The Economy And Culture Of Ghana

The state of Ghana is located in West Africa and has an country of 248,540 square kilometres ; this is about the size of Britain or Illinois and Indiana combined.A The capital of is the metropolis of Accra and the current president since 2008 is John Atta Mills.A Ghana is bordered by the African states of Cote d’Ivoire to the West, Togo to the E, and Burkina Faso to the north.A In 1957 Ghana was the first Sub-saharan African state to set up its independency from colonial regulation shortly after its creative activity through the amalgamation of the Gold Coast and Tagoland ( 9 ) .A Ghana is regionally regarded as a theoretical account for adjacent African states.

Archaeological history hints worlds in Ghana back to about 1,500 b.c.A Prior to being colonized by the British in 1847 Ghana was inhabited by multiple African lands including the Akan, Ashanti and Fante.A Prior to the fifteenth century when Ghana began merchandising with Portugal non excessively much is known about its history other than the fact that it ‘s current cultural groups ; the Akan, Ga and Ewe likely arrived in the 13th century.A Early trade with Portugal focused on the copiousness of gold that Ghana had been gifted with.A In 1481 as trade began Portugal established their first palace in the coastal town of Elmina.A Approximately six decennaries subsequently the Dutch arrived as bargainers and began to construct garrisons around countries of heavy trade throughout the country.A They were later followed by English, Swedish and Danish bargainers that besides built garrisons and outstations throughout the natural resource rich country.A Throughout this period of clip many bargainers suffered and died due to malaria ( 3 ) .

In 1957 Ghana gained its independency from colonial regulation and formed a parliamentary democracy.A Over the following two decennaries multiple military and civilian governments would command government.A Throughout this clip there were many putschs and the state was considered unstable and slightly ungovernable.A In 1981, Lt. Jerry Rawlings, a indigen of Ghana, took power and suspended the Ghanese fundamental law and banned political parties.A The following few old ages were marked by economic stagnancy and a terrible contraction in the states criterion of life every bit good as overall development.A Shortly, thenceforth Rawlings negotiated a structured program with the International Monetary Fund T ( IMF ) to subscribe to say economic policies and the state regained its economic footing.A In 1992 a new fundamental law was drafted and Jerry Rawlings was officially elected president of Ghana.A The constitution of a new fundamental law and resulting election of Jerry Rawlings as president began what is known as “ The Fourth Republic, ” and modern age of Ghana.A Governmental powers were separated by President, Parliament, Cabinet, and Council of State.A In add-on, Ghana established an independent bench and a parliamentary democracy in which the president is elected by the people ( 3 ) .

Economy:

The Ghanese economic system is mostly driven by exports every bit good as its big agricultural complex.A In 2008 ( the most recent release ) Ghana had a Gross Domestic Product ( GDP ) of $ 16.7 USD and a population of 23.4 million of which about 11.5 million are active participants in the labour market – this translates to GDP per capita of about $ 713 or Gross National Income ( GNI ) per capita of about $ 630 ( 10 ) .A Equally far as size the Ghanese economic system is the 99th largest economic system in the universe, merely behind North Korea and merely larger than Turkmenistan ( 1 ) .A For better perspective their economic system is approximately 1/30th the size of Wal-Mart, 1/10th the size of General Electric, A? the size of Coca-Cola and about the size of Xerox ( 12 ) .A Ghana is considered one of the more developed states in Sub-Saharan Africa and presently about 23.5 % of the population lives at or below the poorness line ( 10 ) .A Their signifier of currency is the Ghana Cedi which presently trades about $ 1.4GH/ $ 1USD.

A Ghana is for the most portion a free-market economic system but still retains important authorities ownership of certain State Owned Entities ( SOE ‘s ) .A Over the past two decennaries Ghana has worked to privatise a bulk of the authorities ‘s SOE ‘s but still retains ownership of assorted companies in assorted industries including but non limited to retail, energy and telecom sectors ( 4 ) .A Based on the World Bank ‘s “ Doing Business ” study, Ghana ranks in at ’92 ‘ in the universe index.A The study is based on multiple points including easiness of making concern, registering belongings, acquiring recognition, protecting investors, paying revenue enhancements and implementing contracts.A Ghana ranks perceptibly good every bit far as protecting investors at ’41 ‘ in the universe index and slowdown behind in points such as get downing a concern ‘135, ‘ covering with building licenses ‘153, ‘ and using workers ‘133. ‘A Overall their ranking of ’92 ‘ does put them towards the top for states located within the African continent and partly because of this Ghana is seen as the economic theoretical account for many African provinces.

