Globablizing City: Urban and Economic Transformation of Accra, Ghana

Globalizing Citv

Space, Place, and Society

John Rennie Short,

Series Editor

OTHER TITLES IN SPACE, PLACE, AND SOCIETY

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The Boundless Self: Communication in Physical and Virtual Spaces Pau l C. Adams

The Global Crisis in Foreign A id Richard Grant and J a n N ij m a n , eds.

Imagined Cou ntry: Environment, Culture, and Societ;v John Ren n ie Short

Inventing Black-on -Black Violence: Discou rse, Space, and Representation David Wi lson

Migrants to the Metropolis: The R ise of Immigrant GateJlla _v Cities Marie Price a nd Lisa Benton-Short, eds.

The Politics of Landscapes in Singapore: Constructions of((Nation'' Li ly Kong a n d Brenda S. A. Yeoh

Tel Aviv: M;vthograph;v of a Cit;v Maoz Azaryahu

Verandahs of Power: Colonialism and Space in Urban Africa Garth A ndrew Myers

Women, Religion, and Space: Global Perspectives on Gender and Fa ith Karen M. Morin and Jean ne Kay Guelke, eds.

Globalizing c �-��

The Urban and Economic Transformation of Accra, Ghana

Richard Grant

� SY RA CUSE UNI V ERSITY PRESS

Copyright© 2009 by Syracuse University Press Syracuse, New York 13244-5160

All Rights Resen>ed First Edition 2009 09

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ISBN-13: 978-0-8156-3172-9 (doth)

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Library of Congress Cataloging-in-Publication Data Grant, Richard. Globalizing city: the urban and economic transformation of Accra, Ghana/ Richard Grant. - 1st ed. p. em. - (Space, place, and society) Includes bibliographical references and index. ISBN 978-0-8156-3172-9 (doth : alk. paper)

I.

Urbanization-Ghana-Accra.

3. Globalization-Ghana-Accra.

2. Accra (Ghana)-Economic conditions. I. Title.

HN832.A65G73 2008 307.7609667-dc22 2008046644

Manufactured in the United States of America

Contents

FIGURES M APS

Vzt

zx

TABLES

xi xm

ACKNOWLEDGMENTS ABBREVI ATI 0 NS

1.

Introduction Globalizing City

2.

XVZI

1

Globalizing from Above Foreign Companies and Corporate Spaces

3.

18

Globalizing Residential Spaces 42

The Spread of Gated Communities

4.

Globalizing from Above and in Between The Residential Building Boom

5.

In-Between Globalizing Returnees' Networks and Spaces

6.

90

Globalizing from Below Slum Dwellers in a Globalizing City

l

66

I

Conclusions APPENDIX

I

157

WORKS CITED INDEX

136

163 177

111

Figures

47

3 . 1 . Private Sector Rea l Estate Advertisement s

3 . 2 . Monthly Fluctuations in G ated Community Advertisements

48

3 . 3 . B reaking and E ntering Crimes in Greater Accra, 1980-2 0 0 1

51

56

3 .4 . M a i n Purpose of Houses in East Ai rport

57

3 . 5 . How Residents Paid for Their Houses i n East Ai rport 58

3 . 6 . Reasons Why Resident s Moved i nt o East Ai rport

60

3 . 7. How Residents Paid for Their Houses i n Trasacco Valley 60

3 . 8. Reasons Why Residents Moved i nto Trasacco Val ley 61

3 .9. M a i n Purpose of Houses i n Trasacco Valley 4 . 1 . Private Unrequited F u nds ( Rem ittances) to Ghana

77

80

4 . 2 . Who Is Buying Property i n Accra? 4 . 3 . How Individuals Pay for New Houses

84

5 . 1 . Morphology of an Upper-I ncome Transnational Ent repreneur 5 . 2 . Morphology of a Lower-Income Transnational Entrepreneur

Vll

I I

102 102

Maps

4

l.l. Accra in a Global izing Context 6

1 . 2 . Geography of Accra

2 . 1 . Schematic Representation of Economic Geographies of Accra 25

in Colonial Phase

2 . 2 . Geograph ic Distribution of All Corporate Activity in Accra , 1 999

31

2 . 3 . Geographic Distribution of Foreign Companies in Finance 33

and Producer Services in Accra , 1 999

2 .4 . Geographic Distribution of Domestic Companies in I mport- E xport Sector in Accra, 1999

35

2 . 5 . Schematic Representation of Economic Geographies of Accra in Global Phase

37

3 . 1 . Geography of G ated Communities in Accra

54

4 . 1. Residential Geographies of Compound Housing 72

Versus Private Houses, 2 0 0 0

115

6 . 1 . Residential Geography of Informal Structu res, 2000

117

6.2. Korle Lagoon Within Accra Metropol itan Context 6 . 3 . Old Fadama and Agbogbloshie Settlements 7. 1 . Globalizing Spaces in Accra

146

IX

119

Tables

2.1. Origins of Top Ten Most Active Foreign Count ries in Corporate Activities in Accra, 1 994-2006

29

3 . 1 . Inventory of G ated Communities in G reater Accra , 2004

53

4 . 1 . Comparison of Percentages of Housing Stock 69

and Ownership Categories, 1990 and 2000

4 . 2 . Top Twelve Most Active Count ries in Building Construction 75

and Real Estate Development

4. 3. Foreign Agents and Their Local Partners in Money Transfers 4 . 4 . Sectoral Employment and Cu rrent Occ upations of Heads of Households

82 98

5. 1 . New Housing Investment by Cost 5 . 2. E mployment of Returnees

99 100

5 . 3. Transnational Entrepreneu rs

Xl

79

RIC H A R D G R A N T

is a professor in the Department of

Geography and Regional Studies, University of Miami, Coral Gables, Florida. He is a human geographer with spe ­ ciali zations in economic and u rban geography. His research interests include economic globali zation , globalizing cit­ ies, the work and economy of slu ms, and international and regional trade patterns. He has been conducting extensive fieldwork on u rban and economic transformations in Accra, Ghana since 1 99 5 . His research has been funded by two National Science Foundation grants as well as the National Geographic Society. Globalizing City presents a theoretical argument based on empirical research that cities in A frica are not excluded and can be better u nderstood as global­ izing cities.

Acknowledgments

I D I D N O T K N O W W H A T T O E X P E C T·

on my first trip to Accra in June

1 9 9 5 . I anticipated it would be a n eventful trip but could never have antici­ pated that I would write a book on the city. My work i n Accra had a suspect begi n n i ng. I arrived for my very first visit and my luggage did not make it u ntil a week later. The taxi that I hired at the airport came to a sudden stop on pot-holed Cantonments road , half-way between the airport and Osu . The driver asked me to pay the fare at that point and I obliged as he scampered oft' to fill a container with petrol, assuring me he would return. He returned, and we continued onto my final destination, a cheap hotel i n the commercial heart of the city. So much has changed in Accra since 199 5 . The taxi service at the airport has been formalized (a large part of it anyway) and the d rivers wear smarter blue u n i forms and display (if requested) a printed sheet with official fares. The taxi vehicles have become more reliable and costly and even some now are air-conditioned. The roads and general infrastructure around the airport as wel l as the airport itself have been greatly improved. The cheap hotel has been rebuilt to a higher standard and is no longer i nexpensive . Large facets of the city have been transformed and i n the process, Accra no longer has the feel of a collection of villages, but now has a more metropolitan ambience . This u rban transformation has brought new challenges as well as opportu­ nities, and has resulted i n complicated changes, some of them visible; most require u nearthing. I n 2008, Accra is a globalizing city; Accra and other cities i n Ghana hosted the Twenty-sixth A frican Cup of Nations soccer tou rnament i n spring 2008 and the spectacle received global attention . So much that happens in Ghana, fifty-one years after i ndependence, now is monitored both from afar X111

XIV

AC K N OW L E D G M E N T S

and locally. Accra, i n particular, as Ghana's globalizing node , i s i n a height­ ened process of transformation . My work is a serious attempt to document, analyze, and think about the ongoing u rban transformation, particularly in light of the international arena becoming a more i mportant d river. 1 H AV E L E A R N E D M U C H

about the city over the years . In this book, I

draw together my various research efforts and writings, add to them , and connect the pieces in a framework that sheds light on the i mpacts of glo­ bali zation processes on u rban Accra . Some of the chapters in this book are based on working texts published at different stages in the advancement of the research. The original references are : chapter 2 , R. Grant and J . Nij ­ man. 2002 . " Globalization and the Corporate Geography of Cities in the Less Developed World." A nnals of the Association of American Geographers 92: 320-40; chapter 3 , R. Grant. 200 5 . "The Emergence of Gated Com­ munities in a West African Context: Evidence from Greater Accra, Ghana."

