The institutional and policy framework for regulation and competition in Ghana

Abstract

Ernest Aryeetey INTRODUCTION The reforms that Ghana has undertaken in the last two decades are basically for the development of a stronger market economy. These have not only changed the nature of government economic policies, but have incorporated into them the design of regulation and institutional strengthening at all stages. The introduction of more effective regulation is premised on the idea that as the public sector withdraws from the direct production of goods and services, the revitalized private sector will require some regulation to ensure that it functions in the interest of the wider public. There are new regulatory arrangements in many of the major areas where new economic agents have taken over activities previously carried out by the public sector. But beyond that, areas that were hitherto unregulated have also come in for some regulation. This is, first, a consequence of government being required to do so under the new governance arrangements, particularly the constitution, and second, a consequence of greater demand by donors, as increasing use is made of aid for those activities. Some of the prominent new areas for regulation following restructuring are the water, electricity and telecommunications sectors. Similarly, new regulatory arrangements have been instituted for the financial sector following major reforms. In the area of production, government has pulled back extensively from direct involvement in the manufacturing and agricultural sectors and has sought to encourage more extensive private sector participation, at both the small-scale and large-scale ends of the market. The expanded role of the�. � 2020 Elsevier B.V., All rights reserved.