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IIIIIIII I If I I I I I I ’ I I II I ‘11 II III III II I I . I I III II I I I .. III II .r I I I I I mIIIIIIIII IIII IIIHII IIIIHIIIIIIWIIIIHIIIIIH- IIIIIIII II IIIIIIIIIIIMIII . IMIII I IIII .IIIIIIIIIIIWV III IIIIII I. IIIIIfiIIII I.IIII.IIIII IIIIIUIIIII .II III II . I IIIIII I I II. . I I, I II I! III I‘ I‘ ‘ f - II, I‘ If!) II IIII’Ir .IIII II Illn'lflhII III .3 I (AI. ”‘1‘ IEIIIIIII I. I II III)» I II 4 . . » I . . II THE?!c lfllllllllllflljlllllllljflflllzl"MIMI! L Michigan State University This is to certify that the thesis entitled POLITICAL ECONOMY OF RURAL DEVELOPMENT: THE GHANAIAN EXPERIENCE presented by Ernest Kweku Dumor has been accepted towards fulfillment of the requirements for Ph.D. degree in Sociolog; ,J Aka/4x r \ Major professor Date Apr“ 18, 1979 OVERDUE FINES ARE 25¢ PER DAY PER ITEM Return to book drop to remove this checkout from your record. jam thqgo L . "900 © Copyright by ERNEST KWEKU DUMOR 1979 POLITICAL ECONOMY OF RURAL DEVELOPMENT: THE GHANAIAN EXPERIENCE By Ernest Kweku Dumor A DISSERTATION Submitted to Michigan State University in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY Department of Sociology 1979 ABSTRACT POLITICAL ECONOMY OF RURAL DEVELOPMENT: THE GHANAIAN EXPERIENCE By Ernest Kweku Dumor This study examines some issues related to development and underdevelopment in terms of past historical and social processes and the consequences of these processes for contemporary Ghana. The analysis, therefore, aims at providing an explanation for under- development, particularly 'rural poverty,’ through focusing on the institutional and structural elements of the Ghanaian economy which were products of colonialism and nee-colonialism. In doing so, the conventional sociological explanations of underdevelopment rooted in the theories of modernization, were rejected. Instead, the conflict tradition, and more specifically, the dependency framework was used. This tradition, as well as the dependency framework provided the intellectual thrust, tools and concepts for analysing the complex historical and developmental processes in Ghana. In essence, it permitted a more comprehensive answer to the question of Ghana's failure to make a breakthrough in its development efforts. The comprehensive nature of this framework allowed an in-depth analysis of underdevelopment in its general and concrete manifestations. Ernest Kweku Dumor By taking account of the problems of external and internal domination, exploitation and forms of inequality, this study brings into sharp focus the contradictions inherent in peripheral capitalist development. The study also shows how the subjection of the rural economy to the requirements of external capital and market forces constitute the core of poverty and marginality in Ghana. Furthermore, it demonstrates how external and internal dominations are structurally linked. By taking a microcosmic view of the development process, this study shows the ways in which underdevelopment is maintained and perpetuated through the operations of dominant external and domestic classes. I too understand What it is To want to remain Absolutely free. I have felt the fear Of chains that bind And anchors that hold And people who cling In loving dependence. - Ayi Kwei Armah: Aftermath ii ACKNOWLEDGMENTS The choice of this subject for study is not entirely fortuitous. I have long been preoccupied with the problem of experiencing and rediscovering the scope and depth of Ghana's under- development and dependency. The analysis in the following pages, therefore, is an expression of one dimension of my apprehension of the reality of Ghana's progression and distortion through history as that nation struggles with its development. While this process of rediscovery was both tedious and demoralizing at times, I have had the support of a number of organizations including the United Nations Development Program and the Ministry of Economic Planning, Ghana. It was through them that I received a United Nations Fellow- ship in the initial years of my program. I have also received the support of the University of Cape Coast for which I am thankful. I am very grateful to Dr. Ruth Simms Hamilton, my Academic Advisor, for her time, encouragement and support. To the other members of my Graduate Committee, Drs. Jay Artis, Allan Beegle and John Hunter, I am sincerely grateful for their help. Ann Brown Typing Services did a really superb job. To the staff, including Jo Grandstaff, Cara Vaughn and Jan High, I am most grateful. Finally, to my family, Cecila Kokui Gbeho, Mawuena, Komla, Korshie, who shared in my pain, anguish and joy in this process of rediscovery. They deserve the most that I can give. iii TABLE OF CONTENTS LIST OF TABLES . LIST OF FIGURES Chapter I. INTRODUCTION AND CONCEPTUAL FRAMEWORKS Statement of the Problem Theoretical Framework . . . . . . Competing Conceptualizations: Modernization versus Dependency Modernization Framework Dependency Framework Dependency Relations as a Framework. Metropolis- Satellite Relation The New Dependencia of Multinational Corporations: Peripheral Capitalism, Dependency and Rural Development . Disarticulation of Production Structures The Role of the State and Changing Class Relations . Working Propositions . Methodology and Data Analysis Some Research Problems in Using the Dependency Model . . . . . . . . . International Trade . . Foreign Capital and Technology Transfer . . Procedures and Methodology Used in the Study. Historiography . Documentary Analysis . . Evaluation and Policy Analysis . Contribution of the Study. II. THE HISTORICAL AND SITUATIONAL CONTEXT OF UNDERDEVELOPMENT IN GHANA. . . Pre- Colonial Class Relations . . Developments in the Pre-Colonial Economy. iv Page vii ix Chapter III. IV. Slave Trading and the Process of Underdevelopment l500- l880 . . . . . "Legitimate" Trade and the Process of Underdevelopment 1880- l957 . . Colonial Consolidation and the National Struggle 1900-1957 COLONIALISM--THE STRATEGY OF UNDERDEVELOPMENT Colonial State and Rural Development Disarticulation of Rural Production . Colonial Agricultural Extension. A Continuation of the Disarticulation Process . . . . Cash Crop Extension Food Crop Extension Fertilizer Extension . . Mechanical and Animal Cultivation Extension Financing Colonial Agricultural Development. Colonialism and Class Relation Hereditary Upper Class and Changing Class Relations. Capitalist Agricultural Enterprise and Class Relations . Farmers, Brokers and Monopoly Capitalism Structural Dependence: A Characteristic of Underdevelopment THE NKRUMAH ERA: THE STRUCTURAL TRANSFORMATIONIST STRATEGY 1957-1966 . . . . . . . . Nkrumah and Underdevelopment. . Socialism and Economic Development. . Economic Policies and the Transition to Socialism . Organizing Agricultural Production . . Agricultural Extension . Manpower and Agricultural Extension . Financing Agricultural Development The Politics of Extension Organization Agricultural Extension Strategy Agricultural Mechanization . Socialism and Class Formation Review of Economic Conditions THE GRADUALIST STRATEGY: THE NATIONAL LIBERATION COUNCIL AND THE BUSIA ERA: 1966-1972 . . . The Gradualist Stretegy: Its Background . The N. L. C. [Busia Administrations and Underdevelopment . . . . Page 65 68 78 95 96 99 112 114 115 118 119 120 126 130 134 142 149 159 161 166 169 174 177 179 182 193 201 211 220 232 234 236 Chapter The Welfare 'Democratic" System and Economic Theory . . Economic Policies and. the Transition to the Welfare State . . . . Organizing for Agricultural Development Agricultural Extension Service. Agricultural Mechanization . . Financing Agricultural Development . The Welfare Democratic System and Class Relations . Review of Economic Conditions . . . . VI. SUMMARY OF FINDINGS . VII. WHAT CAN BE DONE: THE POSSIBILITIES FOR GHANA AND AFRICAN COUNTRIES . . . . . . . . . Ghanaian Development Through African Cooperation Toward a National Stretegy for Ghana . . v" The Basic Needs Approach . . . . . . . . A Rural Development Approach: The Policy Package for Ghana . . . . Agricultural Production . . . Agriculture and Rural Industrialization . Public Works Programs . APPENDICES A. Map l: Distribution of Cash Crops B. Map 2: Distribution of Food Crops BIBLIOGRAPHY . vi Page 240 245 250 253 260 268 272 281 293 302 306 310 311 312 313 315 319 324 325 326 .b 00000000 KDCDN LIST OF TABLES Cocoa Exports . 4 Guggisberg Ten-Hear Development Plan l920-1930 . Anticipated and Actual Expenditure on Agriculture and Forestry . . . The Ten-Year Plans: l945-l946 Proposed Expenditure Development Plan, l951 . The l95l Plan: Financial Allocations . Development Expenditure on Agriculture Extension Projects Imports of Selected Items as Percent of Total Import Bill . . . . . . . . Development of Selected Food Imports, 1951-61 Overall Employment in Agriculture l964-l970 . Establishment of the Ministry of Agriculture and Related Agencies . . . Establishment of the Agricultural Extension Service l963-l965 . . . Structure of Investment (in l960-l962 Average Prices). Summary of Financial Allocations in Agriculture Budgetary Allocation as Percentage of Total Expenditure Allocation of Resources State Farms Corporation: Crops and Acreages Planted . vii Page lOB l22 123 124 125 127 128 129 155 172 179 180 181 183 185 186 187 198 Table 4.11 4.12 4.13 Fertilizers Sold by Pilot Scheme to Peasant, Large- Scale and Institutional Farming Sector l965-66 in cwt. . . . . . . . . . . . Major Suppliers and Value of Machinery, l96l-l967 . The Debt Structure Composition of Private Consumption Ex enditure l962-l969 (at current market prices Charges for Tractor Services . Selected List of Continuing Projects and Programs-- Fiscal Year l968-l969 . . . . . . Capital Budget l969/7O and l970/7l . Central Government Current Expenditures Ghana: Percent of Total Exports, 1960-l969 . Import Requirements by Sectors, l967 Ghana--Value of Imports in l969 of Commodities that Could be Produced Locally . . . . . Profit and Loss Record of Selected Agricultural Enterprises l964-l965 and l969-l970 . viii Page 200 204 221 222 263 270 271 272 282 284 285 290 LIST OF FIGURES Figure l. Administrative Regions of Ghana Railroads of the Gold Coast 00 Extension Organization 4. Agricultural Extension Districts of Ghana 5. Annual Fertilizer Imports--1962-1973 ix Page 81 191 192 199 ——————— -l—I-l-I’.-.—.-"I~I‘. ".~ 5 ,I v ‘- .’ oBolgatanga I. 1‘ UPPER REGION A , ————— %-\_ . "a a \ \ Ix / '1 -._ I ., 1 l I l i r’ 5‘ ‘1 -I . I' x """ I K” J. '1 oTamale 27". .‘i NORTHERN REGION (' " - \ ‘. .J Y\\ --"‘\~-‘ ”-*0 \ \ ,v’ z I \. \ \\ f (I, .' \.\ } \\\ J: 3 \\ (:‘\\ ‘ L. ,I’ ~‘ - J (.3 fi’ ‘ ’ ‘\ . I; \1” \\ ‘ ,' \ VOLTAI, I" BRONG AHAFO REGION \REGmN) o r" \ f. . \_ _____ ~-- . "' Sunya.n1 (:-‘\_,’-1" c’.-a’ ‘\‘ \\ \.‘ \‘ l 1 i I I" -o ” I I 0 . —' I / (I n.‘ ,’ ASHANTI /” g i . I ' . ,2 \ .‘ I 5“.) ’I’ O KUmaSI () EASTERN (I H.O \. 1‘ "\‘j; ,r’ REGION ‘, 1‘ . ”a ’ I ’-. . a , oforIdua . ‘\\:4‘ (I . ' \T‘ WESTERN \\ "‘~.’“~L /" . REGION ~ ‘~~- «”"V w 1-. ’ ‘ GREATER I CENTRAL \ ACCRA REG|0N REGION SOInHes ."'\.a\ Figure l.--Administrative Regions of Ghana CHAPTER I INTRODUCTION AND CONCEPTUAL FRAMEWORKS An analysis of the problems of development in contemporary Africa must seek to explain the causes and consequences of under- development. Central to the analysis then is an answer to the question: why have African countries not been able, despite their natural and human resource endowments, to make a breakthrough in their development efforts? The answer to this question must, of necessity, go beyond the conventional explanations: "African countries are poor because they are poor," or "African countries are poor because their economies are not developed." These claims lack historical grounding, and more importantly, fail to address the core problem of providing an explanation of the causes and factors in African underdevelopment. What is critical in the analysis of African development problems is that underdevelopment be treated in a way that permits a more rigorous analysis of this historical process,in both its general and specific forms. This calls for a sociological perspective that considers questions related to external and internal domination and exploitation as well as forms of inequality that result from this process. The sociological tradition that addresses these issues in a dynamic and comprehensive way is the conflict and change tradition. 1 In the area of development this tradition maintains that "develop- ment" is essentially a historical process, and that to understand this process it is necessary to examine the past history as well as the present conditions of societies. But this historical process--its character and concrete manifestations--are determined by the relationships among existing social classes. Consequently the nature of these relationships largely affects and determines how surplus is accumulated and rewards distributed. The dominant figures in this tradition were Karl Marx and later Lenin. Marx argued that human society cannot be understood in terms of an agreement made among equals who shared commonly desired objectives. In his analysis of the dominant social formation, capitalism, it was maintained that the emergence of this mode of production was not an act that could represent the common will, but one which stemmed from the imposition of the interests of the dominant classes through the ownership of the means of production. With this control and ownership of the means of production, the dominant classes through state apparatus are able to exploit other classes and social groups in order to further their own class interests. The hallmark of this sociological tradition lies in the explanation of the predicament of non-Western societies and resulting contradictory tendencies inherent in the expansion of capitalism in these societies. It is therefore maintained that the history of capitalist development shows that this social formation thrives on exploitation, inequality or unequal exchange. Consequently, the laws of motion in capitalist development imply that some societies develop at the expense of others. In short, the problems of development in African nations can be meaningfully understood in terms of the development of capitalism as a global phenomenon. TO that extent this tradition provides the develop- mental contours of the dependency framework which is used in this study to establish the historical and structural explanations of underdevelopment in Ghana. In its application to rural development in Ghana, this sociological tradition and the dependency framework in particular, provide the concepts and tools with which 'rural poverty' in terms of both internal and external economic and social forces may be examined. While this tradition maintains that capitalist expansion includes the penetrationnythe countryside of African countries, it also argues that the problems of rural development derive essen- tially from the subjection of the rural economy to the requirements of market forces. In essence, agricultural and rural development cannot be treated in isolation, since this process is related in a complex way (based on exploitation and unequal exchange) to the world capitalist system. This process is reflected in rural production systems: the appropiation of land for export production through low wages for capitalist accumulation. Consequently, the subsistence sector becomes stagnated and the rural producer or peasant becomes progressively separated from the means of production. This tradition further emphasized the critical role of various rural social groups in effecting success of this captialist process. ‘These groups act as the connecting circuit between rural production and the national and worldeconomic systems. Statement of the Problem This study is thus a inquiry into selected aspects of rural development in Ghana aimed at discovering the relationships between development policies and underdevelopment. The crucial question here is whether underdevelopment is a consequence of ‘ 'development' policies pursued during colonial and post-colonial periods. If these policies have resulted in underdevelopment, in what ways has rural development been affected? In this respect policy is understood to refer to operative guidelines by which governments allocate resources, organize productive activities and determine the distribution of rewards. In undertaking this study a number of assumptions derived essentially from the dependency perspective are made. First it is assumed that the underdevelopment of the rural sector is a conse— quence of the progressive incorporation of Ghanaian pre-colonial economies into the world capitalist system. Consequently rural poverty cannot be explained in terms of the constraints imposed by tradition--a fundamental assumption implied in the modernization perspective. Secondly the expansion of capitalism in the rural sector resulted in the alteration of rural production structures in such a way as to make the development or rural areas dependent upon external supply and demand factors. Thirdly, for this process to succeed, it is assumed also that rural class relations are affected in such a way as to maintain internal and external exploitative networks. Given these assumptions, the utility of the conflict tradi- tion becomes apparent. In this respect, the incapacity of the Ghanaian economy to become self-sufficient or self-sustaining, the problems of rural poverty, exploitation and economic inequalities are seen as integral parts of the world capitalist system. It also provides a framework from which to explain rural development in terms of a vertically integrated world development process in which some parts are exploited for the benefit of others. In short, the conflict tradition allows a holistic examination of rural development as part of a world system of unequal resource transfer and exchange. Theoretical Framework Competing Conceptualizations: Modernization versus Dependency Two dominant conceptual frameworks have dominated the social science literature on development in the past decades--modernization and dependency frameworks. The modernization framework derived from several decades of classical and neo-classical theorizing on how 'traditional' non-Western societies could be transformed into 'modern' economically advanced societies. The problem with this perspective has been that it fails to answer the most compelling questions about the nature of the development process in non- Western societies. It does not address the core issue of the causes of underdevelopment. Since it does not take into account of' the history of these societies, this framework ignores the influence of external domination and internal social processes that result from this domination and the ways in which these in turn hamper economic transformations in these societies. In the past few decades however, there has emerged a set of ideas referred to as the dependency framework which concerns the nature of development in non-Western societies. The central premise is that the processes of development in these societies can be fully understood within the social-historical context of the expansion of capitalism into these societies. In short, the dependency framework focuses on external penetration of the economies of these societies as a key explanatory factor in the creation of underdevelopment. The Modernization Framework The "development" literature is replete with the concept of modernization. Thus, most social scientists interested in the development process in Third World countries have carried out their analyses from the modernization perspective. The concept of modernization implies the transformation of a traditional or re- mgggrg_society into a mpggrg society based on new technology and its attendant forms of social organization. This implies a modern society that is more in line with European and American forms of societal organization. Basically modernization theories have had, as an implicit assumption, unilinear development along the lines of what has happened in Western European and capitalist nations. But more importantly, modernization theory assumes that development problems in Third World countries stem from the static nature of their tech- nologies. To modernize, therefore, there is need to change from simple traditionalized techniques to the application of scientific knowledge, i.e., industrialization and the expansion of technical innovations. Thus, significant opportunities for growth will become available only through changes in technology--new husbandry techniques, better seed varieties, more efficient sources of power and cheaper plant nutrients (Schultz, 1964). Over the years, there has emerged some general agreement within this framework on the assumption that an effective economic development strategy must depend on the achievement of rapid technical change which in turn would lead to productivity growth in agriculture. But this flow of technical knowledge, it is argued, must be complemented by investments in general education and in production education for farmers (Hayami and Ruttan, l97l). Because of such general agreements, only a few of the paradigms which have dominated current thinking on development in Third World nations will be discussed here. The first paradigm to be considered here is that of Rostow. Rostow (l960) identifies five stages in the transition from a primitive to a modern economy, i.e., the traditional society, the preconditions for take-off, take-off, the drive to maturity and the age of high mass consumption. His primary interest was to identify the processes by which a society moves from one stage to another but more importantly to provide policy guidelines for developing nations. Rostow's paradigm looks at development as a transition from an agricultural to industrial society. He further argues that to achieve industrial growth, emphasis must be placed on the leading sectors within agriculture, and the commercial agricultural sector must be based on the adoption of technical innovations which serve to increase the output of food and export commodities. The second paradigm-~dual economy--has its contemporary foundation in the works of Arthur Lewis. Lewis (1954) argues that the economies of Third World nations are characterized by the co-existence of two sectors--a relatively large and overwhelmingly stagnant subsistence sector and a relatively small but growing commercialized sector. The essential elements of Lewis' model have been elaborated by Fei and Ranis (l975) and Jorgenson (l969). This framework argues that the subsistence sector has disguised unemployment and underemployment; the marginal productivity of labour is zero and there is fixed land input. It further contends that wage rates for agricultural labour approximates the average productivity of labour in the subsistence sector. In view of this, Hayami and Ruttan (l97l) concur with Fei and Ranis' suggestion that a transfer of labour from the subsistence sector to the commercial industrial sector is possible without reducing agricultural output and without increasing the supply price of labour to the industrial sector. The Fei and Ranis model has been criticized by Helleiner (1975) who argues that in Africa, the marginal productivity of labour in agriculture is positive. He maintained that the release of a worker from subsistence to industrial sector provides no guarantee that enough wage funds will be available to sustain that sector. Jorgenson therefore argued that labour is never available to the industrial sector without sacrificing agricultural output. Consequently, the terms of trade tend to move against the industrial sector. The dual economy model insists, however, that any terms of trade unfavorable to industry could be offset by a more rapid rate of technological change in agriculture. The mOdernization framework is given its current expression in the diffusion approach to development in Third World nations. The underlying thesis is that development occurs through the transfer of certain material benefits from 'advanced' industrial nations to the less developed areas. Within the less developed areas the process of development is assumed to occur through the diffusion of modern ideas to the traditional sector. This model presupposes the existence of a dual society. Thus it is argued that what is required for development is the transfer of material inputs such as capital and technology and that this transfer is to be primarily carried through foreign investment and aid (Bodenheimer, 1971). In this respect Rostow and Millikan (1957) 10 maintain that "external capital is required to prepare a country for the transition to self-sustained long-run economic growth" (56). This viewpoint remains at the root of contemporary economic thought as well. Mikesell (1968), for example, shows that the foundations for most foreign-aid policies can be found in economic growth models. In the growth models there is great emphasis on the importance of external inputs. In other words, "growth can only be enhanced by capital exports to primary commodity-producing countries" (28). Thus, many "development" economists consider that external capital and aid must supplement domestic savings as a principal means of raising the level of investment to a critical level. The major opposing tendency in the "development" literature is to reject this assumption. Marx, for example, argues that capital exports to the less developed countries are means of maintaining the rate of profit and the expansion of imperialism. He further argues that while trade and export of capital have expanded, the beneficiaries have not been indigenous populations (1973, part iv). From the perspective of dependency framework foreign aid and capital export intensify the dependent nature of the national economies of less developed nations, and reinforce the metropolitan satellite relations. The Dependency Framework The dependency perspective as a way of conceptualizing the problems of development in Third World nations owes a great deal 11 to the works of Marx and Lenin. As an analytical perspective, it addresses the contradictions inherent in capitalist development and more specifically the consequences of peripheral capitalist development in areas that have experienced colonial domination and exploitation. However, this framework became a useful alternative to the "classical" modernization theories because of their apparent failure to grapple with the compelling questions about the develop- ment of underdevelopment in Third World nations. This framework derives largely from Marxist-Leninist concep- tions of the impact of an expanding capitalist economy buttressed by colonialism on colonized areas. According to Marx (1977), capitalist development in peripheral nations undermines their economies and social systems. Following this line of thought, Lenin (1974) argues that colonialism is an earlier stage in the development of capitalism and imperialism is the highest stage in the development of capitalism. At this latter stage the fundamental attributes of capitalism are transformed so that monopoly and finance capital become important in determining the relations among nations. It is a phase of "the joint exploitation of the world by internationally