Growth prospects in Northern Ghana: Interim Conclusions and New Directions Presented by Andy McKay, ODI Accra, 20 July 2005
Growth potential • Began with two initial alternative hypotheses – There is growth potential in northern Ghana – The best hope for northern Ghana is ‘better’ out- migration, and growth through remittances • Findings support first hypothesis, focused around agric and conditional on other factors • But second still relevant: – More so in some regions – Important in short to medium term when many cannot participate in growth 2
Growth in Northern Ghana • Also in national interest • But lack of strong focus on growth in Northern Ghana since 1970s • Need to ask questions of local as well as national leadership • Also donors and NGOs 3
Are there new options for growth? • Some are old issues … but no less valid? • Agric and agro-processing central, but focused on markets – and considering new options • Unrealised potential of trade • Tourism does offer significant potential • Mining unknown … but need to find out • Private sector led strategy • But many changes needed to realise this, some by government 4
Agriculture and Agro-Processing • Must be central area for foreseeable future – but has past focus been on growth? • Lack of focus on markets (now complex) • Agro-processing • Need for dry season agriculture • New crops, livestock, new methods • Growth can be combined with food security 5
Trade • Trade as important factor in national growth • North does trade with neighbouring countries – but much greater potential • Need to expand trade: neighbours, but also south and non-African markets • Key issues – Road connections: to border and key routes in Ghana – Excessive checkpoints as barrier to trade – without losing controls on smuggling 6
Tourism is an emerging opportunity • Some successes, especially Northern Region (e.g. Mole) • Greater potential … but need to develop sites (plus infrastructure) • Develop links to tourism in south • And need for stronger focus on tourism at national level 7
Mineral potential is unknown • Reputed rich deposits: gold, iron ore, limestone etc. • But extent unknown, not systematically exploited • Need to assess potential 8
Need for substantial progress on infrastructure • Highways a priority – especially interregional and roads to borders • Irrigation: rehabilitation of large and small dams, new methods (e.g. water from rivers) • Need for big contract and capable contractors for these quick necessities – Local capacity building has failed – Need to review contract bidding process – Key roads within five years • Electricity, water etc. 9
Need to attract investors • Existing investments in trading, hotels etc. • Constraint finding investors in agric – existing cases for special reasons • Local firms/investors cannot expand beyond small scale • Characteristic abilities needed – Capacity to mobilise capital without recourse to Ghanaian banks – Ability to make linkages to international markets – Ability to manage out grower process etc. – Need for skilled labour – technical education 10
Need for institutions to address risk • Irrigation • Insurance of livelihoods • Universal food for education programme • Some form of social security – e.g. a universal pension or other cash transfer to vulnerable groups? 11
Other issues to address • Resolving conflict issues of critical importance • More effective decentralisation in key areas • Is there a need for regional development strategies – and inter regional fora? 12
Political representation • Some informants made point about lack of effective representation by political leaders • If true, different interpretations – Need for more graduate MPs? – Grass roots organisations too weak? – Northerners split on party lines? 13
How to take this forward? • Need to identify investors – Work with business associations, Association of Ghanaian Industries, Chambers of Commerce etc. • Government organisation – Single window for investors in North (GIPC, GEPC, MOTI, MOPSD)? – Make rural enterprise development programme effective e.g. joint projects by District Assemblies? – Special Development Areas? – Infrastructure, removal of needless trade barriers 14
Taking this forward (2) • Political leadership – Test out ideas with Northern political leadership and House of Chiefs (team) • Donors – Complete change of strategy needed: growth focused – Recognise failures: irrigation; capacity building of local contractors • NGOs – Serious evaluation of market intermediation activities: can they achieve scale? 15
Recommend
More recommend
