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Globalization and Poverty in Ghana

Globalization and Poverty in GhanaGhana’s history runs deep with its rich cultural heritage and diverse landscapes. Home to more than 33 million people, with a projected increase of 56% by 2050, around 38% of the population are youth ages 15 to 35, with the other 35% children under 15. Globalization, in its various forms, has shaped the education and job opportunities available to the youth in Ghana. With the spread of globalization and the influence of technology, better job opportunities have opened, contributing to low unemployment and poverty rates.

Globalization and Economic Development in Ghana

Globalization has had an impact on Ghana, shaping and changing its economy. While also influencing cultural exchange and ultimately reshaping the country’s rapid development. Though it has had positive effects, globalization and poverty in Ghana have impacted urban and rural areas, creating challenges in poverty reduction. Kent Mensah, a journalist with African Report and freelancer based in Ghana, emphasized the interconnectedness brought about by globalization. “We are all connected. Everything that we do is interconnected, especially in the areas of trade, in the areas of diplomacy and in the areas of cooperation. We all need each other before we can survive,” Mensah stated in an interview with The Borgen Project, highlighting the broad impacts of globalization on the country.

The history of Ghana’s trade dates back to its days as the Gold Coast, a former British colony in West Africa, now known as the Republic of Ghana. Colonizers called West Africa the Gold Coast due to its excessive supply of gold. In 1879, a blacksmith brought cocoa beans from Spanish Fernando Po to the Gold Coast. By the 1890s, local African farmers, with support from the British administration, had purchased thousands of cocoa seedlings. The British colonial decisions allowed African farmers to maintain control of cocoa production, asserting that Europeans could not purchase land owned by Africans.

Economic Trade and Policies

Currently, Ghana is the second-largest cocoa-producing country. Cocoa is one of Ghana’s most crucial products in distribution. Their export of cocoa is critical in boosting the country’s economy. Not only do countries like the Netherlands, United States (U.S.), Malaysia, France and Japan depend on their products (aka chocolate), but farmers depend on the products to make a living. Discussing how globalization has helped reduce poverty in Ghana, Mensah noted that expanding trade opportunities significantly benefits the families of farmers and workers.

Trade is a significant part of the economy, impacting job opportunities and farmers’ livelihoods. Through the African Continental Free Trade Agreement (AfCFTA), Ghana hopes to expand and boost growth and reduce poverty – while reaching a larger market size. In April of this year, it was reported that South Africa started offering trade benefits under the AfCFTA. As a result, traders in Algeria, Cameroon, Egypt, Ghana, Kenya, Rwanda and Tunisia can now trade with South Africa under the AfCFTA. Allowing these countries to buy and sell goods more efficiently. 

Education and Jobs

Globalization has led to partnerships and policies, opening up opportunities for the youth to strengthen their education, which can potentially lead to better jobs. Education access in Ghana has had its challenges, as access to free education was limited and not for everyone. In 2014, less than 45% of students were enrolled in higher secondary education. Many students were missing out on furthering their education. “A lot of people get qualified to go to senior high school, but because their parents don’t have the money, they are unable to enroll in schools. But now, because of subsidies and support that we are getting from our donor partners, about 1.4 million children have had access to go to school,” Mensah added. 

The number of secondary school students switched after Ghana launched the Free Public Senior High School Policy in 2017. The policy implicated removing cost barriers to secondary education, including textbooks and boarding. In the 2017/2018 academic year, a record was set with the highest enrollment, with around 470,000 students enrolled in senior high school. 

Without the policy-making an impact, the likelihood of the youth becoming dropouts is high. With the widespread trade economy, jobs within the area have opened up opportunities. However, there still seems to be high unemployment in Ghana. It has remained a consistent challenge, especially for the youth. Technology has created an opening for those struggling with finding a job. 

Role of Technology

Technology is an ever-changing commodity. With the rise of new forms of communication and the spread of social media, anything seems possible. New markets and opportunities have opened that were never available before.  “Because there are no jobs, a lot of the youth are using technology, which is creating a lot of jobs for the young. For instance, most of them are tunneling a lot of energy into e-commerce. People are now starting online shops,” Mensah mentions with the rise of technology, media outlets like Instagram and TikTok can advertise products and reach more revenue. 

During the pandemic, e-commerce in Ghana rose as online purchasing became more accessible for food delivery and clothing, shifting consumer behavior. With approximately 15 million internet users and 40 million mobile connections, users can access e-commerce daily. New technology isn’t only changing markets but opening up new opportunities for farmers. Agriculture is a crucial contributor to Ghana’s GDP, accounting for 54%, employing more than half of the population. 

With the help of the United States Agency for International Development (USAID), Feed the Future, a U.S. government global food security initiative, created a project part of Feed the Future. The ADVANCE 11 project aims to improve the farmer’s livelihoods by enhancing the productivity of produce. Aiming to target around 113,000 farmers and use a range of digital tools to reach this goal.

Looking Ahead

Ghana’s efforts to improve trade, education and technology access have made strides in fostering economic opportunities and supporting youth development. As policies evolve and digital advancements continue to reshape markets, the nation is working to empower its population, particularly young people, to build sustainable livelihoods and reduce poverty. Continued focus on these areas could be essential to drive lasting progress for future generations and reduce poverty in Ghana.

– Savannah Garza

Savannah is based in New York, NY, USA and focuses on Business and Technology for The Borgen Project.

Photo: Flickr