Why is Ghana considered to be an LEDC?

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astrocourt's profile pic

astrocourt | College Teacher | (Level 3) Assistant Educator

Posted on

Ghana remains an LEDC due to its political unrest, large debt, lack of environmental stability and trade difficulties.

There are specific definitions which describe LEDC and MEDC countries. Mainly these fall into three development indicators: health, industry and education.

Characteristics of  LEDCs include:

birth rates - higher than other countries (20-45 people born per 1000). 

death rates - also higher than other countries due to poor healthcare and disease. This factor also includes infant mortality and life expectancy. LEDC countries have high levels of infant mortality (a high percentage of children die before they turn five), whereas very few children die in MEDC countries. Likewise, poor healthcare, lack of food, and disease, lowers the average life expectancy of a LEDC country. Furthermore, access to doctors is usually only available to the wealthy in LEDC countries.

literacy - low education levels result in low literacy levels for LEDC countries.

pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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Ghana is considered to be a less economically developed country mainly because of the fact that it is not very rich.  Perhaps the best measure of this is the fact that its per capita GDP (when adjusted to take into account what things cost in the country) is well below the world average.  Ghana's GDP per capita is $2500, putting in at 180th place out of the 227 nations listed in the CIA Factbook.

One can also call Ghana an LEDC because of the nature of its economy.  A relatively high percentage of its people (56%) are involved in agriculture.  Importantly, this is not a very efficient sector of the economy and only 30% of Ghana's GDP comes from the labor of those 56%.

For reasons like these, Ghana is seen as an LEDC.

kandi125's profile pic

kandi125 | High School Teacher | eNotes Newbie

Posted on

Ghana is considered a less economically developed country (LEDC) mainly because of the following two reasons:

Primarily extractive production and exports. Ghana's economy produces and exports primary goods and services to other countries. These goods and services could have been further developed by Ghanese manufacturers into secondary goods which would result in more foreign exchange for Ghana. Thus, Ghana places itself at a disadvantage when trading with other countries because its imports are more expensive than exports and so Ghana continues to have a trade deficit year after year. 

Low human development index. Due to the fact that Ghana's economy depends heavily on primary production, workers are not trained in varying production techniques or educated about how to use advanced technology in the production process. Thus, workers are only educated about the necessary tasks they will be completing in the workplace which limits the innovative contributions of workers to the production process. The labour force is not effectively utilized by the country.

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