The Size and Changing Composition of the Public Sector in Ghana.

Abstract

The size and the composition of the public sector and the activities of all levels of government are currently important policy issues. After all, one of the main aims of structural adjustment programs is to reduce the size and the participation of the public sector in economic activity because of the sector's 'inherent' inefficiency. Attempts to estimate the size of the public sector in Ghana face serious data problems. Available data do not permit an in depth analysis of the public sector and hence one cannot be definitive on some issues. However, what is clear from available information lends some support to the view that cuts in the public sector may have fallen more heavily on 'soft' targets. Furthermore, this study shows that the capacity of the private sector in Ghana to generate jobs is quite limited, suggesting that by changing the pace and intensity of those components of structural adjustment programs that lead to the retrenchment of large numbers of public sector employees the social cost of adjustment may be reduced.


African Journal of Finance and Management Vol.7(1) 1998: 88-93