Urban Geography 26: 661-83; chapter 4 , R. Grant. 2007. " Geographies of I nvestment: How Do the Wealthy Build Houses in Ghana? " Urban Forum 18 (l) 31-59; and chapter 5, R. Grant. 2006 "Out of Place? Global Citizens in Local Spaces: A Study of the I n formal Settlements i n the Karle Lagoon Envi rons in Accra, Ghana." Urban Forum 1 7: 1-14 . I am gratefu l to many scholars, friends and institutions for their support of my work . I began conversations about Africa and Accra with Deborah Pellow, an anthropologist at Syracuse University over a decade ago when we shared offices next to each other in the Global Affairs Institute . John Mercer encou raged me to visit Accra to begi n a new project. I am indebted to Paul Yankson , from the University of Ghana at Legan, for his numerous conversa­ tions and field excu rsions to various parts of the Accra and its environs over the years, and for his assistance and guidance in the su rvey research. Farouk Brai mah of Peoples' Dialogue became a very good friend and is a tremendous sou rce of information on many of the newer informal settlements that have emerged in Accra over the last decade or so. Richard Dornu -Nartey, former deputy min ister of Lands and Forestry and cu rrent di rector of Land for Life, was very generous i n providing background and historical insights on vari­ ous u rban issues. The African Studies Association annual conference pro ­ vided an i mportant intel lectual envi ronment to present my research and keep

AC K N O W L E D G M E N T S

XV

up with the latest research undertaken by the many Ghanaian geographers . Thanks to Ian Yeboah, Kobena Hanson, and Kwadwo Konadu-Agyemang (now only with us in spirit), and many others tor their insights, criticisms, encouragement , and good hu mor. The National Science Foundation and the National Geographic Society were kind enough to support parts of research, and without their financial support this book would not have been possible . University of Miami st udents such as "Lynsey Irwin, Daniela Belloli , and Kathleen Poncy provided help to various parts of the work . MY T H I N K I NG ABOUT ACCRA

in the global setting was greatly sharp­

ened by conversations with colleagues Jan Nijman, Chris Rogerson, John O'Loughlin, Alan Mabin, Peter Muller, Peter Taylor, Marie Huchzermeyer, and others too numerous to mention . I greatly benefitted trom conversations I had with colleagues of the Wits Housing Studies Group in Johannesburg when I was a visiting researcher there in fal l 2 0 0 5 . John Rennie Short, the series editor of Space, Place, and Society at Syracuse University Press, was always encouraging of my Accra book project. Chris Hanson provided excel­ lent cartographic expertise to this project. The reviewers of the book did a great job in helping me enliven the topic, as wel l as d raw out my arguments. My greatest gratitude is for my fam ily. Adriana was always willing to l isten to ideas as wel l as provide feedback. Adriana and Sofia accompanied me on a visit to Ghana in October 2 0 0 5 , and seeing Accra through their eyes was great fun and very refreshing tor my work and writing. The book was supposed to be finished before Natalia arrived in November 2007. Her pending birth hastened my writing and help me move toward completion . No doubt like many authors before me, I have come to realize that infants have a way of growing faster than book projects . It is to Adriana, Sofia, and Natalia that I dedicate this work.

Abbreviations

ACS -BPS

Affil iated Computer Services- Business Processing Services

AMA

Accra Metropolitan Assembly

BP

British Petroleum

CBD

central business district

CBO

com munity based organization

CEPI L

Centre tor Public Interest Law

COHRE

Centre on Housing Rights and Evictions

EPZ

export processing zone

FDI

foreign direct investment

GA

Greater Accra

GAM A

Greater Accra Metropolitan Assembly

GCG

Ghana Cyber Group

GFZD

Ghana Free Zones Board

GHI

Ghana Homes I ncorporated

G H PF

Ghana Homeless Peoples Federation

G I PC

Ghana I nvestment Promotion Centre

GNIPC

gross national i ncome per capita

GNP PC

gross national product per capita

GREDA

Ghana Real Estate Developers Association

GSE

Ghana Stock Exchange

GSS

Ghana Statistical Service

HABITAT

United Nations Centre for Human Settlements

HFC

Home Finance Corporation

HTA

Hometown Association

IGO

intergovernmental organ ization

IMF

I nternational Monetary Fund xvu

XV111

A B B R E V I AT I O N S

I RS

I nternal Revenue Service

IT

information technology

JV

joi nt-venture

KLM

Royal D utch Airlines

KLERP

Korle Lagoon Ecological Restoration Project

M IT

Massachusetts Institute of Tech nology

NGO

nongovernmental organi zation

N PP

New Patriotic Party

OECD

Organization for Economic Cooperation and Development

OPEC

Organ ization of the Petroleum Exporting Cou ntries

PD

People's Dialogue on Human Settlements

RA

residential association

SA P

structural adjustment programs

SDI

Shack/Slum Dwellers I nternational

UN

United Nations

U NCTAD

United Nations Conference for Trade and Development

U N DP

United Nations Development Program me

U N I DO

United Nations I ndustrial Development Organi zation

USA I D

United States Agency for I nternational Development

Globalizing Citv

1 Introduction Globalizing City

G H A N A PA RT I C I PAT E D F O R T H E F I R S T T I M E

in the June 2 0 0 6 World

C up Finals held in Germany. Ghana's debut was an i mportant event in the country's h istory. "The Black Stars," as the team's supporters fondly refer to the national team, are professional soccer players employed by some of the world's elite clubs, such as Chelsea Footbal l Club ( United Ki ngdom), AS Roma ( Italy) , and Fernerbahce ( Tu rkey) . Accra native and Ghana's best­ known player, M ichael Essien, is Africa's most expensive tootballer ever, fol lowing his transfer from Olympique Lyonnaise ( France) to Chelsea in summer 2 0 0 5 for US$4 5 . 8 7 m i l l ion . In the German finals only one Gha­ naian- based player, Shilla I l l iasu, took to the field ( I l liasu was a player tor the Kumasi - based Asante Kotoko during the finals but has since been trans­ ferred to the Saturn Football Club, Russia) . What is striking (and similar to other African countries represented at the finals) is that virtually all of the regular team members ply their profes­ sional trade outside of their home states. Moreover, Ghana's first profes­ sional match after the German Finals (on August 1 5 , 2006) was against neighboring Togo. Signi ficantly this match was held not i n Ghana, Togo, or even A frica but took place on European soil at Gri ffin Stadium in London. Professional soccer at the h ighest level is j ust one of the many i ndicators revealing the extent to which i mportant national events are now routinely held outside national territory, how many high-profile Ghanaians operate as transnationals ( keeping one foot in Ghana and one toot beyond) , and the extent to which local and national revenues are connected to wider global flows of peoples and monies.

2

GLOBALIZING CITY

Many of the contemporary global-to-local and the local -to-global con­ nections that are vital to Ghana are much less visible . For instance, the i mpact of the Ghanaian diaspora is much more difficult to quantify. We know that national policy promotes efforts facilitating Ghanaians in the diaspora to take an active role in the cu rrent development of Ghana, and we know that the more visible role of wealthy nonresidents i n u rban and economic devel­ opment is indirectly encouraging future m igration streams abroad , but it is difficult to put exact numbers on these phenomena . The volume of any type of international flow to Ghana (trade , investment, aid, etc .) does not stand out on global economic maps . The sum of all of these flows , however, is significant in the Ghanaian context, given a national population of 22 .4 million in 2006. Moreover, foreign financial flows to Ghana appear to be delocalizing important aspects of Ghana's urban econom ies . For i nstance, in Accra niche property markets for gated enclaves for nonresident Ghanaians have been developed . The internationali zation of Accra's u rban economy has i mpacts in deep and u nquanti fiable ways: it alters people's horizons toward more ( but sometimes less) engagement with the world beyond . More con­ cretely, it is encouraging i ndividuals to adapt, strategize, and network vis-a­ vis Ghana in a wider world. In this book, I explore the i mpacts of i nternational d imensions of u rban and economic change in Ghana's largest city, Accra . This exploration is based on eleven years of research on Accra, details the major global penetrations i n the urban economy, and explores changing relationships among people and places i n this context. The research entailed extensive fieldwork that included 652 corporate su rveys, 300 household surveys and over 100 i nterviews with policy makers and key urban agents from real estate developers to slu m ­ dweller organizations. It also d raws o n secondary data provided b y national organi zations in Ghana (e .g., the Ghana Statistical Service [GSS ] , the Ghana I nvestment Promotion Centre [GIPC], the Bank of Ghana) . I asked myself three questions throughout my research. How has the international arena become a more powerfu l driving force in urban change ? What are the most salient impacts of globali zation on the spatial ity of urban life ? What are the most i mportant i mpacts of the international arena on u rban spatial develop ­ ment? The changing u rban context is reflected across the range of the u rban­ econom ic spectru m . For instance, at both extremes of the u rban spectru m ,

I N T RO D U C T I O N

3

from elite gated community residents to the poorest of slum dwellers, city residents now think and act beyond the confi nes of the city and employ global strategies to mediate their positions in the contemporary city. Accra is a very d i fferent city from the "typical" African city conceptu­ alized primarily i n local and regional terms i n the earlier nationalist era . This more internationally oriented city represents an i ncomprehensible city to government policy makers and others who fai l to grasp the extent of the transformation , and who instead stil l situate Accra in national, national­ regional , and local terms. The closest parallel i n terms of the city's exposure might be found i n the colonial era and its urban spaces described in rich detail by scholars (e .g., King 1995; Myers 2003). I n essence , this book is about looking out at the world from a prism centered on the real and l ived experiences of Accra u rbanites who are engaging the world beyond . G R E AT E R AC C R A : T H E C A S E ST U DY C I T Y

Accra i s an i mportant city i n the West African region , and i s currently the capital city of Ghana. The rise of Accra as an urban center dates to 1 8 77, when the colonial headquarters were relocated from Cape Coast. Accra was selected as a site for colonial administration for a number of reasons, promi­ nent among them were health-related issues ( building up a newer area was thought to protect Europeans from native -born diseases) as wel l as perceived locational advantages (a sheltered harbor and central location on the Gold Coast, close to the prime meridian) ( B rand 1 9 72a; Brand 1972b; Grant and Yankson 2 0 0 3 ) . A visitor to Accra in 1 8 74 portrayed the area as "one com­ pact mass of thatched buildings arranged i n a haphazard manner and sepa­ rated by narrow crooked streets" (Stanley 1874, 77) but this was to change d ramatically in time . Officially, "Greater Accra" refers to a broad ad ministrative region (com ­ prising GA, Accra Metropolitan Assembly [AMA], Tema, Dangme West, and Dangme East), but more commonly researchers conceptualize urban Accra as the built- up metropolis centering on AMA and fan ning out i nto the adjacent areas of Tema and GA districts. Throughout this book I refer to Accra when discussing the built environment and the urbanized city per se. Urban Accra is bounded by the Gulf of Guinea in the south , by the

GLOBALIZING CITY

4

ACHIMOTA PAHK

.