A If broken down into its three largest constituents Ghana ‘s GDP would be comprised of about 36 % agribusiness, 39 % services, and 25 % industry ( 2 ) .A Like many states within Africa agribusiness along with exports ( discussed subsequently ) , are two of the largest drivers of Ghana ‘s economy.A If broken down otherwise Ghana ‘s GDP is composed of about 78 % private ingestion, 18 % Government ingestion, 32 % gross fixed investing, 40 % exports and 67 % imports ( 2 ) .A Ghana ‘s was fortuitously endowed with a big sum of natural resources which serves to bolster its exports – one of the chief driver ‘s of Ghana ‘s economic system accounting for about 40 % of GDP.A Ghana ‘s chief exports include gilded 34 % and chocolate and chocolate merchandises 37 % – following these two exports no individual point histories for more than 2 % of entire exports ( 2 ) .A Imports, which nclude about 67 % of GDP ( combined with exports making a 27 % trade shortage ) are chiefly composed of capital goods 52 % , fuel and energy 28 % and nutrient 20 % ( 2 ) .

A As Ghana is still considered a developing state it receives a important part of its authorities support through many-sided and bilateral loans every bit good as supranational establishments such as the IMF and World Bank.A Currently, authorities debt stands at about $ 4.97bn measured at current exchange rates in USD ‘s or approximately 50 % of GDP as measured in most late released FY 2008 terms.A The fact that the federal authorities is presently running shortages of approximately 15 % of GDP and does non hold the same entree to capital markets that a developed state would bask makes outside funding beginnings from other states and the aforesaid establishments a necessity.A In the past Ghana received support from the International Bank for Reconstruction and Development ( IBRD ) , a member of the World Bank Group and presently receives a important part of authorities support ( USD $ 1.330bn or ~27 % ) from the International Development Association – the interest-free loan-making window of the World Bank.A They besides receive a important part of authorities support ( USD $ 1.352bn or ~27 % ) from private investors and another ( USD $ 1.356 or ~27 % ) from assorted short-run authorities, span, concessionary and private mechanisms.A Other constituents of authorities debt include bilateral and many-sided loans from assorted states around the world.A Over the past decennary Ghana has significantly reduced its outstanding stock of authorities debt from about 150 % of GDP in 2000 to less than 50 % of GDP in 2010.A All beginnings in this paragraph were taken from World Bank Produced charts composed from the Development Economics Database ( 13 ) .

Current important economic tendencies with Ghana ‘s economic system include a widening trade shortage, recent oil finds, continued authorities denationalization of province owned endeavors ( SOE ) and a move towards a less labour intensive and more modernised production techniques.A The widening trade shortage is a consequence of larger capital goods imports which is characteristic of a developing economic system that does non yet have the production techniques to make their ain advanced capital goods.A Recent oil finds will function to take down the trade shortage as a bulk of the petroleum oil and cleft merchandises will be exported.A Continued denationalization of SOE ‘s will go on to guarantee Ghana remains a theoretical account for assorted other African states every bit good as long pillow GDP growing within Ghana.

Culture:

To get down to understand the current environment every bit good as the future chances of Ghana we must foremost get down to understand its civilization and its implicit in values. From this basic apprehension we can develop outlooks of their system constructions and do anticipations on how Ghana will react to the planetary environment.

We start our probe of Ghana ‘s civilization with the work of Geert Hofestede. In 1978, Hofestede surveyed 1000s of IBM employees. This survey determined that there are relentless features in national civilizations that can be categorized into four dimensions: power distance, uncertainness turning away, maleness, and individuality. Hofstede conducted a 2nd study in the 1990 ‘s that resulted in a 5th dimension, long term orientation.

Harmonizing to the web site of Itim International, an international consulting house that extensively uses the Hofestede kineticss, Ghana was surveyed and reported as portion of West Africa along with Nigeria and Sierra Leone. The West African tonss in the perspective dimensions were: power distance 77, uncertainness turning away 54, maleness 46, individuality 20, and long term orientation 16 ( based on a possible mark of 100 ) .

