Shifting trends in rural livelihood a case study of asutifi district

Shifting Trends in Rural Livelihood: A Case Study of Asutifi District
Shifting Trends in Rural Livelihood
A CASE STUDY OF ASUTIFI DISTRICT
August 2006
Authors:
Amma Birago Safo-Kantanka
Ebenezer Attah
Enoch Ofosu
Jeroen Nagel
Mary Anne Akuto
Maurice van Beurden
Pearl Boadiwaa Krah
Richard Ahiagble
GHANA
Universiteit van AAmsterdam
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Shifting Trends in Rural Livelihood
A CASE STUDY OF ASUTIFI DISTRICT
August 2006
Authors:
Amma Birago Safo-Kantanka Planning
Ebenezer Attah Planning
Enoch Ofosu Natural Resource Mgt.
Jeroen Nagel Science and Innovation Mgt.
Mary Anne Akuto Natural Resource Mgt.
Maurice van Beurden Human Technology Interaction
Pearl Krah Biological Science
Richard Ahiagble Psychology
Supervising team:
Dr. S. Amissah, Faculty of Renewable Natural Resources, KNUST
Dr. K. Boateng, Faculty of Renewable Natural Resources, KNUST
Mr. S. Nketiah, Tropenbos International Ghana
Dr. S.E.Edusah Bureau of Integrated Rural Development, KNUST
Mr. K. Afrifah, Institute of Renewable Natural Resources, KNUST
Dr. C. Adu-Anning, Faculty of Renewable Natural Resources, KNUST
Dr. Acheampong, Faculty of Renewable Natural Resources, KNUST
Dr. Ohene – Yankyera, Faculty of Agricultural Science, KNUST
Mr. K.A. Afrifah Faculty of Renewable Natural Resources, KNUST
Mr. B.B. Campion Faculty of Renewable Natural Resources, KNUST
This research has been done in the context of an interdisciplinary student programme
organized and financed by Tropenbos International Ghana (TBI-Ghana), using the
educational model developed by the University of Amsterdam (UvA) and supervised by
lecturers of the Institute of Renewable Natural Resources of Kwame Nkrumah University
of Science and Technology (KNUST) and TBI-Ghana staff. The Ghanaian members of
the research group are mainly fresh graduates from different universities in Ghana. The
Dutch students are Master students form different universities in the Netherlands.
GHANA
Universiteit van Amsterdam
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PREFACE
This report recounts the activities of a project undertaken by an interdisciplinary team of
students from the 29th of May 2006 – 1st
of September. The Ghanaian members of the
research group are mainly fresh graduates from different universities in Ghana. The
Dutch students are Master students from different universities in the Netherlands.
The student programme was organized and financed by Tropenbos International Ghana
(TBI-Ghana), using the educational model developed by the University of Amsterdam
(UvA) and supervised by lecturers of the Institute of Renewable Natural Resources of
Kwame Nkrumah University of Science and Technology (KNUST) and TBI-Ghana staff.
The team (frequently referred to as the livelihood group) was task with the responsibility
of coming out with this research report about shifting trends in rural in Ghana, using
Asutifi District as a case study.
Mr. Samuel Kwabena Nketiah, the programme team leader, Tropenbos International –
Ghana, together with staff members: Mr. Kojo Affrifah and Dr. Acheampong from the
Faculty of Renewable Natural Resources (FRNR) of Kwame Nkrumah University of
Science and Technology (KNUST), Kumasi were involved in looking at the scientific
quality of the project.
The group thanks all and sundry who in one way or the other contributed to the success of
this project. We deem it necessary to thank the entire staff of the Asutifi District
Assembly especially the District Chief Executive and the District Planning Officer, for
their precious time, deep interest and willingness to help the team in diverse ways.
As a group, we wish to acknowledge each other’s contribution, concern, dedication and
love that kept us together for all these fourteen (14) weeks.
Finally and most importantly, we thank the Almighty God for how far he brought us.
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ABSTRACT
The concept of livelihood is of utmost importance to all development partners particularly the
Department for International Development (DFID). A livelihood comprises the capabilities,
assets and activities required for a means of living. It is much more than a job as it covers a whole
range of things people do to make a living.
People employ a diversity of means to help meet basic needs: food crop production; cash crop
production; forest and tree product gathering, consumption, processing and sale; and income
earning enterprises both on and off the farm at different times and places. Due to the dynamisms
in society, people shift from one livelihood activity to the other in order to make a living and this
creates the problem of livelihood insecurity. Questions that come to mind as people shift from
one livelihood activity to the other include:
• What are the characteristics of the assets which people draw their livelihood from?
• What are the livelihood activities available to people?
• How effective is the role of stakeholders in ensuring livelihood security for people?
In line with the above questions, a study was conducted in the Asutifi District in the Brong-Ahafo
Region to analyse the livelihood trends of the people in the context of sustainable development.
The specific objectives of the study included: To identify the characteristics of the assets from
which people draw their livelihoods, to identify the livelihood activities and their contributions to
household needs and to determine the effectiveness of the roles of the stakeholders in ensuring
livelihood security for the people.
The study adopted a participatory approach by involving community members (as household
respondents) and other stakeholders (the District Assembly, traditional leaders, Unit Committees
and other non-governmental organizations as key informants) to achieve the research objectives.
Data sources included both primary and secondary data. The primary data was collected through
questionnaire administration, focus group discussions, key informant interviews and non-
participant observation. The primary data was analysed both quantitatively and qualitatively in
line with the specific research objectives. The secondary sources consisted of a desk study of
books, journals, and the internet to extract information and statistics on livelihood related topics
including the concept of sustainable livelihood, livelihood assets, rural livelihood and livelihood
diversification.
The research revealed that people in the four communities visited still depend on natural capital
(mainly farm lands) as their major livelihood asset from which they draw their livelihood. The
major economic activity that people engage in as a means of living is agriculture (mainly crop
farming) as indicated by 50 percent of the respondents. The study further revealed that there has
been a shift in the livelihood activities of the people as admitted by 41 percent of the respondents.
The major cause of the shift in livelihood activity of the people is the presence of the Newmont
Mining Company in the study district. Other causes of the shift include land administration
problems and low income.
In line with the research findings, it is recommended that farmers should be trained in improved
farming technology in order to improve their production level. This recommendation is made
based on the fact that Newmont Mining Company has taken about 7500 hectares of farm lands
and farmers can now hardly practice shifting cultivation which they had hither to practiced. It is
also recommended that the youth should be equipped with employable skills to improve their
chances of getting employment aside farming. It is again recommended that the activities of
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Newmont Mining Company should be well monitored to promote livelihood security for the
people
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Table of Content
List of figures......................................................................................................................6
List of tables........................................................................................................................6
2 Theoretical framework .....................................................................................................9
3 Background of the Study Area .......................................................................................15
4 Research Methodology...................................................................................................20
5 Results and Discussion....................................................................................................22
6 Findings, Conclusions and Recommendations...............................................................41
7 Recommendations...........................................................................................................43
References.........................................................................................................................45
Appendices........................................................................................................................47
List of figures
Figure 5-1 Gender of Respondents....................................................................................22
Figure 5-2 Percentage of Respondents Membership of Social Groups.............................25
Figure 5-3 Relationship between Gender and Economic Activities .................................32
Figure 5-4 Previous Occupations of Respondents Who Perceived a Shift........................33
Figure 5-5 Percentages of Respondents and Their reasons for Unsatisfaction with Their
Occupations........................................................................................................................34
Figure 5-6 Trend Analyses of Economic Activities by Sector Employment ....................35
Figure 5-7 Perceived Reasons for Shift in Livelihood Activity
............................................................................................................................................37
List of tables
Tabel 3-1 Soils and Crops Suitability................................................................................17
Table 5-2: Religion of Respondents...................................................................................23
Table 5-3: Livelihood Activities........................................................................................27
Table 5-4: Major Crops Cultivated....................................................................................28
Introduction
A livelihood comprises the capabilities, assets (including both material and social resources) and
activities required for a means of living. It is much more than a job as it covers a whole range of
things people do to make a living. A livelihood is sustainable if it can recover from stresses and
shocks maintain or enhance its capabilities and assets while not undermining the natural resources
base (Scoones, 1998). It can therefore be said to be sustainable if it is socially responsible,
economically efficient and environmentally viable to the people involved. The concept of
livelihood has remained a subject of utmost concern due to its inevitable role in human existence.
Rural households in developing countries have three broad options to improve their livelihoods.
These include natural resource based activities; non-natural resources based activities and
migration to other agricultural areas or to urban areas (Carney, 1998). These are however not
separate but mutually exclusive paths. The vast majority of rural households in West Africa
follow at least two of the three strategies simultaneously (Brycesson, 1999). In most cases
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resources found within ones immediate vicinity will provide a livelihood for the people. It is
therefore apparent that rural livelihood in forest fringe communities generally revolves around
agriculture production and direct dependence on forest resources and activities.
Livelihood insecurity remains a major problem in less developed countries, particularly those in
Africa. Poverty, famine and malnutrition are serious, perennial problems that these nations have
to grapple with. Poverty in the developing world is more a rural than an urban phenomenon, and
in the poorest developing countries, 65-80 percent of the population still live in rural areas
(Shepherd et al, 1999). There is though the ability for the rural poor to move out of poverty but
this is critically dependent on how accessible the assets are. It is therefore essential to investigate
the roles of these livelihood assets in supporting the livelihoods of the rural poor, their relative
importance in rural livelihood support, and how these can be improved to offer viable livelihood
outcomes.
1.1 Statement of the Problem
Rural people, especially the poor, employ a diversity of means to help meet basic needs: food
crop production; cash crop production; forest and tree product gathering, consumption,
processing and sale; and income earning enterprises both on and off the farm. The recent
intensification of agricultural production, overgrazing and conversion of Agricultural land to
several other uses due to population pressure has resulted in several undesirable changes in the
environment with adverse effects on Agriculture (Okigbo, 1997). This often leaves most rural
folks with an option of a shift in livelihood. In the bid to secure their livelihood, people shift from
