Global value chains project work
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Global Value Chains (GVCs) in Ghana help connect Ghanaian farmers to international markets but also present challenges if not properly regulated. Fairtrade works with Ghanaian banana and cocoa farmers, providing stable prices and helping improve living standards. However, some GVC activities exploit workers and farmers through low wages and prices. Unregulated electronic waste processing in Agbogbloshie pollutes the environment and harms health. The government must set policies to ensure GVCs benefit Ghanaians, protecting the vulnerable and environment.
Global value chains project work
- 1. Global Value Chains (GVCs) in Ghana On my first vacation to the UK two years ago, I got attracted to a deliciously ripened bunch of bananas on one of the stalls at the fruit section of a local grocery shop. I had no banana on my shopping list but I could simply not walk past without adding a bunch to my basket. To my dismay, I found on its label: Product of Ghana! I was so happy to see this fruit from my beloved country Ghana. A lot of questions raced through my mind including: how the bananas got to the UK still looking fresh, which farm in Ghana are the bananas from and who the lucky farmer is. A close look on the package of the banana revealed a logo which I later got to know represents Fairtrade. And it said “Product of Ghana: Imported by Fairtrade. Infact, I did not take any further interest until during my short course with the World Bank Group on the theme: Trading for Development in the Age of Global Value Chains. I have now taken time to understand Global Value Chains and how it is helping both the developed and developing economies. Ghana for instance is a developing country and most people can’t afford a three square meal a day. The story in the rural areas is worse as most of the rural folks lack basic drinking water, poor roads, lack of well furnished medical facilities and unemployment. Many of these people rely on peasant farming for their daily bread. GVCs is however helping change the story through creating jobs for the people and enabling more people venture in various activities including commercial farming. Lets delve into the activities of Fairtrade for example. It’s main aim is “to help producers in developing countries achieve sustainable and equitable trade relations”. With this as an example, Fairtrade has given an equal platform for local farmers to supply them with goods on their list such as banana and cocoa for export. This is helping change the living standards of all those involved through the business growth and job creation. There are however other sides of GVCs that need to be looked at by the government to protect its citizens and the environment from abuse and exploitation. An example is the wages received by some labour force involved in GVC activities. There has been incidents where unskilled workers for example are exploited just because there is unemployment and are therefore paid lower wages than what they work for. They are overworked but receive low wages which is not commensurate to the work they do. This is serious exploitation and must be seriously looked at. Policies must be set by the government to regulate the activities of parties involved in GVCs to promote fair grounds for all to benefit especially the poor. Normally it is the poor who are mostly unskilled and accepts anything in terms of wages for hard and long hours of work. They do this, fall sick and at the end of the day, what they get in their
- 2. wages are woefully inadequate to cater for medical expenses. These can further result in life time medical conditions that can rather worsen their plight. Another example is that some farmers are not paid what they are supposed to get from these GVC transactions. For fear of their produce going bad, they accept any price offered them whiles their exporters make huge profits. There should be transparency and equality in GVC transactions and government policies can help in this area. Another downside of GVC activities that need to be looked at is the exploitation of the environment. An example is a popular site in the capital of Ghana Accra, called Agbogbloshie. This place is known for the dumping of electronic gadgets and also for its supply of scraps by the local folks. They get these scraps by burning these electronic gadgets which have been dumped at the site and sell them to their various buyers for further GVC activities. Their activity creates massive pollution in the area. It has been established that many people in the area have developed several health conditions. In order to meet their scrap demands, these people end up polluting the environment endangering their lives and those in the community. The government need to streamline the activities of GVCs in order for the gains to far outwit the loss. It is only through this that the country, firms and individuals especially the poor can benefit from Global Value Chains.