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Why is Ghana an LEDC?
Descripción
Mapa Mental sobre Why is Ghana an LEDC?, creado por Olivia Sykes1938 el 06/04/2016.
Mapa Mental por
Olivia Sykes1938
, actualizado hace más de 1 año
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Creado por
Olivia Sykes1938
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Resumen del Recurso
Why is Ghana an LEDC?
Historic Reasons
Each kingdom had their own language and culture, so developing the country as an entity was difficult.
The Transatlantic Slave Trade meant that they sold 5000 slaves to Europe annually.
This tore families apart and continued for 150 years.
Couldn't compete with European goods after 1901.
The British began exporting gold, Ghana's biggest export
Taxes were too high to trade in Europe
Political Reasons
Political Timeline:
1957: Ghana is one of the first African countries to gain independence from colonies, the economic situation is positive.
1958: Ghana is becoming a one-party state and won't accept Valco agreements, something that has hindered it's economy and electricity supply, today.
1964: Now controlled by a dictator and turns to communist countries for assistance.
1966: Dictator is over ruled and new elections are held
1972: Leader Acheampong lacks experience and causes corruption growth
1979: New party try to restore order. Previous leaders are executed
1984: Rawlings proves popular and rectifies the economy through strong connections and IMF funding
1985: Western donor countries begins questioning Human Rights in Ghana
1998: Electricity needs to be sourced from Cote d'Ivorie as
2001: Ghana accepts World Bank debt relief
Big Debts
Ghana owes $2.6 million in loans repayments
The money they began borrowing now has interest, leaving less for development projects
Environmental Reasons
Northen land is turning to desert due to overcultivation then worsened by droughts
56% of Ghana's workforce are farmers
3/4 of rainforest has been destroyed for firewood, timber and land
Soil degrades when it is exposed and people can't afford fertilisers
Less crops to sell
Trading Troubles
Many Ghanian farmers grow rice but this is now cheaper to source from Asia, putting them out of business
Ghana relies heavily on Cocoa for income but the world prices for this fluctuates a lot.
No trading tariffs in place to help Ghanian farmers locally, so they all suffer
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