combined finance capital" (94). This imperialism does not lessen the unevenness and contradictions inherent in capitalist development, but increases the problems by reinforcing the diversi- ties in economic and political relations. This causes an acute disparity in the rate of development in colonized countries. The Marxist-Leninist thesis of uneven development provides the intellectual thrust for the dependency framework. The 12 dependency framework assumes a relationship among nations of the world based on exploitation and unequal exchange. In this respect it starts with the assumption that development and underdevelopment are integral parts of a global economic phenomenon. The global economy itself is seen as a total system of which Third World nations are ipso facto, subsystems. What the dependency framework attempts to do therefore is to assume the existence of a global economy from which to develop laws of peripheral capitalist development (O'Brien, 1975). Furthermore, the framework seeks to establish that the problems of development and underdevelopment are essentially conditioned by the mechanics of the global economy. Dos Santos (1970) thus defined dependency as A situation in which the economy of certain countries is conditioned by the development and expansion of another economy to which the former is subjected. The relation of interdependence between two or more economies and between these and world trade, assumes the form of dependence when some countries (dominant ones) can expand and can be self sustaining while other countries (dependent ones) can do this only as a reflection of that expansion which can have either positive or a negative effect on their immediate development (231). This definition introduces two conceptual elements which are critical. The first is that the global system is a conditioning situation. By a conditioning situation is meant a situation that determined the limits and growth possibilities of dependent nations. The second conceptual element has to do with domination. In this respect the work of Hveen (1973) is insightful. He sees the global system in terms of dominance relationships in which there exists a vertically integrated system of control and accumulation, 13 production and distribution. To Hveen, domination and the resultant situation of dominance represent a social relationship where some unit exercises control over and accumulates value from other units. Dominance is a relatively permanent state in which the patterns of control, that is, the capacity to influence some social unit to act according to defined wishes and accumulation, the process of growth through appropriation of surplus value systematically favour the dominant unit (320). What is suggested therefore is that the dominance relation- ship is exploitative. At the same time it is a vertically integrated system of control and the pattern of control is therefore manifested at various levels throughout the entire system. The penetration of the global economic system and its vertical integration into "integrated multi-level hierarchies of control and accumulation result in relationships of dependency" (Hveen, 321). It is evident therefore that relationships of dependency are essentially asymmetric because development of parts of the system occurs at the expense of other parts; . . . it is the combination of inequali- ties plus the transfer of resources from underdeveloped to developed countries which explains inequality, deepens it and transforms it into a necessary and structural element of the world economy . . . (Booth, 1975; 15). From the foregoing discussion, it seems that the global economic system is causally related to structures of dependency. Bodenheimer, for example, argues that this is too simplistic a generalization to make. She however accepts the notion that the global economic system indirectly causes dependency relations by generating and reinforcing an infrastructure of dependence. This 14 represented by incipient industrialization, urbanization, creation of social institutions and processes and social classes (bridgeheads) who function in response to the needs of the international systenI(38). Galtung (1971) also refutes such direct causal linkages. However he argues that the consequence of dominance relationship established by imperialism leads to dependency. Since imperialism is a sophisticated type of dominance relation it cuts across nations as it bases itself on bridgeheads which the core nation establishes in the center of the periphery nation for the joint benefit of both. Galtung further points out that the economic consequences of this dominance relationship, i.e., high levels of concentration on trade partners and the tendency for periphery nations to have only one or a few primary products for export, have the effects of creating dependency relations between the Third World and advanced industrial nations (81). Yet others, using the Marxist frame of reference, see a direct linkage between colonialism, capitalism and imperialism on the one hand and dependency structures on the other. Colonialism, monopoly capitalism and imperialism are seen as variants of the same phenomenon. Lenin (1974) maintains that Colonialism is monopolistically regulated trade and or investment abroad at higher rates of profit than those obtaining in the metropolitan country. Colonialism is to a large extent privileged investment, namely invest- ment in projects that carry with them some differential advantage (71-76). This viewpoint is supported by O'Connor (1970) who argues that 15 The precondition for a fairly favourable investment climate is indirect or direct control of internal policies in the backward regions. Economic penetration therefore leads to the establishment of spheres of influence . . . and backward regions assume a depend- ency status in relation to the metropolitan powers (llO-lll). What is suggested is that the contemporary world capitalist system through colonial administration and through free trade assured itself that production in the periphery would be geared towards exports. In essence the Marxist interpretation postulates that the international capitalist system is exploitative; it remains aggressive and expansionist. Its dynamics allow for control over the liquid and real economic resources as well as foreign exchange and capital. In summary, the dependency framework implies external domination and exploitation. The dominance and exploitative relations are reproduced within the internal structures of Third World nations. The dependency theory therefore is a macro-structural paradigm of the way in which economic underdevelopment in dependent economies is actively maintained in a vicious spiral by the very forces-- foreign economic investment and aid which conventional economic theory held to be necessary for development Of such societies (Oxaal, Barnett and Booth, 1975: 2). It therefore represents "a framework of reference within which various heterogeneous phenomena are analysed to see how they link and interact with each other to form a total system" (O'Brien, 12). l6 Dependency Relations as a Framework The dependency framework is not a monolithic entity. It is a perspective with varying theoretical orientations since proponents of this perspective operate at different analytical levels. The major orientations emphasize the inadequacy of present patterns of development in Third World nations. This inadequacy is explained in terms of the structural relations between these nations and the advanced industrialized nations. Other explanations emphasize the role of multinational corporations whose involvement in these nations conditions relationships of dependency. Closely related to these explanations is the view that dependency relations are as much an internal problem as they are external. As a result a major orientation within this framework is the examining of dependency relations in terms of internal social and economic processes i.e., the nature of class relations, urbanization, incipient industrialization. Thus it is argued, for example, that the nature of internal class relations is related to the maintenance of dependency structures. There are several directions, but only three major conceptions appear as recurrent paradigms in the literature. The first paradigm, Metropolis-Satellite relations is associated with the works of Andre Gunder Frank (l969a, 1969b), whose concern was to demonstrate historically that the develop- ment and expansion of capitalism have transformed developing countries into underdevelopment economies. The second paradigm--The New Dependence--is closely identified with the works of Dos Santos 17 and Sunkel. The main thesis in this paradigm is that underdevelop- ment cannot be explained in terms of metropolis-satellite relations but rather in terms of the involvement of multinational corpora- tions, the internal social process that results, and particularly in its approach are the questions of technology and resource trans- fers. The third paradigm identified with Cardoso is an extension of the two already stated. In this case, the contention is that dependency cannot be viewed as an external variable only but must be related to a system of relations among different social classes in an environment characteristic of dependent nations. Like the other two, dependency relations are traced through history but the perspective is elaborated by the suggestion that politics and internal forces are equally, if not more decisive as external forces, in determining forms of dependency. Metropolis-Satellite Relation TAndre Gunder Frank) Frank's theory stems from his rejection of the g_prjgrj, assumptions made in the modernization framework, i.e., that foreign investment and aid would help accelerate economic independence of Third World nations. Frank denies the possibilities in Third World countries of self-generating development based on industrialization, and increased international trade through increases in traditional exports. What Frank has therefore called into focus are the ways in which the dynamics of the international capitalist system govern, hinder and distort the development of peripheral countries. Frank 18 seeks to demonstrate how the historical development of the world capitalist system has subjected and continues to subject Third World nations to an increasing subordination. He also seeks to show how the relationships established between metropolitan and satellite nations have created and transformed the domestic economies and class structures. Furthermore Frank shows that the transformation of the economies of peripheral nations has occasioned specific political, economic, socio-cultural policies which invariably result in the development of underdevelopment. The Frankian thesis is based on the notion of capitalist underdevelopment. It is the contention in this paradigm that underdevelopment is a necessary product of capitalist development. Frank (l969a) maintains that These contradictions are the expropriation of economic surplus from the many and its appropriation by the few, the polarization of the capitalist system into metropoli- tan center and peripheral satellites, and the continuity of the fundamental structure of the capitalist system throughout the history of its expansion and transforma- tion, due to the persistence or re-creation of these contradictions everywhere and at all times (3). He further maintains that the historical development of the capital- ist system and its contradictions, have generated underdevelopment. The basic theoretical elements in the Frankian thesis are three-fold. The first has to do with expropriation of economic surplus. He takes off from Baran who makes a distinction between actual economic surplus--that part of current production which is saved and invested and 'potential' investible economic surplus which remains unavailable because the monopoly capitalist structure prevents its production or its appropriation. Emphasizing the 19 'potential' economic surplus embodied in Baran's analysis, Frank argued that the non-realization and non-availability of this surplus must be explained in terms of the structure of monopoly capitalsim (7). Thus the world capitalist system is seen essentially as monopolistic. The exploitative relation that results from this extends the capitalist link between the capitalist world and the national metropolicies to the regional centers (part of whose surplus they appropriate) and from these to local centers and so on to large landowners or merchants who expropriate surplus from small peasants or tenants and sometimes even from these latter to landless labourers exploited by them in turn (7). The second element has to do with the metropolis-satellite polarization. Frank's discussion of this contradiction is based on his rejection of the dual society thesis. He argues that this dichotomy is false and any policy recommendation based on it will only intensify and perpetuate the conditions of underdevelopment. It is the contention that all Third World countries have been thoroughly incorporated into the world capitalist system such that ". . . the expansion of the capitalist system over the past centuries effectively penetrated even the apparently most isolated sectors of the underdevelOped world (1969b: 5). Thus, the metropolis--satellite contradiction characterizes all levels of the global system and this generates tendencies toward development in the national metropolis and underdevelopment in the domestic satellites. The third contradiction has to do with the ubiquity of the structural essentials of economic development and underdevelopment. 20 The capitalist system, Frank contends, maintained its essential structure and generated the same contradictions throughout its expansion and development on a world scale (1969, 12). The working hypotheses of Frank therefore were that (l) the development of Third World nations is limited by their satellite status, (2) that the satellites experience the greatest economic development if and when their ties to the metropolis are sufficiently weak, and (3) the regions which remain underdeveloped are the ones which have the closest ties to the world capitalist system (l969b: 9-14). The theoretical elements and hypotheses developed by Frank suggest that the global economy--its monopoly structure and uneven development--is a conditioning system that sustains dependent and underdeveloped structures in the peripheral nations. This model has been criticized on several grounds. For example it is argued that it fails to establish any strong relation- ship between external dependence and internal social and economic structures. In other words, it is too schematic to permit an in-depth analysis of the relations Of exploitation among domestic social classes (Booth; Chilote, 1974). Furthermore, it is contended that this model does not come to terms with the real nature of underdevelopment. This criticism is based on the notion that the paradigm is based on orthodox economic theory and revolutionary ideology that cannot explain why some countries develop at the expense of others. However, 21 The conclusions reached are not wrong as far as they go, only they cannot get beyond the level of general ideological critique. Turning their backs on the law of value the best they could achieve was a historical account of the process of underdevelopment elaborated through empirical categories, such as dependence, metropole and satellite which collapse into hopeless contradiction in the face of investigation (Kay, 1975, 103-104). Although there are limitations to this model, its heuristic value has not been denied. It certainly serves as a basis for developing testable hypotheses as to the relationship between underdevelopment and peripheral capitalism. The New Dependencia of Multinational Corporations (Dos SantosLand SunkeD The second paradigm to be discussed is based on an initial criticism of the Frankian model. The dominant intellectual position is closely identified with Dos Santos (1973) who argued that the process which generates underdevelopment cannot be understood simply in terms of satellization and the drainage of resources available as economic surplus. The process should be examined in terms of the formation of certain types of internal structures conditioned by the international relationship of dependence. To Dos Santos, the key to modern dependence is the transfer of commercial technology and the operation of industrial monopoly capital by multinational corporations. In the first place, financial-industrial dependence that precedes the new form of dependence, is characterized by the domination of big capital in the hegemonic centers and by its expansion abroad through investment in the production of raw materials and agricultural products. In disucssing this view, 22 O'Brien claims that the new dependence is basically technological- industrial in character and is consolidated by multinational corpora- tions. This form of dependence encourages import--substitution and industrialization as policy strategies. The import-substitution policy introduces a change in the structure of production and the system of decision-making, income distribution and patterns of con- sumption which are consequently related to the internationalization of capital (17). This new dependency also encourages structural problems such as the dominance of a primary export product, incipient industrialization and stagnation of subsistence agricul- ture. The first two structural problems create the necessity for foreign finance. In the quest for foreign finance and capital in support of these, national governments tend to loose the powers of decision-making. This is because aid brings with it the right of donors to take part in policy-making and the necessity for dependent countries to justify these policies in order to keep the flow of foreign loans coming (O'Brien, l7-18). The result is continued financial-industrial dependence or technological dependence. What is the effect of this form of dependence on the rural social structure? To begin with, technological dependence is technical incapacity to produce capital goods required for modern technology. This makes a cOuntry's development almost wholly dependent on the importation of capital goods: 23 Agricultural development becomes an accelerated growth process through the adoption of foreign techniques. These techniques are embodied, 'hi physical capital goods which cannot be produced domestically. This incapacity is what is)meant by the term technological dependence (Merhav, 1969: 30 . But the Marxist perspective on the impact of technology is particu- larly relevant at least in terms of the social structural differentia- tions that result. Marx (1977) maintains that technology is the principal object of capital's exploiting power since it raises the degree of labour's exploitation. This process comes about through changes in the juridical relations between labourer and capitalist-- relations which previously were based on the assumption that the parties met as free persons. Marx continues that in the sphere of agriculture, modern industry has a more revolutionary effect than else- where, for this reason that it annihilates the peasant, that bulwark of the old society, and replaces him by the wage- labourer. Thus the desire for social changes and the class and the class antagonisms are brought to the same level in the country as in the towns (505). To Marx all progress in capitalist agriculture is a progress geared towards robbing the labourer as well as the soil. Thus the more a country starts its development on the founda- tion of modern industry like the United States, for example, the more rapid is this process of destruction. Capitalist production, therefore develops technology and the combining together of various processes into a social whole, only sapping the original sources of all wealth--the soil and the labourer (506-507). In essence what Marx is suggesting is that the capitalist mode of production based on technology alters social relations by the expropriation of the mass of the people from the soil. This happens when the system of colonization i.e., public property like land and 24 state capital, are converted into private property. With the transformation of production under the sway of capital, social structural contradictions are engendered. In this respect Marx was developing his concepts of class formation and class struggle which are relevant tools for the sociological inquiry envisaged in this study. In summary both paradigms have emphasized that the moderniza- tion framework is deficient and the policy guidelines inherent in such a framework have created social structural changes in peripheral nations. The global economic system operates to the advantage of industrial nations while Third World nations remain in a vicious circle of dependence and underdevelopment. In summary these conceptions maintain that the general historical process in the development and expansion of capitalism into all regions and sectors of peripheral nations, produces under- development both at national and rural levels. The rejection of the dualistic interpretation in this respect is critical to the extent that rural development no longer can be regarded as separate but must be seen as a part of a global network of capitalsim. In a specific sense, the metropolis-satellite relations have heuristic value in the sense that it focuses attention on patterns of inequality within and dependence of national economies on external market forces. To that extent, it emphasizes the point that the problems of rural development in contemporary African and non- Western societies result from the disarticulation of rural production 25 structures. The dependency framework also links the internal class structure and relations to the external forces of domination. In short, class relations are treated as a reflection of the contradic- tions within peripheral capitalism. And in this respect the interests of the dominant classes in the periphery are seen to be extensions of metropolitan capitalism. 0n the whole the dependency framework argues that rural areas are poor not because they are poor; but because they have been responsive to national and international market influences. Peripheral Capitalism, Dependency and Rural Development From the dependency perspective the problems of underdevelop- ment of the rural sector are explained in terms of the operation of capitalism in the periphery nations. The question lies in the identification of the distinguishing features of this peripheral capitalism. Amin (1976) argues that within a peripheral capitalist system there exists an imbalance in productive structures such that distribution of resources and income remain unequal. There is a 'disarticulation' (If the production structures in such a way as to satisfy the market demands of advanced industrial nations. The peripheral capitalist system is dominated by metropolitan nations and this is expressed in varying forms of international specializa- tion, i.e., in the structure of world trade; and the way the economy of the periphery is transformed from a subsistence agricultural economy into one of corrmodity production (201-204). What is of 26 interest however is the impact of peripheral capitalism on the rural social and economic structure. Disarticulation of Production Structures The advance of capitalism into peripheral countries is accompanied by a series of structural changes in production. Viewed historically, capitalism in the periphery established specific functional economic relationships for the express purpose of accumu- lation, investment and constant expansion of capital. The consequences of these structural changes include the transformation of traditional social structures, the establishment of enclave economies for the extraction of natural resources and repatriation of surplus (Stavenhagen, 1975). "Enclave economy" denotes a settlement or production zone with high investment concentration and advanced technologies. Beyond the confines of the enclave structures tech- niques of production and levels of living remain primitive and stunted. The enclave production structure is export oriented, but the concentration of capital and technology in that sector imply increased imports. Where the periphery country cannot support such imports an attempt is made to acquire foreign aid. The enclave economy therefore increases the integration of the periphery with the world economy through primary exports, capital and machinery imports and foreign aid. At the same time, the enclave economy exploits local labour in order to increase surplus extraction. But more significantly, with the polarization of the production structures, the fundamental 27 conditions of capitalist production are enhanced, and as a result the process denies the indigenous population the ownership of the means of production while transforming them into wage labourers (Marx, 1977: 713-716). But the 'primitive accumulation' that induces the disarticulation of the peripheral structures forcibly separates the population from their subsistence activities and turns them into proletarians. In the agricultural development sphere the disarticulation is manifested by an imbalance in the production, supply and demand of agricultural crops. As Johnson (1972) noted: The modernization that has occurred in agriculture con- sists mainly in a shift from production for the national market to production for export, departures from "precapi- talist" forms of labour servitude toward wage labour, and increasing adoption Of farm technology. The effect of this modernization is to create a highly exploited rural proletariat and to force large numbers of peasants off the land into urban slums where they are relegated to marginal status in growing underclasses of Latin American societies (79; see also Frank, 1972: 365-367). Capitalist development therefore encourages the development of production structures that orient the economies outward. Frank (1969) discusses this process in greater depth in his analysis of underdevelopment in Latin America. He argued that capitalist agriculture operates under three basic principles: subordinate determination, commercial or market determination and monopoly. Subordinate determination is here understood in terms of the expansion of the metropolis into the rural sector such that the entire rural economy becomes an integral part of the world system. 