Evaluating the economic and financial impact of the Millennium Villages Project on farming households: Evidence from Bonsasso, Ghana : A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University

Abstract

The Millennium Village Project (MVP) was a cross-sectoral, integrated rural development programme based on the 'big push' approach to development assistance. It was intended to provide a pathway and model for achieving the Millennium Development Goals (MDGs) in rural communities in ten Sub-Saharan African countries. Implemented over ten years in two five-year phases, Ghana's first MVP, the Bonsaaso MVP is the focus of this research. Several studies on the Bonsaaso MVP have concentrated on how MVP has influenced community cohesion, ownership of the development process, and health and education outcomes. Despite the focus on the agricultural sector as an 'engine' to drive the local economy of the project villages, there have been no studies evaluating its impact on farm households. Given the importance of agriculture as a source of employment and livelihood for most inhabitants in the MVP area, it is crucial to understand the effectiveness of the project interventions as tools for rural development. Therefore, this study assessed the MVP's economic and financial impact on farm households in Bonsaaso, Ghana. The study applied mixed methods to address the research questions. A multistage sampling technique was used to collect a sample of 202 households from three MVP villages and 97 households from a non-MVP household for the analysis to determine the impact of the MVP. Propensity score matching (PSM) was used to assess the impact of the MVP while a recursive instrumental variables model was developed for checking the validity of the estimated coefficients under PSM. The mean value of assets added was 74% greater for the MVP households. Similarly, gross farm output, total farm expenditure, and net farm income were 44%, 41% and 52% greater respectively for the MVP households than the comparison group. The sustainability of livelihood outcomes for MVP households is also evaluated qualitatively as they ranked various interventions on a 5-point Likert scale. Although a sharp decline in access to training and extension services indicate that the gains from the MVP may not be sustainable, about 53% of MVP households indicated that they could sustain the level of farm input use that they attained during the duration of the project. By employing a mixed-method approach for assessing the livelihood impacts and their sustainability, this research provides insights for policymakers into the effectiveness of long-term interventions for achieving sustainable development goals ( SDGs) in low income and lower-middle-income countries