Political Settlements and the Management of Cocoa Value Chain in Ghana

Abstract

This paper relies on literature review and primary data collected through in-depth interviews with 21 respondents to examine the political economy dynamics of the cocoa value chain in Ghana. The historical analysis, which was based on the political settlements framework, has shown that the policies implemented in the cocoa sector went through four periods. The colonial era was characterised by a fairly corporate governance system and struggle between European traders and farmer cooperatives for monopoly over internal marketing of cocoa. This was followed by the early post-independence era (1957–1980), which was characterised by neopatrimonialism and over-taxation of cocoa farmers. The third phase (1980–2000) witnessed economic reforms and liberalisation. The fourth phase (2000 to present) saw increased public–private partnerships aimed at empowering women and promoting environmentally friendly farming activities. The paper concludes that the policies in the cocoa sector have, historically, created more benefits (rents) to political elite and their crony capitalists. Given that rent-seeking behaviour is a threat to the sustainability of the cocoa sector, the paper urges international development partners and civil society groups to demand greater accountability and transparency from the political elite and state institutions in the cocoa sector.