28 Therefore within the agricultural sector itself, the same principle of subordinate determination obtains. Cash crops and commercial, expecially export agriculture completely dominate and determine the activities in the essentially residual subsistence sector (248). To Frank the commercial or market determination is the most crucial since all initiative and capital for large-scale commercial production come from foreign commercial interests. These interests remain dominant and continue to play a role in the determination of agricultural production (254). Commercial interests serve not only as sources of capital and credit to rural and agricultural sectors but also structure international trade in primary products. Amin shares this view point contending that unequal international specialization is manifested in three kinds of distortion in the direction taken by the development of the periphery. The distortion toward export activities (extraversion) which is the decisive one, does not result from inadequacy (Tf the home market, but from the superior productivity of the centre in all fields, which compels the periphery to confine itself to the role of complementary supplier of products for agricultural produce and minerals . . . . (200; see also Stavenhagen, 224-231). On the other hand, Amin maintains that "the extraverted orientation of the economy dooms agriculture to stagnation, sometimes retrogres- sion" (l969a: 206). The final principle of organization is what Frank calls monopoly. By this is meant the increasing degree of concentration of factors of production, i.e., capital/technology which lead ultimately to marginalization and high degree of unemployment of a large segment of the rural population (see also de Janvry, 1975). 29 Since the three principles are interwoven they simultaneously influence the rural sector. In short "through commercial and other relationships monopoly determines subordinacy and permits exploita- tion which in turn produces development/underdevelopment . . ." (Frank, 1969a: 254). The Role of the State and Changing Class RelatTOns Underdevelopment can be examined in terms of the ways in which capitalist enterprise alters class relations in the periphery. The advance of capitalism into pre—colonial societies does not result in the destruction of existing class relations. 0n the other hand these relations are transformed in such a way as to facilitate surplus extraction and capital accumulation. In this process the state during both the colonial and nationalist phases tend to func- tion to reproduce the capitalist system (i.e., creating or maintain- ing conditions in which private accumulation, investment and constant expansion could take place). The state therefore becomes the instrument by which the dominant classes--those who own the means of production--establish a set of productions relations that are in their class interests (Sweezy, 1968: 242-248). The Marxian view of Sweezy suggests that the state is an epi-phenomenon of class conflict and the state apparatus is used by the owing classes for the suppression of the interests of the producing class. More significantly, through the instrumentality of the state, peripheral capitalism develops a working class whereby surplus is constantly generated and appropriated. In this respect Marx (1977) notes that: 30 The great beauty of capitalist production consists in this--that it not only constantly reproduces the wage- worker as wage worker, but produces always, in proportion to the accumulation of capital, a relative surplus popula- tion of wage workers. Thus the law of supply and demand of labour is kept in the right rut; the oscillation of wages is penned within limits satisfactory to capitalist exploitation, and lastly, the social dependence of the labourer on the capitalist, that indispensable requisite, is secured; an unmistakable relation of dependence, which the smug political economist, at home, in the mother country can transmogrify into one of free contract between buyer and seller, between equally independent owners of commodities, the owner of the commodity capital and the owner of the commodity labour (769). Marx further maintains that in the colonies this situation is also further reinforced since the absolute population increases much more quickly than in metropolitan countries. The law of the supply and demand of labour is thrown overboard as capital is then invested in the periphery for the express purpose of exploitation. Under colonialism the state power is used to break down all resistances of labour; to regulate wages and thereby force labour into limits suitable for surplus value making. This, according to Marx, is the essential element of so-called primitive accumulation. In this respect Shivji (1976) argues that colonialism mutes the class struggle and creates different phases through which it passes in the course Of its own development. The state under colonialism subordinates pre-existing class relations in such a way as to guarantee the inte- gration of the peripheral economy into the world economic system even after the demise of colonialism. Not only do the dominant local classes assume extensive ownership of capital, including large-scale capital intensive farms, but they also become the instruments through 31 which farm workers and peasants are exploited. The surplus they accumulate does not lead to internal capital accumulation. The surplus is spent on imported manufactures and luxury goods that in turn encourage repatriation of profits abroad. During the nationalist phase the state assumes a new potential for changing the nature of colonial, capitalist relations. Firstly, the state becomes the medium through which the revolutionary new class undermines the old class structures and attempts to establish a new society. But until those relations of production established during the colonial phase are changed, the contradictions between social classes remain. Shivji (1976) argues that ownership of the means of production, which is essentially a property-relation, does not in its entirety suggest that class struggles are minimized, let alone eliminated. In essence the problem during the nationalist phase is not so much how the economy is regulated, but more so the nature of production and class relations that remain critical. Secondly, the state assumes a dominant role in economic planning while setting the conditions for development. However under condi- tions of underdevelopment, dominant classes and owners of capital in the metropolitan countries continue to apply pressure through dominant local classes in order to maintain the colonial and capitalist relations. The state is therefore not free to negate the existing class relations. In other respects, it compounds the class situation since the possibility exists for the development of a class of state bureaucrats who use the state apparatus to 32 accumulate private wealth. The point here is that class relations and the resulting rural differentiation must be viewed as a cause and consequence of dependency and underdevelopment. Baran (1957) makes this point more explicit when he notes that underdevelopment has its source largely in the nature of the wealthy classes that survive from pre-colonial times. These dominant classes under peripheral capitalism are not permitted to develop an independent economic base. Instead they have become closely linked to dominant metropolitan classes whose interests they largely serve through surplus extraction. In this respect Leys (1975) notes that a primitive accumulation gave way to capitalist accumula- tion (in which the apparently 'natural' forces of the market for labour are sufficient to ensure that the sur- plus is appropriated by the capitalist) the need for the continuous and overt use of force by the government to back up the process of accumulation declined. This facilitated the replacement of direct colonial administra- tion by 'independent' governments representing local strata and classes with an interest in sustaining the colonial economic relationship (9). The shift of power to nationalist governments during the post- colonial period has not in itself lessened the degree of exploitation. In addition, the nationalist control of the state and economic apparatus does not also reduce the class differences. Instead the political domain becomes the arena for class conflicts. The model used for analyzing changing class relations derives from the notion that from the pre-colonial period there have been three broadly based social groups whose relations undergo change during the colonial and post-colonial periods. The first group is the upper class or Nananom whose class origin derives from tradition and custom 33 and the fact that they constitute the link between the ancestors and the living members of their societies. During the colonial and post-colonial periods their class position undergoes change as a result of several administrative policies. The second group is the middle class or Asikafo. In pre-colonial societies they represented the interests of the traditional upper class and formed the elite bureaucrats irI pre-colonial state bureaucracy. They engaged in trade, and in essence were the emerging entrepreneurial class. During the colonial and post-colonial periods when capitalist enterprise began in rural areas their relations with the traditional upper class is significantly altered. The third category is the lower class or Ahiafo. They constitute in the modern sense the marginal class. However as new economic and political opportunities emerge during the colonial and post-colonial periods some of them are transformed into revoluntionary classes supporting mass movements. Others remain impoverished and landless. They have only their labour to sell. The reason for these distinctions derives from the fact that the notion of a classless rural society or an amorphous rural peasantry cannot be sustained empirically. Briefly, if the concept of institutionalized inequality (i.e., differences in wealth and power) is to be conceived in terms of individuals' relationship to the means of production,then in pre-colonial societies class forma- tion took place. Moreover the structural changes--state formation, changes in the form of production, distribution and exchange--that 34 took place during the pre-colonial period gave rise to a more differentiated class structure. As the historical evidence will show, this differentiation was expressed by the changing relations between the traditional upper class and traditional middle class. Moreover, the basis for the differentiatons was mainly the control and ownership of property. On that score the term 'classless rural society' appears misleading. 0n the other hand, the notion of an amorphous peasantry ignores the laws of capitalist accumulation. Under peripheral capitalism there has occurred differential access to resources, wealth and property, which has affected new types of capitalist social relations. The dominant classes have come to accept an ethos deeply rooted in exploitation and surplus accumulation. Capitalist enterprise has also encouraged the formation of an agricultural labouring class or proletariat whose labour is exploited. Structurally, the rural sector exhibits three broadly based social classes: the exploiting class, the entrepreneurial class and the exploited class. The achievement of political independence has not resolved the class contradictions within peripheral capitalist development; it has tended to aggravate it. In fact, under the nationalist governments the class structure was given added dimension through the involvement of the "parasitic" urban classes working in alliance with the dominant social groups in the rural sector. The issues at this point related to the interrelationship of the major variables 35 disarticulation of rural production structures and state and class relations. The process of disarticulation implies that the dominant metropolitan groups, through their control of the world market, capital and investment resources, indirectly determine what is produced in the rural areas and how the surplus accumulated from these activities should be distributed. To maintain a production structure that emphasizes cash crop production (for example, cocoa in the case of Ghana) the colonial and post-colonial state become a necessary mechanism for that purpose. In essence the state legiti— mizes inequalities based on differential control of economic and political resources between various social groups. The question then is: how are rural inequalities sustained? The pattern of rural economic exploitation which this disarticulation process unleashes is associated with sharply differentiated class structures. The internal dominant classes that operate the state institutions only serve as 'bridgeheads' for metropolitan classes. Working Propositions In this study the assumptions made are (1) rural poverty can fully be explained in terms of the expansion of capitalism and the resultant inequalities this expansion entailed, (2) the process of disarticulating rural production structures constituted a basis for underdevelopment and (3) rural class relations serve as the internal manifestations of dependency and underdevelopment. Given these assumptions, the following working propOsitions will guide the analyses undertaken in this study. 36 1. Rural poverty is a consequence of the expansion of capitalism. 2. The persistence of rural poverty must be explained in terms of the role of the colonial and post-colonial state. 3. The expansion of capitalist enterprise in the rural sector, and the disarticulation of production structures, constitute the core of unequal exchange and inequality in resource distribution in Ghana. 4. The pattern of capitalist exploitation and surplus extraction is associated with sharply differentiated class structures. 5. The nature of rural class relations is a manifestation of the general process of underdevelopment. Methodology and Data Analysis Some Research Problems in Using The Dependency Model A number of criticisms leveled against the dependency frame- work have to do with what the critics consider as a lack of empirical indicators of dependency. For example, it is contended that the framework does not provide conceptual concreteness and further that the analysis of dependency is seen to be carried out at varying levels depending on the interests of the theorists. Consequently, the model is said to fail when subjected to the rigor of statistical analysis (Hirschman, 1970). Based on the assumption that structural dependence has an effect on levels of economic performance, the advocates of the 37 dependency framework have used some social and economic indicators as measures for dependency (Brewster, 1978; Rubinson, 1976; Wlaton, 1975; Stallings, 1972). Proceeding from conventional economic theory, Brewster assumes that countries with high levels of economic dependency tend to exhibit low rates of economic growth, i.e., unfavorable balance of trade, fluctuating growth patterns, and a growing disparity between the structure of domestic demand and the structure of domestic resource use. International Trade Some social scientists working from the dependency perspec- tive have emphasized international trade as a critical index in establishing the degree of economic dependency. In this case the emphasis has been on what a country exports, the degree of commodity concentration, reliance on traditional export partners, the value of export over time and the import-export balance. But the basic assumption in the use of international trade as an index is that trade between metropolitan countries and Third World nations is essentially unequal. To demonstrate this inequal- ity, the focus has been to show how international trade operates to the disadvantage of these countries and not to the advanced nations. For example, in 1975 it was noted that developing countries showed marginal increases in the value of their exports. In more specific terms, the 'developed' market economies increased their export receipts from 47.6 percent to 57.9 percent between 1961 and 1974. Within the same period the 'developing' market 38 economies registered a 9 percent decrease in export value (F.A.0 Report, 1975). Taking developed countries, including the U.S.S.R. and Eastern Europe, as a group, the industrial nations increased the value of their exports by 26 percent. The explanation given by methodologists in this respect is the inadequacy of the theory of comparative advantage that underlies most trade relations. By comparative advantage is meant that international trade is advanta- geous for all participants in trade relations if each country, depending on factor endowments such as land and natural resources, capital, labour and technology, specializes in the production of those goods for whose manufacture it could best employ the available production factors. This thesis asserts that international trade, if it is so organized, would promote the interests of all. Another explanation for this pattern of world trade is based on the theory of demand for agricultural products. Most developing countries have agriculturally-based economies, and economic development is largely influenced by export receipts. But over the years demand for agriculture products have tended to fluctuate partly because the advanced nations have developed synthetic fibers to replace primary exports from these countries. In addition, the advanced nations have increased trade among them- selves and have imposed severe tariff restrictions on products entering their markets. Thus comparatively, the industrial nations have tended to increase their own agricultural exports much faster than the developing countries. Consequently, between 1961 and 1971 39 the rate of increase in their export earnings had doubled. What is of interest is the structure of demand, as well as international price movements and income receipts. Another parameter within the international trade index has to do with the extent of commodity concentration and dependence on traditional trade partners. Researchers are interested in establishing a relationship between export instability and commodity concentration. It is assumed that commodity concentration occurs when major portions of export earnings come from a few commodities; while export instability represents the extent to which export earnings fluctuate around the trend values (Leith, 1971). These indicies are important since most African countries depend on a few export crops for international economic transactions. For example, out of the twenty leading African exports accounting for about 80 percent of export earning, twelve are agricultural exports (UN/ECA REport, 1973: 147). Further- more, the bulk of Africa's export trade is destined for industrial European markets (Stallings, 30). Another international trade index has been developed by Galtung. His point of departure is the nature of interaction between nations. The concern was to determine how center nation's are related to those of the periphery. Galtung maintained that if the inter-actor flows, in flows of raw materials, capital and finance goods and services are examined, it is possible to determine who benefits most. 0n the basis of this, he discusses a theory of imperialism that seeks to determine differences among nations in terms of interaction relations, i.e., vertical 40 integration is shown not only in what is exchanged, but more in the difference in the spatial location of the most complex and stimulating Operations. Because of this difference in spatial location, one nation (the center nation) is able to dicate the terms of trade and dominate international exchanges (for example, the periphery nation exchanges agricultural exports for tractors). The feudal interaction system is shown by networks that facilitate the flow of goods and services in a particular direction, and these interaction structures affect the distribution of resources in the world. From the point of view of this theory, four major variables emerge for empirically exploring economic imperialism. The first of these variables is the development variables represented by the Gross National Product (GNP). The second is the inequality variable represented by income distribution index and systems of land owner- ship. The third variable is determined by trade composition, and it is the means of establishing vertical integration. The fourth focuses upon partner and commodity concentration. This represents what Galtung calls feudal relations (Galtung, 1971: 101). The trade composition, partner and commodity concentration variables represent the ratios between the proportion of exports going to one important partner, or these variables may consist of the three most important commodities relative to total exports. It is through these types of relatiOns, vertical and feudal, that dominance and power relations are determined within the world system. 41 foreign Capital and Technology Transfer Foreign capital and investment constitute a major aspect of international development assistance. Conventional economic theory argues that such investments are necessary if 'development' is to take place in the periphery. However, dependency theorists reject this argument while maintaining that such transfers do not aid development. Instead, the development assistance tends to encourage both international specialization and further separation of surplus from these nations. To determine the consequences of development assistance, an attempt is made to isolate the conditions under which assistance is given and the consequences for the peripheral economies. Most empirical research tends to use the foreign aid index which includes the sources of foreign aid and the percentage of aid (from the source) to a particular country (Stalling, 1972). The index is constructed on the assumption that certain external aids and capital tend to reinforce economic dependency. It is argued for example that multilateral aid, i.e., grants from the United Nations and other affiliated agencies have better positive effects on development in the periphery than bilateral aid, i.e., govern- ment-to-government or multinational private investments. Bilateral aids, it is often argued, have high interest rates. But in addition, it tends to tie the recipient country to imports donors are anxious to sell. Under these conditions, a recipient country if forced into a pattern of development that is dictated from external factors. 42 Another indicator has to do with rate of capital outflow from the periphery as a result of the type of foreign aid granted. In this case, empirical research focuses on establishing a relation- ship between inflow and outflow of capital (both long-term and short-term). It is assumed here that when there exists a greater outflow of resources compared to the rate of investment and capital aid the country concerned tends to be economically dependent. Technology transfer constitutes a major element in the empirical evaluation of economic dependency. This is because of its effect on national debt, and labour displacement in the periphery. What is the justification for technology transfers and what are its consequences particularly for the rural sector? The view has been expressed that if peripheral countries are to achieve rapid rates of economic growth, a viable strategy is the utilization of mechanical power. Agriculture in periphery nations, it is maintained, remains inefficient because of a poor technological base. By implication, it is assumed that technology transfer leads to increased efficiency and productivity (Cervika, 1972: 309). From neo-classical perspective technology transfer is justified on a number of grounds. Transfer of technology is seen as an opportun- ity to effect a change in the economy by shifting labour to other activities without necessarily reducing agricultural output (Hayami and Ruttan, 1971). On the other hand, it is maintained that even if labour is displaced, other sectors would have the capacity to absorb this displaced labour. On methodological 43 grounds, the impact of technology transfer is measured in terms of labour displacement (Yudelman, et al., 1971: 46; Abercombie, 1972: 22; Gorsch, 1972; Human 1974). Technology transfer is a costly investment for a recipient country as the current and recurrent costs tend to be high. But more importantly, a considerable foreign exchange is involves in the importation of technical equipments.' The maintenance and repair costs are also high. Since currencies of peripheral nations are often over-valued, the full cost of technology tends to be much beyond the means of the periphery. In the absence of enough domestic and foreign exchange resources, these countries are forced to seek aid which consequently reinforces their dependency. In this case McFargihan and Hall (1970) argue that The substitution of mechanized for labour intensive methods may increase employment in tractor manufactur- ing complexes of the western world, but to the extent that the introduction of mechanization is successful, it aggravates under-employment problems in poor countries (3). As an index, therefore, it is measured in relation to its effects on unemployment; the dependence on foreign capital as reflected by percentages of total foreign loans allocted to technology imports, and its contribution to the external debts and balance of payments. These issues related to international trade, foreign aid and technology transfer indicate the critical points in the metro- polis-satellite relations. International trade tends to ensure the disarticulation of the production structure in such a way as to 44 satisfy the market demands of the dominant economies. Internally however, the social and economic processes that result from the disarticulation imply inequalities in distribution of resources. Foreign aid permits the metropolis to influence domestic policies in order to increase the satellite's integration through further resource transfers. The process of techology transfers does not only reinforce technological dependency but internally, it increases unemployment and inequality in the periphery. Thus the economic and social costs tend to be high and the periphery tends to be more dependent. The significance is that the international structures and processes remain critical starting points in understanding the problems of development in the periphery. In this case an analysis of these structures and processes opens the possibilities for appreciating underdevelopment in Ghana. Procedures and Methodology Used in The Study A major problem faced by researchers in the area of dependency relations has been preciselytyfa methodological character. However, the issue here relates more to how the inter-relationships between the key variables in this study, i.e., disarticulation of rural production, the role of the colonial and post-colonial state and class relations, could be demonstrated in order to comprehend the complexities of the world capitalist system as well as the nature of the development problems of Ghana. More specifically, 45 providing new dimensions and perspectives on rural development within the context of the world capitalist economy calls for an interdisciplinary approach. This procedure referred to as the extensive approach draws on the other social sciences with a view to providing a comprehensive picture of the dynamics of rural underdevelopment. In essence, "what one loses in depth by this procedure, one gains in scope" (Hill, 1963: 7). Historiography In dealing with the contemporary problems of development in Ghana it is necessary to start with a solid base of source material that would allow an explanationIrfunderdevelopment as an historical process. The historical analysis becomes more evident when under- development is to be explained in terms of the development of world capitalism. For as Marx noted comtemporary events particularly as they relate to the growth, expansion and transformation of capital- ism, can be interpreted within a world historical context. Conse- quently, the events of the present can be fully comprehended if they are treated as integral parts of world historical phenomenon. Two approaches were therefore adopted in order to establish the trend in Africa and especially in Ghanaian underdevelopment. (1) An extensive survey of available literature on Western European connections with Africa and Ghana in particular was undertaken. This was to provide bench-mark information for a critical assessment of the interconnections between changes in European economic and political interests and the patterns of 46 development in Ghana at each historical stage in the transformation of capitalism. (2) A survey of the literature including books, articles, documents, and archival sources related to British colonialism in both its political and economic dimensions, was perused in order to determine the connection between colonialism and underdevelopment in Ghana. Documentary,Analysis Adequate assessment of development problems during colonial and post-colonial periods requires detailed examination of govern- ment documents to produce an adequate picture of the development process. This analysis was undertaken as a two-stage process: (1) The first dealt with census reports; economic surveys, including reports of various departments of Government, the Annual Budgets and manpower reports. The analysis here was carried out in order to determine what changes have occurred in the Ghanaian economy and the overall economic conditions of the country. (2) The second analysis focused attention on parlimentary debates, newspaper commentaries related to the issues of rural development and development generally. Since most of the issues dealing with development were extensively discussed in such forums and media, they provided additional and particularly useful sources of ideas about Ghana's problems. More significantly, this aspect of the analysis allowed an insight on how diverse interests operate within the political arena to shape development policy. In short, 47 the parliamentary records provided information on why some policy was formulated; what the objectives were, and what class interests and relations shaped the process of development Evaluation and Policy Analysis The importance of policy analysis cannot be overlooked. Lenin maintained that at each historical stage in capitalist development specific policies are pursued. For example, Lenin noted that during the imperialist phase the major feature of capitalsim, finance capital, called forth an annexationist (colonial) policy. The purpose of this policy was to increase the "joint-exploitation of the world by internationally uniting finance capital" (Lenin, 1974: 94). Consequently, policy evaluation implies explaining why the policy has been made and the way it has been formulated; and providing interpretations which are relevant to the problems of development at a given time. To do so meaningfully, one must understand policy in terms of a design by governments to shape the future. Underdevelopment is affected by internal problems specific to a country as well as by world developments. Therefore to establish connections between policies and conditions of under- development, the analysis must take into account the concrete economic realities of the world economy. The analysis undertaken here was threefold: (1) Analysis of specific selected aspects of agricultural development policy was undertaken with a view to establishing interconnections between the world situation for agricultural 48 products and the kind of policies proposed by the Ministry of Agriculture. 