Power Distance:

Power distance is the willingness to digest unequal distribution of power from the bottom degree of society and upwards. Ghana ‘s mark of 77 is comparatively high. As a effect of this Ghana society values obedience to authorization, are comfy having bids from higher-ups without argument, and they prefer to decide differences with higher-ups indirectly through a formal procedure ( 14, McShane, pg. 46 ) . This high ranking is a contemplation of Ghana ‘s focal point on household in a patriarchal society.

Uncertainty Avoidance:

Uncertainty turning away is the grade to which people tolerate ambiguity or feel threatened by uncertainness. Ghana ‘s mark is comparatively moderate at 54. This expresses their little penchant to avoid uncertainness. This indicates Ghana society prefers direct communicating and structured systems with clearly documented regulations of behavior ( 14, McShane, pg. 47 ) .

A Individuality:

Individuality is the extent to which a individual values independency and personal singularity. Ghana ‘s mark of 20 is comparatively low. This indicates that Ghana is more of a collectivized society. Collectivist societies value responsibility to groups, place themselves by group rank, and value group harmoniousness ( 14, McShane, pg. 45 ) . This penchant consequences from Ghana ‘s focal point on household and their history of tribal communities.

Maleness:

Masculinity, sometimes referred to as the achievement moral force, reflects a competitory versus concerted position of dealingss with other people. Ghana ‘s mark of 46 reveals the society leans somewhat towards feminism, or the nurturing pole. Societies with a women’s rightist tilting emphasize relationships, modestness, and the well being of others ( 14, McShane, pg. 48 ) . This penchant is aligned with the focal point on household and the societal hierarchy found in tribal parts.

Long Term Orientation:

Long term orientation, based on Confucianism ideals, is described as Virtue without Truth. Ghana ‘s comparatively low mark of 16 indicates a strong propensity towards short term orientation. Societies with a short term orientation value regard for tradition, carry throughing societal duties, and protecting one ‘s ‘face ‘ ( Itim International web site ) .A This moral force is strongly influenced by the cultural history of a state.

In order to use these scored dimensions and utilize them to get down to make outlooks about Ghana ‘s systems and environment we will see two theoretical accounts that attempt to make a value hierarchy and relate system attributes that can be predicted, the Schwartz theoretical account and the Gray theoretical account.

Schwartz Value Circumplex:

A societal psychologist, Shalom Schwartz built on the work of Geert Hofestede in his survey, “ Universals in Content and Structure of Values: Theoretical Progresss and Empirical Trials in 20 States ” ( Advances in Experimental societal Psychology, pg. 1-65 ) . Schwartz derived a spectrum known as the values circumplex. While much of Schwartz ‘s theoretical account parallels the consequences of Hofestede ‘s the circumplex allows you to take a measure further and try to contract kineticss to an overall government value that will supply the model for future developments.A The circumplex has 10 wide values that run on two axis: openness to alter versus conservativism and self-enhancement versus ego transcendency. The left quarter-circle closely parallels the individuality and maleness kineticss in the Hofestede theoretical account. The right quarter-circle aligns with the feminism and short term orientation dynamics.A

The Schwartz theoretical account groups Ghana with Nigeria which places Ghana in the upper right quarter-circle for tradition. This arrangement is based on their penchant towards groups, moderateness, and continuing the position quo.

Gray ‘s Model:

We can now utilize the information we gathered from the Hofestede and Schwartz theoretical account in a theoretical account developed by S.J. Gray. Gray ‘s theoretical account helps us understand based on cultural facets what sort of systems we can anticipate to develop in those states. Gray ‘s theoretical account as explained in the paper, “ Towards a Theory of Cultural Influence on the Development of Accounting Systems Internationally ” focuses on accounting systems but the theoretical account can be applied to multiple system types. Gray ‘s theoretical account leverages the Hofestede values into four features of a system: professionalism, uniformity, conservativism, and secrecy.A

Gray ‘s theoretical account uses four hypotheses that combine multiple Hofestede values to find the system characteristic. The four hypotheses as described in the paper “ Towards a Theory of Cultural Influence on the Development of Accounting Systems Internationally ” are below ( 15 ) :

Hello: The higher a state ranks in footings of individuality and the lower it ranks in footings of uncertainness turning away and power distance so the more likely it is to rank extremely in footings of professionalism.

A H2: The higher a state ranks in footings of uncertainness turning away and power distance and the lower it ranks in footings of individuality so the more likely it is to rank extremely in footings of uniformity.