one livelihood option to the other and this at times creates the problem of livelihood insecurity.
This could be a total change in their means of living or a shift in the focus of their means of
livelihood.
The situation at the rural communities in the Asutifi District in the Brong Ahafo Region may not
be different from what is happening in other rural communities in the country and rural African
communities at large. Livelihood insecurity is a problem in the Asutifi district considering the
fact that natural capital in the form of lands for farming are being lost to mining within the past
two years.
In the light of the above expositions, this study seeks to analyze the livelihood trends pertaining
to the Asutifi District to ensure livelihood security in the context of sustainable development.
1.2 Research questions
To guide the research the following questions are of utmost importance:
• What are the characteristics of the assets which people draw their livelihood from?
• What are the livelihood activities available to the people and their contribution to
household needs?
• Are there any shifts in the livelihood activities of the people?
• If there is a shift, what are the causes of the shift in the livelihood of the people and their
effects?
• How effective is the role of the stakeholders in ensuring livelihood security for the
people?
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1.3 Research Objectives
The objectives of this research are two-fold: general and specific objectives.
1.3.1 General Objective
To analyze the livelihood trends pertaining to the Asutifi District to ensure livelihood security in
the context of sustainable development.
1.3.2 Specific Objectives
• To identify the characteristics of the assets from which people draw their livelihoods.
• Identify the livelihood activities available and their contributions to household needs.
• To determine the extent of shifts in livelihoods of the people.
• To identify the main causes of shifts in livelihoods and their effects.
• To determine the effectiveness of the roles of the stakeholders in ensuring livelihood
security for the people.
1.3.3 Scope
The scope of this research was both geographical and conceptual. The geographical scope was
limited to selected communities in the Asutifi District. In order to achieve the research objectives
and answer the research questions, the study was limited to four communities within the Asutifi
district. These communities were Kenyase No.2, Hwediem, Ola and Ntotoroso resettlement
communities. The conceptual scope however aimed at identifying the types and the contribution
of various livelihoods to household needs, the assets from which people draw their livelihoods,
various stakeholders and their roles in the livelihood of the people of Asutifi District as well as
the causes and effects of changes in the livelihood of the people in the Asutifi District.
1.3.4 Limitation
In an attempt to answer the research questions for this project, a number of limitations were
encountered. These included difficulty in administering some of the questionnaires. Some major
stakeholders such as Newmont were not available for interviews. Other stakeholders such as
traditional rulers were also not available for interviewing and in most cases sub-chiefs were
alternatives.
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2 Theoretical framework
This chapter focuses on how various authors and authorities have defined the concepts involved
in this research. The topics that have been covered in this section include the concept of
sustainable livelihood, livelihood assets, role of institutions in livelihood security, rural livelihood
and livelihood diversification.
2.1 The Concept of Sustainable Livelihood
The concept of ‘sustainable livelihood’ is increasingly important in development debate. In view
of this, different authors have expressed their views on what sustainable livelihood is or is not.
Thus, different interpretations, often without clear and unambiguous meanings, have been given
to the term sustainable livelihood’. As Carswell et al (1997) point out: “definitions of sustainable
livelihoods are often unclear, inconsistent and relatively narrow. Without clarification, there is a
risk of simply adding to a conceptual muddle…”.
Drawing on Chambers and Conway (1992) among others, Ellis (1999) notes that a livelihood
comprises the capabilities, assets (including both material and social resources) and activities
required for a means of living. He further opines that a livelihood is sustainable when it can cope
with and recover from stresses and shocks maintain or enhance its capabilities and assets, while
not undermining the natural resource base. Carswell et al. (1997) argue that this, in turn, can be
disaggregated to highlight different sub-components. Five key elements of the definition can be
recognised, each relating to a wider literature with, in some cases, established ways of assessing
outcomes. The first three focus on livelihoods, linking concerns over work and employment with
poverty reduction as broader issues of adequacy, security, well-being and capability. The last two
elements add the sustainability dimension, looking in turn at the resilience of livelihoods and the
natural resource base on which they partly depend. These five key elements have been explained
below.
• Creation of working days – This relates to the ability of a particular combination of
livelihood strategies to create gainful employment for a certain portion of the year. This
may be on or off-farm (agrarian economy), part of a wage labour system or subsistence
production. Sen (1975: 5) notes three aspects of employment – income (a wage for the
employed), production (employment providing a consumable output) and recognition
(where employment provides recognition for being engaged in something worthwhile).
• Poverty reduction – The poverty level is a key criterion in the assessment of livelihoods.
Various measures can be used to develop an absolute ‘poverty line’ measure based on
income or consumption levels (Ravallion 1992; Baulch 1996). Alternatively, relative
poverty and inequality can be assessed using Gini coefficient measures. There are a range
of pros and cons for each measure, as well as some major measurement challenges
(Greeley 1994). However, Schaffer (1996) notes that such quantitative assessments of
poverty can be used in combination with more qualitative indicators of livelihoods.
• Well-being and capabilities – The notions of ‘well-being’ and ‘capability’ provide a
wider definitional scope for the livelihoods concept (Chambers, 1995). Sen (1984) sees
capabilities as ‘what people can do or be with their entitlements’, a concept which
encompasses far more than the material concerns of food intake or income. Such ideas
represent more than the human capital which allows people to do things, but also the
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intrinsically valued elements of ‘capability’ or ‘well-being’. Chambers (1997) argues that
such a well-being approach to poverty and livelihood analysis may allow people
themselves to define the criteria which are important. This may result in a range of
sustainable livelihood outcome criteria, including diverse factors such as self-esteem,
security, happiness, stress, vulnerability, power, exclusion, as well as more
conventionally measured material concerns (Chambers, 1989).
• Livelihood adaptation, vulnerability and resilience – The ability of a livelihood to be able
to cope with and recover from stresses and shocks is central to the definition of
sustainable livelihoods. Such resilience in the face of stresses and shocks is the key to
both livelihood adaptation and coping (Davies, 1996). Those who are unable to cope
(temporary adjustments in the face of change) or adapt (longer term shifts in livelihood
strategies) are inevitably vulnerable and unlikely to achieve sustainable livelihoods.
Payne and Lipton (1994) note that assessing resilience and the ability to positively adapt
or successfully cope requires an analysis of a range of factors, including an evaluation of
historical experiences of responses to various shocks and stresses. They further note that
different types of shock or stress, in turn, may result in different responses, including
avoidance, repartitioning, resistance or tolerance mechanisms.
• Natural resource base sustainability – Most rural livelihoods are reliant on the natural
resource base at least to some extent. Following Conway (1985), Holling (1993) and
others, natural resource base sustainability refers to the ability of a system to maintain
productivity when subject to disturbing forces, whether a ‘stress’ (a small, regular,
predictable disturbance with a cumulative effect) or a ‘shock’ (a large infrequent,
unpredictable disturbance with immediate impact). This implies avoiding depleting
stocks of natural resources to a level which results in an effectively permanent decline in
the rate at which the natural resource base yields useful products or services for
livelihoods
Scoones (1998) also notes that a sustainable livelihood is the one that can recover from stresses
and shocks, maintain or enhance its capabilities and assets, while not undermining the natural
resources base. He further notes that a livelihood is sustainable if it is socially responsible,
economically efficient and environmentally viable to the people.
The important thing to recognize about the concept of sustainable livelihood is that it is always
subject to negotiation. Thus contradictions and trade-offs between different elements of the
composite definition (above decomposed into five parts, but potentially divided up in different
ways) must always be recognised. Different people will inevitably have different views as to the
priority indicators, and, where conflicts are highlighted, choices then have to be made. By
disaggregating the definition into a series of indicators, however, such choices become explicit,
making negotiation between outcome possibilities possible as part of any policy development,
planning or implementation process which has sustainable livelihood concerns at its centre
(Conway, 1985).
2.2 Livelihood Assets
The ability to pursue different livelihood strategies is dependent on the basic tangible and
intangible (material and social) assets that people have in their possession. Drawing on an
economic metaphor, such livelihood resources may be seen as the ‘capital’ base from which
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different productive streams are derived from which livelihoods are constructed. According to
Ahmed and Lipton et al (1997) ‘Capital’ is conventionally seen as the stock of productive
resources built up by human action by investing current income streams, and so increasing future
benefits from a given input of labour or raw material. Such capital may depreciate, be consumed
or be sold off. Johnson (1997) defines the various capital assets as follows:
Natural Capital – this refers to natural resources made up of land, water, soil, mineral, plant,
fisheries, animal life and environmental services (hydrological cycle, pollution sinks etc) from
which resource flows and services useful for livelihoods are derived. They provide goods and
services, either without people’s influence (e.g. forest, wildlife, soil stabilization) or with their
active intervention (e.g. farm crops, tree plantation). Antoh (2005) notes that various natural
assets combine and vary over time (e.g. seasonal variations in value). For example, degraded land
with depleted nutrients is of less value to livelihoods than high quality, fertile land, and the value
of both will be much reduced if users do not have access to water and the physical capital or
infrastructure that enables them to use water.
Within the sustainable livelihoods framework, the relationship between natural capital and the
vulnerability context is particularly close. Many of the shocks that devastate the livelihoods of the
poor are themselves natural processes that destroy natural capital (e.g. fires that destroy forests,
floods and earthquakes that destroy agricultural land) and changes in the value or productivity of
natural capital (Chambers, 1987).
Financial Capital – the capital base (cash, credit/debt, savings) which are essential for the
pursuit of any livelihood strategy. Johnson (1997) categorises financial capital into:
Stocks: savings, cash, bank deposits or liquid assets such as livestock. Financial resources can
also be obtained through credit-providing institutions.
• Regular inflows of money excluding earned income. The most common types of inflows
are pensions, or other transfers from the state, and remittances.
Human Capital – the skills, knowledge, ability to labour and good health and physical capability
important for the successful pursuit of different livelihood strategies. It is the most important, not
only for its intrinsic value but also because other capital assets cannot be used without it.
Social Capital – Carney (1998) asserts that in the context of sustainable livelihoods framework,
‘social capital’ is taken to mean the social resources (networks, social claims, social relations,
affiliations, associations) upon which people draw when pursuing different livelihood strategies
requiring coordinated actions. Antoh (2005) notes that these social resources are developed
through:
• Networks and connectedness, either vertical (patron/client)or horizontal (between