0n the other hand, the selected policies were examined in relation to the conditions of rural development as well as the internal requirements for agricultural products. In this connection, the writer spent four months in the Ministry of Agriculture and worked closely with the then Deputy Director of Agriculture, Mi Williams Baffoe. During the period documents and files of the Ministry of Agriculture were studied in order to isolate the factors involved in policy formulation. In addition interviews were held with senior officers of the Ministry with a view of getting an insight into the 'politics' of policy formulation. (2) An extensive survey of the literature on agricultural development including economic surveys of Ghana, reports of inter- national agencies (United Nations, notably the Food and Argiculture Organization and the Economic Commission For Africa) was conducted in order to see the extent to which international concerns about agricultural development tended to affect policy formulation in Ghana. For many years, the writer has participated in policy evaluation research on behalf of the Ministry of Agriculture. Some of the results have been used in order to establish a relationship between government policy and the persistence of rural inequalities in Ghana. 49 Contribution of Study For a country whose economy is largely dependent on agricul- ture and whose peoples are mainly rural residents, a study of this nature is not an 'ivory-tower' exercise but a matter of pragmatic import. The agricultural sector of the economy contributes about 51% of the G.D.P. Yet agricultural imports, particularly food imports, continue to take an alarming proportion of the import bill. In 1962 for example, Ghana imported about five times the West African average of imported food (Regional Food and Nutrition Report, 1967: 19). In 1970 the Bank of Ghana reported that the all-item consumer price went up because of a rise in agricultural and food prices (Quarterly Economic Bulletin). Agricultural development and rural social and economic problems have remained thorny issues in Ghana's development. Except in the export sector, the rest of the agricultural sector is near stagnation. Yet a large proportion of the Ghanaian population is in agricultural production. The overall economy of Ghana continues to be stimulated by external factors; the country is faced with serious balance of payments problems, inflation and an incapacity to meet obligations imposed by the general population. This study therefore is an inquiry into the causes and factors associated with underdevelopment. It specifically examines the problems of rural development as a consequence of capitalist development on a world scale. In doing so this study departs from the dualistic intepretation of rural poverty in Third World nations. 50 Instead, the study uses the dependency framework which is largely rooted in the conflict tradition. In this respect, the problems of rural development are viewed as a consequence of the external and external forms of domination, exploitation and unequal exchange that constitute the core of capitalist development. In a more specific way the dependency framework focuses attention on the patterns of inequality that result in rural areas as production structures become essentially responsive to external market forces. In essence this study seeks to establish empirically that rural areas are poor not because they are poor, but because they have remained responsive to national and international market influences which are essentially exploitative. CHAPTER II THE HISTORICAL AND SITUATIONAL CONTEXT OF UNDERDEVELOPMENT IN GHANA The view is often expressed that up to the 19th century the main features of the Ghanaian economy were essentially static. This point of view is succinctly articulated by Szereszewski (1965) who argued that In 1891, the Gold Coast (Ghana) was primarily an economy dominated by indigenous activities--traditional agri- culture and collection of forest produce, traditional crafts--and trade flows whose nature in terms of organiza- tion, conveyance and spatial incidence and type of commodities had not changed significantly over centuries. It was an economy based on the most simple techniques of production spanned by a network of narrow bush roads and practically fragmented politically as well as economically 1 . Historical evidence does not support this view. Moreover, recent economic history of pre-colonial Ghana, notably the works of Daaku (1970) and Reynolds (1974), as well as early colonial records have established that advances were made in economic organization during the pre-colonial phase in Ghana's development. There is also general agreement among scholars that whatever developments took place in the pre-colonial economy were undermined by colonialism. In other words, under colonialism the structure of the pre-colonial economy was fundamentally altered. Colonialism, therefore, was a critical moment in the economic history of Ghana. 51 52 The area presently referred to as Ghana is itself a creation of British colonialism. But the indigenous ethnic groups that con- stitute it are said to have migrated from the ancient empire of Ghana in the Western Sudan (Boahen, 1975). Linguistically these ethnic groups belong to two principal families--the Kwa group of languages composed of Akan, Ga, Adangbe and Ewe spoken by ethnic groups in the south; the Gur group of languages consisting of Grusi, Mole-Dagbani and Gurma to the north. Culturally there are discernible differences and similarities. The Akan follow the system of matri- lineal descent (Rattray, 1927). Thus their mode of social and political organization derives largely from the matrilineal principle. The Ewe and Ga-Adangbe and the groups to the north follow the patri- lineal principle. The cultural differences are reinforced by the fact that the ethnic groups are also located in different ecologic zones such that economic organizations in particular have reflected these variations. To a large extent political organizations remain similar although distribution of power and influence tend to follow the principles of matrilineal or patrilineal descent as applicable. At the head of each group is a paramount chief or someone of similar status. The head of government in each group exercises power only within limits set by a council of chiefs and elders who also had power to remove him from office should he fail to protect the interests of the citizenry. Generally the system of political organization among the Akan at one end of the spectrum approximates a monarchical system. At the other end is the system among the 53 Ewe of independent units very loosely connected. However, each group has a government operated along the same lines as the Akan. Thus, chiefship is an old institution in all ethnic groups although through cultural contact and sporadic warfare some aspects of Akan chiefship have been borrowed by others (Agbodeka, 1976). The institution of chiefship remained the center of social and economic life in pre-colonial times. Power, wealth and status were closely intertwined with this institution. Political power relations were considered an extension of economic relations (Owusu, 1970). In terms of agriculture, the chief exercised economic rights over land, but this right was only custodial since communal land allegedly belonged to the ancestors. Secondly, his rights over any parcel of land coexisted with a bundle of other rights held by lineages (Busia, 1951; Bentsi-Enchill, 1964). The chiefs' economic rights extended into areas of trade. Most of the long distance trade that developed between the coastal states and those in the hinterland and beyond were carried out through the machinery of government. Trading privileges were granted to indegenous entrepreneurs and the chief appointed local businessmen as trading representatives in other areas. Through these activities a considerable part of the pre- colonial economy was under state protection. These developments are best illustrated by changes in pre-colonial social class relations as well as the general transformation of the pre-colonial economy. 54 Pre-Colonial Class Relations A number of social scientists with neo-classical orientations deny the existence of institutionalized inequalities based on wealth and property ownership in pre-colonial societies in Africa. The assumption here stems from the notion that African societies are dominated by the communal mode of production. It is also maintained that in such societies the most critical factor in production relations, land, is available to all members of the society. Its availability and communal ownership ensures that each member of the owning group has at least a minimal share of it. Furthermore, the factors of production, land and labour, are employed expressly in the interest of the community. Thus the principles for surplus accumulation and its circulation tend to reduce to a minimum sharp institutional inequalities. This perspective essentially reflects from the view that African societies prior to colonialism remained in a state of rela- tive equilibrium, and that it is the communal mode of production which eliminated the unequal relations between producers and those who controlled the means of production. Certainly there existed collective forms of ownership of the means of production and there was a preponderance of equalitarian principles in the distribution of surplus from the land. However, this did not foreclose individual initiative and advancement. This notion of a classless society does not take account of the social and economic realities in pre- colonial societies. And as Nkrumah (1966) pointed out: "African 55 classless society (in which there were no rich and no poor) enjoying a drugged serenity is certainly a facile simplification" (5). There were socioeconomic and political hierarchies and the relations that existed among the various hierarchies were to some extent based on ownership of landed property as a means of production or non-ownership of such means except labour. As Rodney (1972) states: In the period of transition, while African societies retained many features that were indisputably communal, it also accepted the principle that some families or clans or lineages were destined to rule and others were not. This was not only true with cultivators but pastoralists as well. In fact, livestock became unevenly distributed much more than land (53). Although these hierarchies existed, in the case of the Ashanti of Ghana, Busia (1968) maintains that the dominant clans or families as represented by chiefs were wealthy only in terms of the services provided by the citizenry. These chiefs could not accumu- late capital for personal use. Moreover, whatever wealth and income they acquired circulated back to the people. In terms of land ownership Busia argues that since the chiefs' rights over lands coexisted with a cluster of other rights, i.e., rights of lineages and families, the appropriation of any surplus from the land was severely limited (36). Customary law required that the subjects of a chief provide a variety of services including military services, varieties of levies and communal labour. In the case of labour the subjects were required to work on the chiefs' farms for several days each year. 56 The number of days on which this service was given varied from place to place from two to eight days in a year with twenty to two-hundred or more men working on any one day (Busia, 49). This position indicates that free labour was utilized by the chiefs for purposes other than conmunity interests. Hailey (1938), writing on this practice by chiefs of demanding free labour, main- tained that although these services were rendered for the upkeep of the institution, it was not uncommon for these services to be used to secure resources of a personal nature by incumbents. Hailey's contention is buttressed by Dickson (1969). However, the initial point made by Busia in relation to land ownership and rights of use is correct in principle. But, in the operation of the system, devia- tions occurred. Dickson argues that The chiefs' consent was required before farmers could clear a plot of land for agriculture. All farmers were by custom obligated to cultivate communally the chiefs' land before they could work their own and part of their income from sale of farm produce from individual farms was com- pulsorily paid to the chief as farm rent. Land was a major source of wealth; and political power derived largely from control of wealth and scarce resources. The stratification system of society to a great extent followed wealth dif- ferences (76). No doubt pre-colonial states like Akwamu, Anlo, Denkyera Asante, Gonja and Dagbon developed stratification systems based on economic and political power. Political stratification was not based on kinship relations alone, but took account of property ownership and individual enterprise as well. In the pre-colonial times then, class distinctions emerged in most of the societies. But, for the purposes of this study these 57 structural changes that occurred in Asante society will be used to illustrate this viewpoint. The emergence of Asante as a powerful state with 'imperial- istic' designs has been attributed to several factors, the most important of which were the formation of the Asante Confederacy; the Atlantic and slave trade and the military superiority of Asante in the hinterland (Boahen, 1975: 15). A third important factor is what Wilks (1961) referred to as 'the northern factor' or economic influences that permeated Asante from the north. In this case it would appear that the extension of the northern trade route into the gold-bearing areas in Asante stimulated the quest for an economic and a loose political union. What is clear from this perspective is that the emergence of Asante was effected by the desire to control the gold and cola resources of the forest region and the trade to Housaland to the north (Fage, 1966). Wilks (1961) further noted that this perspective can only be meaningful if it is understood in rela- tion to other forces, particularly the trans-Atlantic trade. The Atlantic trade, according to Boahen, affected Asante in two ways. Firstly, the trade in gold and ivory which had higherto been carried out with the northern states of Africa was shifted southward with a new dimension, the slave trade. Initially, the European merchants in their trade relations operated through intermediaries. The Asante producers wanted direct dealings with the Europeans and therefore nursed the desire to eliminate such intermediaries. Secondly, throughout their trade contacts with Europeans the Asante had built a superior military power base which they felt they could 58 use to buttress their ‘economic imperialism.‘ These two factors facilitated the political and economic expansion of Asante (see also Eynn, 1971). By the early 19th century Asante had extended its political influence beyond the forest areas to the south and north. But, with this imperial drive went changes both in the political and socio- economic structures (Hagan, 1971). There was the establishment of the military controlled by "captains" who, together with the hereditary upper class, operated in the state councils and made decisions about warfare. The army itself was composed of the commoners and slaves who were conscripted. There were also Hausa and Malinke mercenaries who were paid for their services (Ajayi, 1977). In spite of a low level of consciousness, the commoners and slaves who were conscripted showed some resentment (Wilks, 1975). It was the military captains who articulated the misgivings of the lower military classes, but they were ineffective because they served as part of the establishment. As will be seen later, however, under the colonial period these military men became a source of pro- tests (both against the hereditary upper class as well as the colonial administrations) against what they had seen as exploitation. Another change in the social structure of Asante had to do with the development and separation of a bureaucracy from hereditary title holders. Wilks (1975) noted that this bureaucracy was a wide organization. Apart from the executive branch in which the decisions 59 relating to diplomacy, trade and warfare were formulated, there was the central administration. This included at least two hundred and fifty members of the chiefly establishment and military commanders. But the core of the central administration was composed of the pgbljc_ or household servants, Asomfo. They held office by appointment, were career men, and were rewarded in several ways, most common of which was remuneration based on a fixed scale of fees and commissions (Wilks, 1975: 468). They were servants of the state par excellence. With this imperial expansion went increased trade and extrac- tion of tribute from conquered states. It became necessary then to develop a system of controlling the new resources and within the central administration an exchequer was established. This organiza- tion was responsible for supervising finances, imposing taxes, collecting tribute and tolls of all kinds. It also supervised the state trading enterprise, i.e., mining and the collection of ivory. But the public servants who controlled the exchequer were beginning then to become a class based on wealth. These persons were permitted to establish personal fortunes and in fact accumulated wealth (Wilks, 1975: 468). Such personal wealth as was accumulated was not considered lineage property. The only restrictions were in the area of succession to the property. For example, they could not transmit their property to their heirs. It did not only carry heavy taxes but at death was taken over by the state. Related to the exchequer was the establishment of the state enterprise system through which the state controlled external trade 60 and gave protection to those who operated on behalf of the state. During the same period, a similar development took place in the European mercantile system. For example, in the 18th century the British merchants along the West Coast operated under the aegis of the company of merchants. This company, although regulated by the Crown in Britain, served as a protection for the British merchants against other European rivals. It permitted individual initiative and served to finance enterpreneurs. The Asante organization was no different. Wilks (1975) noted that their operations tended to approximate more and more closely the capitalist model. The members of this company borrowed money from the exchequer to finance their business operations and their commercial dealings no doubt yielded them substantial profits (469). The leadership of this state business enterprise fought with the hereditary upper class over what they felt was the exploitation of their labour and entrepreneurial skills. They sought to operate a free enterprise system using state capital and protection to generate private resources. Their resentment to the kind of produc- tion relations they had established with the traditional upper class took a decidedly political form, and most of the political unrest was clearly identified as emanating from excessive appropriation of their profits by the aristocracy. Wilks (1975) further notes that By 1880, then, the level of consciousness of the asikafo was such that they should probably be regarded as constituting a small but growing bourgeois middle class with distinct interests and aspirations transcending loyalties and allegiances of a traditional kind (705). 61 Despite these 'class struggles' between the chiefly group, the bureaucrats, the military establishment and the entrepreneurial class, conceptually, theywere classed as asikafO-—i.e., the persons who were hipossession of large quantities of gold and property. Thus it was the possession of wealth, counted in gold, that gave recogni- tion in society. The chiefly group remained dominant and as Bowdich (1918) claimed: The chiefs are fed bountifully by the labours of the slaves; and sharing large sums of the revenue (the fines their Oppression imposed on other governments) with incal- culable fees for corruption or intereference, refine upon the splendor of equipage even to satiety and still possess a large surplus of income daily accumulating (335-336). In essence, the dominance of the aristocracy, the bureaucrats and the merchants was predicated upon the labours of the commoners and the slaves in the mining and production areas. In contrast to the rich, the poor and underprivileged generally reffered to as Ahiafg_carried the burden of production while the upper groups appropriated and accumulated surplus. Prior to colonialism, there- fore, Asante society showed differentiated social class structure composed Of a traditional upper class of chiefs, clan heads and elders. There was the traditional middle class composed of state bureaucrats, state traders, military captains, diplomats and tax collectors, and at the bottom was the lower class consisting of commoners, slaves and laborers. It is important to note that these structural changes were essentially a reflection of developments in the pre-colonial economy. 62 Developments in the Pre-Colonial Economy Some earlier and recent economic historians have argued that the pre-colonial economy, particularly agriculture and trade, were diversified and specialized. Agriculture, according to Rodney (1972), was based on a correct assessment of the environmental potential of the areas. Furthermore, in the areas of crop rotation, green manuring, mixed farming and regulated swamp farming advances were particularly noteworthy. In this case The single most important technological change underlying African agricultural development was the introduction of iron tools notably the axe and the hoe, replacing wooden and stone tools. It was on the basis of iron tools that the new skills were elaborated in agriculture as well as other spheres of economic activity (48). Ghanaian agriculture showed remarkable progress. The soils in the forest regions were fertile and supported crops like oil palms, cow peas, millet and other staple foods. There were also commercial plants like cola, coffee, rubber and pepper, a spice of which the ' Moors to the north were extremely fond. It was this spice, according to La Anyane (1963), and its demand that gave the initial impetus to European trade with Ghana. Iron implements were also introduced into Ghanaian pre-colonial agriculture and in areas to the north where the metal industry had begun to serve agricultural development. Another factor in agricultural development was the indirect influence of the gold trade in Ghana. 0n the whole the contact with other peoples brought about by trade indirectly influenced agriculture since new crops like cola from the north were introduced into the repertoire of agricultural products. 