A H3: The higher a state ranks in footings of uncertainness turning away and the lower it ranks in footings of individuality and maleness so the more likely it is to rank extremely in footings of conservatism.A

A H4: The higher a state ranks in footings of uncertainness turning away and power distance and the lower it ranks in footings of individuality and maleness so the more likely it is to rank extremely in footings of secretiveness.

A

This consequences in a anticipation that Ghana will develop systems that are under statutory control, unvarying, conservative, and are close.

Statutory Control:

This characteristic reveals a states penchant for conformity with legal ordinances and authorities control over systems ( 15, Gray, pg. 8 ) . Countries with statutory control such as the French civil jurisprudence system focal point on making elaborate legal conformity directives. Practitioners within the system so concentrate on using Torahs and codifications to issues instead than utilizing personal judgement to find results.

A Uniformity:

This characteristic reveals a states ‘ penchant for unvarying rules that are applied systematically between participants and over clip ( 15, Gray, pg. 8 ) . This in concurrence with a penchant for statutory control will normally ensue in a penchant for regulation based systems instead than rule based systems. This may do trouble in events such as the push to make International Financial Reporting Standards ( IFRS ) credence. A

Conservatism:

This characteristic describes a penchant for a cautious attack to measurement as to get by with the uncertainness of future events ( 15, Gray, pg.8 ) . A Conservatism is consistent with Ghana ‘s focal point on tradition. Ghana nevertheless, merely has a mild penchant for the overruling values that dictate this penchant, maleness and uncertainness turning away. This may bespeak they take merely a somewhat cautious attack to measurement in contrast to states such as Japan with a stronger penchant.

Secrecy:

This characteristic describes a penchant for confidentiality and restricted revelation to those straight involved in determination devising ( 15, Gray, pg. 8 ) This feature is closely linked with states that have a big power distance and low individualistic Hofestede tonss. Ghana ‘s tonss in these dimensions would propose Ghana has a strong penchant for secretiveness which will greatly impact how it relates to the international community. For illustration, Ghana ‘s ability to pull foreign direct investing and raise capital may depend on its ability to follow IFRS criterions that chiefly require greater degrees of transparence.

To understand how Ghana will interact with the planetary community and respond to its current environment we must see non merely Ghana ‘s cultural penchants for system development but besides how the planetary community perceives Ghana ‘s current systems and their ability to accommodate. In order to make this we will look at two beginnings: Transparency International Corruption Perception Index 2009 and the Milken Institute ‘s Opacity Index 2009.

Transparency International Corruption Perception Index 2009:

Harmonizing to Transparency International which scores the sensed corruptness of a state in relation to the other 179 states surveyed Ghana ranks 69th with a mark of 3.9. While this mark was better than 66 % of the African states surveyed they were still good below Botswana, Mauritius and Cape Verde. Transparency International explains that Ghana has progressively strengthened its legal model overall but enforcement remains inconsistent. There has been multiple high profile corruptness dirts that have undermined the authoritiess push to make a stronger legal system. So while they are doing paces towards their ends incompatibility remains an of import issue to be addressed ( 17 ) .

Milken Institute ‘s Opacity Index 2009:

The Opacity Index, originated by PricewaterhouseCoopers Ltd. In 2001 and continued after 2004 by the non-profit Milken Institute broadens the perceptual experiences surveyed for states to the CLEAR theoretical account. While Transparency International chiefly uses the legal model to depict corruptness the CLEAR theoretical account includes: Corruptness, Legal, Economic, Accounting, and Regulation. The original intent of the CLEAR theoretical account and mark was to measure the hazard premium that should be applied to capital investing due to perceptual experiences of deficiency of transparence in systems. The Milken Institute alternatively ranks states and uses the tonss to make outlooks about states ‘ stableness, growing, and ability to pull foreign investing. While Ghana is non straight assessed, we can utilize the tonss assigned to Nigeria for comparings ( 18 ) .

