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Published online by Cambridge University Press: 12 December 2024
This chapter considers Ghana's use of debt-based financial statecraft, describing the country's early embrace Chinese loans and substantial borrowing in international bond markets. Despite diversifying its sources of external finance, the government had limited success leveraging its reduced reliance on traditional donor funds in aid negotiations. Based on interviews with government and donor officials, the chapter demonstrates that, while the Ghanaian government initially secured some negotiation wins, it ultimately struggled to achieve its preferred outcomes with donors on either economic policy or financial management. The chapter attributes these difficulties to donors' diminished perception of Ghana's significance and a lack of donor trust, underscoring the complexities of using alternative finance as leverage in aid negotiations.
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