ABSTRACT
This chapter utilizes survey data on domestic private entrepreneurs and the political and bureaucratic elite to explain why institutional problems have persisted under Ghana's reforms said to be a shining example of successful market liberalization in sub-Saharan Africa. It demonstrates that a wide gulf exists between domestic private entrepreneurs and political and bureaucratic elite on the problems of institutional decay and the need for reforms. As the most successful case of adjustment reforms in Africa that yet faces the challenge of a poor institutional environment, which impedes private sector response, Ghana is an excellent place to explore the reasons why poor institutions persist even under market reforms. Leadership commitment in itself cannot be transformed into deeds, for there are fundamental prerequisites that make the market system work in all capitalist societies, a credible institutional environment. What Peter Evans finds particularly remarkable about the fast growing East Asian economies is an elite who shares a concerted commitment to, and private business.
