The impact of globalisation and liberalisation on agriculture and small farmers in developing countries: the experience of Ghana

This study is part of a research project on the impact of globalisation and liberalisation on poor rural producers in developing countries. It takes as a case study the experience of Ghana and its agricultural sector. While the report carefully outlines the changes in tariffs and the present situation in trade policy and the agricultural sector; the challenge to farmers caused by import liberalisation and the withdrawal of state assistance; and describes the programme of IFAD (International Fund for Agricultural Development) in Ghana, only a couple of findings are outlined below.Analysing the challenges posed to farmers by import liberalisation and the withdrawal of state assistance, the report finds that Ghana is victim to unfair market conditions. While it is legally allowed to protect itself from subsidised products from rich countries by raising its tariffs, it is disallowed from doing so by international financial institutions on which the country depends on loans. The authors argue that unless this situation changes, it will be difficult for Ghana to stop the continuing decline in many of the agricultural sectors.Reviewing some of the projects implemented by IFAD in Ghana, the authors note that the projects aim to assist poorer farmers and communities to increase their output and revenue, and to reduce poverty through a number of intervention such as community empowerment, providing communities with financial and land resources, and provision of technical assistance. The report nevertheless argues that the projects do not adequately take account of the larger policy environment, and the effects of liberalisation of trade and the structural adjustment programs. The projects also fail to consider post-production issues such as post-harvest storage, marketing and pricing.