Impacts of the Introduction of Money Economy in Traditional African Society

4/8/2019

IMPACTS OF THE INTRODUCTION OF MONEY ECONOMY IN TRADITIONAL AFRICAN SOCIETY

Introduction

Money was introduced to Africa by the Europeans
Before colonial period, Africans practiced barter trade
actual goods exchanged with other goods e.g. animals would be exchanged with food grains, millet, sorghum, cow-peas, children exchanged for food during famine
Trade merchants from Asia had introduced into Africa forms of currency such as the cowrie shells, gold and the Indian rupees
Europeans introduced currency still used today

Economy

Careful management of resources, finances, income and expenditure of a family, a business enterprise, community or a country. The economy of a country is to be well managed if it has the ability to meet the social economic needs of her members.
Development - it’s measured by the healthy of its economy in the provision of health, education, housing, sanitation, employment longevity of life, decrease of maternal and child mortality.

Money economy

Use of money as a means of exchange in economic activities e.g. banking, investment, insurance, payment of goods and services.

Impacts of the Introduction of Money Economy in Traditional African Society

Reasons for money introduction

Colonization brought a lot of changes such as unoccupied land declared ‘Crown land’ for colonialists
Tax introduction Africans were supposed to pay taxes to the government. Taxes were paid in form of money
Introduction of formal education School fees was introduced. Fees were paid in form of money
Introduction of modern medical services People paid medical services using money
Emergence of new lifestyles

Converts to Christianity were emphasized on to have materials, hence had to work to improve their living standards. They built houses, took their children to schools practiced modern family techniques hence had to use money.

Impact of the introduction of money economy in traditional African society

Introduction of wage — labour
Break up of family ties as people migrated from rural to urban areas in search of employment
African land taken by the colonialists, reducing people to squatters hence need to work
There was creation of a gap between people — the rich and the poor
Emergence of vices e.g. corruption, bribery, prostitution, robbery
Deterioration of cherished African values e.g. bride wealth has become commercialized, customs lost etc
Loss of African human dignity. Africans had to pay taxes to the colonial government. They were forced to work in European farms so as to get money. They worked under dehumanizing conditions
Production of traditional food crops declined replaced by cash crops
Individual ownership of land was emphasized. Land could be sold at will
There was increase of rural — urban migration leaving the rural people less educated
Exploitation of the poor by the rich — poor wages, overcharging prices on foods.
Destruction of the natural environment to create room for building projects, urban centres
The cost of living increased. Almost everything is acquired by money.

Explain the negative effects of the introduction of money economy in traditional African communities. (7 marks)

Money economy has led to wage labour which has replaced communal working
It has led to rural urban migration hence destroying the closely knit way of life in traditional African communities
Money economy has led to formation of classes/gap between the rich and poor which encourages suspicion/insecurity/witchcraft
It has led to individualism which has replaced the extended family
It has led to bribery/corruption which has replaced the moral values of honesty/faithfulness
It has changed land ownership from being communal to private/people sell land for money and end up being squatters
Money economy has led to commercialization of bride wealth whereby the parents of the bride exploit the groom
Money economy has shifted the respect that was accorded to elders because of their wisdom to young people who are rich
It has encouraged dependence on a few individuals who are employed/has encouraged laziness
It has led to social evils/immorality

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