Named Example - Neo-colonialism in Ghana
- Created by: Amy Brown
- Created on: 10-06-14 11:35
View mindmap
- Named Example: neo-colonialism in Ghana
- In 1957 Ghana gained independence from British colonial rule and in recent years has been seen to be making progress in economic and social indicators.
- GNP has risen from $5.7 billion to $14.9 billion in the last 20 years
- Ghana is still influence by many external factors
- External Factors
- 1) Commodity markets in London and New York
- Cocoa prices depend on global demand which may vary
- Competition with Ivory Coast for cocoa. If prices in Ghana are too high buyers will purchase from lower-priced countries
- 2) Overseas tariffs
- EU Import tariffs are much higher for processed cocoa than for raw beans. This means Ghana is better off exporting raw cocoa beans as import cost are lower
- Means that Ghana is unable to develop its own processing industries as most f this is done in Europe - loses out of value added
- 3) WTO
- Before 1995, Ghanaian government subsidised its farmers to encourage them to stay on land and grow food for their growing cities
- Ghana then joined the WTO in an attempt to increase its global trade
- WTO imposed joining condition that the Ghanaian farmers could no longer be subsidised
- Farmers could no longer compete with imports of heavily subsidised foreign food e.g. EU tomatoes
- 1) Commodity markets in London and New York
Comments
No comments have yet been made