1. Introduction
Between the 1960s and 1980s, most of the young independent states in Africa were struggling to keep up economically; characterised by political instability and high indebtedness. Governments in these countries were labelled as ineffective in managing the affairs of their respective countries and needed to open up to allow individual capitalists to dominate and regulate the market and service delivery. As a result these countries including Ghana were given loans to help revive their economies in 1983. The condition for this loan was for governments in these countries to implement strict neoliberal policies which became known as the Structural Adjustment Plan (SAP) where they were supposed to move from their traditional socialist and nationalist stance and embrace capitalism where everything is left to the invisible hands of supply and demand. The role of the state was reduced to just providing an enabling environment for individual businesses to thrive but can not engage directly in the market; resulting in the state cutting down its spending on the welfare of the general public and also selling its assets to individual businesses.
The purpose of this article is to examine the effects of neoliberal reforms on urban service delivery using Ghana as a case study and to examine the associated implications. By examining how these reforms have shaped the provision of essential services and their influence on urban security; this article provides a comprehensive understanding of the border consequences of neoliberal policies in the context of a rapidly growing and increasingly complex urban environment
2. The Neoliberal Agenda
The 1980s saw economic downturns in a number of African nations, including Ghana. These developing nations were forced to implement SAP due to the financial crisis in order to revive their economy. Three steps included the implementation of SAP: stability was the first phase, and then rehabilitation and market liberalisation came next. Since April 1983, Ghana’s government policies and urban planning have been impacted by the SAP imposition as a worldwide neoliberalism market ideology. SAP, a formalised neoliberal strategy advocated for economic recovery in developing nations, was actively pushed by the IMF and World Bank. It was thought to be the answer to recessions. But in order to encourage private investment, it constrained the state’s spending on social goods and services, such as the provision of social housing and the commodification of land and housing properties as tradable assets. The Ghanaian government followed these policies with diligence and rigour from 1983 to 1998, not modifying them to account for regional differences. Ghana has so frequently been praised as one of the economies that has successfully undergone neoliberal changes. Despite its successes, neoliberalism has had a significant impact on Ghana’s urban service delivery, and its legacy has shaped the country’s urban development and governance to this day.
3. Impact on Urban Service Delivery
One of the crucial consequences of neoliberal reforms has been an increase in the cost of services due to privatisation. This process most often saddled low-income residents with increased financial costs and brought sharp inequalities in both availability and quality of services. Rich areas benefited from better services, while poorer neighbourhoods remained in dilapidation without provision. However, decentralisation, which introduced better responsiveness at the local level, sometimes caused fragmentation in service delivery, with limited coordination between stakeholders, hence negatively affecting urban planning and management. In the next section, CISA analysts used SDG 11 as an analytical framework to examine neoliberal agenda effects on three key urban services in Ghana: housing, water and sanitation, and green spaces.
3.1 Housing
Urban housing was a significant component of the government’s social programs from the time of independence, when the state adopted a socialist political ideology (Arku 2009; Gillespie 2018; Konadu-Agyemang 2001). Housing was seen as a human right and wellbeing. Because of this, the state actively and directly contributed to the supply of urban housing and provided support for low-income households; initially, this was done through the construction of public housing in the 1960s, and later, through “self-help” housing initiatives in the 1970s, both based on the principles of basic needs fulfilment and redistribution. The 1990s saw the introduction of neoliberal policies, which caused a paradigm change in the housing industry. The transition to private sector housing under neoliberal urban policy reimagined housing as productive capital rather than a welfare provision. Therefore, housing provisions are determined by market principles.
In the housing market, middle-class to upper-class individuals were the primary target audience for formal housing developers, or real estate. Because low-income housing carries a significant risk and has limited profit margins, private developers are unwilling to take on the housing crisis. This problem is attributed to land litigation, inadequate management, excessive mortgage interest rates, and the expense of building materials and construction. Due to land speculation and increasing prices brought on by this kind of speculative expansion in the real estate sector, low-income households are now out of reach (Arku 2009).
Buying or renting a house in Accra is highly expensive. According to a Numbeo report from October 2021, Accra is the second most expensive city in Africa and has the highest prices for buying new homes. This contributes to the expansion of Accra’s informal settlements and slums, which are characterised by substandard housing, a lack of basic amenities, and precarious living conditions (Addi & Ayambire, 2022). Accra is expected to have a large housing gap; the government reports that there are only 1.8 million dwellings in the nation. But the existence of commercials for pricey housing options begs the question of how accurate this estimate is.
