Introduction
Since the day of announcing Ghana as an independent country (1975), it has been trying to solve the problem of poverty. Many problems which exist in the country are either caused by the poverty or can influence it.
People don’t get appropriate health care, children don’t receive education, living standards and nutritional status are very low (Whitehead, 2006). The inability even crop farmers feed themselves is caused by the lack of technical support which cannot be purchased by rural citizens (Sackey, 2005). Both rural and urban citizens suffer greatly.
The issue cannot remain unsolved anymore, as people die. Previous programs were effective only for a short-term period. The main idea of the policy is to make it effective for a long period of time.
Critique of policy options
The Ghana Poverty Reduction Strategy (GPRS I) and the Growth and Poverty Reduction Strategy (GPRS II) were the main policies aimed at solving the problem of poverty in the region up to 2009. The problem of making a new policy appeared, but it remained an unsolved issue up to June 14, 2011, when a new Coordinated Programme of Economic and Social Development Policies for 2010-2016 was adopted (Parliament adopts report on poverty reduction strategy, 2011). Current policy options:
- This program covers many problems and poverty is only one of those. One of the main disadvantages of the document is that the problem of poverty isn’t considered separately, but only as a part of other economic and social problems. However, it gives an opportunity to see the connection of the issues (Mills, 2011).
- Lack of governmental support is the main disadvantage of the previous program. The program failed as it was directed at short period of time and didn’t presuppose the governmental support.
Policy recommendations
This policy pays attention to the mistakes of the previous variants, that is why it may be considered as the most effective way for solving the problem of poverty. Having many options which may help solve the problem immediately, we would like to focus on modernization of the agricultural sector.
First of all, we recommend help those farmers who live in the unfavorable areas, like northern Ghana, which depends on rain-fed agriculture (Molini, Keyzer, Van den Boom, Zant, & Nsowah-Nuamah, 2010). A government can offer people from those regions either to move to other more favorable for farming areas, or create small town. The urbanization of the country should be controlled (Owusu, 2008).
Second, farmers should be offered modern equipment either for rent or for issuing a loan for them. The period of loan should depend on a farmer’s income and expensiveness of the desired equipment.
Farmers should be offered subsidies on attractive conditions. Financial support of farmers now can help those develop a profitable in the future.
The main problems of Ghanaian agricultural sector are in its paradox. On the one hand, food crop sector is characterized by low productivity and undeveloped internal food market. On the other hand, “horticultural exports have been increasing and recent investments in cocoa and pineapple processing can been seen as signs of an emerging modern agricultural sector” (Wolter, 2009, p. 9). Thus, the limit of the export (temporary restriction) and attempts to conserve domestic food market should be legally confirmed.
The funding aimed at developing agricultural sector can be taken from the following sources, national and international private investments (are attracted due to flourishing of food export) and governmental financial support.
Therefore, it should be concluded that the steps considered above can help agricultural sector in Ghana become a developed industry. One of the main outcomes is the reduction of the poverty rate in rural area of the country. Moreover, looking for a farming sector to develop, many people from the town (especially those who run there with the purpose to searching for a better life) can return to the villages. It is going to lead to the reduction of the rural poverty.
Reference List
Mills, J. E. A. (2011). The coordinated programme of economic and social development policies, 2010 – 2016. Web.
Molini, V., Keyzer, M., Van den Boom, B., Zant, W., & Nsowah-Nuamah, N. (2010). Safety Nets and Index-Based Insurance: Historical Assessment and Semiparametric Simulation for Northern Ghana. Economic Development and Cultural Change, 58(4), 671-712.
Owusu, G. (2008). The Role of Small Towns in Regional Development and Poverty Reduction in Ghana. International Journal of Urban and Regional Research, 32(2), 453-472.
Parliament adopts report on poverty reduction strategy on coordinated policies for 2010-2016. (2011). Ghana News Agency. Web.
Sackey, H. A. (2005). Poverty in Ghana from an Assets-Based Perspective: An Application of Probit Technique. African Development Review/Revue Africaine de Developpement, 17(1), 41-69.
Whitehead, A. (2006). Persistent Poverty in North East Ghana. Journal of Development Studies, 42(2), 278-300.
Wolter, D. (2009). Agriculture is Becoming a Business. OECD Journal: General Papers, 9(2), 9-32.