.!. •..·

'

:.j···················· ····································-..:·,per ,___.....,_

-1,.�-:

····

GULF

OF

GUISE/I

N 5km

-��-��-

Map l.l. Accra in a Globalizing Context. Source: Grant 2007.

University of Ghana in the north, by Tema Township in the east and Danso­ man in the west. Beyond these areas the u rban envi ronment fans out in all directions in peri-urban sprawling development . According to local population experts, Accra's official population in 2007 was 1 ,970,400, an appreciable increase of 3 1 1 ,463 since the 2 0 0 0 cen­ sus (GSS 2002), but the experts also acknowledge that it m ight be consid­ erably higher (official census figu res u ndercount slu m dwellers, m igrants, and regular sojou rners) . 1 Although Accra is not among the largest cities of the world, or even of Africa, its growth rate (among the fastest-growing metropolitan areas in West A frica) and the extent to which it is changing is signi ficant . Annual population growth rates early in the twenty- first century hover around 4 percent ( Habitat 2 001 , 300), and the city's spatial expansion has been spectacular. To put this in perspective , over the last ten years or so "the number of u rban residents has doubled , the areal size of the city has i ncreased by over 30 0%" ( Yeboah 2001 , 68) and some 1 5 3 ,966 new houses have been built I. Com m u n ication K . B . D a n so - M a n u , head of Data Processi ng, GSS, August 2 1 , 2 0 0 7.

I N T R O D U CT I O N

5

( Yeboah 2003a, 1 14). Unl i ke other cities where administrative policies place l imits on uncontrolled sprawl, Accra has experienced extensive growth and expansion, whereby city boundaries are pushing the urban frontier farther and farther away from the traditional urban core . Grant and Yankson (2 0 0 3 , 6 5 ) describe " the present city a s stretching for about 30 kilometers from east to west, and about 12 kilometers from north to south," and most of this phenomenal urban expansion has proceeded since 1986. Within the built-up city itself there is considerable open space between Teshie and Tema, where large tracts of land are reserved for military use. All of this has been accom ­ plished even though the gross national income per capita (GN IPC) had not moved beyond US$320 by 2003 and many urban residents survive on less than US$2 per day (World Bank 2 0 0 5 ) . One must ask: How has such exten­ sive development been possible? The "making ofthe town" of Accra ( Parker 2 0 0 0 ; Acquah 1 9 57; Brand 1 9 72 a) and the h istorical and geographical development " from a fishing village to a m i l l ionaire city" ( Konadu-Agyemang 2 0 0 1 b, 61) have been extensively detailed elsewhere . My work i n this book bui lds upon this base ­ line, emphasizing the c urrent i nternational d imension in urbanization pro ­ cesses, a dimension that is likely to grow in i n fluence unless major policy upheavals occ u r because of an unanticipated reversal i n global orientation . The theme of this book is the making of Accra in the contemporary glo­ balization era . A contemporary global ization lens puts an emphasis on ident i fying global ization processes and individuals employing global strategies (Mur­ ray and Myers 2 0 0 7 ) . This lens also sheds light on i nternational networks by explaining how links are maintained, guarded, adj usted , and recon fig­ ured locally from Accra (Murray and Myers 2 0 0 7 ) . Obviously, not all urban residents participate in globalization, but all are affected by it " tor better or worse" ( Konadu-Agyemang 2000, 469; Gifford 2004). The urban impacts of globalization are highly differentiated locally, reflecting variations in global exposure, occupation, education , i ncome , migration experience , fam­ i ly histories, networks and connections beyond , and so forth. Even though a growing proportion of Ghanaians have newly become urban residents, some city residents are not truly globalizing in the context of linking to the world beyond . Certainly there are many individuals l iving in Accra who have weak

6

G LOBA L I Z I NG CITY

contacts to the global economy and who live local ly rooted lives. Moreover, there are u rban residents who emphasi ze a rural orientation to fam i ly and home villages, and who privi lege these connections above all else in strat­ egizing about their daily lives. After twenty-four years ofliberalization policies, however, most u rbanites draw increasingly on material resou rces that span the globe . Most u rban resi­ dents are pragmatists and cosmopolitans in this regard . Urbanites i n Ghana have always been known to be resourcefu l , and many have connected beyond the local whenever possible, but the sheer scale of this trend is intensified in the contemporary era . I ncreasingly, u rban residents seek to enlarge the spaces of their operation by j u mping scales (whereby economic and political power established at one geographical scale can be combined with another, and typically there is a si multaneity of scales, whereby there are interflows

Map 1 . 2 . Geography of Accra . Source: G rant 2002 .

I NTRODUCTION

7

between the local community and the global environment and visa versa) so that local urban l ivelihoods are increasingly i mbricated in a variety of global processes. Overall, the c urrent globalization era adds another layer of com ­ plexity i n that m a ny urbanites have to operate simultaneously at a variety of scales (e .g., neighborhood , city, international ) . The combining o f global a n d local processes is producing a globalizing city: a production that is evolving and far from complete . The extent of the ongoing urban transformation is remarkable . As Simone (2004, ll) empha­ sizes, the transformation is "so extensive and deep as to have substantially displaced most functional centers of social gravity i n both the countryside and city. . . . At the same time the city remains highly dynamic, a fertile incubator of new ideas, econom ies and social collaboration" (Simone 2004,

ll). This urban environment is best described as truncated modernization : the evolving city is fragmented, chaotic , and spatially messy. It does not fit neat categories and/or simple compartmental i zations i nto traditional and modern , formal and informal. Moreover, the city has outgrown the clear spatial demarcations of the colonial era. The emerging urban and economic spatial formations are less than clear. C O N T E M P O R A RY G L O B A L I Z AT I O N AND U RBAN DEVELOPM ENT I N ACCRA

The i n formation presented i n this book contributes new knowledge about global ization based on extensive field research ; its central argument : cities i n A frica, like Accra, have n o t been left o u t o f globalization . There is a widen­ ing, deepening, i ntensi fication and growing i mpact of global connections on the local economy and on local engagements with the world beyond . Glo­ balization, i n its embrace and i mpact, further divides the urban space and population as it i ntegrates urban economies l i ke Accra . As a consequence , the globalization era is associated with intensi fied u neven development in Ghana and i n Accra, in particular. The best way we can spatially frame this u neven globalization is to situate it i n the context of a hyper-di fferentiation of space (Grant and Nijman 2 004). In essence , this is the spatial accom­ pani ment of the hypermobility of capital . Hyper-differentiation comprises more than conventional definitions of u neven development; it i nvolves both

8

G LOBALIZING CITY

quantitative and qualitative transformations . It is expressed i n i ncreasi ng a divergence among places and individuals, taking place in the context of an ongoi ng recon figu ration and redivision of the global economy. The u rban impact of the globali zation era can be best understood by framing it in historical context. Contemporary globalization represents the most recent of three historical episodes that changed the role and place of Accra in the global-political economy forever. Each of the historical episodes transformed the past, but the past is not obliterated . There is the persistence of continu ities in the u rban landscape , as well the creation of new spatial formations that may be separate and even competing. Fi rst, the decision by colonial policy makers to move the capital from Cape Coast to Accra in 1877 meant that the city became the ad m i n istrative and com mercial center; this elevated its importance and led to considerable expansion (Acquah 1957; Brand 1972a). D u ring the colonial period, the city served as an entrepot and gateway to the UK economy. Second , Ghana gained its independence in 1957, and Accra, as capital and leading city, served as a growth engine for the national economy. The postindependence period ( 1957-82) coincided with the nationalism era in Ghana's political economy. The government con­ centrated on accelerating modernization , and the main thrust of govern­ ment policy was i mport substitution (Songsore 2003). Despite the rhetoric of balanced growth and even national development, the spatial structure of the colonial economy remained intact and new i ndustrial and infrastruc­ tural i mprovement efforts i n Accra complemented the colonial spatial orga­ ni zation of the city. The third historical episode and the foreground to this book is the government's decision to open up the economy in 1983 when a structural adjustment program was negotiated with the World Bank and the International Monetary Fund ( I M F ) , and the state i mplemented a wide range of liberali zation pol icies that, in turn, facil itated a deeper and wider engagement with the global economy. In Accra , the i mpacts of globali zation are widely recognized and debated, but research on the spatial effects of globali zation has lagged beh ind; many of the changing spatialities of u rban life have been theori zed but are u nder researched . Accord ing to Mu rray (2004, 3 8 ) " the built envi ­ ron ment is both a site and a sou rce of social power: places are not only the material and symbolic embodi ment of concealed power relations, they are

