Against the afore mentioned bearing of rural level associational structures on micro enterprise growth, elements associated with cultural values such as reciprocity and trust portray the strongest impacts at the communal level, revealing the vibrance of associational life closely knit communally. Personalised trust, as well as trust in group relations as part of the indigenous knowledge system plays a vital role in the execution of economic activities according it significance in the development of expanded and far reaching networks for local economic engagements. In local economic engagements, trust in personalized relations drawn from indigenous knowledge systems particularly afford the sustenance of formed networks such as in customer relations amongst local traders and farmers in market processes with external middlemen and retailers. LYON186 reiterates the role of personalized trust in the mechanisms of working relations vital in the processes of local economic activity, where personal trust amongst farmers, traders and agricultural input suppliers provides the needed base for the development of micro enterprise.
Group relations, more especially, at the micro level, are largely dependent on existing social values such as trust, norms, shared perceptions as well as shared forms of indigenous knowledge. LYON187 further denotes the purpose of group based trust in regulating dramatic price fluctuations in produce, where the value of civic capacities in micro economic activities are supported based on group trust. Focusing on group relations, LYON portrays activities of farmers in the Brong Ahafo region of Ghana in periodically forming adhoc price setting committees to negotiate tomato prices on behalf of famers within the village with the ability of the group to cooperate in terms of price agreements based on trust between members. BRATTON188 refers to the product of these relations as the necessary material conditions which are accrued through individuals and groups developing an independent capacity to accumulate capital. The very processes and forms of micro level activity make the development of civic association as a resource even more crucial in the realisation of rural development goals, where local economic activities engaged in on the smallest scale basis can harness the potential of associational activity to focus on occupational goal achievements. 186 Lyon, F. (2000:1) 187 Lyon, F. (2000:15) 188 Bratton, M.in Harbeson, J.W. et al (1994:64)
The phases of economic recovery programmes initiated over the last decades in Ghana witnessed structural changes aimed at strengthening rural level economy and promoting empowerment at the community level. Governmental strategies have long since then regarded the issue of ‘enterprise’ particularly at the rural level, to be closely associated with, and largely dependent on a thriving civil society.189 Communally, depending on the structure of group relations, obligations based on trust, among other values have the tendency to be more vigorously pursued based on the degree of adherence to normative values. In the quest to accrue maximum benefits, civic association within formal structures strive towards serving social interest through varying forms of interaction in group relations. In local entrepreneurial processes such as in production and trade, the value of networks within associations and groupings has the capacity to go more often beyond accrued group benefits to direct individual gains.
Figure 2.6: Nnoboa System
Source: Author's construct
Group labour systems in rural communities in Ghana have supported smallest farm holders particularly with farming capacities of up to 1 acre where traditional methods of farming used with high dependence on seasonal patterns for planting and harvesting create dependence on shared labour systems among peers as alternative, where the accessibility and affordability of formal and mechanised farming methods are far reaching. Traditional labour groups such as the Nnoboa190 have been predominantly based on personalised and group trust, where the adherence to cultural values based on norms and values support the degree of trust amongst farmer colleagues in the rotating system of labour support. Shared value systems being the basis for trust and reciprocity, the sustenance and further development of the organisation of
189
Aryeetey, E. et al (2010:15;16) 190
Nnoboa groups predominantly practiced in rural communities refer to rotating labour systems based on trust and reciprocity.
Group labour
system –
Inter group relations - inter personal trust amongst farmer colleagues
this system of community group relations lies in affording it a form with the capacity to sourcing additional support for mechanised farming systems amongst others.
In addition to support from informal traditional networks such as ‘Nnoboa groups’ during
planting and harvesting seasons, memberships in formal networks such as farmers groups and credit union associations enhance the possibility of receiving seasonal financial assistance as buttress to what traditional associations such as ‘susu groups’191 could offer. More importantly, heavy negotiations needed in periods of fluctuation as mentioned, particularly for the cash crop (cocoa) increases the relevance of professional bodies in negotiation processes with government structures in reaching conditions agreeable towards the sustenance of business. The existence of adhoc indigenous occupational groupings formed on the basis of trust in periods of crisis increases the possibility of the formation and sustenance of like occupational structures of groups of individuals as formal structures at the rural level in developing their capacities to collaborate with meso level formal structures. In facilitating access to financial capital for micro enterprise development, bridging the gap between traditional susu groups based on personal trust among community members to taking up a more structural form promotes the ease in accessing credit facilities from formal credit structures at meso levels.
Figure 2.7: Traditional credit system linking formal structure
Source: Authors construct
The heavy dependence particularly of rural farmers with lower capacities on susu savings especially in planting seasons where capital is needed for the purchase of agro chemicals and other farm inputs affords them little financial space whereby small amounts can be given out by susu collectors to members against their contributions in the following months. Occurrence of the inability to repay loans taken from formal banks by individual rural farmers based on
191
susu groups refer to the traditional savings and credit systems more often prevalent in rural communities, localities and surburbs where micro economic engagements are practised
Structured credit system linking formal credit system
Individual member- traditional susu system
Traditional (community)susu collector
the unpredictable and seasonal nature in farming engagements makes accessing loans through formal banking systems as individual farmers less attractive. Structuring of traditional credit systems towards group linkage to formal credit bodies at meso and larger communal levels enhances the ability to spread financial risk at the group level as well as affords individual rural entrepreneurs opportunities strengthening financial capacities in growing their economic activities.