individuals with shared interests) that increases people’s trust and ability to work together
and expand their access to wider institutions, such as political or civic bodies;
• Membership of more formalized groups which often entails adherence to mutually-agreed
or commonly accepted rules, norms and sanctions; and
• Relationships of trust, reciprocity and exchanges that facilitate co-operation reduce
transaction costs and may provide for informal safety nets amongst the poor.
Physical Capital – these are derived from the resources created by people, such as buildings,
road transport, drinking water, electricity, communication systems as well as equipment and
machinery needed to support livelihoods. It thus comprises producer goods and services, and also
consumer goods available for people to use. Physical capital is important not only for meeting
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people’s needs directly, but also for providing access to other capital (e.g. through transport and
infrastructure).
Out of these tangible and intangible assets people construct and contrive a living, using physical
labour, skills, knowledge, and creativity. Thus, people pursue a range of livelihood outcomes
(more income, food security, health security, reduced vulnerability, etc.) through different
activities, by drawing on a range of assets (Chambers and Conway, 1992).
2.3 The Role of Institutions in Livelihood Security
A broad definition of institutions, derived from the sociological and anthropological literature is
taken here. This sees institutions as ‘regularised practices (or patterns of behaviour) structured by
rules and norms of society which have persistent and widespread use’ (Giddens, 1979).
Institutions may thus be formal and informal, often fluid and ambiguous, and usually subject to
multiple interpretations by different actors. Power relations are embedded within institutional
forms, making contestation over institutional practices, rules and norms always important.
Institutions are also dynamic, continually being shaped and reshaped over time. They are thus
part of a process of social negotiation, rather than fixed ‘objects’ or ‘bounded social systems’.
Institutions (in North’s terms the ‘rules of the game’) therefore are distinguished from
organisations (the players) (North, 1990), the interplay of both being important in the sustainable
livelihood framework. According to Davies (1997: 24): “institutions are the social cement which
link stakeholders to capital of different kinds to exercise power and so define the gateways
through which they pass on the route to positive or negative [livelihood] adaptation”.
Scoones (1998) notes that institutions really matter for the policy and practice of development for
livelihood security. He offers a number of inter-related reasons including the following:
• Understanding institutional processes allow the identification of restrictions and
opportunities (or ‘gateways’) to livelihood security. Since formal and informal
institutions (ranging from tenure regimes to labour sharing systems to market networks or
credit arrangements) mediate access to livelihood resources and in turn affect the
composition of portfolios of livelihood strategies, an understanding of institutions and
organisations is therefore key to designing improved sustainable livelihood outcomes.
• An institutional approach sheds light on the social processes which underlie livelihood
sustainability. Achieving livelihood security is not a deterministic affair; contestations,
negotiations and trade-offs are evident at every turn. An insight into social relationships,
their institutional forms (formal and informal) and the power dynamics embedded in
these is therefore vital. Interventions in support of livelihood security therefore must be
attuned to such complexity, if suitable institutional entry points are to be found.
• An approach which emphasises both formal and informal institutions and underlying
rules and norms suggests a complex and ‘messy’ institutional matrix mediating the
processes of livelihood shift (Leach et al., 1997). For example, an analysis of an
institutional matrix would look at which combinations of the wide range of informal and
formal institutions and organisations operating at different levels – from within the
household to the national (sometimes international) level – particularly influence
different people’s abilities to pursue combinations of different livelihood strategies, with
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what results for sustainable livelihood outcomes. Describing such an institutional matrix
in any setting is, not surprisingly, far from an easy task. However, the recognition of such
complexity allows scope for innovation in planned interventions at different levels, going
beyond the conventional support for formal organisations or institutional mechanisms to
look at combinations of formal and informal approaches (Cousins, 1997).
• Different people clearly have different access to different livelihood resources. This is
dependent on institutional arrangements, organisational issues, power and politics. A
socially differentiated view to analysing livelihoods is therefore critical, one that
disaggregates the chosen unit of analysis – whether community, village or household –
and looks at individuals or groups of social actors and their relationships, in relation to
the range of relevant dimensions of difference (wealth, gender, age and so on) and the
distribution of control over resources (Richards, 1989).
2.4 Rural Livelihood
Rural livelihood strategies are often heavily reliant on the natural resource base (IDS, 1996).
These various livelihood activities include food crop production; cash crop production; forest
and tree product gathering, consumption, processing and sale; and income earning enterprises
both on and off the farm (Brycesson, 1999).
Ellis (1999) in discussing rural livelihood diversity in developing countries notes that gender is an
integral and inseparable part of rural livelihoods. He further argues that men and women have
different assets, access to resources, and opportunities. Women rarely own land, may have lower
education due to discriminatory access as children, and their access to productive resources as
well as decision-making tend to occur through the mediation of men. Women typically confront a
narrower range of labour markets than men, and lower wage rates. He concluded that
diversification is more of an option for rural men than for women. In this sense, diversification
can improve household livelihood security while at the same time trapping women in customary
roles.
The tendency for rural households to engage in multiple occupations is often remarked, but few
attempts have been made to link this behaviour in a systematic way to rural poverty reduction
policies. In the past it has often been assumed that farm output growth would create plentiful non-
farm income earning opportunities in the rural economy via linkage effects. However, this
assumption is no longer tenable. For many poor rural families, farming on its own is unable to
provide a sufficient means of survival, and the yield gains of new technology display signs of
levelling off, particularly in those regions where they were most dramatic in the past (Ellis, 1999).
2.5 Rural Livelihood Diversification
In line with the Sustainable Livelihood framework, Ellis (1998) defines livelihood as ‘the
activities, the assets, and the access that jointly determine the living gained by an individual or
household’. He further defines ‘rural livelihood diversification’ as ‘the process by which
households construct a diverse portfolio of activities and social support capabilities for survival
and in order to improve their standard of living’.
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Considerations of risk spreading, consumption smoothing, labour allocation smoothing, credit
market failures, and coping with shocks can contribute to the adoption, and adaptation over time,
of diverse rural livelihoods. However, livelihood diversity results in complex interactions with
poverty, income distribution, farm productivity, environmental conservation and gender relations
that are not straightforward are sometimes counter-intuitive and can be contradictory between
alternative pieces of case study evidence (Ellis, 1999).
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3 Background of the Study Area
3.1 Introduction
The study area is the Asutifi District and is one of the districts in the Brong Ahafo Region of
Ghana. The District, which was created in 1988 and is one of the districts classified by the
Ministry of Local Government as deprived. The district economy is mostly agrarian and like a
normal deprived district, Agriculture is in the hands of peasant farmers who still depend on
rudimentary methods for production. As a result, output is low, soil is fast depleting and
environmental degradation is setting in to disturb the once ecologically balanced semi-deciduous
forest. Household incomes are generally low and poverty is widespread.
The district is however endowed with a variety of resources which when properly managed would
help develop the district. These include the following:
(i) Gold, Diamond and other mineral deposits at
Wamahinso, Nkrankrom and Kenyasi.
(ii) Vast Forest Reserves (about 475.63km2
) stocked
with timber and other forest products.
(iii) Large quantities of Clay and Sand deposits
(iv) Good soil of high agricultural value
(v) Well established Senior Secondary Schools like OLA
Girls, Acherensua, Hwidiem, Gyamfi Kumanin.
It is however important to note that the gold deposits is now being harnessed which has come
with it both negative and positive effects.
3.2 Physical Characteristics
3.2.1 Location and Size
Asutifi District is located between latitudes 6°40' and 7°15' North and Longitudes 2°15' and 2°45'
West. It shares boundaries with Sunyani District in the North, Tano District to the North East,
Dormaa District to North West, Asunafo District in the South West and Ahafo Ano District
(Ashanti Region) in the South East.
With a total land surface area of 1500 sq.km, the district is one of the smallest in the Brong Ahafo
Region. There are a total of 117 settlements in the district and four paramouncies, namely:
Kenyasi No.1 Kenyasi No.2, Hwidiem and Acherensua. The district capital is Kenyasi, which is
about 50km from Sunyani, the regional capital.
3.2.2 Topography and Drainage
The district lies within the forest dissected plateau physiographic region with average height of
about 700 feet above sea level. The lowest part is about 650ft above sea level found along the
river basins whilst the highest point is found within a chain of mountains in the north east
reaching a height of 1400 feet above sea level. These mountains form watershed for the many
tributaries of the Tano River and other streams.
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The district is drained by Tano River and its many tributaries which include Nsubin, Goa and
Ntotro rivers exhibiting a dendritic pattern. These youthful fast flowing rivers have cut up the
plateau surface giving rise to the dissected nature of the plateau.
3.2.3 Geology and Minerals
This physiographic region is underlain by Precambrian rocks of Biriniam and Dahomeyan
formations. The Birimian formations are known to be the gold bearing rocks. There are reported
cases of gold deposits at Kenyasi, Ntotroso, Nkrankrom, Acherensua and Wamahinso. Diamond
is discovered at Wamahinso. There is also a widespread deposit of sand and clay; sand at
Kenyasi, Gambia No.2, Hwidiem and Acherensua and clay at Nsunyameye and Dadiesoaba.
Birimian rocks also have a high potential for Manganese and Bauxite. There are rounded out
crops of granite found over the Birimian rocks as at Kwadwo Addae Krom, Goa Asutifi,
Georgekrom and Konkontreso. These rocks have a high potential of iron and bauxite
(DDP,2002).
3.2.4 Climate and Vegetation
The district lies within the wet semi-equatorial zone marked by double rainfall maxima with a
mean annual rainfall between 125cm and 200cm. The first rainy season is from May to July and
the second rainy season is from September to October when the district comes under the
influence of the Wet Maritime Airmass. There is a sharp dry season between the two rainy
seasons the main one coming between November and March when the tropical continental
Airmass in the country sweep over the area.
Relative humidity is generally high ranging between 75% to 80% during the two rainy seasons
and 70% to 80% during the rest of the year.
The district has a moist semi-deciduous forest. Man’s activities notably farming, lumbering and
occasional bush fires have however disturbed this vegetation. This has changed some areas into a
derived wooded savanna. Such transitional zones could be observed along the roads to Koforidua,
Kensere and Kenyasi. There are however, large areas of forest reserves. These include the
following:
Biaso Shelter Belt: 29.5 km2
Bia Tam Forest Reserve: 91.4 km2
Asukese Forest Reserve: 180.1 km2
Goa Forest Reserve: 23.8 km2
Desiri Forest Reserve: 151.0 km2
These forest reserves together covers a total of about 475.6 square kilometres about 30% of the
entire land surface area of the district.
3.2.5 Soils and Crops Suitability
A study conducted in the sub-region by the Soil Research Institute of Kumasi in 1980 revealed
the following soil Associations and the crops it supports. Tabel 3 -1 shows the soil types and
crop suitability.
16