I N T RO D U C T I O N

9

the enabli ng devices that faci litate , structure and mediate norms of mar­ ket- driven i nvestment, production and consumption ." The built environ ­ ment, its shape, contours, and accessibility set l i mits on possibilities tor the conduct of everyday l i fe . Corporate offices, gated residential communities, export processing zones ( EPZs), and slums, tor example, are not merely in the background or simply benign; they carve out d istinctive spaces and are part of the transtormative process . Central to understandi ng these new geographies of globalization is to emphasize the speci fication, location , and role of agency in the process . Instead of fram i ng Accra as predominately marginal to the larger urban­ izing world, it is more illuminating to conceptualize the city as a place of engagement and as a platform of mediation tor local as well as global agents. Foreign investors, foreign property developers, nonresident individuals, and expatriates are leading participants i n the transformation process. But they have also found willing local collaborators and forged i mportant local-global ties, not just with government and the business community but also with individuals who, for better or worse, view their urban futures as more and more connected to the world beyond their known local communities. T H E T H R E E GLOBA L I Z I NG MOV E M ENTS

There are three movements i n which global ization becomes grounded in Accra . First, globa lizing processes are ushered i n from above . International organizations, the government, and its institutions aim to create a policy environment to harness global capital . The liberalization policy environment increases the transnational mobility of capital . In the Accra context, the city becomes a 'theater of acc umulation' (Armstrong and McGee 1986) and cir­ culation of c apital , whereby foreign direct i nvestment ( FDI ) , new foreign companies, and i nternational transfer of funds (remittances and savings of the d iaspora now allowed u nder a financial liberalization regime) become ever more present. Above all else, the liberalization policy environment privi­ leges the role of external actors and foreign capital in the local economy. The establishment of new agencies such as the GIPC and the Free Zones Board , a n d t h e centrality o f these agencies within policy making are indicative of the new policy tilt. When foreign i nvestments become grounded locally, they

TO

GLOBA L I Z I NG CITY

can form many local partnerships and arrangements that also rely on locals for support. For example, in the corporate envi ron ment they are often mani­ fested in joi nt-venture (JV) busi ness arrangements, and foreign companies can reach into the informal economy through subcontracting arrangements . Globali zation from above , by its very moment u m , triggers various reactions and a wide array of local adaptive strategies. The second powerfu l movement i nvolves locals harnessing a d i fferent type of global expertise and interacting with a d i fferent global environment (civil society as opposed to global capital). Most commonly in the litera­ ture, globalizing from below is usually conceptualized in terms of various forms of local resistance, such as grassroots activism . Some of the opposi­ tion to globali zation from above focuses on broader economic forces (ethnic nationalism , anti-globalization protests, evangelical movements, etc .), but many efforts of globali zation from below do not oppose global capitalism, rather seek to benefit from the new global context . Most saliently this has been expressed through marginalized individuals working i n concert with nongovern mental organi zations ( NG Os) to change local u rban policies and to demand a space i n the local economy. Currently, i nterventions i n housing for the u rban poor do not have to be dependent on the World Bank a nd/ or national governments ( Huchzermeyer 2004). Some organized members of the poor are developing a capacity to learn and liaise with similar groups across national borders to formulate their own housing strategies and to reposition themselves within their local political context (Appadurai 2 0 0 1 ) . Slu m-dwel lers' organi zations, working i n concert with i nternational NGOs and homeless people's federations in other locations (within cou ntry and outside of national territories), are a good example of an effort to install a globali zation from below. In a third movement, in- between global izing occurs . This movement captures the adaptiveness of subjects that are neither entirely foreign nor entirely local . In many ways , in- between globali zation has been facil itated by the fluidity of international migration and travel back and forth. Return migrants are a good example of how globali zation proceeds in between . Potentially their networks are neither exclusively rooted in the initiatives of the imm igrants themselves ( i . e . , from below) nor from above , dependent on institutional actors and external agents . Returnees operate in an in- between

I N T RO D U C T I O N

II

space and are often the missing and unknown agents. Based o n their tormer experiences (havi ng l ived here , there, and here again), return m igrants are able to combine traditional social networking and transnational networking. Many pursue transnational practices, and their l ives revolve around l ink­ ing d i fferent places and practices. Accord i ng to Portes et al. ( 1999) it is the " intensity" and "regularity" of exchange that are novel among contempo ­ rary d iasporas and that enable migrants to support and link development i n a number o f locations a t the same time. In this book, I explore the geographies of globalization withi n these three globalization movements . I posit that globalization is manifested i n an u neven spatia -temporal development o f capitalism (Grant and Nijman 2004). I take issues with world-city researchers who categorize African cities as "black holes" of marginalization and excluded or "excorporated" from the global economy (Short 2 0 04a; 2 0 04b) . I nstead, I present research evidence showing that globalization is ushered in from above , from below, and from in between simultaneously. Combined, these processes transform the urban economy in d ramatic ways . ACCRA AS A G LOBA L I Z I NG CITY

The extensive world- city research l iterature has paid scant attention to cities in Africa. O utside of Johannesburg, ful l - fledged global cities in Africa do not exist. Van der Merwe (20 04) emphasizes that sub- Saharan Africa is a huge i n formation lacuna; African cities are often overlooked and portrayed as isolated and as lower down in the global urban hierarchy. By some criteria African cities may appear isolated (Simon l992a), but it cannot be concluded that they are i rrelevant to the global economy. At the other extreme , King (2004) proposes that all cities be considered as world- cities. This may be stretching the reality tor most cities in A frica, considering that most states have not been ful ly liberalized . The reality tor those cities lead i ng in liberal­ ization eftorts (e .g., Accra, Gaborone) is l i kely to be somewhere i n between . A more middle ground, argued by some scholars (e .g., Robinson 2006; Rog­ erson 2 0 0 5 ) may be more on the mark. Robinson (2006, 5 3 8 ) emphasizes that when viewed from within these cities-"places allegedly oft' the global map"-the global economy is of enormous signi ficance i n shaping their

I2

G LOBALIZING CITY

fortunes and futures. I n many ways , Accra, like the vast number of cities in the less developed world, is an "ordinary city" compared to the global cities of London, New York, Tokyo, and Paris. This bri ngs into focus an u rgent need to better conceptualize and understand "ordi nary cities" in terms of globali zation ( Robinson 2006). Many researchers have raised strong objections to world -city approaches that presume to grou nd u rban theory in the experiences and histories of western cities ( Robinson 2006; Grant and Nijman 2002). Furthermore , it is evident that the types of data used to study world-cities are not avai lable for African cities (Simon 1992b). Even if they were , these data wou ld not be as use­ fu l . The data limits in an a priori way the kinds of questions that can be legitimately addressed within the world- city framework (Mu rray 2004). It is also clear that different data are more relevant for studying non-world-cities . For instance , Taylor's (2001) research shows that the connectivity of NGOs in a world -city network is a better measure to capture the lower circu its of globali zation than the networks of nonexistent branch offices of leading Fortune 5 0 0 companies. There is a consensus among researchers that local data col lection is vital. Fi lling gaps in the data through local fieldwork by employing su rveys, interviews, and other techniques is essential for u nder­ standing the cities of the world for which data are scarce . Such efforts are critical for grou nding globali zation and for yielding new insights into the worki ngs of "ordinary cities" and for improving theori zation of cities in the less developed world . This is all the more u rgent because earlier conceptuali zations of African cities in the global economy-"the colonial city," "the African city," "the Third World City," and the " traditional city"-are now outdated. All of these were developed i n isolation from each other, and none seem capable of explaining the present spatial i mprint of globali zation on A frican cities. We need an approach that is t heoretically informed and based on primary research. In many ways , this means a retu rn to the intensive fieldwork and pri mary data collection that characterized African u rban research in the 1960s, but more important, the research needed now must be framed within the context of the changing global economy. The framing of Accra in both the context of globalization and the con ­ text of Africa is complex because there is the double problematic of what