63 Pre-colonial Ghanaian agriculture was not primitive, and neither was it unscientific. La Anyane suggested that in the absence of the 'so-called' modern scientific knowledge, the importance given to the 'sacred' place associated with gods and dieties served as a basis for forest reserves. "The sacred forests kept as suburbs of the principal towns or in the vicinity of the kings' village for the purpose of housing the gods or the spirits of the ancestors were in reality forest reserves" (5). The application of gring_in cassava, i.e., manioc, con- tributed physiologically to reducing the poisonous acid (prussic acid) from the crop. It was believed that urine has a sulphurous element which countereacted the ill-effects caused by the acid. La Anyane holds that more importantly the application of urine to plants demonstrated an inherent understanding of the benefits of the use of fertilizers or manure. Apart from advances in agriculture, internal and external trade in both agricultural products and manufactured goods was highly developed. It has been noted that as far back as the 10th century both intra-regional and intra-continental trade had developed. Trading was not limited to manufactured items but also included were food crops and some cash crops like cola, cotton, pepper and rubber. Daaku (1970) and Reynolds (1976) noted that in pre-colonial Ghana the economies were not static. Salt mining was a higly prized industry, and it was a commodity which was in great demand throughout Western Sudan. Trade in beads was carried out and by the 17th 64 century it had become one of the items exchanged in its own weight for gold. The growing of cotton and the textile industry in West Africa remained advanced in techniques and design. Cotton prints were important items of exchange, and during the initial contact with Europeans this industry spread to other parts further north. According to Johnson (1974), during the early trade with Europeans in the 16th century, West African textiles were bought and sold by European traders in the Far East. Further historical evidence suggest that one of the consequences of Dutch and Ghana trade connection was that soldiers and craftsmen who were recruited from the coastal states and Ashanti, introduced and taught African designs which the Dutch later introduced into the Java textile industry in Indonesia. Gold trade remained at the core of the pre-colonial economy. Reindorf (1966) gives credence to this fact by nothing that profitable gold washing and mining activities were carried out in Akyem, Denkyera, Wassaw, Assin and Asante, areas located in the heart of present day Ghana. These areas still serve as the base for extractive industries including gold, diamond and manganese. Kimble (1963) noted that the people of pre-colonial Ghana were engaged in mining and selling a commodity which had become a universally accepted basis for monetary exchange. To Goody (1971) therefore the concept of non-monetary economics is hardly applicable in this case. From the foregoing, it is difficult to sustain any notion that prior to contact with Western Europe the pre-colonial economies 65 were static and underdeveloped. In the long-run of history pre- colonial Africa was far from static. From the point of view of mercantile economy, Goody (1971) argued that parts of Africa were not dissimilar to Western Europe of the same period. Thus Most of the kinds of economic operations that were found in pre-industrial Europe were also to be found in Africa; 7 even in stateless societies of the interior barter had been superceded by more complex forms of exchange and production was rarely limited to subsistence alone (24). In view of the above contention, it is clear that African societies were not any less developed than the rest of the world at this historical point in time. But by a series of sequential developments in the world economy, African societies began to suffer reverses in their development. For purposes of the analysis undertaken in this study only a few major developments are discussed, with a view to illustrating how critical changes in the emerging world economy are related to Africa's underdevelOpment. Slave Tradin and the Process of Underdéve opment (1500-1880) Historians (including African and Africanist scholars) have written on the question of the African slave trade. The concern here is not to traverse an already documented field, but to demonstrate briefly how the slave trade set in motion the process of underdevelop- ment. Daaku (1970) and Reynolds (1975) maintain that it was the quest for gold that initially stimulated mercantile interests along the Guinea Coast in about 1485. The exploitation of gold sources particularly in the forest regions of Ghana was what led consequently to the integration of the indigenous economies with European financial 66 interests. However, toward the end of the 15th and 16th centuries this interest was shifted to trade in slaves. This shift was caused mainly by the development of agricultural plantations in the New World--the Americas and the Caribbean islands. By the 17th century demand for African labour in the plantations became a dominant feature of economic activity along the Guinea coast. Rodney (1969) notes that by the third decade of the 18th century the pattern of Afro-European trade on the Gold Coast was almost completely reversed in some sections. Instead of bringing in captives and exporting gold, they were selling Africans and receiving gold in return (17-18). He further adds that although gold remained important the shift meant that within the overall process of capitalist accumulation slaves had become Africa's most valuable contribution to Europe and the Americas (18-19). This trade in human beings was not without severe consequences for the African societies and overall developments in the continent. Although there are no reliable statistics to indicate how much African labour was transported, it has been roughly estimated that at least 15 to 20 million active labourers were sold into slavery. A potential productive labour necessary for Africa's own development was thereby denied and instead this labour was used to support expanding western capitalism. Therefore, it was African labour which provided the basis for agricultural capital formation. This agricultural capital was later on to be used in support of the industrial revolution that was to tilt the strategic balance much further in favour of European imperial designs. 67 This development had adverse effects on African agriculture since agricultural labour became severely curtailed. The Trans- Saharan trade which stimulated agricultural production was under- mined and in consequence, the population in agriculture stopped pro- ducing crops and goods in which they formerly traded. Local industries including iron works, and textile manufacturers were destroyed, and were replaced by imported goods (Fyfe, 248). The slave trade also led to the disintegration of emerging nation-states as well. European slave traders and later mercantile organizations exploited local rivalries to further their economic interests (Webster and Boahen, l967). Daaku (1965) maintains that between 1630 and 1720 European trading agents became involved in local politics as the balance of power in Europe began to change. Thus from the 1630's European attitudes towards local politics gradually changed from non-involvement into active participation in local affairs. Daaku further argued that this change was mainly due to the efforts of the trading companies to secure all the coastal trade for themselves. In this they became overprepared not only to bend the governments of these states by diplomacy but by force if necessary (22). Wars were therefore encouraged in the name of trade. The conse- quences of these wars were many but the notable ones include popula- tion decline and the inabilities of these states to pursue independent political actions (Uzoiwe, 1973). In summary, the slave trade marked a significant turning point in African development, i.e., the beginning of African 68 incorporation into the world captalist system and the inducement of underdevelopment. "Legitimate" Trade and the Process of Underdevelopment (1800-1957) The replacement of slave trading with what was called 'legitimate' trade is largely attributed to the prevalence of a humanitarian ethos in the 18th century. Although humanitarianism may have been a significant factor, economic considerations were perhaps more critical in the shift of commodity trade. 0n the other hand, even with the shift to legitimate trade the process of underdevelopment was not lessened, but took on added dimensions. During the 18th century most European nations, including Britain, France, Germany, Portugal, Holland and Denmark, became involved in competition not simply for military and strategic superiority, but more significantly competition over control and monopoly of world trade. In this the European nations were propped up by emerging finance capital whose interest was to monopolize the natural resources that were believed to exist in vast amounts in the African continent. This competition was translated into colonial expansion. European imperalist interests therefore reflected a struggle between monopolistic groups and finance capital to control the world markets (Betts, 1966). Thus, as the European nations developed, the power of the state became synonymous with finance capital and the penetration of Africa by the European states was to provide a framework for capital accumulation on a world scale. 69 In the case of Britain the support for abolition of slavery and its replacement by 'legitimate trade' was motivated by a number of factors. Ward (1977) claims that Britain was a commercial country and for several centuries had been trying to sell its products all over the world. Britain believed that 'legitimate trade' was a good thing for both producer and purchaser. Coupled with this desire another important element was declining return on capital in Europe. Wrigley (1977) noted in this respect that the prevailing low return on capital in Britain made owners of capital eager to branch out into new areas of investment. The attraction of West Africa as a potential area of investment and a market for manufactured goods was critical in the shift in world trade. Furthermore, during this period there was an increasing desire in Europe, particularly Britain, to develOp African agriculture on an extensive scale in order to support the emerging industrial capitalist complex. At this time Britain was experiencing an industrial revolu- tion in science and technology. It was thought that there was a substantial avenue for increasing production by depending on African raw materials and market for this purpose. Thus the Industrial Revolution brought about new economic relationships which consequently European financial interests carried out in West Africa. This emerging industrial revolution influenced the type of commodities that were of of great concern at the beginning of this legitimate trade along the Guinea coast. There was an increasing demand by British chemical industries for palm Oil which was con- sidered to have ingredients for producing the best lather. At the 70 same time Lancashire cotton industries were not only concerned with cotton but also vegetable oils for lubricating the industrial equipment (Flint, 1977). Thus it was a combination of factors, particularly economic, that pushed British merchants into the coastal trade in Ghana. Following closely the dominant economic trade theory of Adam Smith, i.e., free enterprise and non-governmental interference in or control of trade, the British government in close association with monopoloy capital began a systematic attempt to control the trade with the peoples of Ghana. Through the Company of Merchants the British government helped individual foreign entrepreneurs to carry out trade uninhibited by competition from other European firms and traders. Through this organization Britain regulated the trade and at the same time made London the focal point of financial and commercial activity. In addition, this company provided an avenue for West African trading combines and partnerships which were extensions of major firms in London. Through the operations of this company other rival foreign firms were bought and British interests gained an unquestioned foot-hold in Ghana (Swanzy, 1956; Prestley, 1956; Daaku, 1965). At the initial stages of the legitimate trade the British government gave merchants encouragement to enter into plantation agriculture. Some organizations like F. and A. Swanzy and British Cotton Association engaged in agricultural pursuits including cotton, coconut, timber and rubber plantations. They were not successful because they wanted quick returns on their capital; and 71 they were not really interested in placing capital into new ventures without security (Agbodeka, 1972). Moreover, their interests had been in timber and mineral concessions and collection of already established agricultural produce needed in Europe. Foreign and government controlled agriculture collapsed, leaving the field to peasant farmers to dominate. The entry into extractive industries, mining of gold, diamond and manganese, created new dimensions to the problem of underdevelopment. In order to facilitate trade the British Crown sought to establish political and economic jurisdiction over the peoples of Ghana. The Bond of 1844 which marked the beginning of political domination was essentially a trade accord between Britain and the coastal states in exchange for protection against the onslaught of states in the hinterland, particularly Asante. The accord did not cede territory nor did it relinquish the political rights to Britain, but by a series of proclamations and ordinances Britain assumed the right of superior political dominion over the indigenous peoples. Through their representatives they began economic transactions relating to trade concessions with other foreign governments as well as providing security for British commercial interests. In 1876 a Bill whose intent was to vest waste and unoccupied forest lands in the British Crown was introduced. This gave the Colonial Administration in Ghana the right to control the exploita- tion Of mineral resources. This was clearly an attempt to 72 facilitate economic exploitation without regard to the owners of these resources. As Kimble (1963) notes: "In the past, no encouragement had been given for development; now, when private enterprise had proved the value of their lands an ordinance was to deprive them of their property" (337). This situation was not without opposition and no doubt it provided the first major basis for nationalist reaction on the Gold Coast (Ghana). With the development of mining and agriculture went a systematic exploitation of indigenous labour both from within and outside Ghana. Kimble noted that the ever growing demand for workers soon brought the wage earning system within the experience of people in all parts of Ghana including the most remote villages (41). This was an age of "labour capital." Through the Native Administration Ordinance of 1883 and the Compulsory Labour Ordinance of 1895, chiefs were forced under the indigenous communal labour system to provide labour for the mines as well as public works including railway and port construction, road building and other projects that the government was to carry out from time to time (see Chapter XII). The Provincial Commissioners pressured the chiefs for labour in the mines by pointing to the financial advan- tages and conditions for 'progress.' By 1909 the demand for labour in the mines exceeded 5,000 men a year. Despite the overtures of creating conditions for 'progress,‘ the conditions in the mines were far from satisfactory. The death rate in the mines was alarming. Following an inquiry in 1924 it was revealed that most miners suffered debilitating occupational 73 diseases including pneumonia and silicotic tuberculosis. In addi- tion, a significant number of the rural population migrated to the urban areas. In addition to these developments was the emergence of an indigenous trading class. They, in competition and sometimes in cooperation with European capital, acquired wealth and property by exploiting local labour in the interest of private accumulation. Boahen (1976) notes that the Cape Coast 'merchant princes' attempted to organize monopolies in competition with European companies. For example, the formation of the Gold Coast Native Concessions Company, engaged in mining, employed about 200 men. Others who did not have enough resources became agents of foreign capital through whom mass markets for imported goods were channeled. This alliance became the apparatus for exploitation and domination of the indigenous economy. However, in the share of profits the local agents received an insignificant proportion compared to the European business interests (Rodney, 1972: 169). The extent of this accumulation and its implications for underdevelopment has been summarized by Kay (1975: 120). He suggested that merchant capital through its agents and institutions bought raw materials below the actual value of the product. These raw materials were sold far above the actual value of the product in the metropolitan countries. "The profit on this transaction is a direct deduction of surplus value from productive capital (104). At another level, merchant capital profits through charging consumers in the underdeveloped countries prices above the actual value of the manufactured products. This is referred to as indirect 74 exploitation. All in all this exploitation is mediated by the merchant class and middlemen. In the operations of merchant capital therefore, the traditional rulers, chiefs and the new trading class, became transformed into a 'comprador' class of European capitalism consequently draining resources out of the periphery. What were the consequences of these developments? Without doubt these economic activities brought the local economies force- fully into the world capitalist system, but within the framework of peripheral capitalism there were a number of emerging contradictory tendencies. There came into existence externally oriented produc- tion zones in which there were high investments in capital and advanced technologies. Beyond the confines of these production areas, levels of living remained stunted. Local labour was extensively exploited for capitalist accumulation while a signifi- cant proportion of the population became marginalized. In essence the production structures were shifted to conform to those of industrial Europe. What was more significant was that the changes that occurred in commercial activity inevitably led to changes in patterns of pro- duction, distribution and consumption. The successful competition of European goods led to a decline, and in some cases, a cessation of traditional production. The dominance of Manchester textiles and other products reduced the interests in indigenous cotton pro- duction and cloth making. The tools and weapons produced in the hinterland could not compete with equivalent articles imported from Birmingham (Hodder, 1969: 42). In addition, new demands were 75 established among the people in order to make it possible to purchase from Europe all kinds of formerly unknown manufacture. As Burns (1927) notes: It was the business of British interests to stimulate these demands to encourage the natives to adopt new standards and to increase their mateial needs and thus develop the exchange of raw materials for manufactured goods out of which the British merchant made his profits (23-35). Consequently, mere luxuries like spirits, tobacco and chocolates were converted into necessities and through them these societies were made to depend more and more on overseas trade which they could not control. In structural terms this era of legitimate trading changed not only the character of the economy but it produced greater social and economic differentiations based on wealth and property. It altered social class relations to the extent that some classes could exploit the others for private accumulation purposes. The period of 'legitimate trade' was significant because of local reactions to trading practices and against political domina- tion. Resistance to British rule grew with intensity particularly as regards the exercise of powers not ceded under the Bond of 1844 and the exercise of powers that amounted to 'absolute' ownership over Ghanaian lands by the Crown of Britain. The Fanti Confederacy Council which was originally formed as an alliance among the coastal states to protect their interests and provide a basis for orderly development, became the framework for initial reaction to foreign rule and trading practices (Agbodeka, 1976). The Confederacy Council contended that the British and other European nations operating along the West African Coast did not have rights conferred 76 on them to engage in transactions involving transfer of property and concessions, without reference to the law operating under indigenous constitutions. Any such transactions amounted to assuming preeminence under customary law over and above the absolute title vested in the Chief as trustee of community lands. Several petitions were sent to the British Government in London, but the Colonial Administrator responded by arresting the leader- ship and charging them with a "conspirational move to subvert the rule of the Majesty the Queen of Gold Coast" (Sampson, 1969). From then on it became clear what the British intentions in the Gold Coast (Ghana) were. This raised in the minds of the citizenry particularly the Chiefs' and the emerging educated class of lawyers, teachers and traders, the questions of the legality of foreign rule. Secondly, it reinforced the concern that had grown in the past about the rights of the people to their own self-determination. As a result the colonial administrator peremptorily destroyed the organization's effectiveness. The educated elements however began to carry forward this initial protest movement by invoking British judicial principles in support of their course for self-determination. What gave impetus to their protest was the Lands Bill of 1896. Through the Aborigines (Rights) Protection Society, the educated men sought to assert the 'natural rights of their people and their nationality.‘ The leader- ship maintained that the initial trade arrangements between the coastal states did not include any clauses relating to cessation nor a treaty which would allow Britain to exercise rights of 77 deprivation, domination and exploitation of natural resources at the expense of the people of Ghana. Under these circumstances, it was argued that, the Lands Bill was of no legal consequence. The leadership with the support of chiefs sent deputations to London, and by force of legal reasoning the Lands Bill failed to become law. The Aborigines Rights Protection Society was followed by the National Congress of West Africa following a schism in the ranks of the leadership and its overall ineffectiveness. The new organ- ization dominated mainly by local lawyers like J. Casley Hayford and J. P. Brown decided to pursue the goals of self-determination in concert with other West African peoples subjected to this system of colonialism (Kimble, 1963; Langley, 1973). To the leadership the Ghanaian desire for self-determination was inextricably woven with those other peoples in the region.* The Congress rejected the notion that Ghana was a Dependency or a Protectorate. It stated rather clearly that: As to our relation with you, it is not denied by your best constitutional lawyers that your claim on us and ours on you is no greater than that of friends, allies to carry on the ideals inherent in the Maclean foundation-- we are friends and not conquered tribes: we do not live on Crown lands. For we own lands; we are free because we have never alienated our right to be free. We are free because the annexation of our country as a colony of the Crown cannot give greater rights than our original con- nection with you could justify in the eyes of inter- national law. We were not a people without a government when the Crown annexed our country to Great Britain, and the annexation cannot embrace rights and privileges * This principle was to be re-echoed by Kwame Nkrumah, First Prime Minister of Ghana on Independence Eve. He proclaimed that the independence of Ghana is meaningless unless it is linked up with the total liberation of Africa. 78 greater than we could ourselves have given. We have been a free people and we desire to remain free. Let us then become free by giving us a share in the government of our own country (Sampson, 1969: 28). The problem, however, was that this organization did not carry its demands to the logical conclusion. It was willing to have a share in the administration of the country; and in an event of independence maintain a connection with the British Empire. Despite the fact that it fought for constitutional reforms, and social and economic development, it failed largely because it did not have a mass base support. It appealed mainly to the middle class which was imbued with western liberal philosophies. At this point it needed a new force in the nationalist movement to make explicit the relationship between moral and political issues and the facts of economic exploitation. Colonial Consolidation and the National Strgggle 1900-1957 This phase marked the beginning of a systematic implementa- tion of the colonial idea, i.e., the colonies as sources of raw agricultural and mineral resources and a market for finished manu- facturers from Britain. Within the framework of the colonial plan a major concern was to open up the country for foreign investment. In this respect emphasis was placed on improving the existing communication networks. The colonial administration did not pay attention to road construc- tion except where there was a thriving industry in existence. For example, roads were constructed into the East Region because palm 79 oil was in demand in Europe. In the period of legitimate trade, the roads that existed were military routes from South to the Ashanti hinterlands. These were roads made during the military expedition against the Ashanti. The growing importance of mining, cash crop production, and timber extraction stimulated the desire for an effective trans- portation system. The British Chamber of Commerce sought to lobby the Colonial Office to make provisions in Colonial development budgets for building railways into the areas of active economic activities because of the advantages that could be brought to British trading interests (Kimble, 1963: 28). In 1895 the merchants, shippers and owners met with the Secretary to the Colonies on the subject of infrastructure. The Colonial Office was unwilling to make a public investment in what was going essentially to benefit private business interests. Kimble reports that Chamberlain, then Secretary of State for the Colonies, noted that if merchants were unwilling to "invest some of their superfluous wealth in the development of their great estate" then there was no future for such territories (47). By force of circumstance, however, the Colonial Government on the Gold Coast (Ghana) was empowered by an Ordinance of 1896 to acquire land for railway tracts and to raise loans from Britain for the purpose of building the railway. By 1901 a railway was built from Sekondi, a major seaport in the Western region, to the gold mining areas at Tarkwa. In 1902, through the Ashanti Railway Ordinance, the railway was extended to the Ashanti gold mining areas. 