3.2 Water and Sanitation
At least half of Accra’s citizens, according to Harris (2021), do not regularly have access to safe, secure, and reasonably priced water. Having access to drinkable water enhances health and sustains life. Nonetheless, Accra’s low-income areas particularly still lack access for households to a continuous and potable supply of drinking water (Tetteh, 2021). In fact, privately involved companies like Zoomlion have upgraded technologies for waste management and efficiency. Often, these benefits are drowned by the added cost that has to do with privatised services. Low-income communities cannot bear the rising costs of sanitation and waste collection, thus normally end up in poorer sanitation conditions or poor waste collection. The results of poor sanitation infrastructure are something of an ugly reality in most of these cities, like Accra. This is evident in the perpetuation of various issues in numerous aspects, particularly in slums where refuse piles up and sewer systems are mostly very appalling. Transitioning from public-funded sanitation to privatised sanitation minimises government oversight, hence erratic service delivery that exacerbates environmental and health risks. Detrimental impacts on health status and unhygienic lifestyles further exacerbate social-economic inequalities if sanitation is withheld.
3.3 Green space
The impact of neoliberal reforms on green spaces in Ghana has been particularly detrimental. Green spaces, such as the Achimota Forest in Accra, have historically provided essential recreational and environmental benefits. However, under neoliberal policies, significant portions of these spaces have been repurposed for commercial and residential development. This loss has been driven by the demand for urban expansion and development, often at the expense of public parks and natural areas.
The remaining green spaces are frequently concentrated in high-income neighbourhoods, leading to an inequitable distribution of these vital resources. Low-income areas, which often face higher levels of environmental degradation and limited recreational opportunities, are particularly affected by the reduction in accessible green spaces. The loss of green spaces diminishes opportunities for physical activity, community interaction, and environmental quality, impacting the overall well-being of residents.
4.Discussion
Cities are organic, and their growth is determined by the interventions that people and government make in them. While some actions result in better and more sustainable growth, others cause unsustainable growth. Cities in sub-Saharan Africa are witnessing a particular kind of struggle: the struggle of the underprivileged to survive in the era of neoliberalism. The urban poor in response to these reforms have created new economies or expanded the informal sector as a way of developing survival tactics to deal with their circumstances.
The implications of these reforms for urban security are significant. Put another way, if the urban poor are under additional stress, which is unavoidable in the context of neoliberalization and capitalism, they will find new ways to survive in the cities, which will lead to an increase in informality and environmental harm as we see in many African cities like Accra. Ecological and other catastrophes will always be a possibility in a world where poverty and inequality are pervasive (Brundtland Report, 1987). Rising costs of housing, sanitation, and basic services contribute to social inequality and tension, which can manifest in civil unrest and conflict. Inadequate provision of such basic services in low-income areas amplifies health risks and environmental problems, further stresses urban systems, and may be linked to increasing social instability. The loss of green space and the unequal distribution of remaining parks and recreational areas further reinforces these issues. The lack of green spaces can lead to reduced community cohesion and increased stress on residents, therefore impacting on general social stability. Again, privatisation reduces public accountability as well as oversight considerations of particular relevance to the delivery of services and urban management, thereby making the country more susceptible to crime and disorder.
5.Conclusion
From housing and sanitation to basic services and green spaces, the neoliberal reforms of Ghana have brought far-reaching consequences in terms of how services are delivered. While effective in introducing efficiencies and attracting investment, such policies have exacerbated social inequalities and created more challenges. Goals on sustainable development in cities need to be reframed for the Ghanaian context if we are to achieve them by 2030 and beyond. The following argument is made by analysts from CISA from a critical viewpoint: We cannot adopt the model from the developed world because of great cultural differences among us. We have to accept the peculiarity of our reality and to recognize that the informal economy, which has not been regulated until now, is one of the most important contributors to the current problems of sustainability taking place in the cities. For such problems to be effectively addressed, policymakers must balance market-driven approaches with robust public oversight and ensure equity in service delivery. Inclusive and sustainable urban development will go a long way towards improving livelihoods and enhancing security for all Ghana residents amidst rapid city growth.
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