Rapid urbanization in the Third World is one of the major developmental issues that have attracted the attention of policy makers at international, national and sub-national levels. However, emphasis on the distinction between rural and urban areas often causes policy makers and planners to lose sight of important rural-urban linkages that need to be considered in the research and policy-making/planning arenas. Rural-urban linkages are probably most evident in peri-urban areas where the growth of cities leads to the transformation of smaller communities. The purpose of this study was to examine the effects of rapid urbanization on livelihoods in the peri-urban areas of Accra, Ghana, using the case study approach. The study focused on four of the peri-urban communities that surround the city of Accra, namely Kwashiekuma, Medie, Bortianor and Ofankor. It involved a qualitative analysis of the effects of the city’s growth on the livelihood assets of residents in these communities; how the residents construct livelihood strategies in response to changes in livelihood assets; and how these changes are reflected in their livelihood outcomes (quality of life).;The study has revealed several changes in livelihood assets resulting from urban expansion. These include: an increase in the range of uses and value of land and other forms of natural capital; extension of urban infrastructure (e.g. roads, electricity, private schools and health facilities) to peri-urban areas; an increase in the size and variation in the quality of the housing stock; and increased acquisition of formal education and non-agricultural vocational skills. In addition, the communal spirit that characterizes indigenous, rural communities and enable residents to extend mutual support to one another in times of need has declined in peri-urban communities, although some residents, particularly recent migrants, are able to maintain social capital that goes beyond their immediate place of residence.;Residents and non-residents of peri-urban communities respond to these new opportunities by devising new livelihood strategies. Examples include the leasing of land to developers and other investors, extraction of natural resources such as stones and sand, agricultural intensification, waged employment, trading, diversification of employment and income sources, among others. However, the study also shows that there are differential effects of urbanization on the livelihoods and living conditions of peri-urban residents. While some residents have the ability to improve upon their living conditions by taking advantage of the opportunities created by urbanization, many others are worse off because they lack the capacity to utilize these opportunities. This negative effect is particularly serious among subsistence farmers, who are mainly indigenous and long-term settlers who lose their livelihoods as arable lands get converted to residential and other uses.;The findings of the study point to a number of critical issues that need the urgent attention of policy makers and planners in order to ensure sustainable urban development. One of them is the need for the District Assemblies (local governments) to manage physical growth in a manner that protects the natural environment using a joint, multi-level participatory planning approach. The Assemblies should also incorporate peri-urban livelihood issues into urban policy making and planning so as to minimize the negative effects of urban growth on a section of the population, especially subsistence farmers. Measures should include the protection of fertile farmlands, helping farmers to adopt appropriate and environmentally friendly farming methods, and empowering the youth to find alternative sources of livelihood. Other pertinent issues needing attention include the need to improve upon land administration and strengthen the planning and regulatory capacity of District Assemblies.
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