In supporting formal structures for trading and farming engagements locally, a cocoa farmer may have the possibility, through village membership, of delivering cocoa beans for further sale through the traditional chief; better still, the opportunity exists for him as member of a producers’ association or cooperative, to have the grain collected and deposited at cooperative stores for further distribution and sale, as against single handedly having to bargain with middle men and traders from adjoining towns. Traders could as well reap the benefits of having traders’ groups represent bargaining processes in the regulation of prices in neighbouring markets where individual traders have little influence in price regulation by ‘market queens’. In trade groupings such as for foodstuffs and commodities, textiles and hairdressing, functional associations could imply a further increase in opportunities provided through the creation of a platform for the generation of ideas and exchange of experiences. MC AREAVEY 192 considers the success of such associations being dependent on the presence of structures portrayed as ‘socially inclusive’, the development of such groups being dependent on self generated capacities to support themselves.
Civil associations in this form could be particularly useful in serving societal interests through community linkages to outer circles, and in the enhancement of organisational structures supporting small and medium scale enterprises particularly in communities where individuals are unable to undertake economic activities with measurable pay offs. Engagement in associations could support the establishment of productivity enhancing mechanisms for individuals insufficiently entrepreneurial or needing assistance in building initiative. The diversity in individual entrepreneurial activities could further justify enhanced engagement in civic associations towards increased specialisation in areas of diversification to yield better results. In their developmental phases at the community level in organising themselves structurally for vertical linkages, civic engagements taking up formal structures communally can already act as pressure bodies in protecting occupational interests In her discussions on
192
rural collective association WIDNER193 additionally identifies the value of community farmers unions in Cote d Ivoire in acting as pressure groups to effectively advocate in fertilizer policy issues, where national periphery non governmental bodies had not placed it as priority on their agenda.
Invariably, aside formal associations mentioned, others such as the Ghana Private Road Transport Union, amongst others have continually been proactive at communal levels, providing a mechanism for addressing concerns and representing interests. Extensive economic rehabilitation processes have increased the country's capability in the reorganisation and restructure of groups and associations. Here, enhanced engagements from the communal level with such associations could provide far reaching results in the efficient management of location and transition of market transactions, creating accessibility openings. In buttressing frameworks for formal networks, forms of solidarity based on kinship ties within informal networks serve as a support base in protecting and championing communal occupational interests. Although traditional associations geared towards promoting economic activity such as household/informal rotating savings and credit schemes ‘susu groups’ informal labour
support ‘nnoboa’, as well as village and youth groups could tend to be more inward looking in structural set ups and activities engaged in, group processes tend to provide a platform for the harnessing of communal resources in micro processes.
Discussions on industrialisation strategies bordering on the influence of civil associations in enterprise growth have experienced degrees of variation particularly within the last few decades in the wake of the concepts’ foreseen relevance in development agendas. Likewise, a host of questions have arisen in recent times delving into changes effected by civil association in contemporary society. Increasing recognition accorded the concept over the last decades have since then led numerous scholars to present diverse prescriptions bringing to the fore the dimensions and context dependent nature of the concept. The bulk of literature presupposes the fragility of the concept, in that the strength of structures, organisational and network capacities is context dependent, creating varying degrees of strength and form of the concept across settings. For most developing countries with young and fragile democracies, the value of civil associations is even more profound in the demand seeking process, with the onus lying largely on non-governmental structures with interests at stake to build formidable structures supporting such processes. In the quest to develop systems buttressing political and economic growth, the need to encourage forms of social interaction developing into
193
organisations providing mutual support for each other as well as joining forces in advocacy processes cannot be undermined.
Particularly within the West African context, governmental structures and policies have in the recent past been concentrated on vesting the bulk of power at the central government level, hampering the development of decentralised structures at the local level in decision making processes. Civil society structures have often remained weak due to lack of autonomy and excessive governmental influences, implying a stalemate in the representation of societal interests.194 More recent restructuring in governmental frameworks with an inclination to bottom up approaches in development policies has further paved the way for actors in the private sphere to broaden their horizon and to be actively engaged in the decision making processes. Within the region, the private sector has, over the last few decades witnessed an expansion in the network of entrepreneurial bodies engaging in the development of instruments for private sector development.
Principally during the early 1980s when Ghana experienced phases of drought and famine, closely knit social interaction in localities continued to thrive in sustaining economic activity. Van DIJK195 in a survey of localities in Accra makes mention of the ROSCA (Rotating Savings and Credit Schemes) based on social relations thriving under harsh economic conditions as well as local entrepreneurs and small scale traders buying and selling on credit to sustain economic activity.