I N T RO D U C T I O N

13

exactly makes a city "African" as wel l as what are the unfolding global processes. The African city is a far broader and more c u lturally sensitive topic than I can explore in this book. My intention is neither to establish a geographical specificity nor to detail a partic u larly African modality of urbanization; instead I aim to link the African and global contexts. The impact of colonialism, the ensuing integration i nto the world economy, local idiosyncratic featu res, national development experiences, and the actions of local agents all account for differentiating A frican cities within a heteroge ­ neous group. Furthermore , I contend that in the face of global economic restructuring, the ushering in of free market policies, i ncreasing exposure to global and diaspora cultural i nclinations, and similar forms of contemporary external engagements are eroding difterences among African cities and, in general , among cities across the less developed world. This is not to deny the i mportance of African i nfluences on family lite, busi ness practices , tra­ ditional sources of land and community attachment, and so forth . Instead, I contend that global pressures have resulted in more tensions, and in some instances, it is modifying traditional practices. For example, in the family domain, individuals in a globalizing city may tilt toward prioriti zing nuclear as opposed to extended fam i ly units. I n the business arena, enterprises may lean toward relying more on foreign capital than on local. I n the housing environment, global knowledge about real estate products and trends may infl uence local housing tastes toward private , single -family dwelling u nits over traditional multifamily dwelling u n its . In this book, I detail the city's new spatial arrangements that are the result of engaging i n the globalization process. I employ the term "global­ izing city" to conceptualize Accra i n the context of globalization in cities in the less developed world. I n the l iteratu re the term globali zing city has been employed to describe "other cities" in "other places" but vis- a-vis global cities (see, e.g., Oncu and Weyland 1 9 9 7 ) . I employ a globalizing city framework through an approach that examines the city from the center of its economic activities outwards . As such, I contend that globalizing cities are imbricated in the process of globali zation, but their i nvolvement in this process relates not to being either at the top or bottom of it, but rather to a partic ular con­ text. I recognize the process is not uniform and that all globalizing cities are not converging toward a single model of a global city. However, there are

I4

GLOBALIZING CITY

grou nds for asserting that globalizing cities are a discrete category of cities . Pacione (2 0 0 5 ) al ludes to some of the elements . T H E PR I N C I P A L C H A R A C T E R I S T I C S

of globalizing cities are guided by

a number of theoretical propositions :

l. A globalizing city is a city u ndergoing profound transformation in the way it is integrated into the global economy. It is a result of the intro­ duction of extensive liberali zation policies, but the reach of market forces is li mited because of constrai nts on economic development and national eco­ nomic growth . Opportunities are limited but not excluded by the wide ­ spread preva lence of an informal economy, remnants of non liberal policy regi mes (bu reaucratic "red tape"), and trad itional systems (e .g., land holding arrangements) . 2 . I n the global-local nex us, globalizing forces become more powerfu l and their control more spatially extensive . Local forces are relatively weaker but also can be geographically extensive , and there are many instances of interm ingli ng. 3. Globali zation processes operate u nevenly, bypassing certain places and peoples . Differences are accelerated by the speed at which capital can be deployed and by opportunities that individuals have to harness this capital , and there are mu ltiple knock o n effects throughout the u rban area. 4 . Globa lizing forces are mediated by local and historically contingent forces as they penetrate from above , in between and below but come to ground in particular places. 5. Economic forces are the catalyst in the globalizing process, but there are i mportant ram ifications in the social and pol itical arenas as well . 6 . Globalizing cities can b e distingu ished from global cities i n terms of the prevalence of small companies-especially of "bootstrap enterprises" ­ over larger companies, the bending a n d blending o f formal a n d informal markets, informality in many arrangements (word of mouth, family involve ­ ment, labor relations, etc.), increasi ng circulations of m igrants, and by the dearth of information about the fu nctioning of the market (e .g., investments, profits, household budgets and fi nances, etc.); information that is generally public (in global cities) .

I N T RO D U C T I O N

15

7. Globalizing cities are urban environments where there are inherent tensions between global ways and local ways , resulting in multiple coexisting modernities in general , but at times colliding modernities can result. 8. A lthough globalizi ng cities are characterized by transformation , they may be in a permanent state of becoming, neither global nor traditional, but combining and integrating the two domains in evermore diverse and com­ plex ways and never attaining the status of global city. Presently, the impact of global processes on local urban change in glo­ bali zi ng cities is unclear (Simon 1992b). Researchers have established that these cities crowd out other cities in their region as they exhibit a "regional push" by serving as growth engines tor their region in the global economy (Grant and Nijman 2004). Some of the details of globalizing tendencies i n Accra have been researched b y scholars (e .g., Pellow 2003; Hanson 2 0 0 5 ; Yeboah 2003a), but Accra a s a globalizing city h a s not been examined . The media sensationally report on the volume and extent of the role of foreign influences in Ghana, and particu larly in Accra as the gateway city. Three examples of recent claims fol low: •

BBC-Online reporter B riony Hale presents Accra as the answer to

those "in search of Africa's Silicon Val ley." (2003, 1 ) . •

" Remittances to Ghana amounted to over US$4 . 5 bi llion in 2 0 0 5 ,

making i t t h e largest foreign exchange earner," surpassing gold, cocoa, and manufacturing production (Ghanaweb 2006a, 1 ) . •

Time reporter Ta-Nesisi Coates (2006, 1 ) discusses " i nvestors landing

with i nvestment dollars and business skills . . . in the friendliest country in West Africa to do business." Drawing on some of this evidence and on trends that have been identi fied by globalization researchers (Simon 1992a; Yeboah 2003a; Yeboah 2 0 03b; Pellow 2002; Pellow 2003), I anticipate an i mportant presence and role tor FDI, a highly visible presence of foreign companies, a surge i n producer services, the development of real estate markets, and more spatially mobile transnationals. Transnational networking involves connecting to sources of global capital and expertise beyond a country's borders and cementing new relationships in the process so that individuals operate simultaneously in the international and local domains . I also expect that new transnational

16

G LOBA L I Z I NG CITY

networks play central roles and are d i fferent from the traditional extended Ghanaian fam i ly and village networks that have been well doc u mented in the literature . It may be too early in the transformation process to determ ine i f transnational networking has become as important as local networking, but it is fair to assume that they are being combined i nto the worki ngs of a globalizing city. C O N C LUSIONS

My chapters demonstrate that global ization is a complex process, involv­ ing interlocking sets of processes that are not reducible to a si ngle trend or manifested in a single outcome. Globalizing outcomes are mu ltiple and take various forms . Most obviously, globalizing processes delocalize the local economy, residential property, and land markets, and remake economic geographies by linking both nonresident Ghanaians and Accra residents with wider spaces of activity beyond . With respect t o t h e production o f u rban space, five key dimensions of globalization wi l l be examined . In each of the main chapters of the book, I explore one of these key dimensions. I n chapter 2 , I examine foreign compa­ nies and corporate space followed by globalizing residential spaces and the spread of gated communities in chapter 3. I explore land sales and residential building boom in chapter 4 because globalizing from above and in between accou nt for significant changes in residential geographies. In chapter 5, I consider the theme of in-between globali zing and the role of returnees and their networks and spaces . I then examine globalizing from below and the role of slu m dwel lers and slum - dwel ler organizations in transforming the city in chapter 6. Each of these five i nterwoven elements plays an i mportant, albeit uneven, role in the development of globalizing spaces in Accra. A central argu ment of this volume is that the globali zation debate is not nearly as global as it ought to be . There is currently a gross i mbalance in the geography of knowledge production , where most u rban research and publica­ tions remain overwhelmingly concentrated on Eu rope and North America and on places that decreasi ngly represent the world of the twenty- first cen­ tury (Mabin 200 1 , 1 8 3 ) . Potentially both u ndemocratic as well as m isguided , much existing theorization on world- cities may be "depriving urban theory,

I NTRODUCTION

17

planning and policy making in the North of ideas . . . and . . . insights of the dynamic urban experiences of diverse regions of the world" ( Harrison 2 0 0 6 , 320). The globalizing city framework is presented to reassert and reemphasize the role of many ordinary cities in Africa and i n the less developed world in terms of the urban consequences of contemporary globalization processes . In particular, I emphasize the emerging u rban and economic geographies within a globalizing city. I n the process of elucidating the spatiality of a glo­ balizing city, many important questions are examined : How is it that individ­ uals buy property when traditional land l aw does not permit land sales? How can i ndividuals pay between US$2 5 ,000 and $300,000 for houses when Ghana's per capita income is around US$400 and mortgages are scarce? How is it that there are almost 2 ,0 0 0 foreign companies registered with the government when globalization theorists assume that Accra is not yet on the world economic map? What kinds of business ( large and small ) prosper in this environment? On what kinds of networks do entrepreneurs rely? What is the role of transnationals in the process of transformation ? Research on globalizing cities is still in its infancy. Data collection and field research is d i fficult and time consuming. By outlining some of the com ­ plex u rban and economic geographies that exist within transnational space I make a preliminary start. In the concluding section I draw together a set of observations and discuss the policy environment and globalizing cities in the context of urban studies. The conclusions raise many new questions . There is stil l much work to be undertaken on globalizing cities, and I hope this work will stimulate more theoretical and empirical research on various aspects of this genre of cities.