The tonss are applied on a graduated table of 1-100 with the lower the mark the stronger the system and the more crystalline it is perceived to be. Nigeria, and by extension Ghana, has peculiarly high tonss for corruptness, legal, and accounting standards. This is due to two factors: secretiveness and incompatibility. The Milken Institute assessed the legal and accounting tonss peculiarly high because of the great incompatibility between the presently adopted regulations and the existent patterns observed. For illustration, while official regulations province a simplified measure by measure procedure for appealing a strong belief, in world it is a game of “ who you know ” . The mark for ordinance has decreased as the states have taken stairss to fasten legal models and are get downing to stress greater instruction criterions for Judgess and lawyers. Overall, Nigeria was ranked 48th which makes it the lowest graded state of the states surveyed. This will make jobs for Ghana in their efforts to pull foreign direct investing, create sustained growing, and respond to the planetary communities ‘ demands.

Accounting Environment:

A state ‘s accounting environment is one of the most of import ingredients of development. In today ‘s universe it is really critical for a state to hold strong accounting patterns to take part in the planetary economic system. These statements are apparent from the experience of GHANA. Ghana is seeking to pull foreign direct investings and portfolio investings. However, they have failed miserably in making so. One of the major grounds for this is their failing in ordinance, conformity, and enforcement of accounting and auditing criterions and regulations. Ghana accounting and auditing criterions borrow to a great extent from International accounting and auditing criterions. However, they have failed to keep gait with the developments in these criterions. As a consequence, most of their criterions are outdated and plagued with jobs.

A study of institutional investors revealed serious concerns over the quality of fiscal coverage and auditing in Ghana. Following illustration helps to set in position the earnestness of the job. The “ independent ” external hearers are asked to roll up the fiscal statements for the company before scrutinizing them. Besides, there is no consistence in using the published regulations for fiscal coverage. Some companies use Ghana Accounting Standards and some use International Financial Reporting Standards ( IFRS ) , with no concrete guidelines from the governments. Given these jobs, this subdivision of the paper discusses the accounting institutional model, Ghana Accounting Standards ( GAS ) and the jobs with GAS.

The Companies Code, Act 179 ( 1963 ) is the jurisprudence for integrating a company in Ghana and therefore it provides the demand for readying and publication of fiscal statements, revelations and scrutinizing. The Ghana opposite number of the US SEC is Securities and Exchange Commission of Ghana ( SECG ) . The importance of The Companies Code lies in the fact that it has immense impact on the investings and the companies in Ghana. However, The Code suffers from important jobs. It does non supply a clear counsel on policies to follow for the readying and publication of fiscal statements ; it was adopted 41 old ages ago and since so it has non been updated, and there is built-in job in the processs for naming and firing hearers. Another of import accounting authorization in Ghana is the Institute of Chartered Accountants of Ghana ( ICAG ) . It is the Ghana opposite number of the AICPA in the US. ICAG acts as a regulator of accounting profession in Ghana. However, one of the major drawbacks faced by the state in the accounting country is that they lack an independent regulative authorization like the PCAOB in the United States. Due to the deficiency of qualified accounting professionals at that place has been a ferocious competition among the audit houses and due to the deficiency of appropriate regulative control the hearers sometimes do non follow the regulations. To escalate the job, there are some uncertified hearers that are executing audits of houses. ICAG is missing in identifying and taking proper disciplinary action against such uncertified hearers and those hearers who do non follow proper policies and processs.

As mentioned earlier, over the old ages ICAG has failed to update the international criterions originally adopted. Therefore, there are important spreads in the accounting criterions of Ghana. Following are some major differences as reported in the Report on the Observance of Standards and Codes ( 19 ) :

1.A A A A A International accounting criterions require a “ statement of alterations in equity ” as a basic fiscal statement. However, Ghana criterions do n’t necessitate any such statement. Merely some revelations are required about the capital and income excess histories.

2.A A A A A One of the major differences is in the country of extraordinary points. As per IAS and US GAAP really few points can come in this class. However, harmonizing to Ghana criterions points such as alterations in accounting policies should be portion of extraordinary points. Such alterations are shown as an accommodation to the beginning retained net incomes harmonizing to IAS and US GAAP.

3.A A A A A IAS and US GAAP require the presentation of minority involvement on the face of the fiscal statements. However, Ghana criterions omit such revelation.

4.A A A A A Deferred revenue enhancement assets are merely recognized for deprecation timing differences under Ghana criterions. Whereas, IAS and US GAAP require it for all timing differences in add-on to necessitating a rating history for the deferred revenue enhancement plus.

