Impact Assessment

Private sector development and governance in Ghana, by Freda Asem, Matthias Busse, Robert Osei and Magdalene Silberberger, The IGC, 2013

    The role of the local private sector as a catalyst for and on-going agent of good governance is debated. Do international organisations such as the World Bank or the IMF play a more important role than local private firms? What about the impact of multinational corporations?

    This paper investigates the specific role that the local private sector can play in improving governance via its influence on business regulations.The research, using both panel data from 109 countries and an in-depth qualitative analysis of the Ghanaian context, is based on the premise that simple and transparent business regulations result in a more efficient private sector, which can then increase investment and entrepreneurship.

    While it finds limited support for the local private sector acting as a driver of change in the development of good business regulations, they do find that foreign firms play a major role.