2 Globalizing from Above Foreign Compan ies an d Corporate Spaces

GHANA,

AND

MORE

PA RT I C U L A R LY

AC C R A ,

does not come to

m i nd when thi nking about investment hot spots global ly. For example, U NCTA D 's World Investment Report of 2005 1ists Ghana as an " u nderper­ torming country" ra nking Ghana in eightieth place out of 140 countries in the world i n terms investment flows . However, World Bank regional rank­ ings on " Doing Busi ness i n 2 0 06" bri ng Ghana more i nto focus: Ghana is ranked first in West A frica for doing business and overall seventh i n A frica (GI PC 2 0 0 6 , 2 ) . The research literature on world- city networks posits that Africa is mar­ ginal to the global economy ( Van de Merwe 2004). However, world-city observations (and many others) about globali zation and cities in Africa are not grou nded empi rically from the bottom up, and instead are based on thin evidence that relies on incomplete data. As such , there are too many ste­ reotypes and misinterpretations about globali zation and u rban Africa. For example, the notion of foreign companies that predomi nates in the world­ city and globa lization debate is partial ( based largely on the largest com ­ panies from the Organi zation of Economic Cooperation and Development [OECD] ), and thus excludes everything else . It is well known that many of the companies that become establ ished in Africa are small enterprises often investing as little as US $ 1 0,000 to begi n with. The only way we can u ncover these companies is by local field research . To correct this oversight , in this chapter I focus on identifying foreign companies and their role in transform ing the u rban economy of Accra . The concentration on foreign companies is justified because they are major agents 18

G L O B A L I Z I N G F ROM A B O V E

19

of global ization with a highly visible presence . The focus on toreign compa­ nies also involves a closer examination of FDI flows; combined they are the best i ndicators of the global ization from above phenomenon. My research sheds some light on the volume of flows but also discuss the type of engage ­ ment . The type of engagement will be assessed by revealing the extent to which investors' pursue wholly owned companies as a market entry strat­ egy or whether they embed themselves with local partners and pursue J V arrangements . M y eftorts concentrate o n examining foreign companies from the ground upward , based on fieldwork I conducted in Accra, which resulted in datasets on foreign and domestic corporations, and I extrapolate the most c urrent trends , using the most recent GIPC data. To capture the extent of the current changes in the transformation of the urban economy, I situate Accra's urban development within its historical context. I outline the four historical phases i n urbanism that led to the emer­ gence of the contemporary city: precolonial , colonial, national , and global . I argue that, duri ng each o f these phases, urban geographies have changed in relation to the role of the city in the global-political economy. Subse­ quently, I analyze difterent geographies of corporate activities and consider the apparent connections between the toreign and domestic corporate sec­ tors . I n the concluding section, I return to a disc ussion of the liberalization policy environment and consider what policy efforts are needed to improve the functioni ng as wel l as i ntegration of the corporate sectors . T H E I N T E G RAT I O N O F AC C R A I N TO T H E G L O B A L E C O N O M Y W I T H I N THE H I STORICAL CONTEXT

The distinction between precolonial, colonial, national and global phases is based on the nature of the global-political economy's organization . It is a distinction that highlights a city's external connections (facilitated or con­ strained by domestic factors) to the global economy as key to its internal spatial development. I n this section, I first detail the development of Accra and its mode of i ntegration into the global economy emphasizing the two most recent historical phases. I then draw connections between the intensity of i ntegration into the wider global-political economy and the most salient eftects on the city's economic geography.

20

GLOBALIZING CITY

The Mode of Integration Precolonial: Most local experts equate the establ ishment of Accra with the development of a coastal fishing village in the late sixteenth centu ry (Gough and Yankson 1997, 9). The earliest known settlers on the stretch of coastline now named Accra were the Kpesi people. Ga-speaking migrants from "Niger country" reached this area in the sixteenth centu ry, and they made their homes among the Kpesi and absorbed them into their com munities (Acquah 1957, 16 ) . During the precolonial period in West Africa the main u rban settlements were largely inland, where they fu nctioned as desert ports along the southern term ini of the trans-Saharan trade in gold , slaves, salt, and forest products (Gugler and Flanagan 1978, 6 ). European accou nts of this period refer to the numerous ports on the littoral and to the "great towns" in the interior of the country that contai ned "multitudes of people" and were "richer in goods and gold than the coastal towns " ( Kea 1982, 2 3 ) .

Colonial: The colon ial period is best categorized b y two episodes . I n the first, from the fifteenth to m id-seventeenth centuries, most contact between European traders and West Africans occu rred in coastal settlements . The slave trade rei nforced this development of coastal trade centers, where ware­ houses and permanent installations were needed to accom modate commodi­ ties and people drawn from the interior. During this time, a number of forts were built in what is known as present- day Accra ( Fort Ussher by the Dutch in 1 6 0 5 , Christiansborg Castle by the Swedes in 1657, and Fort James by the British in 1 673). However, a Portuguese map of the seventeenth centu ry ind icates that Accra was not con nected to any of the major trade routes along the Gold Coast ( Kea 1982 , 3 1 ) . Moreover, Accra was largely outside the wider u rban spatial system, which was centered on Kumasi in the interior of the cou ntry (Campbel l 1994). The second episode during the colonial period involved the B ritish con­ solidation of power on the Gold Coast in 1 874, when they defeated the Ashantis. The rise of Accra as an urban center dates to 1 8 77, when the colonial headquarters were relocated there from Cape Coast (Acquah 1 9 5 7 ) . Accra was chosen as the site of the colonial administration for a number of reasons, prominent among them were health issues ( specifically securing the health of the European residents ) as well as geographical and strategic concerns (Accra

G L O B A L I Z I N G F ROM A B O V E

21

was the geographical center of gravity tor the UK colony and located near the prime meridian, which runs through present-day Tema). Moreover, the earth ­ quake of 1 862, which h a d severely destroyed large portions o fAccra, presented colonial rulers with an important opportunity to plan, rebuild, and reorganize the space. Its selection as the seat of government, though, ran contrary to the pattern in most other West Atrica countries . For instance, Abidjan and Dakar were chosen as capitals because of preexisting economic advantages, but Accra was selected largely based on initial noncommercial advantages. W I T H T H E A R R I VA L

of the colonial machinery came a large number of

merchants, and i n the process , political and economic power became focused on Accra for the first time. It became linked to the United Kingdom as a gateway city and expanded in size and population as a direct result. The i nte ­ gration of Accra i nto the external economy reversed the traditional urban and economic patterns of development in Ghana by anchoring the economy to a coastal location . The major terminal point of the colonial system was Accra, and transport l inks pushed d i rectly inland by the early 1920s to sources of exportable commodities. The cocoa boom in that decade deepened the inter­ dependence of Accra with the external economy, and at the same time most external investment became concentrated in a single resource and sector. Once cocoa grew to preeminence among Accra's exports, com merce replaced government as the primary element in the urban-economic base . Over one ­ half of all firms in Accra were engaged in cocoa trade by 1930 ( Brand 1972a, 1 0 5 ) . Accra continued to develop as a warehouse city rather than a factory city throughout the rest of the colonial period .

National: From 1957 until 1982 Accra was shaped by nationalist eco­ nomic policies. The Nkrumah government promoted the capital city as a growth pole tor the national economy, and successive administrations all prioritized building up the infrastructure of Accra i n national development planning (AMA 1999). Speci fic policy measures aimed for a Ghanaization of industries. For instance, the Ghanaian B usiness ( Promotion) Act of 1 9 70 permitted Ghanaian monopolies for small fi rms engaging in i mport-export trade, tor some manufacturing, such as cement production, and for a vari­ ety of service i ndustries, such as taxis, printing, and advertising ( Killick 1978). Moreover, the government starved the foreign sector of imported raw

22

GLOBA L I Z I NG CITY

materials, spare parts, and equ ipment through tariffs and i mport licensing arrangements. The combi nation of these various policy measures limited the exposu re to the international economy. I ndeed many foreign companies had decided to curtail their activities in Ghana by the early 1980s (e .g., American Fi restone pul led out of Ghana in 1 984) ( Dzorgbo 1998, 223). I nstead the government dom i nated the economy, fu nction ing as the major shareholder in over 400 di fferent enterprises in the financial, manufactu ring, extractive , and agricultural sectors (Grayson 1 9 79 ; World Bank 1994).

Global: The global phase was initiated with the introduction of liberal­ ization pol icies in 1983. Market reform involved fu ll adoption of the World Ban k's and I M F structural adjustment policies to halt the economic decline that had begun in the 1970s. Speci fic policy measu res were i mplemented to attract foreign companies by eliminating barriers to foreign direct invest­ ment, upgrad ing the physical infrastructu re, privatizing state -owned enter­ prises, establ ishing export processing zones ( EPZs), and reducing barriers to trade. For instance, over 1 0 0 state -owned enterprises were privatized in Ghana (M mieh and Owusu-Fri mpong 2004). The net i mpact of this range of liberali zation pol icies was to increase the exposu re to the global economy. Global exposure was also enhanced by the establ ish ment of the Ghana Stock Exchange in 1989, which was slowly able to expand the number of com ­ pany listi ngs ( particularly foreign listi ngs) so that twenty- nine companies have been listed by 2006. G I PC also devised attractive campaigns to harness Asian investment and the investments of nonresident Ghanaians (the latter was facil itated by holding a Homecom ing S u m m it in 2 0 0 1 ) . All of these efforts amou nted to what President Ku fuor has cal led "The Golden Age of Busi ness for Ghana" (GIPC 2006, 1 ) . Over t h e years, t h e government has expanded the reach o f investment efforts to include after- care i nitiatives. For instance, the government facili­ tates an In- Cou ntry I nvestors' Outreach Program for periodic consultations with a specific cou ntry's investor groups to discuss solutions to problems facing foreign investors . For example , in March 2006 GIPC and the I ndian investor com munity in Ghana held a meeting to discuss and remedy some obstacles to conducting busi ness in Ghana. Moreover, the govern ment had formed working partnerships with a variety of international organiza­ tions to market investment projects to foreign investors . For example, the

G L O B A L I Z I N G F RO M A B O V E

23

government advertises new and existing local projects seeking an overseas i nvestment partner with the United Nations I ndustrial Development Orga­ n ization ( U N I DO) ( U N I D O 2003). The main thrust of government's i nvestment policies is to promote Accra as a gateway city serving as a connecting node with the global economy. The Gateway Project aims to enhance Ghana's competitiveness and Accra's position as a West African hub for i mport, export, storage , assembly, distri­ bution , and transshipment of goods, services, and passengers ( U NCTA D 2 0 0 2 ) . The project targets neighboring land locked a n d smaller economies to patronize Accra's port and airport facilities. A loan of US$ 5 0 million was provided by the World Bank to upgrade port and airport infrastructure (Grant and Yan kson 2003).

