There are moments when politics reveals its true nature. Read more: ghana promises impossible Read more: ghana subsidizes illusion Today, it's happening in Ghana. While international cocoa prices plunge into the abyss—down 40% since January, 75% from 2024 highs—Dr. Samuel Ofosu-Ampofo, chairman of the Ghana Cocoa Board, calmly announces there will be "no further reduction in prices paid to cocoa bean producers."
According to GhanaWeb, international prices have fallen below $3,000 per metric ton. In the neoliberal logic governing our economies, Ghanaian farmers should therefore watch their incomes evaporate. After all, it's "market law," isn't it?
The Ghanaian Heresy
Except Ghana just committed economic heresy: decoupling its producers' incomes from the whims of international speculation. A decision that should make all those in Europe think twice—those who learnedly explain to our farmers that they must "adapt to global market realities."
Because what realities are we talking about exactly? The cocoa trading today in London or New York hasn't changed flavor since 2024. Its nutritional quality is identical. The efforts of Ghanaian producers to cultivate, harvest, and dry it remain the same. Only the speculative fever of traders has changed.
Ghana, which produces about 20% of the world's cocoa, just reminded us of a truth our economists have forgotten: the real economy isn't reducible to financial market fluctuations. Behind every ton of cocoa, there are families, communities, social ecosystems that cannot be sacrificed on the altar of "competitiveness."
The Political Lesson
This Ghanaian decision is first and foremost a political act. It asserts that the state can—and must—protect its citizens against the dysfunction of a financial system disconnected from productive realities. A position that contrasts sharply with the resignation of our European governments when faced with "market constraints."
How many times have we heard our ministers explain they could do nothing against falling agricultural prices, deindustrialization, or job insecurity? "It's globalization," "these are economic laws," "we have no choice." Ghana just demonstrated that yes, we do have a choice.
Of course, this policy has a cost. COCOBOD will have to draw from its reserves or borrow to maintain prices. But that's exactly what all developed countries did during the 2008 crisis: socialize losses to preserve social stability. The difference is that in Ghana, they're protecting producers. In Europe, we protected bankers.
The Infantilization of Citizens
This affair also reveals how our political and media elites systematically infantilize citizens. They explain that the economy is too complex for us to understand, that only "experts" master these issues, that we must trust the automatic mechanisms of the market.
Ghana just proved the opposite. Its decision is disarmingly simple: if international prices no longer allow producers to live with dignity, then temporarily disconnect local prices from international ones. End of story.
This simplicity isn't naivety—it's political lucidity. Because fundamentally, what justifies a Ghanaian farmer seeing his income quartered because London traders decided to bet against cocoa?
The Real Questions
Obviously, this policy raises questions. How will Ghana finance this price stabilization? How long can it hold out if international prices remain durably low? And above all, doesn't this protection risk creating economic distortions?
These questions are legitimate. But they shouldn't mask the essential point: Ghana just reminded us that politics is first the art of making choices. And the first choice is deciding whom to protect when the system derails.
In Europe, we've gotten used to protecting creditors, shareholders, "investors." Ghana chose to protect its producers. There's a lesson in democracy here that our leaders—so quick to lecture the rest of the world on governance—would do well to ponder.
Because ultimately, the real question isn't whether this Ghanaian policy is "economically viable." The real question is whether we accept that the economy dictates its laws to society, or whether we want society to regain control of its economy.
Ghana just gave its answer. And us?
Frequently Asked Questions
Q: Why are Ghana's cocoa prices not being reduced despite falling international prices?
Ghana's Cocoa Board, led by Dr. Samuel Ofosu-Ampofo, has announced that there will be "no further reduction in prices paid to cocoa bean producers," despite international cocoa prices dropping significantly. This decision reflects Ghana's commitment to decoupling farmers' incomes from volatile market fluctuations.
Q: How much of the world's cocoa does Ghana produce?
Ghana produces approximately 20% of the world's cocoa, making it a significant player in the global cocoa market. This production level underscores the importance of Ghanaian farmers and their economic stability in the face of international price changes.
Q: What is the significance of Ghana's decision regarding cocoa prices?
Ghana's decision to maintain cocoa prices for its farmers is seen as a political act that prioritizes the welfare of its citizens over the speculative nature of international markets. It challenges the notion that local economies must always adapt to global market realities, emphasizing the need to protect local communities and their livelihoods.