

Finance, Risk, and Financial Risk Management: From a Business Manager’s Standpoint

June 27, 2022
MTN Ghana to pay GHS0.085 dividend per share

MTN Ghana extends coverage to 5.3 million Ghanaians in 2021- CEO

June 26, 2022
45% of UK drivers cut vehicle journeys as Fuel Prices Surge

45% of UK drivers cut vehicle journeys as Fuel Prices Surge

June 26, 2022
Bank of Ghana, Cyber Security Authority to deepen Collaboration

Bank of Ghana, Cyber Security Authority to deepen Collaboration

June 26, 2022
African Development Bank Group unveils US$10bn COVID-19 Response Facility

AfDB prepares $28m post COVID-19 programme for Ghana

June 21, 2022
Next Post
Agyapa’s risk assessment generates national controversy

Agyapa’s risk assessment generates national controversy

AfCFTA’s potential gains for Ghana

AfCFTA’s potential gains for Ghana

Discussion about this post

Archives

<
June 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
▼
>
MonTueWedThuFriSatSun
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
 123456
78910111213
14151617181920
21222324252627
28      
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
1234567
891011121314
15161718192021
22232425262728
       
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
     12
3456789
10111213141516
17181920212223
242526272829 
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
    123
45678910
11121314151617
18192021222324
25262728   
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       

RECOMMENDED

Finance, Risk, and Financial Risk Management: From a Business Manager’s Standpoint

Finance, Risk, and Financial Risk Management: From a Business Manager’s Standpoint

June 27, 2022
MTN Ghana to pay GHS0.085 dividend per share

MTN Ghana extends coverage to 5.3 million Ghanaians in 2021- CEO

June 26, 2022

MOST VIEWED

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Energy
  • Health
  • Auto
  • International
  • Subscription Form
  • Staff Webmail
  • About Us
  • Contact Us
Call us: +233 24 432 0902 | info@goldstreetbusiness.com

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

No Result
View All Result
  • Homepages
    • Homepage Layout 1
    • Homepage Layout 2
  • World
  • Business
  • Technology
  • Health

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.