Ghana remains an LEDC because...

Trading Trouble
1. Ghana relies heavily on cocoa, to earn money. But the world price for cocoa goes up and down, so some years Ghana earns a lot, but other years they don't earn much.
2. Many Ghanian farmers grow rice to sell, but rice is coming in much cheaper from Europe, Asia and USA (where farmers get subsidies). This has put many of Ghana's rice farmers out of business.
3. Ghana's chicken farmers cannot compete against the frozen chicken coming from places like the USA or Europe.
4. In exchange for debt relief, Ghana is not allowed to stop these imports. (many people think this is unfair)
  1. People believe that poor countries should be allowed to protect their farmers and fragile industries.
5. Ghana hopes that its new-found oil and gas will help solve its problems, and turn the country into an MEDC.
Big Debts
1. Ghana borrowed a lot of money in the past so it has to pay lots of interests each year (less money for development).
2. In 2004, Ghana was given debt relief: richer countries and the World bank agreed to cancel over half its debts.
  1. It still owes $2.6 billion (and still needs to borrow more to help it development)
Historic Reasons
1. Each Kingdom had their own language and culture.
2. They traded their Gold for money to the Europeans
3. They sold at least 5000 slaves to the Europeans every year.
  1. Villages and families were torn apart. This went on for 150 years.
4. The Europeans competed to trade with them and by 1901, Britain had taken over.
  1. British made the people from Ghana pay the taxes to pay for roads, schools and hospitals.
  2. The British shipped out Gold, Diamonds, Ivory, Pepper, Timber, Corn and Cocoa.
5. In 1957, they gained independence.
Political Reasons
1. Since their independence, Ghana has suffered much political unrest.
2. The army took over the country for three separate periods.
  1. But now it is stable, under an elected government. People say it will remain stable.
Environmental Reasons
1. 56% of Ghana's workforce are farmers.
  1. In the North, land is turning into desert (desertification)
    1. This is due to drought, chopping down trees and overgrazing.
2. In the South, three-quarters of the rainforest has been destroyed. (deforestation)
  1. (for timber, firewood and to grow cocoa)
3. People gain more land to farm, but the exposed soil is soon useless.
  1. Many people can't afford fertiliser to improve the soil.
  2. This means smaller crops to eat and sell. (more poverty)

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Ghana remains an LEDC because...

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