In local areas in Accra and other cities as well as in communities, informal sector food processing engagements represent an area of civil association in continuous activity to be considered in enhancing civic relations. The activities of small scale roadside-"chop bar operators", though having experienced marginal economic growth have exhibited sustainability in periods of economic crisis and have been identified as a vital aspect of the economic activities in poor localities and rural communities. In such communities, the brewing of pito, preparation of kooko196 and bread amongst others serves as core support for most traders alongside their general trading activities. In buttressing such activities, industrial policies developed in 2010 by the Ministry of Trade and industry intend focusing more intensely on enhancing competitiveness and growth in local level industry involving support programmes engaging local actors in economic activity. Particularly for rural communities, the positioning of the Business Advisory Centres in offering consultation to supporting the 194 King, K. et al (1999:8) 195 van Dijk, M.P. et al (1997:132,133) 196
identification of training needs offers an opening where collective efforts of small scale farmers and traders in similar engagements could realise the affordability of such offers to increase their capacities.
HADENIUS 197 intone the essence of a well functioning civil society, noting the need for such organisations to be conscious of popular demands so as to effectively serve the purpose of interest and opinion representation. For Ghanaian rural communities as for the sub region, vibrant associational life particularly serves to support trading relationships at the rural level, enhancing the ability for rural market women in the smooth flow of transactions through active participation in commodity groups. ORSINI et al198, refer to this expansion as the
‘secondgeneration’ private sector, of new, more independent actors poised to take advantage
of business opportunities emanating from liberalization processes as opposed to the ‘first generation’ actors immediately following the independence periods, closely linked to and dependent on political regimes.
The essence of her distinction bears on civic association in Ghana, where opportunities to develop private sector initiative and reap sustainable market partnerships at the local level are highly dependent on the development of civil society neutrality from the state apparatus. In searching for answers for the attainment of a ‘working’ civil society, HADENIUS et alfurther reiterate the importance of the independence of such organisations; implying that the success of such organisations in wielding enough power to influence the state is owed to their degree of independence in all spheres, from the state; thus affirming the degree of strength, multiplicity and autonomy as key factors regulating the adequate function of civil society. Thus, though BARR 199 in her study of sub Saharan enterprises identifies the presence of will power in association formation, a further dimension is brought to fore in the paucity in interrelations between established networks as well as cooperative behaviour amongst network members. In several Ghanaian communities, lack of cooperation and mistrust in traditional groupings such as in cooperatives and susu groups where unscrupulous operators have mishandled members savings led to a stalemate in the function of such groupings hindering their linkage to more established networks. Attempts have been recently made at restructuring such traditional savings schemes to take a more structured form as micro finance institutions, where susu groups collectively organised as companies making deposits and
197 Hadenius, A. et al(1996) 198 Orsini, D.M. et al, (1996) 199 Barr, A. (1998)
profit are expected to be roped into the micro finance association programme to improve recognition and identity of operators locally.
Earlier studies bearing on enterprise development particularly in Ghana have dwelt on promoting economic development processes through building local social networks and to focus on the structure of commercial transactions. Additionally, highlights in studies have stressed the need to beef up capacity building efforts towards a strengthened private sector, calling for further action in promoting initiatives geared towards an independent private sector.200 In the development of perspectives, van DIJK201 discusses the stalemate in economic activities among the rural poor in developing countries; Ghana being an example, and attributes the prevailing conditions to the inability to compete in existing market conditions in view of the capacity lacking, urging for more inclusive strategies in enterprise support initiatives.
His proposal on the adoption of inclusive strategies bear on the need for local economic actors to organise themselves along occupational lines, in the adoption of strategies to meet existing market challenges across the rural periphery. In studies conducted in the Wassa West region GURI et al,202 identified farmers and traders being disadvantaged in the determination of fair prices for produce due to lack of efficient linkages beyond the community. Determination of prices for produce by "market queens" often implied the loss of bargaining power, rendering their economic engagements hardly profitable. Likewise, petty traders dealing in essentials such as soaps, lanterns and kerosine for farmers and for general household use within the communities suffered the effects of poor communication in hardly being able to keep abreast with price fluctuations. Further literature identifies the minimal changes in the development of small and medium scale enterprises towards enhancing activities outside their existing networks. In a similar study, SVERRISSON203 explores the possibility of enhancing trade and development through policies aimed at building appropriate interrelations among small and medium sized industries, proposing the enlargement of social networks built through the encouragement of steady cooperation among small enterprises. For the Ghanaian rural community, the adoption of this approach offers the opportunity for groups of individuals to
200
Orsini, D. (1996:23), Clark, G. (2010:254,255), portrays experiences in West African societies particularly Ghanaian rural market relations in efforts of small scalers, where trading practices are structured to take advantage of existing relationships.
201 van Dijk, M.P. (1997) 202 Guri, B. et al (2002) 203 Sverrisson (1997: 25)
liaise with groups of like groups at meso levels, enhancing their inclusiveness in the adoption