Effects of the structural adjustment program. The Effects of the Structural Adjustment Program on blog.sigma-systems.com and Barbier The Effects of the Structural Adjustment Program 67 SAP 2022-12-19
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The Effects of the Structural Adjustment Programs on Economic Growth …
Benhin is a postgraduate student in the Environment Department, University of York, This paper is based on a study undertaken in Ghana and Cameroon that was funded by the Center for International Forestry Research CIFOR , UK Darwin Initiative, Central African Program for the Environment CARPE , and the African Economic Research Consortium AERC for which we are very grateful. Therefore, the provision of health to all the citizens was a priority of the government. The estimated results also show that, the price ofammonium sulphate W had a positive and sig-nificant influence on maize land in the pre-adjustment period in Ghana. As underlined in the World health Organization website 2014 , Structural Adjustment Programs echoes the neo-liberal ideology which pushes for globalization; hence was aimed at realizing a long-term economic growth in poor countries by encouraging the restructure and reduction of government intervention in the economy. SAP, Agriculture, Timber Extraction andForest Loss in Ghana Forest loss in Ghana has been so extensive andrapid that it is becoming increasingly difficult toget precise figures for the countrys present forestcover and rates of deforestation.
The Effects of the Structural Adjustment Program on Deforestation in Ghana
The Causes of Tropical Deforestation. When was the structural adjustment program introduced? Where the Chow test showed a significant differ-ence, the appropriate structural adjustment dummyvariables DF for the PW and DS for the SW wereincluded in the model for the estimation of thepiecewise linear or the switching regressions. The esti-mated price elasticities for forest loss are presentedin table 6. Forest loss in Ghana has been caused by theinteraction of different factors: social, cultural, po-litical and economic. Another structural loan was signed in 1988 which introduced reforms in the social service sectors especially in health and education. A number of recent studies have analyzed the relative impor- tance of various economic activities, including tim- ber extraction and agriculture expansion, in caus- ing tropical deforestation see Amelung and Diehl 1992; Barbier et al. H Industrial roundwood production national level, 000 CUM.
What are the impacts of structural adjustment program?
Allowable Cut from the Forest. It can therefore, be stated that timberproduction still has a negative impact on the forestin Ghana. The policy reforms agreed upon included the introduction of cost-sharing in the provision of social services. Atentative inference from the above results is that ifthe right incentives that influence these com-modities such as output and input prices can befound, their role in forest loss in tropical countriescould be reduced. The production of timber, H t , is as-sumed to depend on the stock of forest land, F t ,and other inputs used in timber extraction, Xk t. The results imply that policies that increase therelative returns to timber production in Ghanacould still be contributing to additional forest loss,but at a lower rate in the post than in the pre-adjustment period.
Moreover, the programs are said to have lessened national leaders to tribal chiefs leading to the infusion of tribalism in all sectors of development thus being an obstacle to growth and development Rono, 2002. SAPs were meant to remove government control and monopoly in agricultural products marketing, pricing, imports and distribution. In particular, these programmes undermine access to quality and affordable healthcare and adversely impact upon social determinants of health, such as income and food availability. This paper is a theoretical and empirical investigation into the impact of the structural adjustment program SAP on forest loss in Ghana between the period 1965—95. With the facts mentioned, it is evident that Kenya was actually doing better than most sub-Saharan countries Swamy 1994:196. York: University of York.
The regression results show a significant posi-tive relationship between the price of insecticides IV and the demand for cocoa land in the pre-adjustment period in Ghana table 3. Expansionof agricultural land is expected to proceed at a rateof 2. This is where beneficiaries of services such as education and health were to pay for them either partially or fully. A 1% increase in the price of insecticidesleads to a 0. Can be combined with the policy to reduce inflation. Countries that fail to enact these programmes may be subject to severe fiscal discipline. As this price, Vh t , increases whichmeans it will be more beneficial to convert to ei-ther of the alternative two uses , less and less stockof forest land is maintained.