Tabel 3-1 Soils and Crops Suitability
soil Type Suitable crops
Kumasi Association Tree crops such as cocoa, coffee, citrus, oil
palm and pear as well as food crops such as
maize, legumes, cassava, plantain and
cocoyam.
Asuansi-Kumasi/Offin Association Not suitable for mechanized cultivation. Good
for semi-perennial food crops like plantain
Hwidiem Association Good for the cultivation of food crops such as
plantain, cassava and oil palm.
Akumadan-Bekwae/Oda Complex Association Suitable for a wide range of arable crops
including maize, cassava, plantain, cocoyam
and vegetables.
The Batia Associations Supports the same crops as Akumadan-
Bekwae/Oda complex association does but
needs proper management.
Bediesi Sutawa-Bejua Compound Association have little Agronomic values but recommended
for forest reserves and wildlife conservation
Birim-Awaham/Chechewere Kakum
Association
Suitable for vegetables, legumes, rice and sugar
cane
Source: Soil Research Institute of Kumasi, 1980
3.3 Demographic Characteristics
3.3.1 Population Size and Growth Rates
The population of the district is estimated to be about 84,475 with a growth rate of 3 percent per annum.
(National Population and Housing Survey, 2000).This growth rate is quite low compared with the rates of
3.0 percent at the national levels for the same period. The low population growth rate barring any data
errors, could be due to less job opportunities to attract immigrants. The District’s population is estimated to
be 87,529 by the year 2004. The district population has however almost doubled situation for the past two
years with the establishment of the Newmont Ghana Gold Limited to conduct mining.
The implication of a low population growth rate is the concentration of population in the working
age group. This situation augurs well for development. However, the quality of the labour force in
terms of health and skill has an obvious implication.
3.3.2 Age and Sex Structure
As result of the low population growth rate in the district, a large proportion of the population; 50
percent falls within the working age group. This compares favourably with the national estimated
figure of 51 percent. The implication for development is that many hands would be available for
production. This underscores the great need to create job avenues to absorb the large labour
force. (District development plan, 2004)
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About 51 percent of the estimated population are females and the rest 49 percent males. This
gives a sex ratio of 1:1.04. The dominance of females over males is a reflection of a nationwide
trend where the estimated ratio is 1:1.03. The need to target women in any development
programme in the district can therefore not be over-emphasized. (District development plan,
2004)
3.3.3 Population by Settlement: Rural Urban Split
The District has about 117 settlements and out of this only two –Kenyasi and Hwidiem are urban
settlements having a population of over 5,000 (2000 Population and Housing Census). The
District can be described as typically rural. It is currently estimated at 15 percent Urban; whiles
that of the nation is 37.4 percent.
3.3.4 Migration
About 54 percent of the people are migrants (mainly Ashantis) with Bonos the indigenes
constituting only 9 percent of the population (District Development Plan, 2004). These
immigrants had however stayed in the district since time immemorial and hence do identify with
the area and with development activities. With the advent of Newmont Gold Ghana Limited,
migration pattern is likely to have changed.
3.3.5 District Economy
The predominant economic activity in the District is subsistence agriculture (mostly farming)
which engages 77 percent of the economically active labour force. About 96 percent of those
engaged in other occupations outside agriculture still take up agriculture as a minor activity. The
service sector accounts for 21 percent of the active labour force consisting mainly of trading and
this leaves the industrial sector with only 1 percent of the labour force employed in this sector.
(District Development Plan, 2004).
3.3.6 Household Income and Expenditure
3.3.6.1 Income Pattern
Average household income earned per month for households is ¢202,553.75. Taking the main
income as average income, annual per capita income is estimated at ¢2,430,645.00. (District
development plan, 2004)
Crop farming constitutes the major source of income in the district, and accounts for about 50%
of all incomes. This is followed by wages and salaries 15 per cent, business and trading 15, small
scale industry (8.5%), livestock farming (6%), pension, rents and remittances (3.5%), and all
other (2%).(DPP,2002-2004)
3.3.6.2 Expenditure Pattern
The leading area of household spending is on food. It represents 55 per cent followed by Energy
15 per cent, transport (11%), education (9%), health (5%), funerals (3%) and housing (2%).(DPP,
2002-2004)
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The Ghana Living Standard Survey (1989) puts the expenditure on food at 63 percent.
Expenditure on food in the district, therefore, falls below the national average. This could be
attributed to the fact that it is a food crop growing area and almost all the farmers concentrate on
subsistence agriculture.
Generally, the standard of living of the people is low. About 50 percent of the people live below
the poverty line. The people's access to basic facilities and services is limited, and this account
for their inability to contribute meaningfully to development. The people earn very little and
cannot therefore save to build capital for development.
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4 Research Methodology
4.1 Target Population
The study was carried out in four communities in the Asutifi District, namely Kenyase No. 2,
Hwediem, Ola and Ntotoroso resettlement. The sampling frame consisted of community members
(households) and other stakeholders who have expressed interest in the livelihood of the people.
These included Non Governmental Organisations (NGO’s), the District Assembly, Unit
Committees and other government agencies such as Ministry of food and Agriculture (MOFA).
However Newmont Mining Company was considered as important stakeholder, the data that
could be captured were public reports which were extracted from their website.
4.2 Data Sources
The research employed both primary and secondary data. The primary data was obtained from the
field using instruments and methods like interview schedules, questionnaires, focussed group
discussions and observation guide. The secondary sources consisted of a desk study of books,
journals, newspapers and the internet to extract information and statistics on livelihood related
topics.
4.2.1 Data Collection Procedure
Before administering the final questionnaires to the respondents, a pre-testing exercise was
undertaken. This was to enable the necessary corrections to be made and ambiguities removed
before administering the questionnaires to the target population. Observations were also used to
gather primary data. Key informant interviews and focus group discussions in some of the
communities were conducted. Focus group discussions were mainly used for consensus building
among key stakeholders and to identify the linkages amongst them as well as the validation of the
household questionnaires.
4.2.1.1 Household Questionnaires
Questionnaires were used for both household and institutional surveys. Both open and closed
ended questions were used to gather information and also to ascertain the information gaps
between the responses of the people and the observations of the researchers
4.2.1.2 Key Informant Questionnaires
Some key informants were identified and interviewed. These included the District Planning
Officer, the district Director of Ministry of Food and Agriculture (MOFA), the Unit Committee
Chairmen of Ntotoroso and Ola resettlement communities and the chief’s registrar at Kenyasi No
2.
4.2.1.3 Focussed Group Discussions
For validation purposes focus group discussions were organised in two communities: Kenyasi
No 2 and Ntotoroso resettlement.
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4.2.2 Sampling Method
Clustered sampling technique (dividing the community into zones so that we select a specified
number from each zone to prevent bias) was used together with Stratified sampling technique
(choosing population according to age, gender, sex etc) in addition to simple random sampling
technique to select respondents for the household survey. The combination of these two
techniques was to ensure an even selection of the respondents giving each respondent an equal
chance of being selected. Purposive sampling on the other hand was used to select institutions and
key informants.
4.2.3 Sample Size
A sample size of 120 households was taken for the purpose of this research. This was made up of
45 households from Kenyase No. 2, 45 from Hwediem and 30 from Ola and Ntotoroso
resettlement communities.
4.3 Data Analysis
In the analysis, both qualitative and quantitative methods were used to measure the research
objectives and answer the research questions. The qualitative technique was in the form of
comprehensive statements and analytical descriptions. This was to help consider several realities.
The quantitative technique was mainly based on diagrams like graphs, ratios and percentages.
Statistical Package for the Social Sciences (SPSS) computer application software was used to aid
the quantitative analysis of the primary data. Data from the household questionnaires were
entered into the Statistical Package for Social Sciences (SPSS). These were then collated and
analyzed in relation to the specific research objectives they answer. From these analyses, tables
and charts depicting percentages of respondents were generated. Results are then discussed with
references to the tables and charts. The quantitative data therefore was analyzed with SPSS.
The qualitative data obtained mainly from key informant interviews and focus group discussions
are to validate the responses from the household questionnaires. These are usually in the form of
statements and descriptions which are not necessarily expressed in charts or tables. The rich
source of information from this source can therefore only be discussed qualitatively.
21

