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[…] This blog post is part of a series composed by Masters candidates on the African Development course at the London School of Economics and Political Science. They represent the views of an emerging body of critical young voices interested in radical structural transformation and growth in African economies. The series is featured in roape.net, Africa is a Country, Africa@LSE and ID@LSE blogs. […]

This study combines information provided by anthropologists on the structure of share contracts in the cocoa industry in Ghana with a well-known economic theory of share tenancy. The goal is to explain some of the efficiency characteristics of the observed contracts and the predominance of specific labour contracts in various regions in Ghana. The following types of contract are dicussed: the "Abusa" and the "Nkotokuano" contracts (both share contracts), the daily labourer and contract labourer (wage) contracts, and the dual rate contract. The fundamental idea was that risk and transaction costs are important in determining the structure of a labour contract in the cocoa industry in Ghana. (Documentatiebald/ASC Leiden)

The opportunity to develop cocoa industry in West Sumatera is higher with the increase of cocoa production. In the development of the cocoa industry needs to consider various factors, while also needs to study the relationship between the government, farmers and cocoa industry that contained in one system. The purpose of this research is to analyze the cocoa industry development factor with the system approach and to determine the right location for the development of cocoa industry in West Sumatera. The collected data is primary and secondary data. Scoring is done using paired comparison techniques that are aggregated from expert opinion. Determination of cocoa industry development location is held by analitical hierarchy process (AHP) technique. The result of analysis shows that the cocoa processing industry development processors consist of 5 groups, there are (1) mean industry (cocoa industry), (2) buyer, (3) supplier farmers, (4) supporting industries, and (5) supporting institutions. The most important factors in the development of the cocoa industry are fixed investment costs (0.153), marketing of processed cocoa (0.147), availability of facilities and infrastructure (0.139), availability and continuity of raw materials (0.108), and government support (0.097). The most potential areas for the development of the cocoa industry are 50 Kota District (0.183), Padang Pariaman District (0.166), and Tanah Datar District (0.163).

2014 dissertation for MSc in International Business Management. Selected by academic staff as a good example of a masters level dissertation. PURPOSE OF STUDY: Globalisation in its current form is seen in developed countries as a certain positive effect for the development of developing nations. However, these viewpoints on the positive impact of globalisation on under developed countries have also been argued. The Nigerian economy has so much dependency on imports and oil revenue, the country makes so much profit from their Agricultural sector and oil, yet it's still suffering from setbacks. Therefore in order to find out the major reasons for its setbacks despite the fact that globalisation it's supposed to contribute immensely in the nation as a whole, the cocoa sector has been chosen to review the benefits on its industry. The cocoa sector was chosen because it involves international trading and globalisation it's supposed to have a direct impact on the development of this sector. METHODOLOGY AND APPROACH: Due to the dependency of this report on secondary data, the data were obtained using reliable sources of information such as: Government statistics reports, statistics reports from industry associations and statistics reports from intergovernmental organizations, Annual company reports and company filings, School Business databases, Business journals, Business newsletters, articles and books. Therefore, my methodology is essentially a review and synthesis of other literature and secondary data. RESULTS: Findings from this research study proved globalization to rub off on the decision makings to improve the cocoa sector. These decisions are however not seen as portrayed; therefore globalization cannot be given full credit to have a major impact on the Nigeria cocoa sector because of the setbacks affecting the development of the industry. There is a need for adequate infrastructure, well-being of the farmers and price stability of the produce for globalization to be fully accredited as a major impact in this sector. ORIGINALITY: A review of new evidence together with older studies was analysed for the conclusion and recommendations. Even though globalisation is regularly seen a positive impact on under developed countries. From my findings it will be seen that the case of Nigeria has been exceptional to benefit from its influence and support viewpoints on this theory. However, if there will be a stable government and less corruption, Nigeria as a country will to a large extent benefit from globalisation due to presence of numerous natural resources.

There is an interesting and long-standing controversy over the applicability of the vent-for-surplus model to the growth of the Gold Coast cocoa industry around the turn of the century. This debate has important implications both for African economic history and for current issues of resource allocation in developing countries. Our paper attempts to clarify the elements of the debate by applying to each ele-ment a production-possibilities model, using historical evidence to verify where possible the validity of the analysis.

In this study, we sought to identify some economic shocks that have affected the Ghanaian cocoa industry and the effects of these shocks based on available annual data over the 45-year period from 1975 to 2019. The analysis was conducted using a simple autoregressive model of the cocoa industry. The results of the analysis indicated that the major economic shocks affecting the cocoa industry in Ghana were political instability arising from military coups, producer price shock linked to very high producer prices, the La Cote d'Ivoire civil wars between 2002 to 2007, and 2010 to 2011, which resulted in large-scale smuggling of cocoa beans across the border to Ghana for sale, and the El Nino weather shock characterized by severe droughts and very low amounts of rainfall, which dampened the production of cocoa beans in Ghana. The negative shocks were the El Nino weather phenomenon and political instability. The positive shocks were the very high producer prices and La Cote d'Ivoire civil war. We suggest some recommendations. These include increased resourcing of the Ghana Meteorological Agency to improve its prediction of extreme weather effects whose occurrence affect the production of crops such as cocoa, the establishment of bigger price stabilization funds by the Ghana Cocoa Board to support the cocoa industry, and research studies to analyse the apparent link between dramatic drop in cocoa production and explosive depreciation of the Ghanaian currency, the Ghana cedi.