80 The construction pattern of the railways clearly indicated that the main concern was with the economic future of the minerals and the interests of British entrepreneurs (Haydon, 1970). Without doubt the construction of the railway lowered the cost of gold production and increased the mining of other minerals. At the same time it encouraged considerable flow of foreign capital and increase in imports. The period 1914 to 1936 constituted a critical period in the development of transportation (Dickson, 1961). With additional capital assistance from abroad and excessive domestic taxation, the Colonial Administration expanded railway facilities by building a link from Accra to Kumasi. A harbour built at Takoradi in 1928 and approximately some 3,000 miles of roads built during the period facilitated external trade and the exploitation of the resources of the territory (see Figure 2). In the agricultural development sphere the improvement in transportation facilitated the production of cocoa as the major export crop. Cocoa, first introduced in 1879, was soon to become the major link with the external economy. Production grew from 13 tons in 1895 to 40,000 tons in 1911 (Webster and Boahen, 1972; Kimble, 1963). This agricultural development brought significant structural changes with the Ghanaian economy. Consequently, the economy exhibited features of capitalist development (Kay, 1972, 10). In conformity with the colonial idea, the economy became export- oriented and essentially stimulated by external demand and supply factors. In particular, it showed features of an open economy whose production and consumption patterns were integral parts of the world economy. .1 l 0‘ ERITIsII/ "' R E N 9 1' h Kumosl .l. s v o o'\~._._./ .0" a: \1 l u : 15 “A. K. T000 1*“ i 8‘ #4 ’BE , A \‘ . st (1.. RAILROADS OF THE GOLD COAST Figure 2.--Railroads of the Gold Coast RAILROADS 1.067111. 36" or M 2' 6' or 0.762III. —o-o-H- . , .z 1', r ., I ‘ c .‘ 7 3‘ " ,3 J' 1' ’1 _ v . .;»~s¢~ 1' 'l’l'fl‘ficb' I 9"! '. 5y, ' I ~ . If e \- . . 5.5), . ‘I/ - ‘ :2 f0“ ,3. ~ ‘v----:M ' ' ,. " ' .. 0’ 100 TITLES 100 KILOMETERS O 82 One important development during this phase was the concern for a constitutional framework within which the system of domination could be carried out. This concern was complicated by the demands of nationalist leaders at the time. They felt that it was wrong for the Ghanaian populace to be taxed without having a voice in the affairs of state (Kimble, Chapter XI). Both the emergent educated men, chiefs, the citizenry at large and the press, actively cam- paigned through delegations to London and through the mass media for greater participation in government. These demands were no doubt legitimate. The prevalent notion, however, was "to guide the colonial territories to responsible self-government within the Commonwealth" (Kimble, 1960). Whatever efforts were made in consti- tutional development were clearly to establish a political linkage with British Parliamentary institutions, but more importantly, to provide a political framework for economic exploitation. Although constitutional proposals ante-dated this period, it was during this phase that a systematic program for elective government began. In 1925 a constitution was introduced in which fourteen "unofficial members including chiefs were elected to the Legislative Council." It is important to note here also that this constitution did not apply to Ashanti and Northern Ghana, since these areas were administered by the Governor thorugh Provincial Commissioners. It was under the 1946 Constitution that these terri- tories became part of a unified colonial dominion with common legislative and executive institutions. The 1946 Constitution, however, went further by permitting the membership of the Legislature 83 to be dominated by locally elected members. But these constitutions showed some weaknesses: First, chiefs continued to play a leading role in the affairs of the colony. This was very much resented by the educated persons as well as the 'commoner' class. Second, the constitution gave the Governor veto powers over decisions of the legislative process "if he thought it was in the public interest to do so." Thus the African representatives had no control over the executive council nor could they control policy. The participation of the chiefs in government to the exclu- sion of the populace had been predicated upon the concept of indirect rule, i.e., shifting the source of power to the British while retaining traditional social institutions with a view to using them to penetrate the country politically. Apter (1955) sees the concept of indirect rule in terms of political prescriptions which it involved, prescriptions which include a belief in colonial government through the principal Chiefs as agents; with residual and plenary powers reserved for the colonial authorities (121-122). The principle of indirect rule was translated into several ordinances beginning in 1883. Under these Ordinances, Native Administration Ordinances 1927 and Joint Provincial Council of Chiefs were establshed. These Councils in terms of political ranking were next to the Executive Council in importance. Nearly every major decision relating to economic development passed through them for comments to the Governor. Furthermore, they were used as electoral colleges to nominate the Chiefs into the Colonial Legislature and other conciliar bodies (Kimble, 1963; Apter, 1955; Frimpong, 1974). 84 Within this constitutional framework it was feasible to carry out the policies Of planning and consolidation. This was clearly reflected by the way the institutions were used to impose taxes, legislate and appropriate public resources and labour for public and private commercial uses. This institutional framework did not only facilitate 'orderly development' but more significantly it converted the chiefly group into a comprador class whose interests largely coincided with those of the British. The trend in colonial planning and consolidation in its political dimension was not with- out nationalist opposition since the problem became much more complicated by the world situation at that time. By the middle of the twentieth century the economy of Ghana had become heavily dependent on external factors. Internally economic change had induced large scale migration, increasing urban expansion, problems of unemployment and staructural inequalities. The Colonial Administration did not act with circumspection in dealing with the problems of price increases in urban areas, and its wage policies were inadequate for the lower salaried skilled and semi-skilled persons. The urban centers which became 'the melting pot' for diverse groups were the places where the changing fortunes of the world economy were deeply felt. With this situation a large proportion of the population nursed deep seated grievances against the Colonial Government which they saw to be in collusion with foreign capital to dominate the economy and exploit the people of their natural endowments. No doubt the control of the resources of the country was firmly in the hands of foreign firms, and by reason 85 of the dominant economic ethic of free enterprise the Colonial Government did little to regulate monopolies and international com- bines operating in Ghana. The United Africa Company in alliance with five other British firms controlled the export and import trade. The ownership of banking and insurance institutions was in their hands, and used these institutions to support foreign enterprise to the exclusion of indigenous economic activities. For these and other reasons Coleman (1965) notes that "this near-totality of economic power exercised by a small group of European firms, together with apparent governmental support or toleration of that power, gave rise to a popular image of alien collusion" (81). The concentration of both economic and political power in alien hands reinforced the growing apprehension which earlier developments had encouraged. There were three classes of Ghanaians who articulated these grievances: the intellectuals and educated men (including lawyers, teachers and journalists) who were imbued with nationalist concerns and were equally concerned about the adequacy of the institution of chiefship as a modern political leadership; the group of aspiring local entrepreneurs who felt they were denied economic opportunities by reason of severe business regulatory measures by the Colonial Government and the firms, and disenchanted because they were gradually replaced or recuced in economic power by European merchant activities in the hinterland. The broadly based group of rural migrants, school leaves, drivers, small traders who lived mainly in the urban areas without employment and economic opportunities for advancement. 86 Together the resentments of all these groups coincided and became subsumed under the term economic and political nationalism. The World Wars contributed significantly to this nationalism since it brought to the surface all the emotional and cultural forces generated by the colonial system. In the 19205 the cconomies of the western industrial countries stagnated and in the 19305 their economies had become depressed as international trade was disrupted. During this period European nations imposed economic controls. In addition, export duties and tariffs were imposed on goods from primary producing colonial territories; shipping costs sky-rocketed while large monopoly combines attempted to increase their spheres of economic influence. Worst of all the World Wars had unleashed inflationary pressures throughout the world. During the period of the War the Colonial Government had assumed direct control over most of the economic activities-- regulating transport, price controls, wage ceilings and the marketing of export crops, like palm oil, cocoa, copra and rubber. The market- ing boards established for these crops prices far lower than could be met by the farmers themselves. The regulation of imports affected domestic prices as well and thus during this period the cloud of stagnation and depression weighed heavily on the Ghanaian economy. As a consequence, the local population felt the situation was a design by the foreign business community and the government to subdue them. Following all these developments, the political and economic structures were in turmoil, and as the dust settled, a new dimension to nationalism appeared. 87 This nationalism, however, was given impetus by other develop- ments including the return of Ghanian soldiers from service abroad, the political and intellectual cross-fertilization that took place between African leaders, Black Americans and West Indian nationalists. Briefly, a large number of West Africans were recruited through con- scription for military service abroad. Through this service they became exposed to the "myth of white superiority built up by the segregation of Europeans on their researvations where their facilities were concealed from African view" (Webster and Boahen, 1972: 302). These authors conclude that those European soliders who were sta- tioned in Africa indulged in habits that Africans considered immoral, and that "the outcome was that Africans developed a more realistic picture of European life, of both its frailty and even debauchery and of its highest instincts” (302). African soldiers provided an important thrust for the nationalist cause, and they led marches and sent petitions and were involved in organizational activities that propelled and galvanized demands for self-determination. Another external force that provided an added dimension to the intellectual foundation of Ghanaian reaction to foreign domina- tion came via Black American and West Indian and Caribbean political thinkers and ideologies. Toward the end of the 19th century there was a strong movement to raise the consciousness of all black people on questions of race, political domination and the importance of self determination. The dominant theme was that a black man could not achieve dignity and freedom as long as others of the race remained racially and politically dominated. As Wilmot Blyden 88 noted, "the regeneration of Africa will doubtless be the final transforming power of her down-trodden descendants." He maintained that The great problem which human advancement requires to be solved, is the formation of a civilized state within the tropics. Until this is accomplished, it seems to be utterly absurd to talk as we do about the progress of mankind and the civilization of the human race (quoted by Wilson, 1969). These views were equally and forcefully advocated by Marchs Garvey who had an indomitable influence on West African nationalist leaders including Nkrumah. Garvey, for example, argued that all black people had to unite to establish a government of their own. He believed that there was no way to cultural, economic and political salvation other than free and independent Africa. The primacy of political independence was unquestioned since it was to him the only means by which any civilization could protect itself. All these influences could be summed up in Nkrumah's dictum: "Seek ye first the political kingdom and all other things shall be added." William Du Bois, who helped form the National Association for the Advancement of Colored People (NAACP), carried cross- fertilization forward through the Pan-African Congresses between 1919 and 1945. Throughout, these congresses called for a charter of Human Rights for people of African descent. They provided a framework within which the demands of the Black World were actively kept in the international public arena (Langley, 1973; Wilson, 1969). 89 In summary these world forces in combination with internal developments--continuing exploitation of natural resources by foreign monopolies; absence of a systematic development programme that would benefit the population; the haphazard nature of colonial agricultural policies; the increasing rate Of unemployment; the elimination of Ghanaian traders by European, Lebanese and Syrian firms and the limitations on political participation--encouraged radical national- ism to emerge. Before then a number of 'youth' organizations mushroomed. The most notable was the Gold Coast Youth Conference organized by urban educated men including Dr. J. B. Danquah. This organization was established in response to the failure of the previous Constitutions and the general political and economic conditions in the country. It attempted to involve people in general national problems. The philosophy was that the public needed general education in civil government. The organization was to provide that forum and prepare the populace toward self- government. By 1947 an attempt was made to organize political movements in preparation for ”political self government" The United Gold Coast Convention whose members included Danquah, Akuffo Addo, A. G. Grant, R. S. Blay and prominent local chiefs including Nana Ofori Atta, sought to achieve political independence "by all legitimate and constitutional means." Their ultimate purpose was to have the British hand over control of government to 'Chiefs and People' of Ghana. The problem of this organization was that its leadership consisted of lawyers, big local traders, and chiefs who entertained 90 'bourgeois' western political ideas. In this respect, Langley (1973) noted that they opposed liberal capitalism only insofar as it failed to accommodate the interests of their social class; analysis of its contradictions and the political capacity to resolve them were either beyond them or incompatible with their interests. They only wanted a share of the benefits of monopoly capital (229). The organization was concerned with economic self-help and coopera— tion with Europe and emphasized the need for economic and industrial independence as a necessary step to political independence. More- over, their activities were limited to the larger urban areas. The U.G.C.C. was not an organization of farmers, workers, petty traders and the underprivileged (Padmore, 1954). The leadership therefore did not appeal to the mass of the people who no doubt were politically conscious as a result of events in the 19305. It needed a new generation of nationalists to make explicit the real opposition to alien rule in its exploitative political and economic dimensions. It was at this point that Kwame Nkrumah appeared on the political scene in Ghana. He was invited by the United Gold Coast Convention (UGCC) to be its general secretary. Within a year he increased the branches of this organization from two to two hundred and nine. However, Nkrumah's political style and strategy were clearly at variance with those of others in the organization. The bourgeois leadership insisted on carrying out their nationalist aims within the confines of constitutions. Nkrumah, on the other hand, felt that other means more positive and non-violent were equally viable (Nkrumah, 1956; Austin, 1964). Following the Anti-Inflation 91 Campaign* and the riots of 1948 in which ex-servicemen on a march to the Governor's Castle to present petitions were killed, the bourgeois leadership blamed Nkrumah for indirectly involving the organization in the campaigns (Watson Commission Report, 1948). Under the conditions, Nkrumah broke away from this group to form his own party, the Convention Peoples Party (CPP). Its aim was to fight economic domination and thereby establish an independent and viable political and economic system (Austin: 130). In 1951 the Colonial Administration introduced a new consti- tution and laid the framework for African elective Government. Nkrumah and the CPP won decisively and by 1957 led Ghana to political independence. From then on until 1966 when his government was over- thrown by a military coup d'etat, Nkrumah's political and economic philosophies dominated economic and development planning. During the years immediately before and immediately after independence, the Ghanaian economy was a typical colonial economy. The British con- tinued to dominate the key sectors of finance, economic planning and defense. Consequently, there were severe limitations imposed on the Nkrumah government as to what it could do. It was not until 1960 that the Nkrumah government began to pursue a somewhat 'independent' economic strategy. The years before independence were also periods when the Nkrumah government experienced serious political challenge. * The Anti-Inflation Campaign was organized in 1947 as a protest by Ghanaians against foreign firms--Association of West African Merchant5--for deliberately keeping up prices of essential goods. 92 There were a number of regional parties offering alternative development approaches to what Nkrumah had proposed. The most significant of these was the National Liberation Movement led by Dr. Busia, later to become Prime Minister in 1969. This party was predominantly Ashanti-based, advocating a federal system of government with increased powers for the regions. Although the organization was based in the Ashanti Region it was not in scope and philosophy a purely ethnic reaction to Nkrumah's government. It was in essence a class and ideological opposition. For the leadership of this organization apart from their ethnic background represented 'bourgeois' and anti-Marxist-Leninist orientations to political and economic development in Ghana. They proposed a "democratic welfare system" as an alternative approach to those represented by the Convention PeOples Party. The National Liberation Movement (NLM) used the current economic situation and ethnic rivalries to buttress essentially ideological and class con- cerns. What might be described as "ethnic politics" in Ashanti as well as other regions including the Volta Region in Gnana were of much deeper ideological and class significance than most commenta- tors on politics in Ghana would have us believe (Dowse, 1969: 25). Prior to 1960, therefore, there were at least to competing philoso- phies and ideologies of 'development' articulated by nationalist leaders: Nkrumah advocated the eradication of poverty and under- development through an overthrow of colonialism and the establish- ment of political and economic nationalism. This may be labelled as the "transformationist strategy." Busia and a number of Ghanaian 93 intellectuals, bureaucrats, businessmen, on the other hand, advocated economic development within a broader world economic system. At the same time economic development was to take account of the limits imposed by the endowments of the country. A liberal approach based on foreign assistance became a major part of development strategy. This may be labelled the "gradualist strategy." These competing ideas became quite manifest in develop- ment strategies during the period under consideration in this study. In summary, this study begins with the impact of peripheral capitalism on rural development, and then an attempt is made to examine the political and economic strategies of nationalist govern- ments and how these have affected the process of underdevelopment. In short, the emphasis is to examine the differential consequences of development policies under colonialism and nationalist govern- ments with a view of establishing a relationship between under- development in the rural sector and the persistence of the structural dependency of the Ghanaian economy. This chapter critically examined the view that African societies experienced very little advances in their economies prior to colonialism. The data suggest that pre-colonial societies in Africa and in Ghana specifically made political and economic I acvances and developed internal social differentiations based on wealth and property. In the political domain, many of these societies, particularly Asante Akwamu, Gonja and Anlo, had developed state systems and state bureaucracies. In the case of 94 Asante, there were systematic designs at empire building. In the area of trade and commerce there had developed intra-continental trade in agricutural and mineral products like cola, pepper and cottom, gold, beads and salt. But as the historical evidence showed, the series of sequential changes in Western Europe affected these developments in Africa. It was demonstrated historically that European colonialism and commercial interests were critical factors in Africa's underdevelopment. Moreover, the internal social and economic processes also contributed largely to the structures of dependency. In summary, this chapter lay the historical foundation for the analysis of the uneven process of capitalist development in Ghana. It also examined the ways in which the colonial administrative processes buttressed this development and created the conditions for nationalist reassertions that were to lead to attempts at overcoming underdevelopment. CHAPTER III COLONIALISM--THE STRATEGY OF UNDERDEVELOPMENT Underdevelopment is generally explained in terms of the expansion of capitalism and the internal social processes that it induces in peripheral countries. Thus process of underdevelopment is maintained not only by colonial administrative policies but it is also sustained by the nature of internal social class relations. Political and economic domination is as much a manifestation of external factors, as of internal. In a general way, therefore, this chapter analyses some selected colonial administrative policies as well as rural class relations particularly as these policies and classes help to integrate the Ghanaian economy into the world capitalist system. For this analysis the significance lies in how these administrative policies and class relations sustain rural underdevelopment. In Chapter II a historical and structural overview of the expansion of capitalism in Ghana was presented. It was also noted that pre-colonial social classes survived into the colonial phase. The question that remains to be addressed is how these pre-colonial classes were used to facilitate economic exploitation of the rural areas. 