The Internal Spatial Organization of the City The mode of i ntegration i nto the global economy has implications for Accra's i nternal economic geography. I turn now to sketching the main features of the city's economic geography in each of the phases.

Precolonial: The fi rst coastal settlement was j ust to the east of Korle Lagoon , called the " fish village" (Acquah 1957, 16 ). It appears this original settlement expanded to encompass the oldest adjoin i ng parts of present-day Accra; namely, Jamestown and Ussher Town . There is not a great deal of i n formation about the spatial organ ization of Accra at this time . Archeo ­ logical evidence suggests that the village was spatially organized around the sheltered harbors ( Kea 1982) with "low- density shelters adjoining the coast­ line in an u nplanned fashion" ( Hubbard 1 9 2 5 , 2 1 ) .

Colon ial: Three European torts situated within three miles of each other formed a nucleus tor foreign commercial enterprise in the early colonial period . In the shadows of the torts were walled Ga villages partially oriented to trading with the Europea n merchants . Scattered settlements connected by footpaths rather than an urban clustered center characterized the emerg­ ing organization of Accra . Europeans lived in the forts, which additionally served as places for holding both slaves and commodities ( Kea 1982). D uring the n ineteenth century, the role of the torts changed; they became centers of administration , housing government officials, troops, and

24

GLOBALIZING CITY

later pol ice . When this occu rred , European traders began to locate outside of the forts , and the township of Accra was establ ished . With the arrival of the seat of government in 1877, the British attempted expl icitly to improve san itation and living conditions in the area. As they had been for a long time, foreign and domestic sector disti nctions were paramou nt. However, in the colonial phase the spatial organi zation of the u rban economy was formal­ ized. There developed a sharp contrast between the large foreign companies domi nating the extractive industries and the relatively small manu facturing sector on the one hand , and the small-scale enterprises of indigenous groups or recent imm igrants (e .g., Lebanese in Accra) on the other hand ( B rand l 9 72a). European commercial and residential areas were clearly separated from native com mercial and residential areas . A schematic representation of the spatial orga ni zation of Accra (similar to other colonial port cities) during the colonial period is shown in Map 2 . 1 . There were four main features of colonial Accra . First, the city was spa­ tially organized around the port that functioned as a central node in the trade network between its hinterland and England . The city became the strategic center linking rail lines and shipping routes. The docks, warehouses, and railway term inals all supported the functions of trade, storage, and distribu­ tion . The port area was particularly important i n terms of command-and­ control , and fu nctioned as a strategic bridgehead for the British government. Most of the buildings of the colonial administration and military bases were located in the im mediate vici nity. Slu m clearing took place, and the Brit­ ish attempted to superimpose rectangular-style patterns as a morphological variation on the existing unplanned city ( B rand l 9 72a). Second , adjacent to the port area was a wel l-defined European central busi ness district (CBD) that fu nctioned as the designated location for for­ eign compa nies . Most econom ic activities in this Eu ropean commercial area involved trade, distribution , transport, banking, and insurance . Zoning and building codes were strictly enforced to maintain an orderly European char­ acter and atmosphere in the district. Th ird , traditional markets or bazaars were located in a busi ness district in "Native Town." This area comprised a mix of commercial and residential land uses. Much of its commercial activity involved trade of agricultural pro­ duce and crafts, smal l -scale industry, and retailing. The colonial government

G L O B A L I Z I N G F RO M A B O V E

25

ACC RA

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Map 2 . 1 . Schematic Representation of t he Economic Geographies of Accra D uring the Colonial Phase . Source: G rant and Nijman 2 0 0 2 , 32 5 .

paid relatively l ittle attention to urban planning i n Native Town , which tended to exhibit congestion, poor structures, and unsanitary health condi­ tions. The area was inhabited by natives and recent rural immigrants . Most i mportant, the European town and Native Town were physically separated by a designed barrier: an open green area. Fourth, a rigid policy of segregation ensured clearly demarcated zones for European residences near Accra's commercial center (e . g . , Victori­ aborg) or retreats further away on higher elevations (e . g . , Cantonments) .

26

GLOBA L I Z I N G C I TY

With its luxurious homes , race cou rse , gol f course, polo and cricket field , tennis courts, and racially segregated hospital, "Victoriaborg was like a piece of England grafted i nto the townscape of Accra" ( M acDonald 1 89 8 , 1 99-2 0 0 ) . In s u m , the colon ial landscape o f Accra exh ibited a high level of segregation of foreign and native com mercial and residential activities, with its economic geography displaying a significant degree of fu nctional specia li zation and concentration ( Brand 1 9 72b). As participation i n the international economy i ncreased i n the early twentieth centu ry, and as popu lation pressure built up, the bou ndaries between the d i fferent areas gradu ally blu rred .

National: Transformations in the spatial orga ni zation of Accra occurred in the wake ofi ndependence (Acquah 1 9 57; Brand 1 9 72a) . Apart from rapid overal l popu lation growth in Accra , resulting in signi ficant geograph ical expansion , the spatial con figuration was a ltered i n fou r main ways . First, the foreign corporate and residential presence decli ned in relative terms. Elimi­ nation of legislation that had formerly discouraged native enterprises led to a rapid growth in the number of domestic companies, which were now free to locate around the city. Second, the former European CBD was at once de -Europeani zed and nationalized , both politically and economically. Adm i n i strative and m i l ­ itary fu nctions i n t h e area were taken over b y t h e national government . New large domestic compan ies favored a location in this area, leadi ng to a steadily growing corporate density and a large nu mber of domestically control led companies . In addition , the area was nationali zed i n a symbolic sense with the location of a newly established central bank and state -con­ trol led companies. Third , the former native CBD ( N ative Town) became even more charac­ terized by small -scale businesses, as larger companies moved to the emerging national CBD (the former European CBD). As a result of massive rural­ u rban m igration in the posti ndependence years, the density and congestion in Native Town kept increasing. The rise of a national entrepreneurial mid­ dle class meant an explicit foreign urban space was diluted because income became the more i mportant criterion for determ ining com mercial and resi­ dential patterns . By the early 1980s, there was on ly a modest foreign pres­ ence in the urban economy of Accra .

G LOBALI Z I NG FROM ABOV E

27

T H E E C O N O M I C G E O G R A P H Y O F AC C R A AS A G L O BA L I Z I NG C I T Y

The liberalization era i n Ghana has gone hand-in-hand with rapid rates of urbanization and expansion of the built-up area. However, urban ization pro­ ceeded i n neither a planned nor an ordered way. I n many ways the traditional landholding systems provided a check on emerging land use patterns. Much of the land is either vested in various stools and families with customary ten­ ure . Government acquires land for public uses but even this can be fraught with complications and land can remain idle tor many years. As a result of the traditional and state land systems that prevail in Accra, there is a shortage of land available for commercial use, and the real estate market began respond­ ing to this trend only i n the late 1990s. Commercial real estate became avail­ able i n pockets and at d i fferent times, resulting i n a patchwork of corporate activities without government directed clustering. The only area that was an exception i n terms of commercial available land was Tema; it represents an exclave of sorts, geographically separated from the city of Accra by a zone of open space but gradually more connected to the urban Accra. Tema became more linked to Accra after the development of its port in 1 962 , when Accra harbor was abandoned in favor of Tema's deeper and more sheltered harbor. Since then , an industrial area, warehouse and storage facilities, and extensive housing for workers have been built i n the immediate Tema area. The particular landholding systems, combined with the floodgates of globalization from above , have resulted i n Accra's economic geography becoming more dispersed over the years, and in the decades since the mid­ eighties. The suburbanization of economic activity, especially manufactur­ ing, i n that same time period has centered on Tema and the Light I ndustrial area. Small concentrations of export-oriented i ndustries have emerged in export processing zones ( E PZs), the most built up of which is the Light I ndustrial area.

