In precolonial Ghanaian societies, it was normal for an individual to receive economic assistance from members of his extended family--including paternal and maternal uncles, aunts, grandparents, and cousins. The practice of expecting assistance from family members grew out of the understanding that the basis of family wealth derived from land and labor, both inherited from common ancestors. Even as an individual sought help from extended family members, he was in turn required to fulfill certain responsibilities, such as contributing labor when needed or participating in activities associated with rites of passage of family members. It is because of this mutual interdependence of the members of the family that anthropologist Robert S. Rattray defined the extended family in Ghana as the primary political unit. Today, the same system of welfare assistance prevails in rural areas where more than two-thirds of the country's population resides.

Legislation for the provision of a modern national social security system went into effect in 1965. Further legislation was passed in 1970 to convert the system into a pension plan to provide for sickness, maternity, and work-related injury benefits. Government welfare programs at the time were the responsibility of the Department of Social Welfare under the Ministry of Labour and Social Welfare (now the Ministry of Mobilization and Social Welfare). As the national economy was reformed, the Workers' Compensation Act of 1986 was passed to guarantee wages to workers in the private sector while they were undergoing treatment for work-related injuries.

These plans, however, applied only to individuals employed in the formal sector of the economy. With about two-thirds of the country's population residing in rural areas, and with most urban residents engaged outside the formal economy, the traditional pattern of social security based on kin obligations still functions. In rural areas, individuals continue to turn to members of the extended family for financial aid and guidance, and the family is expected to provide for the welfare of every member. In villages, towns, and cities, this mutual assistance system operates within the larger kinship units of lineage and clan. In large urban areas, religious, social, and professionally based mutual assistance groups have become popular as a way to address professional and urban problems beyond the scope of the traditional kinship social security system (see Urban Society , this ch.).

According to a 1988 newspaper report, housing has become a major problem for city dwellers. The report indicated that former governments have largely ignored the problem, thereby allowing the situation to reach an alarming state. The result is an acute shortage of affordable rental housing for urban workers and students who have to pay exorbitant rents. This shortage in turn has resulted in working husbands' leaving their families in their home villages and returning only when their work schedules allow them time to visit.

The introduction of the "Rural Manife388 festo" of 1984 was an attempt by the PNDC administration to address a general development problem that included urban housing. According to the 1984 plan, many services such as the provision of pipe-borne water, banking facilities, and electricity, were to be introduced to the rural areas, thereby making such locations attractive to workers and others who might otherwise migrate to towns and cities. Because the implementation of these services, especially rural electrification, began in earnest only in the late 1980s, the plan's impact on rural-urban flow was as yet uncertain in the early 1990s.

Data as of November 1994