5 Results and Discussion
This chapter begins by looking at the background of respondents and further discusses the results
from the Household Questionnaires, the Focus Group Discussions and the Key Informant
interviews under the various specific research objectives.
5.1 Background of Respondents
5.1.1 Gender of Respondents
Out of the 120 respondents, 59 percent were males while 41 percent were females. This is
illustrated by Figure 5 -1.
Figure 5-1 Gender of Respondents
5.1.2 Age of Respondents
Majority of the respondents (53%) were between 18-35 years old. Another 33 percent fell
between the age ranges of 36-53. Considering these two categories as a productive age it implies
most of the respondents (86%) were actively involved in one economic activity or the other. Only
5 and 8 percent were below 18 and above 531
years respectively.
1
The total might not be up to 100 percent due to rounding off.
22

5.1.3 Marital Status
Majority (73%) of the respondents were married whilst 21 percent were single. The percentages
of divorced and widowed respondents were 4 and 2 respectively.
5.1.4 Religion of Respondents
Most of the respondents (73%) were Christians, 23 percent were Muslims and 3 percent were
adherents of the traditional religion. Thus the majority of the inhabitants of the study area were
Christians (see Table 5 -2).
Table 5-2: Religion of Respondents
Religion Frequency Percent
Christianity 87 73
Islam 28 23
Traditional 4 3
None 1 1
Total 120 100
5.1.5 Level of Education of Respondents
Education plays a crucial role in every economy. As a form of human capital, it contributes
greatly to the livelihood of people. In view of this the educational background of respondents was
looked at. The respondents who have either completed primary school or middle school were 49
percent and about 27 percent were secondary or vocational school graduates. Only 5 percent of
respondents had some form of tertiary education whilst 19 percent were illiterates.
5.1.6 Tribe of Respondents
Majority of the respondents (64%) were Akans originally located in the south of Ghana. About
26 percent of the respondents were Northerners. The Ewes represented 8 percent of the sample
and the Gas’ represented 2 percent.
5.2 Migration
5.2.1 In-migration
Respondents were asked whether they were natives of the communities in which they resided.
This was in line with determining the extent to which people have migrated to the study areas.
Most of the respondents (71%) were natives whilst 29 percent were migrants.
About 49 percent of the respondents migrated into the area to look for employment at Newmont
Ghana Gold Limited (NGGL), a mining company operating in the district. Out of this some have
some kind of employment (mostly unskilled labour) with the mining company whilst others are
still looking for jobs with the company. About 24 percent migrated because they wanted
23

farmlands to farm on and 4 percent moved to the communities because of their families or they
were married into the community. The remaining 13 percent was made up of those who were
posted there as teachers and those that were born there but are not natives of the communities.
5.2.2 Out Migration
Respondents were also asked if any one had left their household, how long the person(s) had left
and why. This was to determine whether some natives of the communities have also moved out of
the district and find the possible reasons why they moved. Out of the 120 respondents, about 31
percent said some one had left their household. Out of this, 12 percent had moved within a year
and 13 percent between one and three years.
The reasons assigned to why people had moved out included to look for work in the cities. The
rest had left because they married outside the district and therefore had to be with their family.
Some also left because their lands were confiscated and others also have moved out to continue
their education.
5.3 Assets from Which People Draw Their Livelihood
Literature has shown that there are five main assets or capital from which people draw their
livelihoods. These are Natural, Financial, Social, Physical and Human capital. These assets are
also found in the District. Though these five main assets may be present in every society, its
quality and utility may be different. The characteristics of the assets were therefore investigated.
These are discussed below.
5.3.1 Natural Assets.
The natural assets found in the district include land, water bodies, mineral deposit, forest reserves,
and outcrop of rocks as well as clay and sand deposits.
• Land in the district was generally described as fertile. It was however noted that in some
few years to come the fertility of the soil is likely to reduce. This is because with
Newmont Ghana Gold Limited (NGGL) taking up a vast area (536.56 square kilometres)
of the people’s farm lands, fallow farming (a system practised by farmers to give the land
its natural rejuvenation by leaving it for a year or more without cropping on it) can no
longer be practice since they are now restricted to a small piece of land mostly two acres.
Therefore with the use of rudimentary methods of farming and low fertilizer application,
land in the district will lose its fertility with time if nothing is done about this situation.
• Water bodies found in the district are mostly the tributaries of the Tano River which
drains the district.
• The major minerals found in the district are Gold and Diamond deposits. Exploitation of
the gold deposit has now started but at the very early stages.
• There are also vast forest reserves of about 475.63 square kilometre and these reserves
are stocked with timber and other forest products. These reserves have however not been
exploited to their fullest capacity yet. There is also vast deposit of sand and clay.
24

5.3.2 Financial Assets
The main financial Institutions from which people in the district can draw their financial needs
from are basically Rural Banks and Commercial Banks. These banks provide services like Micro
credit, Susu and normal banking. The District Assembly however operates micro-credit through
the Tano Rural Banks and Agricultural Development Bank. According to the household survey,
about 86 percent of the respondents indicated that they do not have access to credit facilities. This
therefore pre-supposes that there is not a fair distribution of loans in the district.
During the household survey, only 14 percent of the respondents indicated that they save part of
their income. The respondents did not complain about the quality of service provision by these
banks. However the major concern was that one Rural Bank had bolted away with the money of
the people. This situation has however discouraged others from saving in any other bank adding
up to the low saving culture among the people.
Non-payment of these loans results in the inability of the Directorate to re-disburse loans for
other farmers who have not had the opportunity. This is basically so because the ability to
continue disbursement of loans depend on the pay back rate.
5.3.3 Social Assets
The research revealed that respondents belong to various social groups from which they draw
upon in pursuit of their livelihoods. This confirms the observation made by Antoh (2005) that
people belong to social groups which contribute greatly to their livelihoods. About 45 percent of
the respondent indicated that they belong to social groups. Figure 5 -2 shows the various
associations that respondents belong to.
Figure 5-2 Percentage of Respondents Membership of Social Groups
25

