China's State-Capitalist Development Model: Is It Viable in Ghana?

Abstract

The relative success of China's state-capitalist model has reignited debates about state centrality in economic growth and the feasibility of replicating the model in developing countries. Shedding new light on the ongoing dialogue, this study examines the viability of China's model in Ghana and applies the property rights, public choice, and principal-agent theories to analyze State-Owned Enterprise (SOE) reforms in Ghana and China. It argues that although Ghana's SOE sector under erstwhile President Nana Addo Dankwa Akufo-Addo saw promising reforms mirroring China's early SOE reforms, the long-term viability of a statecapitalist approach is bleak. This is attributable to the non-facilitatory political practices like regular political transitions and winner-takes-all politics, as well as the persistent operational inefficiencies in Ghana's SOE sector. The article contributes to the scholarly narrative suggesting that a wave of China's state capitalist model is gaining prominence in developing countries and potentially overshadowing the neoliberal economic systems prevalent in those countries.

Keywords: China, China development model, Ghana, Neoliberalism, Operational Inefficiencies, State capitalism, State-owned enterprises, Sub-Saharan Africa