Exports of cocoa, gold, wood and bauxite have risen, but the fall in cocoa prices on the world market nevertheless cost Ghana 200 million in lost revenue, forcing a host of companies to close. Therefore, at meetings of the Paris Club in January-February 89, new loans totaling $ 900 million were granted to the country. Despite the loans, the economic situation deteriorated in 90. The government deficit doubled and export revenues fell below 88 levels. About 120 companies closed in 88-89 as their products could not compete with cheaper, better-quality, imported products from China, South Korea and Taiwan. See abbreviationfinder for geography, history, society, politics, and economy of Ghana.
The crisis forced the Rawlings government to pursue a more open policy and implement decentralization in favor of local administrations. In June 91, 260 members were elected to a new constitutional assembly. The National Council for Women and Development – with the rank of ministry – got 10 seats. Furthermore, nurses and midwives were represented.
Amnesty International in December 91 criticized the Ghanaian government for the use of oppression in its policy of intimidating and silencing its opponents. As a consequence of the serious and continuing human rights violations, the beginning of the 92 Ghanai Committee was formed. The country’s first human rights organization. That same year, the new constitution was passed and elections were held. Rawlings himself got 58.3% of the vote in the November presidential election, and the three parties that supported him got a total of 197 out of Parliament’s 200 seats in the December election. The opposition blamed Rawlings for intimidation and electoral fraud and therefore boycotted the parliamentary elections, with only 29% voting.
Despite the irregularities, 80 countries and foreign organizations were present at Rawling’s deployment in January 93. Foreign backing was attributed to the country’s punctual compliance with the IMF’s structural adjustment program in the previous decade, and the timely payment of repayments and interest on foreign debt, which now accounted for 35% of export revenue..
In February 94, clashes around the rights to the earth resulted in the death of 1,000 people and 150,000 were driven to flight. The government introduced a state of emergency and in June an agreement was made to put an end to violence. The state budget this year posted a $ 80 million surplus after two years of deficits and the 95 budget projected a 5% increase. In May, demonstrations against the introduction of VAT (additional sales tax) cost 5 killed. Finance Minister Kwesi Botchwey had to withdraw the VAT proposal and resigned himself – after holding the post for 13 years. The same period during which the IMF’s structural adjustment program had ravaged the country.
Despite the New Patriotic Party and the People’s Convention diminishing their political differences and forming a coalition facing Rawlings, this December nonetheless won the presidential election in December 96 with 57.2% of the vote. One of the major problems facing the country was an energy crisis caused by falling water levels in the Akosombo hydroelectric power plant reservoirs. The Rawlings government sought alternatives, all of which, however, proved to be useless. In March 98, the Ministry of Science and Technology announced that the country would not be able to pay the initial investment to develop a nuclear power supply. The crisis was partially resolved when the Côte d’Ivoire government agreed to increase its electricity supply to Ghana from 20 to 35 Megawatts.
Police cracked down on student demonstrations in August 1999 against the increase in tuition fees. Authorities ultimately decided to shut down the university, thereby stifling the protests.