Economic Actions
Poultry Farming in Ghana –
The thick Dilemma and mine
BY Ruhiya Issah
My page talks about economic issue and its related concerns. My research on finding the core problems of economic independence in any business in Ghana brought me to the poultry farmer’s fight against principalities that walk by day. I wish to share my research.
“The scene was quite moving. Old men and women, some with babies on their backs, students and other rights activists wrenched through the scorching sun of Monday 11 April in Accra to send the right signals to the IMF and World Bank that poor countries are tired of being reduced to punching bags.This peaceful procession, comprising rice and poultry farmers from various parts of the country formed part of activities marking this year's Global Week of Action."Our eyes are red, save our farms, save our livelihoods", was the song that greeted the officials of the World Bank, who braced out of their offices to receive the petition.John Akparigu, a rice farmer from the Upper East Region told the Deputy Speaker of Parliament, Freddie Blay who received the petition that every plate of imported rice sends 100 children out of the class to the streets because, many rice farmers, as other farmers have been compelled to abandon their farms due to the killing effects of trade liberalization. In 1992 domestic poultry farmers supplied 95 percent of the Ghanaian market, but by 2001 their market share had shrunk to just 11 percent. The imported chicken is available (wholesale) at a price that is only slightly more than half of the wholesale price of local chicken. The accompanying loss of jobs has also been remarkable. The industry has lost 150 jobs in the past few months alone, say the Farmers Associations. Commercial poultry farms -- which do not include small rural producers -- employ up to 5,000 people. Any job loss has far reaching implications for Ghana's 20 million people because each worker often provides support for numerous others in their household. Foreign producers currently pay a 20 percent tariff or tax on the poultry they send to Ghana. Two years ago, the Ghanaian Parliament passed a law allowing an additional 20 percent tariff to be imposed on imported chicken, bringing the overall tariffs to 40 per cent. The National Association of Poultry Farmers, a body representing small and medium-sized local poultry farmers, has cried foul and has taken the CEPS to court, in order to force application of the law.But Kumajor and his fellow poultry farmers in Ghana did not know the power of the IMF. Although it is an unelected body, it can overrule judicial processes in their country. The Ghanaian government let go of the new tariffs because it had already reached an agreement with the Fund to suspend the higher tariffs on poultry during the government's Article 4 consultations - an annual dialogue the IMF has with member countries. The IMF made it clear that it was opposed to the higher tariffs on the grounds that it will hurt Ghana's poverty reduction program. Alphecca Muttardy, the IMF's current representative in Ghana claimed that Ghana could only increase the tariffs under a special dispensation provided to successful businesses only. Speaking to Olivia McDonald from the non-governmental organization (NGO) Christian Aid in Ghana, Muttardy said, "we pointed it out to government that this [raising of tariffs] was not a good idea, they reflected on it and we agreed."
Moreover, as Ayine argues, the action of the Ghanaian government, under pressure from the IMF, has greatly undermined the tenets of good governance and the rule of law, which are said to be promoted by world financial institutions all over the world. "Overriding a judgment obtained through normal judicial processes does nothing but undercut the confidence with which citizens perceive the judicial process," he adds.To be continued latter
The thick Dilemma and mine
BY Ruhiya Issah
My page talks about economic issue and its related concerns. My research on finding the core problems of economic independence in any business in Ghana brought me to the poultry farmer’s fight against principalities that walk by day. I wish to share my research.
“The scene was quite moving. Old men and women, some with babies on their backs, students and other rights activists wrenched through the scorching sun of Monday 11 April in Accra to send the right signals to the IMF and World Bank that poor countries are tired of being reduced to punching bags.This peaceful procession, comprising rice and poultry farmers from various parts of the country formed part of activities marking this year's Global Week of Action."Our eyes are red, save our farms, save our livelihoods", was the song that greeted the officials of the World Bank, who braced out of their offices to receive the petition.John Akparigu, a rice farmer from the Upper East Region told the Deputy Speaker of Parliament, Freddie Blay who received the petition that every plate of imported rice sends 100 children out of the class to the streets because, many rice farmers, as other farmers have been compelled to abandon their farms due to the killing effects of trade liberalization. In 1992 domestic poultry farmers supplied 95 percent of the Ghanaian market, but by 2001 their market share had shrunk to just 11 percent. The imported chicken is available (wholesale) at a price that is only slightly more than half of the wholesale price of local chicken. The accompanying loss of jobs has also been remarkable. The industry has lost 150 jobs in the past few months alone, say the Farmers Associations. Commercial poultry farms -- which do not include small rural producers -- employ up to 5,000 people. Any job loss has far reaching implications for Ghana's 20 million people because each worker often provides support for numerous others in their household. Foreign producers currently pay a 20 percent tariff or tax on the poultry they send to Ghana. Two years ago, the Ghanaian Parliament passed a law allowing an additional 20 percent tariff to be imposed on imported chicken, bringing the overall tariffs to 40 per cent. The National Association of Poultry Farmers, a body representing small and medium-sized local poultry farmers, has cried foul and has taken the CEPS to court, in order to force application of the law.But Kumajor and his fellow poultry farmers in Ghana did not know the power of the IMF. Although it is an unelected body, it can overrule judicial processes in their country. The Ghanaian government let go of the new tariffs because it had already reached an agreement with the Fund to suspend the higher tariffs on poultry during the government's Article 4 consultations - an annual dialogue the IMF has with member countries. The IMF made it clear that it was opposed to the higher tariffs on the grounds that it will hurt Ghana's poverty reduction program. Alphecca Muttardy, the IMF's current representative in Ghana claimed that Ghana could only increase the tariffs under a special dispensation provided to successful businesses only. Speaking to Olivia McDonald from the non-governmental organization (NGO) Christian Aid in Ghana, Muttardy said, "we pointed it out to government that this [raising of tariffs] was not a good idea, they reflected on it and we agreed."
Moreover, as Ayine argues, the action of the Ghanaian government, under pressure from the IMF, has greatly undermined the tenets of good governance and the rule of law, which are said to be promoted by world financial institutions all over the world. "Overriding a judgment obtained through normal judicial processes does nothing but undercut the confidence with which citizens perceive the judicial process," he adds.To be continued latter
posted by Determinant Magazine at
12:10 PM
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