5.A A A A A IAS and US GAAP require section coverage. Harmonizing to US GAAP, external gross of all the coverage sections should be equal to or greater than 75 % of the amalgamate gross. If this standard is non met than more sections have to be identified. However, Ghana accounting criterions do non necessitate any such revelations. This can be a major issue for investors because describing sections supply of import information such as the major geographic countries of operations, major clients, merchandises and services, etc. These points form the nucleus of cardinal analysis by the investors.

6.A A A A A There are no revelations of borrowing cost as per Ghana criterions. This is once more a mammoth drawback which affects equity every bit good as debt investors.

As mentioned earlier there is a conformity spread where many companies do non follow Ghana accounting criterions. This is apparent from a reappraisal of some fiscal statements conducted by the Report on the Observance of Standards and Codes ( ROSC ) squad. Some of major conformity spreads found are:

1.A A A A A Many companies did non distinguish between the current and non-current assets. This can increase a batch of work on the portion of the analysts who are seeking to analyse the on the job capital status and liquidness status of the company. Some companies did non hold the proper format, as per Ghana criterions, of hard currency flow statements.

2.A A A A A In some cases the subordinates that should hold been consolidated, as per the Ghana criterions, were non consolidated and missed of import revelations.

3.A A A A A Another of import issue that came to attendings in the ROSC reappraisal of the fiscal statements was that many companies failed to unwrap related party minutess and those that did, did non supply sufficient information required by Ghana criterions. This is bound to do investors shy away from puting in Ghana. A

4.A A A A A Both IAS and Ghana criterions require a revelation of assets that are pledged for adoptions. This makes concern sense as the new investors, particularly creditors, must hold this information to do a prudent determination. However, most companies did non include this information. This coupled with deficiency of information on adoption rates ( as discussed earlier ) can significantly deter investors.

Some companies that claim to hold used IAS did non run into the demands of IAS.

5.A A A A A Four companies made such a claim and none of them addressed the demand for revelation of related party minutess, damage of assets, fiscal instruments, and employee benefits.

6.A A A A A Three out four did non present statements of alterations in equity which is a needed constituent of fiscal statements as per IAS.

7.A A A A A IAS requires that profit/loss on discontinued operations should be shown on the face of the income statement after income from discontinued operations. However, one of the four companies that claimed to hold used IAS did non include such net incomes in the income statements. Worse, they classified some discontinued operations as extraordinary points.

These are merely some jobs related to the accounting issues. The companies in Ghana besides have overpluss of jobs in following with scrutinizing regulations.

Having said this, one of the major alterations towards betterment in the accounting patterns in Ghana is that the state adopted IFRS in 2007 with phased execution by 2009. ICGA has been chosen to spearhead this enterprise. The interesting thing to see is whether the governments in Ghana will be able to implement IFRS suitably. Just following IFRS will non work out the job in a state that is plagued with abundant accounting abnormalities. To win in its enterprises, Ghana will hold to guarantee that IFRS demands are complied with in their entireness. At this point, it seems a small hard because ICAG, which is taking this enterprise, is over burdened with excessively many undertakings and does n’t hold the necessary resources to decently put to death such a immense enterprise.

Legal Systems:

In today ‘s society, dwellers in both developed and underdeveloped states would hold that belongings ownership frequently defines one ‘s wealth or societal position. Research workers such as Abraham Maslow would even reason that belongings ownership would fall into the biological and physiological demand class that is indispensable to human endurance, therefore justifying proper protection. However, in a legal environment such as Ghana, where drastic alterations have already taken topographic point throughout history as the state has moved towards a democratic signifier of authorities, this belongings rights shortage still remains.

A

A A A A A A Ghana ‘s legal system began a huge inspection and repair with the state ‘s origin of the 1992 fundamental law on January 7,1993. [ 2 ] The 1992 fundamental law, which is credited for the creative activity of the separate subdivisions of authorities and confering appropriate powers to each subdivision, set the phase for the creative activity of “ cardinal human rights and freedoms enforceable by the tribunals ” [ 1 ] . However even today, these rights as compared to other booming states around the universe, are limited due to gender inequality and the reluctance to abandon old traditional ways of life. A

Property Rights:

Harmonizing to the World Bank ‘s indexs measured in 2009, Ghana ranked in the top 50 in three indexs, registering belongings, protecting investors, and implementing contracts. [ 3 ] However, absent societal public assistance conditions, these indexs paint a skewed image that possibly it is comparatively easy to obtain belongings when in fact, multiple barriers exist. More significantly the indexs fail to picture the fact that “ straight-out ownership of land is still a rare signifier of land term of office in Ghana ” [ 4 ] .

