Today Ghana, a small West African nation, celebrates fifty years of independence from colonial rule. That time has been marred by several passing coups, but Ghana has never succumbed to the full-blown civil wars that have plagued its neighbors. Comparatively, its economy—though struggling by Western standards—has grown stronger, and its people are as enamored with the democratic experience as any on the continent. The combination of peace and deepening macro economic stability for a developing nation would be impressive in any circumstances. But among countries in a tumultuous part of the world where transitions to democratic pluralism rarely happen without sustained violence, it is nothing short of incredible.

The late 1950s and early 1960s was an exciting time in sub-Saharan Africa. The wave of decolonization was cresting and Ghana stood at its height, becoming the first sub-Saharan African nation to gain independence from colonial rule in 1957. At the time, Ghana had, by African standards, a flourishing economy; average per capita income was U.S. $400 in 2006 dollars. Well-endowed with natural resources, a highly educated labor force, a thriving agricultural sector providing food security, financial support and employment, and with unrivaled access to ports and colonial mercantilist marine lines, Ghana was poised for a bright economic future.

But there was trouble ahead. Ghana’s population grew rapidly from about 7 million inhabitants in 1960 to over 19 million by 1998, an increase of 171 percent. The external environment—fluctuating world prices, oil shocks, etc.—arguably contributed to constraining Ghana’s economic growth. However, a host of internal problems—the centralization of both political and economic power under an austere one-party system, the employment of vestigial colonial laws and institutions to stifle entrepreneurship, and a development policy that emphasized the production of primary commodities for export, at the expense of adequate support for subsistence agriculture—was even more damaging.

Not surprisingly, Ghana slipped into the familiar pattern of coups and counter-coups led by military leaders with dubious “fix-it” plans. The results were regrettably familiar: severe food shortages in the 1960s and 1980s, a soaring external debt, poor health care, and an increasingly illiterate population. The World Bank Structural Adjustment Policies (SAP) arrived in 1983 to attempt to mitigate some of these adverse effects. The reforms helped liberalize the economy, but in the hands of inept and corrupt leaders the problems did not go away. By the early 1990s, Ghana’s economy was on the verge of collapse and the morale of its citizens at an all time low.

With its balmy beaches and resorts, eco-tourism projects, and well-preserved colonial history, Ghana has become a tourism hotspot in West Africa. Government estimates show that tourism brings in over $400 million every year.

Over the last fifteen years, however, Ghana has turned a corner. The 1994 Investment Promotion Act guaranteed the freedom for foreigners as well as Ghanaian nationals residing abroad, and the rights to establish and run enterprises in lucrative areas of the economy, such as hydropower projects and information technology. Multinationals such as Coca-Cola, Heinz, and Coleman responded quickly by making significant million dollar investments into expanding their business interests. Dubbed the “Gateway to Africa” by President Clinton during his 1996 visit, Ghana is now working overtime to reclaim its stunted nationhood and the unfulfilled promise of economic prosperity.

Democracy’s success in Ghana has also improved the investment climate. In 1992, under international and domestic pressure to return to democracy, the provisional military government led by Flt. Lt. Jerry John Rawlings lifted the ban on party politics. Through dubious elections, Rawlings was voted into power and then reelected in 1996. Although Rawlings’ tenure in elected office was relatively peaceful, businesses were still skeptical of the economic climate fostered by this former dictator turned self-proclaimed champion of democracy. When the 2000 elections ushered in the first democratic presidential change of power in Ghana’s history and elected John Agyekum Kuffour from the opposition party, investors and business gained further confidence in this budding democracy. And a jump in real GDP growth from 3.7 percent in 2000 to 5.2 percent in 2003 soon followed.

A more recent landmark is the August 2006 signing of a five-year Millennium Challenge Corporation (MCC) compact of U.S. $547 million in August 2006—an agreement designed to use U.S. support to reduce poverty by raising farmer incomes through private sector-led, agribusiness development.

Perhaps most importantly, civil society has emerged from being an idle bystander to an empowered voice in the country’s political debates. Currently, over 15 private radio stations, some of which are broadcast entirely in the local languages, populate the Ghanaian capital of Accra. This ensures that all who wish to be heard are heard, language barriers notwithstanding.

With its balmy beaches and resorts, eco-tourism projects, and well-preserved colonial history, Ghana has also become a tourism hotspot in West Africa. Government estimates show that tourism brings in over U.S. $400 million every year. Ghana’s success at the 2006 World Cup, trouncing giants such as the Czech Republic and the United States to reach the round of 16, is one measure of its international popularity.

These economic and national successes aside, real humanitarian challenges remain. Poverty and disease continue to ravage parts of the country. Currently, malaria—a preventable and curable disease—accounts for more than 44 percent of reported outpatient visits and an estimated 22 percent of under-5 mortality. The population is also at a high risk of waterborne diseases such as typhoid fever because of the scarcity of clean drinking water. In spite of high education budgets, illiteracy is prevalent. Practices such as child slavery and female genital mutilation still occur.

At fifty, Ghana is a happy anomaly in the sub-Saharan African region. An African country that cherishes peace and solidarity over war and conflict is to be commended. It has been experiencing slow and steady real GDP growth since the early 1980s. Fifty years into its post-independence enterprise, it is in a strong position to improve. Government policies tailored to improving the every day lives of the Ghanaian people through better healthcare, education, and poverty-reducing endeavors should be at the top of its golden jubilee anniversary resolutions.

Kathryn Boateng is a Research Assistant at the American Enterprise Institute.

Image credit: "Ghanaian Fans" by Flickr user StewieD; Chart from the paper "Economic Growth in Ghana: 1960-2000" by the Institute of Statistical, Social and Economic Research at University of Ghana.