95 96 Colonial State and Rural Development The establishment of the colonial state implied the develop- ment of an increasing administrative capacity to regulate both internal and external economic relationships. The colonial state was to be an instrument for capitalist development in the dominated area with a view to satisfying the requirements of industrial development in Britain. Within this perspective, therefore, the stoppage of slavery, for example, was not merely an act of humanity. It was essentially informed by mercantile interests. The dominant colonial idea in the late 18th and early 19th centuries in Britain was to keep African labour in tropical areas in order to develop agriculture on an extensive scale. Because of excessive competition by other European nations in the field of commerce, it was felt that tropical agricultural and rural development was the key to British strategic dominance in Africa. This concern to develop tropical agriculture was not to preclude the entrenched interest in commerce since Britain had over the centuries developed its mari- time capabilities. Consequently, the colonial state was to manifest these interests as well as represent British administrative power. Through the colonial state, an organized system of capitalist development, i.e., expansion, investment and accumulation could take place in the periphery. Through the colonial state, economic policies which gave the market forces freedom were pursued. But with this develop- ment, went sharp institutionalized inequalities. Consequently, 97 the accumulation process undertaken by British interests had very little spread effects (Myrdal, 1957). By the natural logic of capitalist accumulation, the colonial state in Ghana also favored groups that were by and large interested in preserving and main- taining the social and economic systems that are the bedrocks of colonialism. The colonial state put into operation aspects of the colonial idea: regarding dominated areas as a source of income, wealth and estate. In other words, it was through the colonial state that an entrenched institutionalized system of economic and social connections, enforced bilateralism, was established between Ghana and Britain. In its desire to sustain merchant capital "it broke down the coherence of the old economic order, subjecting production to the rationality of the market" (Kimble, 1960: 233). This process implied a reorganization of local production to conform with the requirements of capitalist accumulation. The colonial state with its implementation of the colonial idea has significant implications for rural development in Ghana. Firstly, in a general sense it meant opening the rural sector to outside market forces in the form of concessions trade, investment and production. Kay's summary of the colonial model in Ghana is particularly useful. He points out that the model peripheral economy which the British sought to establish had the fOllowing features: it would have an export sector firmly under the control of British commercial and financial interests; the surplus 98 extracted from the export sector would be taxed for purposes of supporting the colonial administrative machinery; an infrastructure would be provided through loans floated in London. In short, these would be a small, advanced, highly productive sector, yielding profits which would be repatriated abroad. On the other hand, the majority of the population would operate outside this modern sector except in the use of their labour or their involvement in limited economic and social transactions in the capacity of petty commodity producers. Kay noted further that the British model implied that some of the people would be encouraged to produce cash crops for export, but this would be very much a subsidi- ary activity firmly located within the framework of existing, pre-capitalist social and political arrange- ments over which and through which the colonial state would exercise power. Any surplus balances accruing to the Colonial Government after the costs of administra- tion, debt payments and interest charges had been met would be spent on social welfare programs--hea1th and education--to raise the level Of civilization (35-36). These are clear reflections of the colonial idea that entailed the ownership of an estate, the Chamberlain Doctrine; or the use of native labour to secure the production of agricultural products needed in Western Europe, the Luggard Doctrine (Burns, 1927: 16). The interest in procuring primary goods through invest- ments and the exploitation of local resources is both historically and sociologically important. Historically, it sets in motion the conditioning factors in Ghana's economic development. Sociologi- cally, it establishes the conditions of structural dependence. In 99 short it creates a pattern of development that takes place at the inducement of foreign market forces. It also expresses particular relations of exploitation in that while there occurs increasing export surplus for foreign investors, the local people are deprived of their natural resources and any significant returns on their labour which is exploited for the purpose. Disarticulation of Rural Production At the initial stages of capitalist advance into the Ghanaian economy the colonial state was very minimally involved in organizing rural production. This was because of the operation of the dominant economic ideology of the time (the idea of no interference of the state in economic organization and competition). Over the decades however the colonial state progressively assumed a critical role particularly as it related to the task of making the periphery part of the world capitalist structure. The process of disarticulation of rural production can be broadly put into phases. These phases are not mutually exclusive. In historical terms these processes clearly overlapped and significantly inter- twined. The first phase to be discussed has to do with opening up the country for the exploitation of the natural resources by foreign capital. In this case the state was to play the role of buttressing and protecting specific industrial agricultural enclaves which were of interest to British capital. The desire for infrastructures was paramount in the initial phase of the 100 colonial process of altering the existing rural production struc- tures. In 1898 the Chairman of the Ashanti Goldfields Corporation in a dispatch to the Colonial Office stated: Our evidence assures us that the field is not only of great richness, but that such riches exist over a large area. . . . If the railway extension is made so that we are able to get heavy machinery up to our mines, and develop our property, we have every reason to believe that the royalty we should be enabled to earn for Government would give a hand- some return on the mines alone, to say nothing of the traffic we should place upon the line (Newsbury, 1971: 496). This desire of mercantile interests was put into operation not only through Ordinances which required the use of indigenous labour in construction and in the mines, but it was also expressed through taxations imposed on the local population (Kimble, 1963, Chapter IV). In this case an administrative machinery was established to collect taxes for raising revenue without which 'no higher degree of civilization could be attained. There was a natural resistance by the local people to pay such taxes. This resentment reached fever-pitch when British forces led expeditions against the local people to enforce the rules governing taxation in the colony. The critical position of infrastructure in the colonial development effort received a systematic boost in the middle of the twentieth century. During this period, the colonial state exercised its most direct influence on the pattern of development through its transport policy. The expansion of railways, harbors, and roads coincided also with the consolidation of capitalist 101 development in the rural sector. In every respect therefore the development of railways and harbors received priority attention, and as Governor Guggisburg noted: Without the harbour and without the railway extension we cannot appreciably increase our trade and without an increase in trade we cannot hope to support the recur- 1811 cost of a better system of eduction (Wraith, 1967: As can be seen in the transport map of Ghana (see figure 2, p. 81), the railways and later some road built by the colonial administra- tion were directed to the areas of 'high economic return, i.e., mining and areas of export primary production. Indeed the investment in infrastructure was to stimulate production of the exporting kind (Kay: 135-138). The second phase--the agricultural development phase began with very little colonial state involvement. But the colonial state gradually assumed the responsibility of providing a framework for peasant production and where necessary, it gave encouragement of European trading interest and the use of Africans as wage labourers. The initial impetus to any form of colonial state involvement came about as a result of the extensive exploration of the country's agricultural resources. It was the view then to discover economic plants suitable for European markets. Secondly, the colonial state sought to create a basis for agricultural experiments to be carried out on both economic and decorative plants within tropical and subtropical regions and thereby determine which ones would thrive under Ghanaian conditions (CISR Handbook, 1970/71). 102 However, by 1960 a marked change from non-involvement to one of gradual participation in the organization of agricultural production occurred in colonial state policy. The colonial state became the recognized instrument for agricultural policy, and through the implementation of such a policy export agriculture emerged in the middle of the 20th century as the basis of the Ghanaian economy. A number of crop production policies were pursued and efforts were directed at crops like cotton, coffee, rubber, oil palm and later on cocoa. In the case of rubber, small experimental units were established with the primary object of distributing seedlings to local farmers, and by 1885 rubber became the second export after palm oil. However, by 1910-1914 the production fell largely because of low prices. Although production was stimulated again in the war years, rubber as a major export crop declined rapidly (Dickson, 153; Cox-George, 1973: 69). In the case of coffee, export based on peasant production began in 1860 but its success fluctuated because of prices paid. But in the middle of the twentieth century coffee cultivation was revived with cash inducement from the colonial administration and foreign intereSts. At the same time a few expatriate plantations continued. The crop that received major attention prior to the growth and expansion of the cocoa industry was oil palm. This crop was not only important in the diets of the local population, it was in great demand in Europe particularly for soap making and lubricat- ing industrial complexes. In this respect the people in the areas 103 of maximum production, Akwapim and Krobo areas, were encouraged to cultivate and invest in the production of the crop (Metcalfe, 1962). By 1940 palm oil export became the third leading export of the colony. It has been noted, in this respect that between 1880 and 1900 palm Oil and palm kernel accounted for between 73 and 92 percent of total exports in value (Bervin, 1956: 73; Boahen, 1976: 91). The production of palm oil and kernel was not without its misfortunes. Between 1853 and 1860 production began to decline partly because of world prices and partly because of the implementation of the P011 Tax Ordinance of 1853. The first major setback for this industry occurred following a collective hold-up of supplies by people of the Krobo area in the Eastern Region. The people of Krobo had resisted the P011 Tax and consequently had rebelled against the colonial government. After the British force quelled the rebellion the farmers and rural residents were heavily fined. However, Swanzy (1956) notes that the collection of the fine was farmed out to Swanzy's who undertook to pay the Government in cash and to recover the fine in palm oil from the Krobos; the quantity of oil due was fixed by contract at a total of 195,000 gallons, or one-third of the total exports for 1857. The point here is that it gave virtual monopoly for British foreign interests. During this period prices fell drastically and with the hold-up which lasted for many years, the changing production relations became character- ized by protests against economic exploitation and distortion of the production structures. 104 By 1902 a dispatch from the then Governor Nathan to Chamberlain the Secretary of State for the Colonies, expressed concern about the decline in oil palm production (Newsbury, 1971: 566-585). As a result, the Colonial Government proposed that farmers who owned oil palm farms should form themselves into cooperatives, and through these organizations, they could invest in machinery and buildings for a cooperative oil processing factory. It was felt that a factory would stimulate local production and thereby revive the industry (Kay, 215). The factory was to have a European manager and engineer to ensure the maintenance of equipment and to regulate supplies and sale of fruit in order to ensure all cooperators received fair treatment. To buttress this approach the chiefs of the areas of palm production, particularly the Krobo, passed local by-laws in order to support an active export production. The by- laws stipulated amOng other things that the destruction of palm trees for the purpose of growing some other crop was unlawful, the only exception being cases where the climatic conditions were unfavorable. It became Obligatory for producers to trim their trees and at any time a palm tree was felled, it had to be replaced by an improved one from the Government's nursery (Gold Coast Annual Report, 1912). An alternative solution was proposed where local farmers could not put into operation the colonial policy because of financial problems. Government was to encourage private foreign firms to establish such factories. As a consequence, the Forest Ordinance 105 Bill of 1913 included a section that provided Opportunities for expatriate firms to have concessiOns in areas of palm production over 21 years. A number of foreign firms, including Lever Brothers, showedauiinterest. This firm proposed to establish a central factory and also invest in transporting the crop from production zones to the factory. In view of the heavy capital outlay involved Lever Brothers asked for monopoly, which meant the exclusion of other competitors for 21 years. Although the Colonial Government was willing to support this industry, particularly as it was considered "the next best product--if not better than cocoa," the price to be paid was too heavy (Metcalfe, 1964: 200). By the middle of the century cocoa production had pushed out oil palm production and other potential exports crops to secondary positions. The efforts to protect the cocoa industry marked the third phase in the disarticulation process. The colonial policy was best summed up by Guggisburg (1927) who maintained that it is practically impossible to foresee the day when the Gold Coast will not be at the head of the list of cocoa producing countries of the world . . . it is our duty to safeguard our staple industry in every way possible (8). But the real concern was to maximize trade by encouraging local production. The Colonial Government was aware that, on the world market, cocoa had a comparative advantage--a theory that had provided the initial justification for capitalist trade. The efforts to encourage production began at the beginning of the twentieth century when the Colonial Government established a marketing scheme for both cocoa and coffee. The producers were given cash inducements 106 to produce or were given favorable prices. In the first decade of the century European merchants seized the initiative for purchasing the crop. At that time, their marketing practices which put farmers at a disadvantage had begun (Kimble, 1963: 34). The Colonial Administration through its Department of Agriculture attempted to introduce improved techniques of production and disease control. A Produce Inspection Unit within the department focused on quality produce and price bonuses. But these efforts were essentially limited. It was the Ghanaian peasant farmers who carried out most of the economic activities related to the industry, and who took "the risks and made substantial investments of time and money" to make cocoa a thriving industry (Hill, 1963). The revolution in agriculture was therefore achieved through a spirit of capitalization of indigenous resources both natural and human. Agriculture became the largest absorber of labour services of the economy. Szeresaewski (1965) estimated that in 1911 cocoa cropping and investment alone absorbed something like 37 million labour days (57). In essence new levels of production were achieved not through the efforts of the colonial administration but through an increase in the flow of labour services. Again Szereszewski further maintains that cocoa production (cropping) was a relatively capital- intensive and natural resources intensive activity, but the formation of cocoa capital was simply the capitali- zation of current local labour (75). The result of this capitalization is reflected in the table below. Cocao production in 1920 accounted for 83 percent of total exports and in 1927 and 1928 export production was in the region of the 107 1920 level. Table 3.1 shows that throughout the 19205 and 19305 export cocoa constituted more than half of the export receipts. The increases in cocoa production were in part effected by world demand and increases in cocoa incomes for farmers. Consequently, during this period external trade became the most important factor inducing economic growth in Ghana. There was visible balance of trade and high level capital formation (Szereszewski, 66). Despite this development the Ghanaian economy achieved within the world economy an integrated status based on the relation- ship between rural economic production, foreign trade and investments, and colonial government support. Indeed this dependence on one export crop was of great concern to the Colonial Administration. The fear was entertained that any disruptions in the world economy were likely to create economic problems for the country. Moreover an economy limited to sepcializing in the production of a few primary products for export is, by definition of economic independence here used, highly dependent. Loss of markets can be catastrophic and sharp falls in the price of exports only a little less so. The national rate of grwoth will be no higher than the rate of growth in export receipts (Green and Siedman, 1968: 79). Unless there existed a favorable price for the product (a situation which was beyond the control of government) there was no real guarantee for stable and orderly “colonial development." In very simplistic terms, if cocoa prices were high there was prosperity; if they were low, depression; and the prices of the other items responded accordingly (Poleman, 1961: 123). It was within this purview that the report of the Government statistician 108 TABLE 3.l.--Cocoa Exports. Volume Value As % of Total (000 tons beans) (E0005) Value Of Exports 1900 0.5 27 4 1905 5.1 187 16 1910 23.0 866 35 1915 77.3 3,657 64 1920 124.8 10,056 83 1925 218.1 8,222 80 1927 210.0 11,727 84 1928 225.1 11,229 83 1930 190.6 6,970 71 1935 268.9 5,204 56 1937 236.2 9,989 63 1940 223.9 4,495 33 1945 232.2 7,144 50 1948 214.3 42,166 78 1949 263.6 34,019 71 1950 267.4 54,604 72 1954 214.1 84,599 76 1955 204.9 65,559 60 1956 234.4 51,062 61 1957 260.2 50,873 57 1958 197.3 62,318 61 1959 250.2 68,779 63 1960 302.8 66,434 60 SOURCE: Kay, 1972: 334-367. 109 pointed out that an economy so dependent on one major crop risked dangers in terms of foreign exchange earnings and internal capital formation for financing development (Report: Government Statisti- cian, Accra, 1952). Put differently, the growth rate of the economy is largely predicated upon exports as well as local demand for imports. This situation was serious enough to warrant Government attention to diversifying agricultural production. In a sessional address Guggisburg stated: We have nearly all our eggs in one basket. The cocoa baskets are full--what about the other baskets. Where are the other products to fill those baskets--if anything goes wrong with the cocoa crop or cocoa market (Legislative Council Debates, 1927-1928: 7). Between 1919 and 1927 considerable effort was therefore made to diversify agriculture. This included the development of other cash and food crops that could be as equally renumerative as cocoa in the future. Attempts were made to revive oil palm production (Kay, 200-202). In addition sisal production was started in the Accra Plains and groundnut production was begun in the Northern regions. Considerable attention was also to be given to cotton, cola and shea nut, coconuts, lime and rice production. All these agricultural developments were to be financed by a special expendi- ture from the colonial treasury. This program was further faciliated by the passing of the Colonial development and Welfare Act of 1929. This act made it possible for the colonies including Ghana to receive grants and loans for economic, essentially 110 agricultural, development. In 1945 a similar grant was made available and for her development, Ghana received loans totalling 3 million pounds (Ayadele et. al., 1971: 162). The efforts at agricultural diversification were frustrated by the preference shown for the cocoa crop by local producers. It was therefore a predominant view among agricultural officers that the diversification program was not fully realized because the average farmer, instead of being as formerly a labourer himself, had now become an employer of labour (Sessional Paper, No. IV, 1924-1925, para. 8). The efforts were further frustrated by the Swollen Shoot disease which had attacked the cocoa trees. Out of fear that the industry might be destroyed, and cause a collapse of the colonial economy, the colonial agricultural officers naturally focused their attention on its preservation. First an attempt was made to control the spread of the disease by discouraging further extensions of cocoa farms while sanitary measures were taken to maintain existing farms. The colonial administration proposed to institute punitive measures against those who would ignore government regulations (Legislative Council Debates, 1916-1917: 82-91). The Law concerning this issue was moribund at birth because the nature of indigenous cocoa production could not lend itself to full supervision by the colonial agricultural staff. The second approach to the problems of the cocoa industry was in the policy of cutting out diseased cocoa trees. This policy was based on the evidence then available which maintained: 111 There are some 400 million cocoa trees in the Gold Coast and it is estimated that nearly 50 million of them are at present infested. Competent authorities estimate that the present rate of spread is about 15 million trees a year and that, if unchecked, the cocoa industry will have practically disappeared in 20 years (Report: Commission of Enquiry, 1948, para. 263). The solution available to the Government was one of eliminating diseased trees. Accordingly, the Colonial Department of Agriculture was authorized to cut out diseased trees and, where owners refused to cooperate, the officers had the authorityixicarry out the policy without their consent. The approach effected great resentment among producers. But the cutting out policy did not stop the spread of the disease. Moreover, there were a number of allegations prevalent among farmers and the general population as to the inten- tions of the Colonial Government. It was alleged that Britain intended to sell the country to the United States but wished to destroy the economic viability of the country in order to avoid subsequent competition. Furthermore, it was alleged that the foreign monopolies including the United Africa Company (UAC), had begun large plantations in the Far East or in East Africa and therefore were anxious to reduce the West African production (Watson Commission, 1948: para. 268). These allegations added more weight to the already heightened concern of exploitation and domination by foreigners. This situation, in combination with other factors, had created a politically explosive atmosphere for nationalists to exploit to advantage. 112 While the policy of cutting out diseased cocoa trees was being pursued the Colonial Government established a West African Cocoa Research Institute to carry out investigations into diseases of cocoa and soil fertility; and surveys of cocoa farms and agricultural practices with a view of increasing the yield and life of cocoa trees. In addition, the research facility was expected to carry out experiments in order to develop new crop varieties. Although its scientific research did not result in the elimination of the disease, it did provide a basis for increases in production recorded in later years. For example, production increased from 250,000 tons in 1956 to 500,000 tons in 1965. Consequently, cocoa production and income remained the basis of economic prosperity during the colonial and post-colonial periods. Colonial Agricultural Extension: A Continuation of the Disarticulation Process Agricultural extension and farmer education started with the work of Danish, mainly Basel Missionaries, in the Akwapim and and Krobo areas of the Eastern Region. In 1843, the Basel Missionaries in addition to "converting" the local people to the Christian faith began experiments not only with cash crOps but they also started farmer oriented extension education. This they did through demonstrations and the involvement of local people in their experiments. In this respect La Anyane (1964) notes that in 1843 the Basel Mission began its second invasion of the Gold Coast and were sponsored by the Danish Govern- ment. This association brought them into close contact with efforts by the Danes to introduce agriculture of an 113 exporting character in the Gold Coast. It was they who inherited the plantations started by the Danes at the foothills in the neighborhood of Dedowa. They inherited something more which became of immediate benefit to Akwapian and Krobo, and later the whole country. They inherited the spirit to encourage local agricultural development by example and demonstration and by experi- menting with new crops (30-63). Their efforts could therefore be said to have laid the basis for plantation agriculture as well as a framework for an agricultural extension service in Ghana. In 1890, however, the British Colonial Government established the Aburi Botanical Garden with the main object of exploring agri- cultural resources of the country as well as teaching scientific agriculture. This establishment up to 1955 served as the center for agricultural policy-making and implementation. In the area of farmer education, this Garden established demonstration farms in order to introduce new agricultural practices to farmers willing to adopt "new ideas." Following this, it was the Colonial Govern— ment's policy to incorporate agricultural education with the local adminsitrative structure. In response to this policy a number of local authorities awarded scholarships to a number of young men to go to agricultural schools to train as so-called "Native Travelling Instructors." These instructors worked with the local farmers in both production marketing and distribution of crops. In addition they focused on cooperative questions because the dominant view was that Ghanaian agriculture could only be sustained by organizing the peasants into cooperatives. 114 Another strategy of farmer oriented education was based on ideas of vocational agriculture. Consequently, it became almost obligatory for all schools and local administrations to undertake specific programs related to agricultural education. For example, under the general direction of the Department of Agriculture, all boarding schools in the country, whether Government owned for Mission controlled, had to establish a unit deomonstration farm from which techniques of modern agriculture were to be taught. Along with this policy the Colonial Government regularly organized agricultural shows and campaigns in order to draw attention to the problems of the rural sector and also to the ways by which these problems could be tackled. Cash Crop Extension The teaching of scientific agriculture focused in its essentials on production of cash crops including cotton, oil palm and cocoa. In 1914, for example, the increases recorded in develop- ment expenditure were meant to provide special instruction in cocoa cultivation (LaAnyane, 1963: 27-29). The Department of Agriculture emphasized cooperative organizational questions especially related to marketing and the quality of produce. As a result, most of the activities of the Native Travelling Instructors were centered on organizing cooperative marketing schemes for cocoa farmers. One of the Travelling Instructors described the nature of the work in the following terms: 115 We travelled several miles on foot to the villages in the cocoa belt only to find them deserted. We lacked equipments for demonstrating and introducing new farm- ing practices. The only few reliable farmers we had to work with were anxious for results. We did what we could under the circumstances (Interview with Mate Kole, 1973). In addition to cooperative question, extension activity focused on quality produce. In this case, the Department of Agriculture established a produce inspection unit whose functions dealt with the quality of all export crops. Later on, a Cocoa Division was established to undertake the distribution of new cocoa seedlings from the Government's experiment stations, and this unit also carried out demonstration spraying of cocoa farms. When the policy of seeding diseased cocoa trees was put into effect, its staff was responsible for implementing the program. Food Crop Extension In the case of food crop development, extension work was an incidental activity especially as cocoa farms were expanded at the expense of food production. The efforts were started by the Department of Agriculture which became frustrated by food imports and constant dumping of cheap food, including rice from the Far East (Dickson, 1969). Despite the increases in food imports during the colonial years, domestic demand was not fully satisfied. In 1911, for example, it was noted in the annual report on agriculture that there was severe famine in some parts of the country because of the apparent neglect of domestic food production (Annual Report, 1911). In 1912 the Native Travelling Instructor for the Mid-Volta 116 Agricultural area reported in a dispatch to the Provincial Commissioner in the Eastern Region that the corn and cassaca which formed the principal article of food were already scarce, and, had it not been for the supplies from the 'Krobo Plantations' and markets, these people could not live (Gold Coast Annual Report, 1912: 3). As a result the Director exhorted farmers to pay attention to food crop cultivation so as to reduce food imports and rapid increases in food prices. At this point there was no organized extension program within the Department of Agriculture for the express purpose of encouraging food production. The food situation did not change in any significant way. Between the 19205 and the 19305, imports, particularly food items, rose sharply without reducing the inflation in urban food markets. By 1948 and 1949 food prices contributed a 45 percent increase in the overall consumer price index. Between 1950 and 1951 there was a further 25 percent increase in the index (Johnston, 1963: 5-6). A report of the Department of Agriculture indicated that within four years, imports of wheat flour, which provided a quarter of urban supplies, rose from 5,053 tons valued in pounds at tGl73,000 in 1946 to 21,387 tons valued at tGl72,4OO in 1950. In the case of rice and maize 10,000 tons and 23,000 tons respectively were imported, and that excluded 1,170 tons which crossed the Aflao border from Togo. Even then, the report argued it was felt that some 70,000 tons of cereal equivalents were still needed to feed the population (Annual Report, 1949-1950). 