Developmental State and Agriculture for Development: Lessons for Ghana from East Asia
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DEVELOPMENTAL STATE AND AGRICULTURE FOR DEVELOPMENT: LESSONS FOR GHANA FROM EAST ASIA A DISSERTATION IN Economics And Geosciences Presented to the Faculty of the University of Missouri-Kansas City In partial fulfillment of the requirements for the degree DOCTOR OF PHILOSOPHY By RICHARD B. DADZIE B.A., Whitworth University, 2005 Kansas City, Missouri 2011 © 2011 RICHARD B. DADZIE ALL RIGHTS RESERVED DEVELOPMENTAL STATE AND AGRICULTURE FOR DEVELOPMENT: LESSONS FOR GHANA FROM EAST ASIA Richard B. Dadzie, Candidate for the Doctor of Philosophy Degree University of Missouri-Kansas City, 2011 ABSTRACT Comparative studies between Sub-Saharan Africa and East Asia have shown divergence in economic growth and development. This study argues that in order for Sub- Saharan Africa to make progress in its quest for development, countries in the region must carefully and seriously study the development experiences of late-industrializing economies in East Asia. They must adopt where possible those practices that led to their structural transformation and economic success. The case of Ghana and Malaysia provide an excellent example of two nations similar at independence but different today. In explaining their divergence, economy-wide and sector-specific comparisons are made to highlight their experiences and formulate lessons for Ghana’s development. Fieldwork in Central Region, Ghana and Sarawak, Malaysia is used as a backdrop to discuss agricultural transformation and rural development. In explaining the divergent development experiences of these two nations, the analytical toolset of heterodox development economists is extensively used. Concepts such as the developmental state, embedded autonomy and social legitimacy are used to highlight the role of the state in the process of economic change, and theories of modern money and institutional adjustment are discussed in relation to the creation of a Ghanaian developmental state. ii APPROVAL PAGE The faculty listed below, appointed by the Dean of the School of Graduate Studies have examined a dissertation titled “Developmental State and Agriculture for Development: Lessons for Ghana from East Asia”, presented by Richard B. Dadzie, candidate for the Doctor of Philosophy degree, and certify that in their opinion it is worthy of acceptance. Supervisory Committee Mathew Forstater, Ph.D., Committee Chair Department of Economics L. Randall Wray, Ph.D. Department of Economics Jan Kregel, Ph.D. Department of Economics Steven L. Driever, Ph.D. Department of Geosciences Max J. Skidmore, Ph.D. Department of Political Science Viviana Grieco, Ph. D. Department of History iii CONTENTS ABSTRACT ............................................................................................................................ ii TABLES .................................................................................................................................. v ILLUSTRATIONS .................................................................................................................. vii ACKNOWLEDGEMENTS .....................................................................................................viii Chapter 1. INTRODUCTION ....................................................................................................... 1 2. BACKGROUND TO GHANA AND MALAYSIA .................................................... 6 3. ECONOMIC DEVELOPMENT IN COMPARATIVE PERSPECTIVE: THE CASE OF GHANA AND MALAYSIA ...................................................................... 17 4. DEVELOPMENTAL STATE AND ECONOMIC DEVELOPMENT ....................... 31 5. AGRICULTURAL TRANSFORMATION, RURAL DEVELOPMENT AND THE DEVELOPMENTAL STATE: A COMPARATIVE ANALYSIS OF THE CENTRAL REGION, GHANA AND SARAWAK, MALAYSIA .................................................................................. 59 6. CONCLUSIONS AND DIRECTIONS FOR FUTURE RESEARCH ........................104 APPENDIX A. QUESTIONNAIRE ............................................................................................... 123 B. OTHER INTERVIEW QUESTIONS .................................................................... 130 C. HIGHLIGHTS OF WASHINGTON CONSENSUS ............................................. 131 BIBLIOGRAPHY .............................................................................................................. 132 VITA .................................................................................................................................. 144 iv TABLES Table Page 1. Population, Ghana and Malaysia (in millions) ...........................................................12 2. Growth Rates of Real GDP and Real GDP per Capita ...............................................22 3. Key Indicators .............................................................................................................24 4. Selected Social Indicators ...........................................................................................25 5. Ghana-Structure of the Economy ................................................................................26 6. Malaysia-Structure of the Economy ...........................................................................26 7. Ghana-Share of Labor Force in Agriculture, Industry and Sciences ..........................26 8. Malaysia-Share of Labor Force in Agriculture, Industry and Services ......................26 9. Similarities between the Developmental State and Development Thought prior to WWII ......................................................................................................................52 10. Selected Agricultural Indicators for Ghana and Malaysia ..........................................60 11. Differences between Conventional and Focused Ethnography ..................................61 12. Main Crops Cultivated in Ghana .................................................................................63 13. Average and Achievable Yields ...................................................................................67 14. Estimated Production if Yields Reached Achievable Levels .....................................67 15. Annual Fish Production by Source, 1970-2006 ..........................................................68 16. Aquaculture by Region ...............................................................................................69 17. Cages, Pens and Reservoirs ........................................................................................70 18. Estimated Livestock Populations ................................................................................70 19. Malaysia’s Self Sufficiency Levels in Food Commodities .........................................74 20. Aquaculture by State ...................................................................................................77 21. Estimated Livestock Population .................................................................................78 22. Characteristics of Agriculture in the Central Region and Sarawak ............................85 23. Farm Sizes ...................................................................................................................87 24. Land Ownership and Rights ........................................................................................90 25. Effectiveness of Agricultural Extension Officers .......................................................91 26. Facilitators and Inhibitors of Agricultural Transformation in Central Region ...........93 27. Facilitators and Inhibitors of Agricultural Transformation in Sarawak ......................99 v 28. Lessons from Sarawak, Malaysia and the Desired Future Path for the Central Region, Ghana ...........................................................................................................101 vi ILLUSTRATIONS Figure Page 1. Map of Ghana .............................................................................................................10 2. Map of Malaysia .........................................................................................................10 3. Ecological Zones, Ghana ............................................................................................11 4. Ecological Zones, Malaysia ........................................................................................11 5. Population Age Composition for Ghana and Malaysia 1960 and 2007 ......................13 6. Distribution of Income-Ghana and Malaysia ..............................................................14 7. Trends in Rural-Urban Populations Ghana and Malaysia 1960-2007 ........................15 8. Urbanization Across Time and Income Levels ...........................................................16 9. Growth Rate of Real GDP per Capita .........................................................................22 10. Real GDP per Capita, 1960-2008 ..............................................................................23 11. Gross Capital Formation ............................................................................................24 12. Predatory, Developmental and Intermediate States ...................................................40 13. Agro-ecological Zones of Ghana ...............................................................................64 14. Soil Map of Ghana .....................................................................................................65 15. Planted Area of Selected Crops in Ghana, 1961-2009 ..............................................66