Economic Hardship and Youth Migration in Ghana: Implications for Development

Ghana, previously known for its economic vitality, is currently experiencing tremendous economic challenges. This has led in an increasing tendency of migration among young people seeking better prospects elsewhere.

Economic Hardship in Ghana

Ghana’s economic troubles are characterised by high inflation, growing debt, and a declining currency. As of 2023, the inflation rate went beyond 30%, substantially reducing citizens’ purchasing power. The debt-to-GDP ratio has crossed 70%, suggesting serious fiscal strain and mandating austerity measures that would have a negative impact on the population (World Bank, 2023).

Youth Migration Trends

Economic instability has resulted in a significant migration tendency among Ghana’s youth. Faced with restricted career opportunities and rising living costs, many young Ghanaians are relocating to countries such as the United States, Canada, and several European nations. The International Organisation for Migration (IOM, 2023) says that youth emigration has increased by 20% since 2020. In 2022, the United States Department of Homeland Security stated that roughly 25,000 Ghanaians were granted different types of immigration, including student visas, work permits, and permanent residency. According to Statistics Canada, around 12,000 Ghanaians entered Canada in 2022 through various immigration programmes. The European Migration Network noted that countries like Germany, Italy, and the Netherlands have seen a steady increase in Ghanaian immigrants. In 2022, around 20,000 Ghanaians migrated to these three countries alone.

Development Theories in Context

The current scenario can be examined using several development theories, which shed light on the underlying dynamics and ramifications of these developments.

Dependency Theory

Dependency Theory, as stated by authors such as Andre Gunder Frank, asserts that developing countries are structurally dependent on wealthy countries, resulting in a cycle of poverty and underdevelopment. In Ghana, this idea displays itself in the form of economic policies and trade agreements that frequently favour wealthier countries, limiting Ghana’s economic growth. The youth migration trend can be attributed to this dependence. As young Ghanaians seek better prospects abroad, they perpetuate the cycle of dependency. Their remittances, while advantageous in the short term, do not replace the sustainable economic development that comes from retaining skilled labour within the country.

Human Capital Theory

According to Human Capital Theory, investing in education and skills promotes economic growth. However, in Ghana, the significant investment in education does not translate into domestic economic advantages due to a high percentage of skilled emigration. This brain drain reduces the country’s human capital, which is necessary for innovation and production. For example, the healthcare and technology sectors face a shortage of trained professionals, impeding development. The loss of educated youth implies that the country’s return on investment in education is realised overseas rather than at home, stifling potential economic progress.

World Systems Theory

Immanuel Wallerstein’s World Systems Theory divides the global economy into core, semi-periphery, and periphery countries. Ghana, classified as a peripheral nation, is prone to economic exploitation by core states. This hypothesis describes how structural inequalities cause economic hardship in Ghana, prompting young people to travel in quest of better chances. The migratory trend might be interpreted as an endeavour by individuals to relocate from the periphery to the core, where economic possibilities are more plentiful. This transition, however, leaves Ghana with less resources and a lower capacity for self-sufficient development.

Repercussions on Development

The exodus of Ghana’s young has several serious consequences for the country’s development:

Labor Shortage

The flight of young, skilled workers creates a substantial labour deficit, especially in important sectors such as healthcare, education, and technology. This shortfall limits the country’s ability to develop these industries, delaying overall economic growth and lowering the quality of services supplied to the populace.

Remittances vs. Brain Drain

While remittances from overseas are an important source of income for many Ghanaian households, the long-term consequences of brain drain are negative. The departure of competent individuals has resulted in underdevelopment in industries requiring competence, such as engineering and scientific research. This impedes technological advancement and industrial growth, both of which are necessary for economic development.

Social Impact

Migration frequently causes social fragmentation since families are separated for long periods of time. This has the potential to have long-term implications for neighbourhood cohesion and the nation’s social fabric. Children who grow up without one or both parents may experience emotional and psychological difficulties, limiting their future contributions to society.

Economic Dependency

Migration frequently causes social fragmentation since families are separated for long periods of time. This has the potential to have long-term implications for neighbourhood cohesion and the nation’s social fabric. Children who grow up without one or both parents may experience emotional and psychological difficulties, limiting their future contributions to society.

Conclusion

Ghana’s economic problems and the resulting migration of its young people pose substantial challenges to the country’s development. Addressing these difficulties necessitates a multifaceted approach that includes economic reforms to stabilise the economy, investments in education and job development to retain talent, and policies to minimise the negative consequences of migration. Development theories shed light on the structural changes required to promote Ghana’s long-term growth and development.

By Roger T.D Wills, Economist and Financial Analyst

References

• Frank, A. G. (1966). The Development of Underdevelopment. Monthly Review, 18(4), 17-31.
• Ghana Statistical Service. (2023). Ghana Economic Indicators. Accra: GSS.
• International Organization for Migration (IOM). (2023). Migration Trends Report.
• Schultz, T. W. (1961). Investment in Human Capital. The American Economic Review, 51(1), 1-17.
• Wallerstein, I. (1974). The Modern World-System. New York: Academic Press.
• World Bank. (2023). Ghana Economic Outlook. Washington, D.C.: World Bank.