ABSTRACT
This chapter examines the theoretical debate on the relationship between economic reform and democratization. It analyzes the background to the introduction of Structural Adjustment Programs. The chapter discusses the impact of adjustment policies. It explores the rationale for the seemingly successful pursuit of adjustment after democratization by the government of the National Defense Council led by Flight Lt. J. J. Rawlings. The chapter also examines the factors that in the Ghanaian context have assisted in the continued pursuit of adjustment policies after transition to democracy. It argues that contrary to the theoretical postulations, specific conditions in a particular country and other externalities may make it possible for the simultaneous pursuit of structural adjustment and democracy. In the Ghanaian situation the perceptions of the most critical sociopolitical forces-the opposition parties and civil society organizations should be the best and foremost yardstick in rationalizing the continued pursuit of adjustment under democratization.
