Rural Ghanaians to benefit from Millennium aid

More than one million rural Ghanaians are set to benefit from a US $547 million grant from the United States because the government of Ghana made good on a pledge to improve civil liberties and economic freedom. “This will be a great booster if it is well managed,” said Sam Asare, Ghana country director for the non-governmental organisation World Vision. Asare said that by increasing the incomes of farmers, rural areas as a whole, where 60 percent of Ghanaians live, would benefit. Women in particular stand to gain because they make up 70 percent of Ghana’s agricultural workers. “In recent years, the World Bank and other lending institutions were focused on urban poverty,” said Philip Soale, project coordinator for the non-governmental organisation Dew of Charity. “But that isn’t focusing on the root of poverty. It is great that the focus is on rural development.” The five-year development assistance is being provided through the Millennium Challenge Account (MCA) to modernise Ghana’s agriculture sector, improve and expand transportation and deliver rural development services and facilities. The MCA aims to reward developing countries with development assistance if they “rule justly, invest in their people and encourage economic freedom,” according to the Millennium Challenge Corporation, which oversees the MCA. The US Congress set aside US $3 billion in development assistance for countries that adhered to the MCA’s standards in 2006. West African countries that have benefited include Benin, Burkina Faso, Cape Verde, Ghana, Mali, and Senegal. Ghana will be the largest recipient of money through the MCA, which was established in 2004. In total, nine countries have so far signed MCA agreements. The Gambia was suspended from receiving MCA assistance last June because of what the MCC said was documented evidence of human rights abuses and increased restrictions on political rights, civil liberties, and press freedom. It also cited worsening economic policies and poor anti-corruption efforts. Ghana has a per capita income of about $400, according to World Bank statistics, placing it among the poorest nations on earth. Agriculture is the backbone of the economy, representing 40 percent of the country’s gross domestic product and employing 55 percent of the labour force. But rural advocates said the benefits of the MCA must be seen on the ground before they could draw conclusions on the programme’s success. “The big concern for me is the implementing strategy,” said Soale. “We want to see farmers receive the services they need directly. That is the core issue.” The bulk of the grant, or US $241 million, will target commercial agriculture among small farmers. It aims to improve farmers’ access to credit and includes investments in irrigation, storage and processing facilities and services to facilitate land transactions. About US $143 million is earmarked for transportation projects that will reduce transport costs for farmers to market. The remaining US $101 million will go toward basic services such as access to education, water and sanitation and electricity in rural areas. Only fifty percent of rural Ghanaians have access to safe water and about 11 percent have access to basic sanitation, according to the advocacy group WaterAid. jm/cs/ss