Land ownership methods that are practiced today day of the month back to Ghana ‘s hereditary yearss. The effects of globalisation have yet to be felt because these traditional patterns have slowed advancement. Under these traditional patterns, the ownership of land is to a great extent influenced by the drawn-out household construction. More specifically, the power of land ownership rests with seniors whom are stool heads, kin caputs, and/or teguments whom hold the “ allodial ” or absolute ownership to set down on behalf of the community ‘s people. [ 4 ] The main ensures that land is “ the belongings of line of descent ” and that it is passed down to its appropriate descendent ( s ) consequently [ 2 ] . Thus, rigorous enforcement of these line of descent regulations by those with allodial powers finally have created many barriers to ownership in general and prevented many concern ventures. A

Few adult females and investors enjoy belongings rights in Ghana due to the rigorous reading of the line of descent regulation. A The married woman is finally excluded because she is an foreigner to the hubby ‘s household line of descent line. Therefore, she can merely have land if the hubby chooses to present her a part in the signifier of a public gift, nevertheless it is non an duty. The populace ‘s acknowledgment of the land as a gift is non lone tradition but serves to keep the public as a informant in Ghanese tribunals if the land is of all time called into claim after the hubby ‘s decease.

Whereas married womans in the community face troubles geting land, investors face even greater 1s. Due to the nature of concern and that it frequently requires immense secret plans of land, possible investors trusting to make concern in Ghana must get rubrics from multiple allodial titleholders. This procedure is non merely time-consuming but can besides go dearly-won as the investor must do trades with each single titleholder. The odds of the cooperation of multiple titleholders to release ownership is frequently thought to be extremely improbable, hence many possible investors choose to make concern elsewhere instead than bear the loss of possible clip and capital wasted.

A

Potential Application of the base of the pyramid:

Constraints such as belongings rights are merely one of many restraints that exist within the Ghanaian community that if restructured, could bring forth an copiousness of wealth. Considering, two-thirds of the state ‘s population resides in rural countries where traditional are still prevailing and small towns operate despite the deficiency of running H2O, electricity, and other basic necessities the demand for riotous alteration decidedly exists. [ 1 ]

A

The implicit in factor maintaining the two-thirds of the rural population in poorness is doubtless the absence of possible investors and the possible capital that they could convey into the community. Possibly if more investors took base of the pyramid attacks and implemented thoughts such as Dr. Kwame Asumadu ‘s ( outstanding editorialist and Ghanaian research worker ) “ land Bankss ” , more earnestly more investors and the community in general would bask belongings rights. [ 5 ] Dr. Asumadu ‘s authorities controlled land Bankss would let proprietors to offer land to rent or lease on a long term footing in exchange for steady income from the belongings proprietors. Therefore, the Bankss would non merely function to supply extra income to the belongings proprietors but would besides extinguish barriers to entry such as the demand to make concern with multiple titleholders and the inability of the investor to keep title ownership during the class of incorporation.

While “ land Bankss ” are non the lone solution to work outing the jobs of belongings rights in Ghana, any successful base of the pyramid attack is traveling to necessitate that Ghanese communities abandon its out-of-date traditional patterns and accept riotous alteration. Without the execution of advanced thoughts such as “ land Bankss ” many communities will ne’er make its full potential.A A

Globalization:

Globalization, although a freshly coined term, has been around for centuries impacting civilizations and counties all around the world.A The impact of globalisation on African states began around the colonisation after World War II.A Since so the western universe has influenced the economic, cultural, and political development of African states such as Ghana ( 2 ) .A Ghana was considered one of the taking illustrations of successful globalisation and has begun to see economic progress.A A Ghana was seeing an lessening in poorness every come oning twelvemonth every bit good as developing a strong clasp on democratic vote policy.This advancement has non been without its reverberations and globalisation has late seen Ghanese people resist the alterations brought approximately by the western universe. A Whether opposition to globalisation resides around economic, cultural, or political concerns the astronomical consequence it has on developing states is merely traveling to go on turning due to the addition in communicating mediums and technological inventions ( 3 ) .A