Foreign Corporate A ctivity in a Globalizing City The most recent G I PC data (2 007, 8) show that 2 , 1 29 companies have been registered i n Ghana. The establishment of new foreign companies

28

GLOBA L I Z I NG CITY

accelerated to unprecedented levels i n the l iberali zation period : over 9 0 per­ cent of all foreign companies c u rrently active have been established since 1 9 8 3 . A su rge in the establ ish ment of new foreign companies coincided with the transition to democratic government i n the 1990s. Over US$2 . 8 bi llion had been i nvested by foreign companies. FDI projects have created more than 73,000 jobs: 94 percent of these employ Ghanaians and 6 per­ cent non-Ghanaians ( M mieh and Owusu-Frimpong 2004, 59 1 ) . Accord ing to UNCTA D (2002 , 16) foreign fi rms also accou nted for 75 percent of the increase in export earni ngs . As already noted, the liberal investment cli mate offers a variety of options for foreign companies to enter the market. Foreign companies can establish

l . a whol ly owned foreign company with 100 percent foreign equ ity, 2. a JV arrangement with a local firm/i nvestor(s) or 3. a liaison arrangement (either as a fu ll liaison office or by a lesser liaison commitment, such as securing a min ing license). Although a fi rm's decision on how to enter an economy is based on complex internal company decisions (e .g., risk, opportu nity, com ­ pany strategy, etc.), local factors such as available land , government entice­ ments, and the securing of local partnerships are increasingly important in determ ining the entry mode of FDI projects, especially in cou ntries that are enacting liberali zation policies . Most foreign companies enter the Ghana market by a J V. Almost half of all foreign companies who establish their headquarters in Accra compa­ nies maintain a JV relationship. Thi rty-seven percent of companies fu nction as wholly owned foreign companies , and the remainder operate as liaisons. Most liaisons maintain a representative in Accra , which can be taken to indi­ cate an interest in researching the marketplace for possible future invest­ ment opportunities. These preferences for JV arrangements continue the process by which foreign companies have been encou raged to participate in the economy. Prior to liberali zation, national policy measures ai med explic­ itly to avoid dependence on wholly owned foreign companies . From the early 1 9 70s, the government warmed to JVs with foreign partners for some Gha­ naian hold ing companies in an effort to obtain financial support and secure more efficient management (Grayson 1 9 79). Unless there are some subtle ways the GIPC is steering investors into JVs, it appears investors have concluded that it is advantageous to forge local

29

G L O B A L I Z I N G F RO M A B O V E

partnerships i n Ghana. Such partnerships can provide foreign i nvestors with several advantages , including country knowledge and experience as well as political suaveness . The lower initial i nvestment requirement of US$ 1 0,000 to establish a J V, as opposed to the US$50,000 requirement to establish a wholly owned foreign company, may be i mportant i n explaining part of this trend as well . The prevalence of J Vs indicates not only that global ization is not solely rel iant on external capital but also that local strategic business alli­ ances are an i mportant consequence of liberalization policies . The geographical origins of foreign companies i n Accra reveal that lib­ eralization policies have entailed opportunities for i nvestors from across the world . Foreign companies from most countries of the world participated i n businesses i n Accra. Some o f the largest companies have had a presence since the colonial era, when most FDI in Ghana originated from the United King­ dom . Firms such as Unilever, Cadbury, British Petroleum ( BP), Standard and Charter, and B arclay's Bank have operated in Ghana since the colonial era . The sources of FDI have varied since the i ntroduction of liberalization poli ­ cies ( Table 2 . 1 ) . Traditionally, the United Kingdom was the largest source of FDI i nto Ghana, mainly into the banking and mining sectors, but now ranks third behind I ndia and China.

TA B L E 2 . ! ORIG I N S O F TOP TEN MOST ACTI V E FOREIGN COU NTRIES I N C O R P O R A T E AC T I V I T I E S I N ACC R A , 1 9 9 4 - 2 0 0 6

Co u ntry

Ind ia China United Kingdom Lebanon United States Germany Netherlands South Korea Italy Nigeria Source: Grant 1 9 9 9 ; G I PC 2 0 0 7.

Total n u m ber of compan ies

Rank

217 212 198 1 70 133 115 73 71 66 59

1 2 3 4 5 6 7 8 9 lO

30

GLOBALIZING CITY

I n the 1990s, many companies from the developi ng world ( particularly from China, South Korea, Nigeria, and South Africa) have also become active in Ghana . Chinese investments have flowed into infrastructure, trade, and minerals. Companies from India and Lebanon have been returning to Ghana, reviving early twentieth-centu ry li nks when many I ndian and Lebanese firms forged a major presence in the wholesale and retail trade sector and largely ceded the manu facturing sector to European firms (Garlick 1 960). The pres­ ence of Asian investors in Ghana is the result of the GIPC's investment pro ­ motion programs. Malaysian companies, in particular (ranked twenty-third in terms of the number of companies), have become very active in the tele­ communications sector-in television and films as well as in the provision of services for free trade zones. For example, a national television station, "TV3 ," as well as the film group, GAMA, are both Malaysian controlled , and Telecom Malaysia owns a 30 percent share in Ghana Telecom . Within the process of liberali zation the government has become an active participant in the private sector and is form ing new private sector partnerships, establishing itsel f as a minor partner. For instance, the Ghanaian government, interna­ tional development agencies and a Malaysian company are developi ng an area in Tema as the first private free zone in Africa . However, the authorities of th e Tema Free Zone have found it di fficult to attract firms in large numbers and to foster clusters . Operators cite large parcels of idle land . I nterviews with free zone officials reveal that only 15 to 25 percent of land is currently being used . 1 This considerable unused land gives a bad impression to new i nvestors thinking of establishing companies in Accra and it also means that companies are likely to seek more established areas to locate thei r companies.

Geographies of Foreign and Domestic Corporate Activities The general geography of foreign and domestic corporate activities in Accra is illustrated in Map 2 . 2 . First, Ussher Town is the traditional CBD and corresponds rather closely to the old European town in colonial times. It is the most densely concentrated area in terms of corporate activities, contain­ ing many high-rise buildi ngs in close proximity to the min istries , and the I . Interview with Andy Appiah·Ku hi, deputy executive secretary, Free Zones, June 8 , 2004.

3I

GLOBALI ZING FROM ABOVE

Ghana Stock Exchange is located i n the area. It contains the second highest concentration of Ghanaian- controlled companies of any business d istrict in Accra and a small number of foreign companies, many of which were among the fi rst foreign companies to be established in Ghana. S econd, the area labeled "Central Accra" i ncludes Adabraka, Tudu , and Asylum Down. Correspond i ng to the old Native Town from the colonial era, it contains Makola Market, the largest market in the city, the most crowded commercial area in the city, and the focus of most commuter trips within the city. The bustling market spills over onto the walkways and roadways and leads to acute congestion . The overall area has a mix of corporate and resi­ dential functions, a visible presence of firms of Lebanese and Syria n descent, and a maze of side streets and back alleys . This business d istrict has the larg­ est share of Accra's domestic companies, though generally of small size . The number of foreign companies in this d istrict is also small except for a cluster of foreign airline offices in its center. The newest, and arguably most prominent, business district in Accra i n the early twenty-fi rst century is a n area that stretches from Osu along Can­ tonments Road to the airport. It also covers the Ringway Estate and Ridge Area. The entire area is not commercial but foreign corporate activities are concentrated in a ribbon fashion along the main thoroughfares. Much of this area was i n itially used for residential purposes, but since the i ntroduction of

ACHIMOTA PARK

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Map 2 . 2 . Geographic Distribution of All Corporate Activity in Accra in 1 999. Source: G rant and Nij m an 2 0 02 , 32 8 .

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32

GLOBALIZING CITY

liberali zation pol icies, properties along the main roadways have been rede­ veloped for com mercial pu rposes. The area has modern low-rise buildi ngs with off-street parking, and stands in sharp contrast with the colonial archi­ tecture of Ussher Town and the bazaar atmosphere of Central Accra .

Foreign Companies in the Services Sector FDI into Ghana has traditional ly been in the mining sector. However, the recent trend shows that the fastest growi ng sectors of the economy for for­ eign company involvement are in services ( producer services: management consu lting, internet providers, and mobile phone providers; fi nancial ser­ vices: banks, investment brokers, and real estate services) . By 2006, al most one -quarter of all foreign companies participated in the services sector. Min­ ing is sti ll the largest sector in terms of the numbers of foreign companies, and the privatization of m i ning after 1996 has aided this trend . However, many mi ning companies are tiny and seldom move beyond the initial stages of exploration , thus i nflating the real nu mber of active m in i ng companies. Recent fal l i ng gold prices have been taking their tol l on the number of for­ eign companies engaging i n m i ning ( Financial Times 1 999, 3), but rebound­ ing gold prices have renewed FDI i n mining. Foreign companies in fi nance and producer services are fou nd in the districts of Osu, Canton ments and the airport area (Map 2 . 3) . The heavily trafficked area along Canton ments Road in Osu ( locally known as "Oxford Street") is the focal point for most foreign producer services companies. New paved roads, hotels, shops , and restau rants have i ncreased the attractiveness of the area for engaging in face-to-face business, an important aspect of pro ­ ducer services busi nesses . I n the ai rport area a large number of these firms cater to mining companies concentrated there (Grant 2 0 0 1 ) and provide the kinds of services that rely heavily on airport facilities (e .g., courier firms). The producer services fu nctions are i n a formative stage in Accra . The vast majority of producer services companies are small operations, and many of the business and com munication centers that specifically target busi nesses also have to take on consumer clients in order to turn a profit . Moreover, the locational choices avai lable to newly arriving foreign companies within Accra are limited . For national secu rity reasons, property developers have

G L O B A L I Z I N G F RO M A B O V E

33

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