117 This situation worsened in 1950 and 1951 when maize crop production fell by about 50 percent as a result of an attack by a virulent epidemic maize rust. It was clear then that if nothing was done to solve the food problem, the country was going to face food shortages and greatly inflated prices (Annual Report, 1949-1950). Clearly the Colonial Department of Agriculture was concerned with "ensuring with the existing systems of agriculture efficient distribution, processing and maximum production of food crops." In response to the situation, the Department appointed in 1949 a food production Connfissioner whose function was mainly to coordinate an extension campaign in order to ensure the country's self-suffi- ciency in food stuffs. In addition, twenty-five Agricultural Committees were formed with local farmer representatives and chiefs. It was the duty of these committees to appoint and direct "Food Advisors" who were to maintain liaison with farmers through organiz— ing demonstrations and extension education. To accelerate food production, there was to be mass propaganda in the villages and towns as well as subsidies from Government. From 1949 to 1957 food crop extension was based on these food advisors. However, attempts were made to develop extension programs related to production of maize. In 1956, for example, improved varieties of maize-~Mexican varieties--were distributed to farmers in Ashanti as well as in the coastal savannah. The Kpong Agricultural Research Station was also experimenting with upland rice cultivation and holding farmer demonstration programs. 118 Although 70 percent of all those in the agriculture sector were food farmers, the Department of Agriculture did very little by way of a systematic approach to food crop extension work. Since the emphasis was on cash crop production, the imbalance in rural production reflected the disarticulation process. Fertilizer Extension Fertilizer was first imported into Ghana in the 19405, but up to 1961 most of the fertilizers went to experiment stations. The reason for this was that at the early stages of introducing new inputs, it was wise to remain cautious when making recommendations to farmers. Moreover it was difficult to estimate the true value of fertilizers, and it was not feasible to lay down general rates of application because of wide variations in responses from the experiment sites (Nye, 1953: 266). Between 1955 and 1957 organized distribution to farmers began in Ejura in Ashanti, Navrongo, Zuarengu and Bawku in Northern Ghana. The scheme was only explora- tory. One reason why fertilizer extension did not become a crucial part of agricultural development during the colonial period was to be seen in the existing cultural practices of local farmers. The use of organic manure is a widespread technique among local farmers for increasing agricultural output. Based on experimental work in Northern Ghana, it was estimated that the average yields of manured farms were fifty percent greater than unmanured ones (Lynn, 1937: 4). Consequently, it was only in 1961 that the successor nationalist 119 government proceeded with fertilizer application on any large scale. In that year imports reached 2,000 tons (Haensel, 1967). And with the assistance of F.A.O., a systematic distribution and use of fertilizer was begun. Mechanical and Animal Cultivation Extension The introduction of tractor power into Ghanaian agriculture did not begin until the 19405. It was initially limited to the savannah areas in the Eastern Region. But most of the mechanical cultivation during this period was at the Kpong Research Station. The Department of Agriculture felt that this research facility could carry out investigations into the use of tractors to transform the Accra Plains into a vast agricultural area. The Colonial Government did not introduce mechanical power on a large scale for one main reason: the alternative Offered by bullock plowing. The phenomenal success of they system of cultivation was not lost on the Officials Of the Deparmtent of Agriculture. Its introduction in the 19305 in Northern Ghana particularly in the South Mamprussi area showed significant results. It was discovered that a man and his wife using the bullock plow could cultivate twelve acres. In every respect that amounted to six times what an average farmer and his wife could do if they used the hoe (Amin, 1974: 4). On the basis of this success a Kusasi Agricultural Development Cooperation Society was formed, which granted loans for the purchase of bullocks and plows. 120 It was therefore not until the 19605 that a rapid mechaniza- tion of agriculture began. In this process agricultural development based on animal power was shifted to secondary position if not altogether eliminated in most areas. Financing Colonial Agricultural Development The analysis in this section focuses on public investment in the productive sector, particularly agricultural development, during the colonial period. The concern is to determine the extent to which such public investments have sustained the disarticulation. The second decade of the twentieth century saw within the Colonial Office in Britain, a growing interest in the establishment of a central coordinating unit to direct development in the colonies. Consequently, in the 19205 a committee was set up to advise the British Crown on matters related to colonial planning. This com- mittee also acted as the instrument through which a balance was sought between British commercial interests and the demands of colonized peoples. It was within this context that economic plan- ning began in Ghana. The first development plan was introduced in 1920 under the governorship of Frederick Guggisburg. The Plan sought to increase trade and to improve the standard of living of the people. Basically, it was to start what Guggisburg referred to as "our great vision of those things which are directly essential to the progress ofour people" (Legislative Council Debates, 1919-1920: 5). 121 Writing on the Guggisburg Plan, Greenstreet (1964) accepts this line of reasoning. He maintains that The plan was drawn up at a time of growing economic prosperity--a prosperity that the commercial organiza- tions and cocoa farmers had not witnessed to such an extent before--when demands were vocal for the initia- tion of much needed public works. Further, with the cessation of hostilities, optimism prevailed. Guggisburg, it appears, was influenced by the post- war mood: he returned from Europe as Governor with considerable zeal not only to develop trade but also to improve the standard of living of the people (21). Greenstreet concedes that the most dominant factor was the changing needs of the British economic system. In any case Guggisburg could hardly ignore the interests of British Merchants since a substantial part of the investment was to come from that source. In fact seventeen percent of planned expenditure was provided by British Merchants (Ewusie, 1973: 19). Table 3.2 shows the distribution of public expenditure by sectors in the Guggisburg plan. No doubt there was a clear preference for transportation and infrastructures generally. The real justification was that the rate of return on such an investment would be quite great if viewed in terms of increased export production, mainly cocoa exports and mineral extraction. In any case, Guggisburg was responding to demands of British interests in enclaves in the heartland of Ghana. In this respect Wraith maintains that there were several motives that activated Guggisburg's interest in colonial planning, the most dominant being a belief in the British Empire and a pride of being an imperialist (2). The plan therefore was meant to preserve a framework in which the local people "could develop at their own 122 TABLE 3.2.--Guggisburg Ten-Year Development Plan 1920-1930. Total Expenditure for 1920-1930 Harbour 2,000 Railways 14,581 Roads 1,000 Water Supplies 1,790 Drainage 1,350 Hydroelectric Works 2,000 Public Buildings 1,100 Town Improvments 500 Telegraph and Telephone 90 Maps, Political and Industrial 200 TOTAL 24,611 Source: Ten Year Development Plan, Government Printer Accra. pace, in which expatriate commercial enterprise could work in conditions of security" (99: see also Greenstreet, 26). Table 3.3 shows in a specific way, however, that allocations in agriculture reflected the same basic interests. The preservation of cocoa production through plant sanitation remained a major concern, and there were also attempts to give impetus to sisal and copra produc- tion as an alternative crop in the savannah. Rice production was to be started in Northern Ghana and the Accra Plains in order to 123 TABLE 3.3.--Anticipated and Actual Expenditure on Agriculture and Forestry tOOO. Anticipated Actual Sisal Plantation 47.8 47.8 Copra Development 31.6 16.3 Firewood Reserve (Achimota) 17.0 5.6 Rice Development 5.3 5.3 Plant Sanitation 100.0 51.5 Forest Reserve Survey 20.0 9.1 Cotton Development ‘_§QLQ légg TOTAL 251.7 150.6 Source: Kay, 200. provide an economic base for these areas. On the whole however, agricultural investment was fundamentally to make Ghana an efficient producer of primary products needed by British industrial complexes. After the Guggisburg Plan, no systematic development plan was introduced until 1946, mainly becase of the disruptions brought about by the Second World War. The 1946 Plan did not alter the priorities in any significant way, and as Table 3.4 indicates, the pattern set in the previous development plan was closely followed. Table 3.4 clearly indicates that agricultural development was given some attention: 5.28 percent of the proposed expenditure. In this agricultural effort, however, attention was directed at research 124 TABLE 3.4.--The Ten-Year Plans: 1945-1946 Proposed Expenditure. Gold Coast Developmental Categoriés E000 % 1. Rural and Urban Water Supplies 1,721 15.13 2. Agriculture 600 5.28 3. Forestry 28 0.25 4. Veterinary 5. Fisheries 120 1.07 6. Medical 1,907 16.77 7. Education, including 2,086 18.34 training schemes 8. Roads 800 7.03 9. Harbours and Marine 150 1.32 10. Telecommunications 450 3.96 11. Electricity 528 4.64 12. Building Construction 1,725 15.17 13. Social Welfare 50 0.44 14. CO-operation 15. Surveys including geographical 5 0.04 16. Broadcasting 100 0.88 17. Development officers: Additional staff 18. Secondary Industries 19. Local Development 1,000 8.79 20. Loan Charges (interests, etc.) 102 0.89 21. Miscellaneous ______ ______ TOTAL 11,372 100.0 Source: Ghana National Archives Adm. 5/4/56. 125 and control of the Swollen Shoot disease that was affecting the cocoa industry. Furthermore, government continued efforts at developing alternative crops and livestock and large-scale cattle raising. Agricultural activities were in general extensions of previous colonial interests of the British economy (Greenstreet, 1967: 19). In 1951 a new development plan was introduced. This plan sought to emphasize the critical role of agriculture in the develop- ment process. Accordingly it noted that the Gold Coast (Ghana) is predominantly an agricultural country and it is on its agricultural industry that its economy is mainly based. The importance of fostering and improving all branches cannot be over-estimated and agriculture, therefore, commands a prominent place in the Development Plan (Development Plan, 1951: 4). Despite these intentions Table 3.5 shows that the sectors that benefited most were communications and social services. TABLE 3.5.--Development Plan, 1951. Sectors % Economic and Productive Services 16.9 Communications 35.3 Social Services 33.1 Common Services 1§;1_ TOTAL 100.0 Source: Development Plan Government Printer Accra, 1951. 126 A more specific breakdown, as shown in Table 3.6 indicates that agriculture received about five percent of development expenditure allocated to economic and productive services. Overall it ranked seventh in the order or priorities in the Plan. When the allocations are broken down to sub-sectors within agriculture, as shown in Table 3.7, it becomes clear that the interest remained concentrated on export production. Thus the past development trend continued in the agricultural sector during the period of 'terminal colonialism' (Kay). During the second phase of plan implementation, attention began to be focused on other aspects of agricultural development. As Table 3.8 indicates, agriculture extension, accommodation for extension staff, fertilizer extension and crop processing began to assume significance. It was during this phase that an embryonic extension service organization was begun. It has to be recognized however, that the emphasis on extension activity did not mean a structural shift in existing production patterns. In short, the colonial economic structure continued to influence development planning and implementation. Colonialism and Class Relations The inequalities that were inherent in colonial development planning were forcefully reflected in the nature of rural social class relations. The discussion in this section focuses mainly on the ways in which the pre-colonial social classes which survived into the colonial phase were used in the interest of external 127 TABLE 3.6.--The 1951 Plan: Financial Allocations. Plan Sections and Items Plan $023] Section A Economic and Productivity Services 12,444 16.82 1. Agriculture 3,650 4.93 2. Veterinary 167 0.22 3 Forestry 179 0.24 4. Fisheries 57 0.08 5. Commerce and Industry 3,410 4.61 6. Mines 65 0.09 7. Geological Survey 41 0.06 8. CO-Operative 70 1.00 9. Electricity 743 1.00 10. Water Supplies 3,500 4.73 11. Survey 53 0.07 12. Meterology 9 0.01 13. Local Development Committee 500 0.69 Source: The 1951 Development Plan Government Printer Accra. 128 ._N .Q .mmmp .xm>e:m Orsocoom ammou upou ”mueaom Ill oo~.~mo.m ooo.~mp.m 4mo Pecaupzuwem< ewspo ooo.mw ooo.mm¢ new xgocwcumz .mumom acumen ooo.omp coo.pmw cowumpm—mamgmm mouou cowuoauoem mpmom ooo.eao.P ooo.oam.p seems at acasamasefi Lac aseamam newccmpa oom.mo¢ ooo.~mw camp use comum>emmcoo Pwom ooo.wpm ooo.mmm acumznca mouoo oo~._oo ooo.mom meaeuaem PaL=BP=u_Lm< mmm_ .omo um_m page» ou wcauwucmaxm pumnocm .mesupauwem< co meapwucmaxm acmeaopm>moii.m.m m4m

¢(hw¢0wm 45:02.31 wznhuaoio< no Kuhn—2.! zsgmmoco :0.»sz “.0 onus 'I 1 __,.-/’\. 1}] 1"” o 1 MALE EMU Figure 4.--Agricultural Extension Districts of Ghana 193 However, as the requirements for agricultural development increased government decided to make the extension unit a significant part of the organizational structure of the Ministry. The country was divided into forty agricultural districts with district extension officers who worked with the relevant agricultural council and at the district level were extension field officers who worked at the farm level. In its structural form there was a chief agricultural exten- sion officer assisted by a deputy. At the regional level were senior agricultural officers responsible for extension work and assisted by subject matter specialists. At the district level were the District Officers and their assistants. Agricultural Extension Strategy The development of an extension service with the basic objectives of encouraging production through popular rural participa- tion had these major obstacles to grapple with. It was against the background of these constraints that extension strategies were proposed. The first extension strategy was concerned with integrating peasant agriculture with large scale farms or estate agriculture. It was felt that such an approach would facilitate extension work since the goal was a crash modernization of agriculture. In other words, a departure was to be made from the "fragmentary haphazard" crop produc- tion methods without necessarily destroying the peasant mode of production. This strategy hinged on the principle that Peasant agriculture, however well directed, cannot by itself suffice. Small holdings can never reap the full benefits of the technical developments of scientific 194 agriculture. Economic sufficiency demands the use of estate methods at least in some parts, to broaden the whole economic basis but there is room for the combina- tion of these two systems (Macmillan, l949: 4). It was the view that such a strategy would not only facilitate research and its application and help commercialize production suitable for small farmers, but also demonstrate to small scale farmers efficient techniques in crop production. This type of inte- gration, it was assumed, would involve four levels: food and cash crop production; irrigation schemes that satisfied the requirements of both large and small farms; ranching; and mixed farming. Although there were to be estates focusing on cash crops, most of them would address thefbod problems. These estates, however, were to be coopera- tively organized so as to facilitate the diffusion of new agricultural practices. But as part of this integrated strategy an agricultural extension program was to be devised to foster the development of sizeable individually run and owned farms which should operate as a corporate group (Charter, l955: 3). In this respect extension work was to begin from such group farms and progressively spread its activities thorughout the hinterland. The main idea was to approach food production through two forms of group action. First, it was intended that farmers would own their plots collectively, work together on the land and share the proceeds equally among themselves after production costs had been deducted. Second, it was the view that farmers would own their plots individually and yet work cooperatively in order to avail themselves of extension services 195 including such inputs as fertilizers, pesticides, and improved varieties which they could not as individuals afford to purchase. In view of the limitations imposed by finance and manpower requirements the Nkrumah Government opted for this strategy, but with significant modifications. These modifications were in line with the policy of Government to give state organizations a critical role in economic development. The generally held view of the Ministry of Agriculture reinforced the quest for modification. The view was that the failure of the agricultural sector was “Created by over a hundred years of colonialism, fortified by seventy years of a paper agricultural department, which was full of specialists cut off from the farmers who they were meant to educate" (Report U.G.F.C.C., 1963). The State institutions were expected to act as production fronts and were assigned the responsibility of offering guidance and leadership to individual farmers as well as cooperative farmers, therefore it became necessary to transfer the extension service started in the Ministry to the United Ghana Farmers Cooperatives Council (U.G.F.C.C.), an organization whose role was "the fulfillment of the noble aim of the agricultural revolution" (General Secretary, U.G.F.C.C. Report, l962-63: 6). But the most sustaining view was that there were far too many farmers scattered all over the country. Such a situation could not allow for 'effective' extension work unless the activities were carried out cooperatively. It was to be a cooperative extension system in which the agricultural officer offered advice to cooperators who in turn worked with larger rural groups. 196 What, however, remained the most critical consideration in extension strategy had to do with food crop production. It should be noted at this point that over the years the urban population had increased phenomenally. Non-agricultural employment had also expanded rapidly because of the program of industrialization, and with increases in the income portfolios of urban workers went a corresponding increase in demand for food. From the point of view of domestic production, the gap between supply and demand for food had become overly conspicuous. This was manifested by the sharp increases in price. Stoces (l966) suggested in his estimates that to close the gap between supply and demand of food in Ghana in about five years would require an average yearly increase of between 6.1 and 7.7 percent. By all accounts, therefore, agricultural production, particu- larly food, constituted a thorny development problem. Against this background the approach to food production under the Nkrumah regime was through centralization of effort within State agricultural organizations. Although the Workers Brigade, the Young Farmers League and the Settlement Farms were concerned with food production as well as other crops, the major institutions remained the State Farms Corporations and the United Ghana Farmers Council. Both of them were charged with extension work but the United Ghana Farmers Cooperative Council, more than any other organization, had to focus on cooperative questions as the means to effective farmer education. The para-statal agricultural organizations were to introduce modern 197 techniques including fertilizer use and mechanization as a means of achieving productivity in agriculture. In the case of fertilizer use the State Farms Corporation took over the agricultural experiment stations of the defunct Agricultural Corporation and converted them into production units. These units were farms for experiments with fertilizer, and improved seeds as well as the bases for acreage expansion of food and other crops. In 1964 the corporation had l05 farms employing some 20,000 persons and in that year the acreage acquired was 250,000 although only 40,000 acres were actually culti- vated. In 1965, the acreage stood at 345,000. This means that the average farm size was 2,760 acres with an average labour size of T60 persons. As to the crops and acreages planted, Table 4.9 indicates that oil palm production received the greatest emphasis and was followed by cereals--maize and rice. In the cooperative crop produc- tion and marketing fields the United Ghana Farmers Council Cooperative (U.G.F.C.C.) was expected to carry out fertilizer extension work. Through a technical assistance agreement between Ghana, the United States and the United Nations, the F.A.0. and USAID began a program of fertilizer use and distribution among state farming agencies and private farmers. Figure 5 shows that from 1962 when the program started, fertilizer imports increased from 2,394 tons to 29,736 tons in 1973. The purpose of this program was to encourage the use of fertilizer to increase food production as well as cash crops. In .Pme .Fou ”mom” .mwpmnmo agmcmewpmga .wgaupzowgm< mo swumwcwz "mogaom 198 oom omp mwoumuoa -- com acmcmm nu com nguwu -- NQN.~ emanam u: . mmm.P— spam pwo omm.~ 0mm mmpaepmmm> Amowscc ooo.~mm ozone m: m>wm u_=oz ;o_;zv oom.~ com mm_aam-m=_a ow mwm ouownop omm mew moaaoF acme: omm._ omm m>mmmmo mm? mmv muscuczogo mmm.F moo.m mowm Antanap ooo.mme ozone m: mswm c_=oz ;u_;zv om¢._ mmm Em» mmm.~ omm.m muwmz upmmwcwwuuwwxm mmmmmcu< maogo .vmucmFa mommmgu< use maocu "cowumgoagoo magma mumpmun.m.v m4mmm N.m me m.m mm o.m me m.o mm umpcanH .nooa o.~m ©_N e.mm “mm e.me Nme m.me Nam _auos .eooa e Eaz & 592 e as: e 592 mmm_ ems. mom_ Nom_ .Ammuwga pmxcme ucmcczo “my mmmpimomp wczuwucmaxm :oqu53mcou mum>wcm to cowpwmoasouuu.mp.e Mbm other agronomic factors are largely favorable. Ghanaians can and should be able to exploit the agricultural and rural industrial resources in their own interest. What is really essential is the elimination of the structural distortions in the economy which arise from colonial domination and exploitation, and the continuing maintenance of these forms of domination under nationalist govern- ments. The rural development approach that has been suggested is only a first step which must take account of the current political structures which also maintain underdevelopment. APPENDICES 323 324 ~."’\.q I-O-o-o-O-O-l-C’.-.-.-.-.-.‘Q ’. j i T v i . o ’ !e Lawra Bolgatanga-1‘ ‘ . 3 x... ‘- 1' : eWa 3' 3 .2 1' l , .\. 1 $,°/‘\ ' o Tamale ' 1’ T (I \. T \ \ o . .J i. t. \ 1‘ . Salaga ’\ i I .3 I 0’ SJ ” ’I "\ G °‘ ,5-~ 7’ i ' .. ’ II ‘ I 1...... -------- -I I I ' , ‘. W"/ ‘\ .I ' Sunyam #1 x,’ f T t‘ I! 17/ I," , ', '7' ,/ : \~ /’ $413 I. , ’/ If]; ,7: ,' 1,. , o C‘ /' V/ ’/ 732".“ ' " ( l /I / , ,~ . , I 05”,.5’”/'.’17‘. .I' 1. 5 ‘. ‘ I an. ‘- 4’ ‘ i z.- \ \ C Wiawso " e“ Keta 1: . T \. ‘ “i“: . ‘ 3‘32.\“ {:9“ .---- 50 Miles ‘ \c, Cape Coast A -\\3.’ Sekondi “"1 \ -~ Takoradi m $333633: cm, 7 Tobacco g Banana J Jute R Rubber ‘ on Palms ca Citrus -_.. Limit ot Cocoa & Coconut C Coffee — Forest Area APPENDIX A.--Map 1: Distribution of Cash Crops 325 N‘P."“. e-e-o-O—e-o-o-O’.-.-.—.-.-.‘e 0’. .’ 1 Tomatoes 1 . °\, \.\ Gumea Corn Millet Maize \1 ‘1 Millet I? I Yams . P ‘ Rice Gumea Corn ,° " Groundnuls Millet l \ Mane Millet L.)- } Yams '5’“ ,1. Yams /' 1‘. Tobacco Millet '- \ 1. . J i. V 1. Yams \- \ )'\ 1 I, 3 .I / f” 5 Yams , l I" ’__,/j Rice I i . [’l’,’ Yanss Yams :Plan'tains " Pl \ / i I! antains \\ ,Coco Yams j Coco Yams \\ 1 \', .’ Vegetables \ L", I I! Cassava \\ / .l' ( Maize \\\ ,I I) . ‘~“ I e ( Vegmables \\\ ////.’/ \. . 1 ‘ Coco Yams \\ l/,/ ‘\ e I .-’I \ Plantations Maize 7" \s .\ Cassava / Cassava .‘ Cassava / Maize .“ Coco Yams ’4; .,.\. Plantams I yam s 3 ,—’”7 -..... /’ Mall 0 50 miles RICE / g1 14 1 J APPENDIX B.--Map 2: Distribution of Food Crops BIBLIOGRAPHY 326 BIBLIOGRAPHY Abercombie, K. C. 1972 "Agricultural Mechanization and Employment in Latin America." International Labour Review. Afful, E. N. 1965 "Supervised Agricultural Credit." In Proceedings of the Workshop onAgrjcultural Credit. University of Science and Technology, Kumasi. Afrifa, A. A. 1966 The Ghana Coup. London: Frank Cass and Co. l967 . The Challenge of Our Time. Accra: Government Printer. Agble, W. K. 1965 Food for the People. Ghana Academy of Sciences. Lecture Series, Accra, June 20. Ahmad, N. 1973 From "Liberation to Redemption." Economic Policy in Ghana Between the Coups 1966-72. Universitas, Vol. 3, No. 1, October. Agbodeka, F. 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