Traditional Ghanaian civilization has rapidly began to unify with western civilization and many opposing persons are fighting to keep onto what they have left.A Children are being raised in families who choose to talk English over their native lingua because English is the most widely used linguistic communication in the planetary economic system and it will give them an advantage in the concern world.A A Many traditional Ghanese households dismiss this as disruptive to the state because it creates an accent on communicating with the western universe and in return creates a communicating barrier with those persons who speak the native lingua of Ghana. The resistance stems from the desire of its people to keep on the traditional Ghanese culture.A A Because of engineering and the internet persons now have entree to information all over the universe and it has positively impacted those instruction systems that have financess for such engineering ( 6 ) . A A When one of the most good known Chiefs of Ghana, Asanteman, died it was foremost announced on a foreign web ( 4 ) .A This merely shows how media is planetary and non merely local anymore.A Television is altering the type of music that people listen to and the vesture they wear every bit good as exposing kids to force and drugs all while we are seeing a tendency of parents giving more attending to economic wealth than household values.

After globalisation sparked the international exchange of goods and services in Ghana the state implemented a scheme called Vision 2020 in its hopes to go a in-between category state with a strong planetary economy.A Much of its political reform was influenced by the World Bank and acceptance of policies fostered the economic development in Ghana ( 3 ) .A Multinational corporations began to use Ghana for cheap labour to diminish fabrication costs.A Although this creates occupations for many persons in the short term if we explore deeper into the impact of off shoring we will see that it in fact does non profit the economic system of Ghana.A These occupations provide inexpensive labour for persons who are sometimes kids workers.A For one, the kids are losing out on an chance for instruction which would make a more knowing skilled work force and in return would assist Ghana ‘s economic development in the long tally ( 1 ) .The biggest impact of globalisation has been on the agricultural industry chiefly because agribusiness histories for 70 % of employment.A During the early portion of the reform little household husbandmans were supported by a 20 % import revenue enhancement on poultry.A When the duty was decreased it made it even more hard for local husbandmans to derive a market portion because imported goods were available in higher Numberss and for lower cost ( 2 ) .A The high costs associated with micro agriculture every bit good as the low monetary values of import merchandises make it hard for these farms to bring forth a net income much less unrecorded off of their earnings.A The agribusiness sector of Ghana has merely gotten more competitory because of policy reform among its authorities such as trade liberalisation, deregulating, and privatized organisations ( 3 ) . A In 1994 a new investing codification was put into topographic point and created investing inducements for Ghana citizens.A These inducements created greater ordinance round the regulations of investing so that persons will hold assurance in investing determinations. A Some of the inducements given by Ghana are pecuniary inducements for foreign equipment purchases and free transferability of net incomes and dividends.A The end is to promote investings and maintain more net income in the custodies of its people ( 1 ) .

There is no right reply when make up one’s minding if the impact of globalisation is positive or negative because it is a conglobation of the two and each person is effected differently.A For the immature eager pupil globalisation has set a way for possible illustriousness ; nevertheless, for the aged husbandman who grows produce for a life competition may ensue in poverty.A

The outgrowth of globalisation forced the development of organisations that govern and control the trade and exchange environment.A A The creative activity of these organisations followed closely in line with the colonisation of the African states as I mentioned above.A As the Second World War ended the universe saw a demand to come together and modulate trade among different states ( 2 ) .A One chief end of Ghana reform was to aline trade ordinances with the World Trade Organization in hopes to further more efficient trade and create competition among its local industries in hopes to increase local competition ( 3 ) .A Around this clip many Non Governmental Agencies were formed to assist persons negatively impacted by globalization.A Many of these organisations aid Ghana in rural countries where the little farms and concerns are unable to maintain up with external competition.A While these Non Governmental Agencies are seeking to assist counter the effects of globalisation the IMF and World Bank are all forcing policies and supplying fiscal assistance to spread out globalisation within Ghana. A These organisations have provided 1000000s of dollars in financess but assistance does n’t look to help.A Lending money to citizens of Ghana creates debt for citizens without agencies to pay back the funds.A At this point in clip the Ghanese economic system is dependent on assistance but is easy create economic development by increasing its oil production.A The last clip the World Bank had to impart money to Ghana was to fund a wellness betterment plan in 1999 which helps demo merely demo how far Ghana has come in the past 10 old ages ( 5 ) .A The gross from oil exports is the chief gross that financess Ghana and as increased production occurs the state will get down to stand entirely without the aid of assistance from these planetary organizations.A

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