Virtuous Circle; Education and Economic Growth in Colonial Ghana

Abstract

Sub-Saharan Africa is often seen in light of poverty, but there is also economic growth that can be seen throughout history. The case study of the British Gold Coast is one that shows such growth. This thesis deals with the question: to what extent did development of education in the British Gold Coast colony impact economic development from 1891 until 1938? By looking at the Gold Coast through institutional frameworks Acemoglu and Robinson, several types of political and economic institutions have been identified. Most of these are mainly extractive, but some inclusive elements were able to coexist. These inclusive institutions can be seen through the virtuous circle, which implies inclusive institutions cause economic growth and this growth reinforces their inclusive nature. Economic growth is also suggested to lead to more widespread and better education, which is also the case for the Gold Coast. More schools opened, and more was asked of teachers. Although there were still limitations on the education system, improvements both the curriculum and the reach improved. GDP estimates from Morten Jerven as well as education data from the annual colonial reports have been used in a linear regression. This has statistically proven a relationship between the two variables, as could be expected from the institutional framework. The inclusive elements in the Gold Coast colony are thus small beginnings of a virtuous circle culminating in the decolonization halfway through the twentieth century.