5.3.4 Physical Assets
The physical assets available to the people in the selected communities include; Road Networks,
Schools, Health facilities, Water and Sanitation facilities, Electricity, Telecommunication systems
and Housing facilities.
• Road Network: roads in the district can be described as fairly accessible. Most of the
feeder roads undergo routine maintenance each year.
• Schools: According to the District planning officer, the Physical structures of school
buildings are in good condition. He further noted that more children with the school
going age are now in schools due to the introduction of the capitation grant (an
educational policy which seeks to ensure that all children within the school going age
attain basic education free of charge). On the whole both economic and physical access to
schools can be described as good.
• Health Facilities: Health facilities in the district include hospitals, health centres, clinics
and maternity homes. There is however only one hospital in the District which serves as a
referral point. Physical accessibility is now very good with the introduction of the
Community Health Improvement Programme (CHIP) which aims at bringing health care
to the door steps of the people. National Health Insurance Scheme (NHIS) has also
enhanced economic access to health care in the selected communities. The district
planning officer further noted that National Health Insurance Scheme coverage in the
district now stands at 75 percent which he described as an excellent achievement. The
physical structures are also in good condition.
• Water and Sanitation: sanitary conditions in the district is quiet fair according to the
District planning officer, however access to water is not the best which he rated at about
55 percent. The rest use hand dug wells which dry up in the dry seasons.
• Electricity: data from the District planning officer showed that about 65 to75 percent of
the people in the district have access to light. However due to increased number of people
in the district, there is pressure on the facility which has led to power rationing.
• Telecommunication systems: the operational telecommunication networks are Areeba
and Tigo which has about 55-60 percent of coverage.
• Housing: Housing conditions in the district are generally poor. There has also been an
astronomical increase in rent attributed to the presence of mining company which can
afford to pay high rent for their staff.
5.3.5 Human Assets
The research revealed that people do not generally know where to seek for information
concerning their lives. Mostly, people go to the District Chief Executive (DCE) who will direct
them to the right source for information. One good source of information is the district plan
which under normal circumstances should be updated every year. This is however not done as
confirmed by the District Planner.
Again, people do not know what programmes the assembly has in place concerning their
livelihoods as noted by the District planning officer. This was attributed to the fact that
representatives of the people (Unit Committees, Assemblymen) do not report back to the people
after meetings with the assembly. Again, it was revealed that people generally lack information
on where to access credit facility. Even though literacy rate in the district is quite high (81%) as
compared to the national adult literacy rate (74%), most of the respondents have had their
26

education up to the basic level as noted earlier on. This presupposes that people lack some skills
and capabilities needed to develop the district.
In the area of skills and employable development, there is a youth employment programme in
place to empower the youth. This is mainly for senior secondary school drop outs who are given
some kind of training to become rural education volunteers. This programme is handled by the
community based rural development programme in collaboration with Action Aid.
5.4 Livelihood Activities
People engage in diverse economic activities in order to make a living. The various livelihood
activities that respondents engage in were put under the major economic activities (Agriculture,
Industry, Service and Commerce.). The research revealed that majority (50%) of the respondents
engage in agricultural activities whilst the industrial sector also employs about 13 percent of the
respondents. The service and commerce sectors on the other hand employ about 14 and 23
percent of the respondents respectively (Table 5 -3).
Table 5-3: Livelihood Activities
Economic
Activity
Number of Respondents Percentage of respondents
Agriculture 59 50
Industry 16 13
Commerce 28 23
Service 17 14
Total 120 100
5.4.1 Agricultural Activities
Interactions with the district MoFA Director and the District Planning Officer indicated that
agriculture contributes greatly to the rural economy in terms of sector employment. Most (50%)
of the respondents confirmed this during the household survey by indicating that their major
source of livelihood comes from the agricultural sector. Respondents employed by the
agricultural sector were mainly into crop farming (77%) and mixed farming (19%) with only a
few engaged in animal production (4%).
5.4.1.1 Crop Farming
Crops cultivated by the respondents included cash crops (cocoa and palm oil), cereals (maize and
rice), root/tuber crops (yam, cocoyam, cassava,), vegetables (garden eggs, and tomatoes) and
horticultural crops (oranges, chilli pepper, pineapple, mangoes) and others (see Table 5 -4).
In the past crop farmers highly practiced shifting cultivation due to access to vast track of land.
However, with the advent of Newmont mining company which has taken about 7500 hectares of
farm lands, farmers lamented that they can now hardly practice shifting cultivation. They further
indicated that this has a serious implication on soil fertility since fallow land is virtually non-
existent particularly in the resettlement areas. This has affected food production and has also
resulted in the high cost of farm produce in the district.
27

Table 5-4: Major Crops Cultivated
Crops Number of Respondents Percentage of respondents
Cash crop 40 33
Cereals 16 13
Horticultural crops 10 8
Roots/Tuber 15 13
Vegetable crops 7 6
Others 32 27
Total 120 100
Among the farmers interviewed who indicated that they were into cash crop farming, about 90
percent of them were into cocoa farming whist the remaining 10 percent were into oil palm
plantation. Interactions with the MoFA Director however revealed that almost every farmer in the
district in one way or the other is into cocoa farming though on smallholder basis. This was
confirmed by almost all the respondents during the household survey. The reasons assigned for
this by the respondents were that since cocoa is not consumable at the household level, they
market it to raise income to meet household needs. Plantain production is highly practiced by the
farmers even though on smallholder basis. During the two focus group discussions, it became
clear that plantain production is another major source of income to the farmers. Harvested
plantain is sold to middle women who trade in plantain and occasionally come into the area to
buy them for Accra and Kumasi markets. Agriculture in the study area therefore has a spill over
effect by serving both the rural and urban economies. That is, the produce from farming activities
is used to feed the household in the rural areas and the remainder sold to people in the urban
areas. Farmers however lamented that due to low prices for their produce, they are not able to
raise adequate income as targeted by the end of the farming season. The key informant in African
Connection and the MoFA Director attributed the low prices for farm produce to lack of farmers
associations in the communities visited which could serve as a strong bargaining force for farm
produce.
5.4.1.2 Land Holdings for Farming Purposes
In responding to a question on land ownership, about 54 percent of the respondents indicated that
they own the land on which they undertake their farming activities whilst 46 percent indicated
that they do not own their farm lands. Those who said they own the land further indicated that the
land is either a family or a stool land which has been given to them to farm on. According to the
District Planning Officer, an individual can acquire a piece of land in three main ways for
farming purposes. These are (i) complete purchase of the land, (ii) share cropping and (iii) rental.
Other sources of land acquisition include family allocation or inheritance for natives and
sometimes parcel(s) of land are given to some as gifts. This was confirmed by farmers during the
household survey. Among the farmers who indicated that they do not own their farm land (46%),
about 76 percent indicated that they are share croppers (the system whereby an individual
acquires a piece of land to farm and share the produce either in one-third or two thirds basis with
the land owner, popularly known as the “abunu and abusa” systems), about 20 percent indicated
that they rent land for their farming activities whilst 4 percent have completely purchased land for
farming purposes. During one of the focus group discussions, it became clear that those who do
28

not own land are mostly migrants who for one reason or the other had moved into the
communities to seek for greener pastures. This confirms the observation made by Carney (1998)
that people who migrate to the rural areas to improve their livelihoods are mostly faced with the
challenge of getting access to land for agricultural activities.
Farming in the communities visited is undertaken on small scale basis (less than 5 acres) as
confirmed by 48 percent of the respondents. A few of the respondents (23%) undertake farming
activities on a large scale. Expert interview with the District MoFA Director indicated that
farmers in the selected communities are basically smallholder farmers on family-operated farms
using rudimentary technology. He further noted that only some of the industrial crops, such as oil
palm and cocoa are produced on large scale, although smallholder farmers also produce
significant quantities of these crops, especially cocoa. He further opine that farmers use more
extensive farming methods (especially more land and labour), which affect their production
levels. Even though farming is undertaken on small scale, about 58 percent of respondents
indicated that they farm for both commercial and subsistence purposes as indicated earlier on.
This confirms the observation made by Schaffer (1996) that farmers in the rural areas engage in
farming activities for both consumption and income generation purposes.
5.4.1.3 Animal Production
Aside farming, about 8 percent of those employed by the agricultural sector are also into animal
production. Some of the animals reared include poultry by 60 percent of respondents, goats and
sheep (30%) of respondents and cattle (10%) of respondents. The animals are reared mostly on
extensive basis. Those who rear animals indicated that livestock production is chiefly to
supplement the protein needs of the household and not for commercial purposes. They however
stated that they occasionally sell some of the animals to supplement family income when the need
arises.
The average annual income of those in the agricultural sector is 830,000 cedis. Farmers indicated
that they able to raise this amount of money through the sale of their farm produce and the sale of
cocoa. From this money, farmers are able to meet their basic needs such as health, education and
clothing.
5.4.2 Problems faced by Farmers
Through the expert interviews and focus group discussions, problems faced by farmers were
captured. These include:
• Post harvest losses – during bumper harvest, farmers are unable to ensure safe keeping of
their farm produce due to inadequate storage facilities. During the focus group discussion
at Ntotroso resettlement community, the participants complained of food insecurity as the
major challenge facing the community. The MoFA Director attributed this to the fact that
the produce from their previous harvest which they could have stored to meet their
present food needs was not preserved due to lack of storage facilities.
• Inadequate financial services and high cost of capital – farmers complained of difficulties
in getting access to agricultural credit. The district MoFA Director however indicated that
farmers are not getting access to credit for farming activities since there had been
instances where farmers simply did not pay back loans received. He further noticed that
29

this has prevented most credit institutions and even the government from giving credit to
farmers in the area.
• Inadequate access to appropriate technology – as noted earlier, farmers still continue to
use rudimentary technology which is impeding increased productivity in the communities
visited.
• Inadequate input supply – farmers generally complained of not getting access to farm
inputs such as fertilizer, insecticides, pesticides, and other farm inputs. They attributed
this to inadequate income which prevents them from getting access to these inputs.
• Limited access to market – access to market is a major problem faced by farmers in the
area. Farmers have difficulties in marketing their produce due to constraints such as poor
road network and lack of coordinated farmers’ associations to promote the marketing of
farm produce.
• Land fragmentation – in the resettlement communities, land fragmentation emerged as
one of the fundamental problems that farmers face. Farmers interviewed attributed this to
the fact that the mining company (Newmont Ghana Limited) has taken almost all their
farm lands and they now have to either rent or buy land (with a high ‘drink fee’) for their
farming activities. This they said has led to small land holdings in the area for agricultural
activities which has also limited their ability to embark on large scale farming.
In spite of the myriad problems faced by farmers in selected communities, farming still continues
to be the major livelihood activity of the people due to the many opportunities it offers. However,
farm output growth has not created plentiful non-farm income earning opportunities in the rural
economy via linkage effects as noted by the District MoFA Director. This is in line with the
observations made by Ellis (1998) that “in the past it has often been assumed that farm output
growth would create plentiful non-farm income earning opportunities in the rural economy via
linkage effects. However, this assumption is no longer tenable. For many poor rural families,
farming on its own is unable to provide a sufficient means of survival and the yield gains of new
technology display signs of levelling off, particularly in those regions where they were most
dramatic in the past”.
5.4.3 Commerce
About 23 percent of the respondents as noted earlier on are engaged in the commerce sector as
their main source of livelihood. During the focus group discussions, the participant stressed that
this is a current phenomenon due to the influx of people into the area. About 60 percent of those
engaged in the commerce sector were found to be trading in non-agricultural produce (provision
stores, sale of charcoal) whilst the remaining 40 percent trade in agricultural produce such as
plantain, maize, tomatoes, chilli pepper and yam.
5.4.4 Service
The household survey revealed that 14 percent of the active labour force is employed by the
service sector. The major kinds of services identified within the service sector included driving,
security services, civil servants, teaching, tailoring, communication services, and hairdressing.
30

