Breaking the Cycle of Dependency… Well Trying to!

I arrived in Ghana as a volunteer; but if I received $1 each time I was asked for a loan or handout, I’d probably be living in luxury by now. I remember it like it was yesterday; I would arrive to first meet farmer groups and they would usually break into huge grins, which I perceived as “Yes, here comes a white man to give us free stuff.” I was right to some extent – I’ve realized many of those smiles genuinely represented the pure goodness, happiness, and caring of the culture here in Ghana – and well it wasn’t easy facing groups of farmers day in and day out who expected something, yet you can provide (what at first they perceived as) ‘nothing.’ If you read my initial assessment, you’ll see that many of the groups were looking for loans. At first it really annoyed me, but after a few conversations with a colleague it all started to make sense.

In the past, many programs have come to Bongo that provided credit for farmers. One of which basically handed out ‘free money,’ which they called a loan, to any farmer group that registered themselves. With no conditions or limitations, groups were either slapped together or appeared spontaneously just to make take advantage of the offer. The groups usually had little or no reason to actually ‘work’ in groups and dissolved soon after. Another program also provided ‘loans’ for farmers that increased each time the previous ‘loan’ was paid off. It worked at first; however, down the line money was usually chopped (which means taken for themselves) by group executives and with no exit strategy the program ended leaving farmers seeing: ‘loans’ = free money.

This perception of loans has really taken it’s toll on the farmers here in Bongo, with more current legitimate loans from banks not being taken seriously. I feel, farmers don’t realize the consequences of defaulting with banks (since, as far as I know, loans are a bank’s primary source of profit) and have fallen into the cycle of debt. Year after year they rely on loans either to pay off previous loan payments or because they have not used their previous loan towards building their farming business. This reliance on loans, outsiders, handouts, etc. keeps pushing them in the vicious cycle of dependency. Slowly they begin to stop taking control of their lives and place it the hands of outsiders. They live not by what they have to give, but what others have to offer.

I firmly believe that the AAB program we are implementing, attempts to break this cycle of dependency so many farmers suffer from; not only with its aim to develop groups, but it’s efforts to give them the skills they need to take ownership of their farming and take back control of their lives. Here’s a story of one such group that seems to notice this, but whether or not they buy into it is still uncertain.

Remember George who I mentioned in my last post; he is one of the longest serving AEAs in MoFA and therefore one of the most experienced. He is a dedicated, hard worker who always makes and effort to go above and beyond in any task he is assigned.

When we first met one of his farmer groups, Saabo, there was one thing on my mind when they saw me… financial help. In the very first meeting they expressed concerned about a dugout (which collects rain water for animals to drink from) built by an NGO that was now broken. They figured it only makes sense that here, another NGO, would be help them fix it. I tried to encourage them to earn enough to fix it; only to be laughed at since it was more than I had initially thought (it costs around $500 according to them). Even after telling them we were there to give them some skills that can help them, during the second meeting again we were asked to fix it. In the third meeting it then became a question of loans; not until recently have things begun to change.

We arrive at Saabo at 10am; George is about to be the first AEA in Bongo to conduct the business plan card of the curriculum. This is one of the few groups that is usually ready to go around start time, so without hesitation we kick things off with a usual opening prayer. George then begins the card and asks them to think of a project they want to work on; they select 5 acres of soy beans. Going through the expenses with them George and the group come up with a grand total of GHC 960 (~ $960). Let’s just say the meeting didn’t end on a positive note. Where in the world would the group get GHC 960? They would certainly have to take a loan? That’s GHC 240 in interest at the LOWEST interest rate of 25%! How could would they even qualify for such a loan? These are all questions that both parties dealt with at the end. However, what might have seemed like a failed attempt, was actually only the beginnings of success.

After we arrive at the next meeting with Saabo two weeks later, George and I sit down and begin to chat about the intended plans of Saabo’s group project. Wanting to break the cycle of dependency we both discuss alternatives of how we can create something that is more within the group’s budget. George asks the group how much they plan to contribute to their bank account before the next rainy season; the group decides 1 GHC each. At an official total of 35 members, this means the group will have a guaranteed GHC 35 to work with. After a bit of hesitation, George finally convinces them to try reducing their ambitious project to a more reasonable one consisting of 1 acre. Getting them to come determine the expenses, they now arrive at a expense total of GHC 45! What’s even better is the group realizes that the sacks costing GHC 10, which are needed to store the produce, won’t be needed until later in the rainy season near harvest! This means all the initial costs will be GHC 35, exactly what the group plans to have by the start of the rainy season. All of a sudden things are starting to look up…

George then proceeds to helping the group calculate their income for the produce after harvesting.  Finally, they determine a final profit of GHC 435 if all goes well! To emphasize the point more, George gathers some rocks and using the rocks as money, shows them visually exactly how much they can make if they’ve given accurate numbers for their plan. The group is shocked to say the least, but keep the ‘game’ going by ending with “We’ll still take the loan if we get it.”