THE ENVIRONMENTAL DIMENSIONS OF STRUCTURAL ADJUSTMENT PROGRAMMES: MISSING LINKS TO SUSTAINING DEVELOPMENT |
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| Authors: | S B Kendie |
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| Institution: | Centre for Development Studies, University of Cape Coast, Cape Coast, Ghana |
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| Abstract: | The implementation of structural adjustment programmes has not paid sufficient attention to the environmental effects of prescribed reforms. Agriculture is often the largest sector contributing significantly to the generation of export revenue and the gross domestic product in many adjusting countries, including Ghana. Structural adjustments in this sector aim at removing constraints to productivity. In Ghana, these reforms include producer price increases, market liberalisation and exchange rate reforms. This paper examines the environmental effects of raised farmgate prices for cocoa and cotton cultivation. It argues that these policies have encouraged agricultural extensification, particularly given the main type of farming (slash and burn agriculture) practised in Ghana. Environmental degradation is occurring in many areas. Furthermore, cuts in public expenditure and the institution of cost-recovery schemes for previously subsidised services such as rural water supply may reduce farmers’ disposable incomes and their ability to pay for these services. Consumption of unsafe water exposes farmers to preventable water and hygiene related diseases which, given the high cost of medical services, may worsen poverty and further encourage agricultural extensification. |
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