With the exception of those in the civil service, all other respondents were found to be operating
private business services either owned by themselves or have been employed to do so by others.
Incomes obtained monthly by those in the service sector were found to be mostly between three
hundred and fifty thousand cedis and six hundred thousand cedis. Other respondents who
received monthly incomes above six hundred thousand formed 42 percent while 23 percent
earned a monthly income less than three hundred and fifty-thousand cedis. Most of the
respondents therefore earned below the government’s minimum wage per month. Some
respondents however found it difficult to tell their monthly incomes because their daily
expenditure depended on the income obtained daily. Most of the private services such as
hairdressing and tailoring were also found to be working without records of their income and
expenditure which was a limitation in their work.
Problems within the service sector as enumerated by respondents ranged from financial problems
to lack of human resources. Those who had financial problems included respondents who
received low remuneration, as well as those who experienced high cost of spare parts and food.
Respondents who identified lack of human resources as a problem were those who did not have
apprentices. Some identified the absence of communication network as a problem in their service
provision while others found low patronage of their services as a problem.
5.4.5 Industry
Respondents who had their major livelihood activity within the industry sector constituted 13
percent. The industrial activities that people engaged in comprised the wood, metal, mining and
food industries. Majority of the respondents (64%) who engaged in the industrial sector were
within the mining sector. This was as a result of the mining project that has just started in the
Asutifi district within the last few years. Some of the respondents who were employees at the
mines were those who had lost their farms to the mining and sought to the mining industry as an
alternative form of livelihood. Other employees were those who were formerly unemployed and
have little or no skills at all but most of these respondents were found to be people who had
moved from other mining areas to seek better working conditions at Newmont Gold.
Even though each of the respondents engage in one of the four economic activities as a source of
livelihood, it was further revealed that those found in the service, commerce and industrial sectors
were also into farming activities. However, their farms were mostly on smallholder basis to
complement household food supply. This observation is directly in line with that of Scoones
(1998) that most rural people engage in more than one livelihood activity as a source of
livelihood.
5.4.6 Gender and Livelihood Activities
The research revealed that there is a strong correlation between gender and livelihood activities
that the respondents are engaged in. This confirms the observation made by Ellis (1999) that
gender is an integral and inseparable part of rural livelihoods. In the agricultural sector, women
were predominantly engaged in farming activities as compared to their male counterparts.
However, with respect to land ownership, it was clear that women mostly do not own farm lands
as compared to their male counterparts. With respect to the industrial and service sector however,
the number of males were slightly more than the number of women. Commercial activities
particularly trading was predominantly undertaken by women. Figure 5 -3 gives further details
about the relationship between gender and livelihood activities of the respondents.
31

Figure 5-3 Relationship between Gender and Economic Activities
5.4.7 Contribution of Livelihood Activities to Household Needs
The livelihood activities that the respondents engage in have significant contribution to their
household needs including basic needs such as food, clothing, shelter, water, education, health
and other needs like energy (for cooking and lighting). The survey revealed that the rural folks
barely have other means of generating income (e.g remittances, liquid assets and pension
allowances) aside engaging in their preferred livelihood activity. Responding to a question on
which livelihood activity contributes most to household needs, majority (70%) of the respondents
said that farming is a key contributor to their basic needs. This was confirmed during the focus
group discussions. The participants were of the view that through farming, they are able to meet
their food needs as well as energy for cooking (wood fuel and charcoal as the main source). They
further noted that they are able to sell some of their farm produce to meet other basic needs
(clothing, shelter, water, education, health). Again, they opine that even those who engage in
other livelihood activities like trading, mining, teaching and the like still engage in farming
activity because it is a means of survival. This corroborates the assertion made by Ellis (1998) in
his earlier work that for the rural families, farming on its own is unable to provide a sufficient
means of survival. The next major contributor to household needs was trading be it in agricultural
or non-agricultural produce as noted by 15 percent of the respondents. Wages and salary workers
(those in the service sector) were next on the list of contribution of livelihood activity to
household needs representing 9 percent of the respondents. Artisans, tailors, seamstresses and
hairdressers (representing 6%) complained of the low contribution of their livelihood activities to
their basic needs due the seasonality of their work.
32

5.4.8 Shift in Livelihood
In responding to a question on whether there has been a shift in the livelihood activity of the
respondents or not, respondents had varied responses. About 41 percent of respondents admitted
there was a shift in their livelihood activities whilst 59 percent had not changed their livelihood
activities over the past 15 years. Majority (81%) of those who had changed their livelihood
activities had done so between a year and 3 years. To determine the actual percentage of people
who had changed their livelihood activities, one way or the other, previous occupations of
respondents were sought. Out of the 41 percent who had experienced the shift in livelihood
activities, about 61 percent were farmers. This however does not mean that all the 61 percent
shifted from farming to something else. Majority of these included farmers whose farm sizes have
reduced and are therefore engaging in other activities like trading, providing services among
others in addition to the farming activity which hitherto was their only livelihood activity. The
others include traders and public servants making up 18 percent who had also changed to other
livelihood activities. The rest were hunters, drivers, miners and artisans making up 21 percent
who are now engaged in other livelihood activities. Figure 5 -4 depicts the percentage shift in the
various livelihood activities
Figure 5-4 Previous Occupations of Respondents Who Perceived a Shift
Respondents who had experienced a shift in their livelihood were further probed to find out how
satisfied they are with their current occupation. Only 29 percent of the respondents indicated that
they were satisfied with their current livelihood activities. Reasons given by respondents as to
why they were not satisfied included low remuneration or income, low job satisfaction, no access
to lands, farmland too far away and livelihood activity not sustainable which is shown in Figure
5 -5.
33

Figure 5-5 Percentages of Respondents and Their reasons for Unsatisfaction with Their Occupations
• Low remuneration
As the graph (label) above depicts, low remuneration accounted for the reason why 32 percent of
the respondents are not satisfied with their current livelihood/occupational activities. This is made
up of farmers (mostly commercial farmers) who are no longer getting enough from the proceeds
of their farms mainly because their farm sizes have reduced or has been destroyed by the
activities of the mining company. A typical example was a cocoa farmer in Jericho, Kenyasi No2
whose 10 acres cocoa farm has now been reduced to two acres because a part of it fell in the
concession of the mining company. It also included unskilled miners who perceive their
remuneration as inadequate. The same can also be said about public servants who complained of
inadequate remuneration.
• Low job satisfaction
About 12 percent of respondents complained of low job satisfaction. This mostly applied to
public and civil servants interviewed and a large proportion of those working with the mining
company (unskilled miners)
• Proximity to farm
Some farmers especially those whose farms were taken over by the mining company and have to
look for new farmlands now have to travel long distances to get to their farms. This problem is
more peculiar to the resettled farmers in the two resettlement communities even though some
34

farmers interviewed in Kenyase No. 2 also complained about this problem. This they say is
affecting their productivity as they get very tired by the time they get to their farms. Allied to this
is the problem of transportation. Farmers indicated that they have difficulties in transporting their
farm produce after harvesting.
• Sustainability of livelihood activities
Another group of respondents (14%) complained that their current livelihood activities are simply
not sustainable. According to them, their present livelihood activities are not able to sustain them
and their families because the prices of goods and services in the district have suddenly shot up
astronomically as a result of the mining company which has placed lots of money in the hands of
a few individuals in the district.
• Others
Other reasons given by respondents included unemployment, lack of customers (those in the
service sectors like dressmaking). Lack of access to farmlands was mentioned by resettled
farmers whose farmlands had been taken over by the mining company. Some youth who want to
enter into farming but cannot get access to land because land has become very scarce and
expensive as well as some farmers who complained of land fragmentation were among the
reasons. This they said does not encourage any meaningful or productive cultivation.
5.4.9 Trends in Economic Activities
The key informant interviews and the focus group discussions revealed that there has been a shift
over the past 15 years in the four major economic activities which people engage in as a source of
livelihood which is shown in Figure 5 -6.
Figure 5-6 Trend Analyses of Economic Activities by Sector Employment
From Figure 5 -6 it is clear that there has been a decline in the number of people employed by
the agricultural sector. Around 1995, the agricultural sector employed about 88 percent of the
active labour force. However, the percentage of the active labour force employed by the sector
declined to about 65 percent in year 2005. The household survey further showed that the
0%
20%
40%
60%
80%
100%
1995 2000 2005
YEARS
Agriculture
Industry
Commerce
Service
35