[PDF] The Effects of the Structural Adjustment Program on Deforestation in Ghana
GDP and population millions data derived from the IMFs International Financial Statistics. Hence investments and savings for its per capita income were relatively high, thus Kenya could provide a better life for its citizens. The loan was aimed at helping Kenya correct the economic imbalances of its economy; implement institutional reforms for a sustainable and balanced economic growth. Equation 17 indicates that thestock of forest Iand should be employed in timberproduction and other environmental purposes up tothe point where the benefits are equal to its socialcost. Changes in relative output and input prices due to the SAP may have played a significant role in the reduced impact of agricultural and timber related deforestation and biodiversity loss in the post-adjustment period. Moreover, insecticides were very scarce be-cause of the lack of foregin exchange to importthem.
(PDF) THE EFFECTS OF THE STRUCTURAL ADJUSTMENT PROGRAM ON DEFORESTATION IN GHANA
Possible evidence of this effect is supportedby the reduced role of timber extraction in forestloss equation in the post-adjustment era see ta-ble 2. However due to a sharp increase of market prices of agricultural products such as cocoa, tea, coffee and many more in the global market in the 1970s. Assessing the Relationship between Gov- ernment Policy and Deforestation. The Impact of Structural Adjustment on the Population of Africa. Increases in land under co-coa production ~c and maize production ~m areassumed to be due to the conversion of forest landto cocoa land, C t , and to maize land, tin t. Estima-tions were conducted for the two separate periodsand a Chow test was applied to determine whetherthe two regressions were significantly different. Education, at the time of independence was an inspiration to the human capital ideology, therefore was regarded as an important tool for economic and socio-political transformations for post-colonial Kenya.
The Effects of the Structural Adjustment Program on blog.sigma-systems.com and Barbier The Effects of the Structural Adjustment Program 67 SAP
Similarly, in 23 and 24 , the opportunity cost or price of convertingan additional stock of forest land to cocoa or maizeland is, either the foregone benefits from maintain-ing the given stock of forest land or conversion tothe alternative agricultural land use. ZOannually, mainly for the production of treecrops, such as cocoa, and food crops, such as maize Ministry of Agriculture 1991 , The productivity ofland and labor in agriculture is very low duelargely to the extensive use of traditional methodsof cultivation, such as slashing and burning thevegetation, which also leads to widespread forestdestruction. In the next two sections, we develop amodel which we use to empirically investigate theimpacts of these prices and policy change on thedemand for cocoa and maize land and timber pro-duction and therefore the forest in Ghana over theSAP period, 19831995. Governments were also encouraged or sometimes forced to lessen their role in the economy, hence privatize state-run industries, deregulate businesses and open up their economies to foreign competition so as to increase free trade. Moreover, the loans given to African countries were accompanied with very low interest rates.
F F tion equations as functions of input and outputprices developed from an optimal control problem. The Structural Adjustment Programs was a financing mechanism of the international monetary fund to support macroeconomic policies and reforms in low-income countries through low interest subsidizations and loans. Maize price data from PPMED, Accra. The second part is dedicated to the analysis of environmental consequences of adjustment policies in Brazil. Many economies of African countries grew significantly for example the real GDP of Kenya grew by 6. This was done bythe use of the Mackinon, White and Davidson MWD test Gujarati 1995. The pressure on land and therefore forest landmay fall.
What are the disadvantages of structural adjustment program?
Total land area data from FAOSTAT database, FAO. The SAPs designed by the Bretton woods institution, the World Bank and the International Monetary Fund and later embraced by other major international financial institutions, were believed to consist of policies that would bring about reduction of poverty and sustainable economic growth. Factors, other than the pro-ducer prices of cocoa may have contributed moreto the reduction in the rate of cocoa land expan-sion. The IMF is governed by and accountable to its 190 member countries. Sub Saharan Africa SSA has undergone many economic struggles since achieving independence, and in the early 1980s SSA suffered a severe debt crisis.
