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Ghana and colonialism
Maintains that traditiional
traid where surplus crops/
raw materials produced
and sold to developed
world, keeps developing
countries poor
Have no opportunity to and
process, manufacture development
and add value to theories
Dependency theory
materials argues that the cause of
poverty in LEDCs is their
No profit for investment reliance on developed
Become trapped in LEDCs should seek a virtuous cycle
vicious cycle of of development; keep surplus
development production and raw materials and
invest in own processing industries;…read more

Slide 3

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Ghana and colonialism
By using trade tariffs
Kept them poor by to prevent cheap
preventing them imports from colonies
investing in colonialists were
domestic undercutting own
manufacturing workers Andre Frank proposed an
Dependency alternative development
Claimed that theory
colonialists exploited
colonies for raw
Argues that colonialism More specific abut poverty trap
alone responsible for its
persistence…read more

Slide 4

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Ghana and colonialism
If Ghana could gain
Lose out on the value
value-added it would
added by processing
increase their
economy significantly
Ghana is forced to Overseas
export raw cocoa tariffs
Most processing and
Tariff escalation packaging done in Europe
EU import tariffs much
higher for processed
cocoas than for raw
cocoa beans…read more

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Ghana and colonialism
Ghana's rice
Ghana joined in growers also
1995 overwhelmed by
cheap rice imports;
mainly from USA
Joined in an attempt
E.g. As a result
to increase its
tomato canning
global trades World trade
factories have
closed and no
market left for
Until then, As a result,
Ghanaian Ghanaian farmers
government had now suffer from
subsidised farmers WTO imposed the imported subsidised
to encourage them joining condition food.
to stay on land and that Ghanaian
grow food for farmers should no
growing cities longer be…read more


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