agricultural sector currently employs only 50 percent of the active labour force in the selected
communities. The percentage of the active labour force employed by the service sector also
however reduced from about 36 percent as at 2000 to about 27 percent in 2005. The percentage of
people employed by the other economic sectors (industry and commerce) on the other hand has
been increasing over the past 10 years. For instance, the industrial sector which in 1995 employed
only 20 percent of the active labour force in the district employed 40 percent of the labour force
in 2005. The trend of the shift in livelihood activities however is fast moving towards the
commerce sector. The commerce sector in 2005 employed about 58 percent of the labour force as
against the number of people employed by the sector in 1995 (39%). This shift could be attributed
to the fact that there had been an increase in the population in the district in recent years due to
the influx of migrants who do not have farms and hence engage in buying and selling. Again the
natives themselves have also started trading since there is a larger market now. The commerce
sector is closely followed by the industrial sector due to the start of the mining activities.
5.5 Causes of shifts in Livelihood Activities
Livelihood activities in the four selected communities, namely Hwidiem, Kenyasi No. 2, Ola
resettlement and Ntotroso resettlement have experienced some shifts as a result of many factors.
Respondents gave various responses as the reasons for the change in their previous occupation or
livelihood activity.
• The presence of the mining company
Majority (51%) of the people who had experienced a shift in their livelihood activities said the
mining company was responsible for the change in their occupation or livelihood. Among this
group of people are those whose lands have been totally or partially taken over by the company as
part of its concession, farm labourers who do not get “BY DAY” (work as and when someone has
a job to be done) to do anymore, sharecroppers who now have to switch to something else other
than farming or look for new landlords to enter new agreements with and also farmers whose
farm sizes have reduced drastically and are engaging in other activities to augment income from
the farming activities. From the focus group discussions and key informant interviews, it was
realised that the activities of the mining company is the major cause of shift in livelihood
activities.
• Low/inadequate income
Low or inadequate income was also one of the reasons cited by the respondents as a cause of shift
in their livelihood activity. About 17 percent had to change their livelihood activities because
income from their previous livelihood activities was not adequate and therefore not sustainable.
The only option left to this group was to change their livelihood activities to more sustainable
ones. This group comprises mostly of those in the service sector moving to commerce or to
industry (more specifically mining). During the focus group discussions, this was also pinpointed
out.
• Poor land administration
About 9 percent of respondents also cited poor land administration as one of the causes of the
shift in their livelihood activity. Most of these people are sharecroppers who have had to change
their livelihood activity. The reason was that there are no clearly defined rules on how to acquire
land to farm on in the study areas. Some complained that in some instances after they have been
given a piece of land to farm on, some body else comes to claim the land and in the process
destroy all their crops. Such people have no choice but to change to other activities like trading or
36

looking for work in the mining company. Women do not often own land and sometimes they find
it more difficult to get land to cultivate than their male counterparts.
• Others
Other reasons given for the change in livelihood activities are shown in the graph below, among
them are: to obviate conflicts in marriages, old age and pension, pregnancy or catering for
children, redundancy and some leaving their work to continue their education.
Figure 5-7 Perceived Reasons for Shift in Livelihood Activity
5.6 Effects of Shift in Livelihood Activities
Shift in trends usually comes with it both positive and negative effects most especially with the
major cause of the change or shift in trend being the presence of the mining company.
Respondents were therefore asked of the perceived effects of the shift in their livelihood
activities. The effects which could be either positive, negative or a combination of both were then
analyzed. Most (70%) of the respondents perceived the effects of the change to be a negative one
with only a few saying otherwise.
5.6.1 Positive Effect
About 30 percent of the respondents said the change was a positive one. An enhanced commercial
and business activity was the major positive effect.
37

• Enhanced Commercial / Business Activities
This was however made up of those who have in one way or the other established business (small
scale enterprises) of their own. This group therefore pertains more to those who have changed
from farming to commerce or service because their lands were taken over by the mining company
or those who have taken advantage of the mining company to establish “Food Selling Businesses”
and drinking spots which are recording high sales because of the ready market by those working
in the mining company. An example in this case was a young man whose land was taken over by
the mining company and who has established a big drinking spot in Jericho, Kenyasi No 2.
5.6.2 Negative Effects
Majority of respondents; 71 percent perceive food and livelihood insecurity as the most adverse
effect of the change in their livelihood activities, comprising 39 percent and 32 percent
respectively.
• Food Insecurity
About 39 percent of respondents indicated food insecurity as the major problem resulting from
the change in their livelihood activities. These comprise mostly farmers ( especially in the
resettlement areas) whose farm lands were taken over by the mining company and now have to
resort to small parcels of land on which they have to farm for a limited number of years. These
groups of farmers, landowners and sharecroppers alike are now faced with the problem of food
insecurity in that most of them have to start cultivating new lands all over again. The “waiting
period” within which the farm produce will be ready for consumption is creating the food
insecurity problem. Some also have to contend with reduced farm sizes as a result of the take
over. This adversely affects their output which is automatically reduced. This according to the
participants of the focus group discussions is also responsible for the increase in prices of food
stuffs in the district.
• Livelihood insecurity
The other 32 percent said they have livelihood insecurity. They further noted that prices of goods
and services in the study areas and the district in general have increased; unemployment rates are
high in the district resulting in increased theft cases being reported from time to time.
• Others
Other responses include parting with one’s family. This mostly pertains to miners who have
moved into the study area, leaving their families behind. Marriages are not stable any longer since
miners with lots of money to spend are taking over people’s wives. There is therefore a general
feeling of insecurity in the lives of the people.
5.7 Roles of the Stakeholders in Ensuring Livelihood Security
This research revealed a number of stakeholders (people, agencies, or organizations) who are
directly or indirectly involved in ensuring livelihood security of the people. The roles of these
stakeholders and their contribution to the livelihood of the people are discussed below.
• The District Assembly
The District Assembly plays a significant role in promoting the livelihood of the people.
As enshrined in Act 462 of 1994, the District Assembly plays both administrative and
legislative role at the local level. At the focus group discussions, participants described
the role of the District Assembly as effective even though the assembly is under
resourced in terms of human resource requirement and logistics. For instance, the district
38

planning officer lamented that he is currently undertaking the task of budgeting in
addition to his duties since there is no district budget officer.
• Area Councils
Politically, the area councils are the next unit after the District Assembly. They facilitate
local level development by discharging functions such as revenue collection.
Respondents rated the effectiveness of the roles of the area council at 35 percent.
• Unit Committees
The Unit Committee is the basic unit at the local level since they are located at the
community level. Their roles include mobilization of community members for communal
labour, monitoring the activities of the district assembly in their areas of jurisdiction and
mobilising the communities to embark on self-help project initiatives. Respondents rated
the effectiveness of their roles at 65 per cent.
The major constraints on the achievement of sustainable livelihood in the selected
communities and the district at large through the decentralization process may be
summed up as institutional inadequacies and financial constraints. Even though sub-
districts structures (the District Assembly, Area Councils and the Unit Committee) are in
place, they are not fully integrated to ensure effective community or grass root
participation in the decentralization process. More importantly, there are still inadequate
numbers of personnel with the requisite development planning and management skills
and organizational competence to implement the decentralized planning system at the
district level as reviewed during the institutional survey. It is therefore imperative to beef
up the human resource base of the various district sub-structures particularly the area
councils to ensure livelihood security of the people.
• The Ministry of Food and Agriculture
An immediate programme currently being undertaken by the Ministry of food and
Agriculture is the land access and Agricultural Improvement which is being funded by
Newmont Ghana Limited. Due to inadequate funds the ministry has not been able to
implement a lot of the programmes they have in place. For this reason Action Aid ( an
NGO ) has been implementing most of their programmes ( about 90% ) on their behalf as
noted by the MoFA Director.
• Traditional Authorities
The traditional authorities are the custodian of land in the study communities. Chiefs in
the selected communities play an important role in allocating land within their stool for
developmental purposes. At the settlement level, sub-chiefs or village chiefs, in
consultation with elders resolve disputes as indicated by the respondents. Respondents
rated the effectiveness of the roles of the traditional authority at eighty per cent (80%).
• African Connection
African connection (an NGO) has operated in the Asutifi District for two years now.
Their target group comprises of farmers who grow their selected crops and are aged
between 25 and 65 and Small and Medium Enterprises (SME) The major activity of this
NGO includes: Introduction of New crops, Farmer productivity training.
39

• Institutional linkages
Respondent pointed out the fact that there are high level of cordial linkages between
institutions and / stakeholders. However some respondents pointed out the negative
aspects of the institutional linkages as: Most of the NGOs are biased towards Newmont
Gold Ghana Limited (NGGL) and hence falsely publish reports in their favour instead of
advocating for the rights of the inhabitants. On the positive side however, Action Aid has
implemented about 90 percent of all the programmes of the Ministry of Food and
Agriculture (MoFA) because MoFA Lacks Funding.
40

Shifting trends in rural livelihood a case study of asutifi district

Shifting trends in rural livelihood a case study of asutifi district

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