The Economy of Ghana
There were trade routes that crossed through the land previously called Wagadugu. There they called their leader Ghana which means war chief. Muslim traders later started to refer to area simply as Ghana.
"Between the 9th and 11th centuries C.E., the kingdom of Ghana was so rich that its dogs wore golden collars, and its horses, which were adorned with silken rope halters, slept on plush carpets. Based on animal luxuries alone, it is no wonder that foreigners touted Ghana's kings as the richest men in the world..."
By 700s Ghana was a kingdom and by the 800s Ghana had become an
Empire.
Trade
As with many wealthy empires, Ghana’s location helped with its wealth. During this time, the two most important trade items were gold and salt. To the north, there was salt and, to the south, there was gold. Ghana was in the middle. This gave Ghana the advantage. With its location, it could handle trade fairly easily and maintain a good economy despite never owning any gold or salt mines itself.
Rulers grew rich by taxing all of the trade and goods that went in and came out of this territory. At its height, the kingdom bartered gold, ivory, and slaves for salt (which they lacked and was worth its weight in gold) from the Arabs. It was common for Arab and Berber traders to cross the desert with "camel caravans loaded down with salt". The people of Ghana also bartered horses, cloth, swords, and books from North Africans and Europeans. Cloth, weapons, and manufactured goods were carried from the ports on the Mediterranean and were then brought to the "trading towns" of the Savanna. The forest regions to the north brought the gold. It has been estimated that "until about 1350 that at least two-thirds of the world's supply of gold came from West Africa". it is also said that most of the wealth of Ghana came from the trading it did with the
Arabs.
South of the Sahara, "Islam spread by trade. Muslim merchants and teachers settled in the stated south of the Sahara and introduced their faith there."
The King
In Ghana the King controlled all of the trade and commanded a large army. He enforced the tax on all entering and leaving Ghana. The king permitted this tax to be paid in “salt, iron, peacock feathers, fine silk, spices, and other luxury goods." Traders could pass in peace as long as they paid. "It is the tax that made Ghana rich”.
Along with the taxes for all who entered and left, the king also had a “silent system of bartering”. It was common that he didn't speak the languages of the many traders who went through his kingdom. “Rather than meet and argue a price, gold would be left at a special place for the traders to take. If ample goods were not left in exchange, all trade ceased… This system of silent bartering worked very well. Traders were afraid to leave too little. They knew Ghana would stop trading. If anything, they left more than they normally would, to keep relations good and trade flowing.”
Along with demanding taxes from traders, he asked for "taxes and gifts from the chiefs of surrounding lands" as well. The rule was, if you paid, you may peacefully rule your people. If you did not pay, the king sent "Ghanaian governors" whose job it was to act like "watch dogs" making it where "little went unreported to the king".
Not only did the king control part of Ghana's economy by facilitating trade, but he also was the only person in the kingdom allowed to own gold nuggets. Though gold dust freely "circulated in the marketplace", the king was the only one who could own gold nuggets and thus the value and price of gold didn’t fall and neither did its supply.
The Fall of Ghana
This wealth did not help Ghana however. Soon, "competitions from other states in the gold trade eventually took its toll. Jealousy, fear, and anger of Ghana's power prompted it neighbors to stand up against the kingdom". It was in about 1076 that the Almoravids "launched an invasion on the capitol city of Koumbi Saleh." During this invasion territories were taken and a tribute tax was enforced. After a while, Ghana recovered and the invaders were forced to withdraw.
Despite the fact that Ghana recovered, they were cut off from international trade which badly hurt the Gold and Salt trade. "Subsequent wars" left Ghana vulnerable and "unable to prevent defeat".
In 1240 CE., Ghana was "absorbed" in the growing nation of Mali.
"Between the 9th and 11th centuries C.E., the kingdom of Ghana was so rich that its dogs wore golden collars, and its horses, which were adorned with silken rope halters, slept on plush carpets. Based on animal luxuries alone, it is no wonder that foreigners touted Ghana's kings as the richest men in the world..."
By 700s Ghana was a kingdom and by the 800s Ghana had become an
Empire.
Trade
As with many wealthy empires, Ghana’s location helped with its wealth. During this time, the two most important trade items were gold and salt. To the north, there was salt and, to the south, there was gold. Ghana was in the middle. This gave Ghana the advantage. With its location, it could handle trade fairly easily and maintain a good economy despite never owning any gold or salt mines itself.
Rulers grew rich by taxing all of the trade and goods that went in and came out of this territory. At its height, the kingdom bartered gold, ivory, and slaves for salt (which they lacked and was worth its weight in gold) from the Arabs. It was common for Arab and Berber traders to cross the desert with "camel caravans loaded down with salt". The people of Ghana also bartered horses, cloth, swords, and books from North Africans and Europeans. Cloth, weapons, and manufactured goods were carried from the ports on the Mediterranean and were then brought to the "trading towns" of the Savanna. The forest regions to the north brought the gold. It has been estimated that "until about 1350 that at least two-thirds of the world's supply of gold came from West Africa". it is also said that most of the wealth of Ghana came from the trading it did with the
Arabs.
South of the Sahara, "Islam spread by trade. Muslim merchants and teachers settled in the stated south of the Sahara and introduced their faith there."
The King
In Ghana the King controlled all of the trade and commanded a large army. He enforced the tax on all entering and leaving Ghana. The king permitted this tax to be paid in “salt, iron, peacock feathers, fine silk, spices, and other luxury goods." Traders could pass in peace as long as they paid. "It is the tax that made Ghana rich”.
Along with the taxes for all who entered and left, the king also had a “silent system of bartering”. It was common that he didn't speak the languages of the many traders who went through his kingdom. “Rather than meet and argue a price, gold would be left at a special place for the traders to take. If ample goods were not left in exchange, all trade ceased… This system of silent bartering worked very well. Traders were afraid to leave too little. They knew Ghana would stop trading. If anything, they left more than they normally would, to keep relations good and trade flowing.”
Along with demanding taxes from traders, he asked for "taxes and gifts from the chiefs of surrounding lands" as well. The rule was, if you paid, you may peacefully rule your people. If you did not pay, the king sent "Ghanaian governors" whose job it was to act like "watch dogs" making it where "little went unreported to the king".
Not only did the king control part of Ghana's economy by facilitating trade, but he also was the only person in the kingdom allowed to own gold nuggets. Though gold dust freely "circulated in the marketplace", the king was the only one who could own gold nuggets and thus the value and price of gold didn’t fall and neither did its supply.
The Fall of Ghana
This wealth did not help Ghana however. Soon, "competitions from other states in the gold trade eventually took its toll. Jealousy, fear, and anger of Ghana's power prompted it neighbors to stand up against the kingdom". It was in about 1076 that the Almoravids "launched an invasion on the capitol city of Koumbi Saleh." During this invasion territories were taken and a tribute tax was enforced. After a while, Ghana recovered and the invaders were forced to withdraw.
Despite the fact that Ghana recovered, they were cut off from international trade which badly hurt the Gold and Salt trade. "Subsequent wars" left Ghana vulnerable and "unable to prevent defeat".
In 1240 CE., Ghana was "absorbed" in the growing nation of Mali.