Trade and Industrial Cooperation between Korea and Ghana : Possibilities and Partnerships

In recent times, comparisons have been made between the West African country of Ghana and the Asian tiger, Korea. These comparisons have mostly been in relation to the economic transformation and development that has occurred in the two countries over the last five decades. Five decades ago, both economies were classified as a “lower income economy” with Ghana’s per capita GDP at US$179 which was higher than Korea’s GDP per capita of US$156 in 1960 (in 2010 US$).The irony lies in the fact that at the end of the five decades, one of these two economies has grown to become world’s 13th largest economy while the other remained a lower income economy as at the end of 2009.At the later part of the 1950’s both countries made attempts at economic growth and development through industrialization. The Korean industrialization was export oriented whereas Ghana’s industrialization efforts, in line with the vision of its first president, Dr. Kwame Nkrumah was “not only to replace the imports but it would produce products that Ghana was too poor to have imported”.Also, while Korea’s international trade efforts were vigorously led by its government, Ghana’s international trade leaned more towards protectionism, with the government’s efforts (until the late 80’s) focused largely on its traditional exports of cocoa and gold.Weighing the failure of such inward and closed economic policies on one side against the success stories of emerging economies such as Malaysia, India and now OECD member, Korea, which had opened up their economies and encouraged international trade with other economies on the other, developing countries such as Ghana are beginning to reflect more the possible advantages of international trade cooperation and are increasing efforts at building export-oriented industrialized economies.Ghana has made efforts towards improving its share of international trade over the past 20 years. These efforts include not only the diversification of its export base but also the diversification of its traditional trade partners. One of these “new” focus partners is the Republic of Korea. These efforts at mutually beneficial cooperation are being encouraged by both countries.Although diplomatic relations between Ghana and Korea were established more than three decades ago, international trade and industrial cooperation between the two countries have remained modest and not much literature is available on this topic.This paper therefore aims to throw more light on the size, composition and importance of industrial and trade cooperation between Ghana and Korea and to enumerate possible areas of industrial and trade cooperation looking into the future.The paper outlines a brief comparison of the economic histories of Korea and Ghana. The second section reviews the trade and industrial relations between the two countries over the last five decades, and this is followed by an assessment of Ghana’s “emerging” economy and the role of international cooperation in its economic growth agenda. This leads to the next section which attempts to explore possible areas of trade and industrial cooperation between the two countries and the final section will provide a brief summary and conclusion