Named Example - Neo-colonialism in Ghana

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  • 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

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