Trade liberalisation, globalisation and the cocoa industry in Ghana: the case of the smallholder cocoa farmers

The aim of this thesis is to analyse the impact of the “meso model” on Ghana’s cocoa sector in general and the practices and opportunities for smallholder cocoa farmers in particular. Additionally, Ghana’s efforts to embrace globalisation are examined. The theoretical framework of this thesis is the neo-structuralism paradigm out of which an analytical framework was distilled to assess the impact of the 1993 reforms. The qualitative methodology was mainly used to collect data but some quantitative techniques were also used to enhance the collection and analysis of the data. Ghana was adjudged the “Star Pupil” of Africa by the International Monetary Fund (IMF) and the World Bank after implementing bold economic reforms in 1983 and the cocoa sector reforms in 1993. But ironically Ghana stood up to the IMF and the Bank by refusing to dismantle its cocoa marketing board (COCOBOD) as was recommended by them under the Washington Consensus and rather adopted a” meso model” of partial liberalisation of the cocoa sector after skilful negotiations.

The thesis makes a significant, original contribution to knowledge in the field of economic development through the following key findings: Firstly, the output of cocoa farmers in general is a function of not only the price paid to them but also the overall environment created for production. Secondly, the” meso model” Ghana adopted challenges the “One Size Fits All” Washington Consensus development model because it enhanced cocoa farmers’ output and income, and Ghana’s cocoa export and foreign revenue enabling it to attain economic growth and development. Thirdly, the use of mobile phones by cocoa farmers contributes to the reduction in their transport cost and transforms their mode of operations. Finally, Ghana’s efforts to embrace globalisation and to integrate into the global economy have been impressive albeit urban bias.