Interrogating the Poverty Impact of Gold Mining at the Community Level in Ghana.
Citation:
Kwao, Benjamin, Interrogating the Poverty Impact of Gold Mining at the Community Level in Ghana., Trinity College Dublin.School of Natural Sciences, 2023Download Item:
Benjamin Kwao Final Thesis.pdf (PDF) 2.792Mb
Abstract:
Many studies show a negative correlation at the national level between natural resource wealth and poverty reduction ? the so-called 'resource curse'. However, this may not hold at the local level. For example, the incidence of poverty in major gold-producing regions in Ghana, one of Africa's biggest producers, is lower than the national average. The lower incidence of poverty in gold-producing regions in Ghana suggests that these resources may be largely beneficial to the host communities. Most analysis of the relationship between natural resource endowment and development has been focused on the oil industry, with only a limited number examining the impact of extractive minerals such as gold and diamond. Ghana is a classic example of the `oil industry bias? within the literature, as the nation hardly featured in studies on the 'resource curse' before oil discovery in 2007.
With an empirical focus on the Western region of Ghana, this study seeks to examine the impacts of gold mining on poverty outcomes through in-depth case studies of three host communities. Adopting a qualitative research approach, the study relies on primary data gathered using semi-structured interviews and household surveys in conjunction with a plethora of secondary sources. It is revealed that while the large-scale mining sector is a significant source of revenue for the government, linkages to local economies are poorly developed, and the limited availability of employment opportunities is a source of frustration to many in host communities. The allocation of mineral royalties for development has not yielded the expected results as host mining communities remain poor in Ghana. There is much confusion surrounding the purpose of royalties allocated to chiefs and traditional councils, as well as issues of accountability from district assemblies. The study also reveals that small-scale mining represents work intended to meet the livelihood needs of the rural population in Ghana. The growth of the sector is primarily driven by a lack of alternative sources of income, hence becoming a major means of survival. While small-scale mining offers income-earning opportunities for a relatively larger number of people, the inherent class-based or hierarchical payment structure does not contribute to narrowing the gap between the rich and poor but rather increases social inequalities. Poverty reduction is hindered by fluctuations in productivity and earnings from small-scale mining, which has a corresponding effect on other sectors of the local economy. Furthermore, the primary beneficiaries of extractive activities in both sectors are local chiefs, community leaders, and elites in the host communities. At the same time, the dominant losers are displaced farmers and marginalized groups, especially women whose rights over land, for example, are mediated through their relationships with men.
The study concludes that the exploitation of gold in Ghana has the double effect of producing and reducing poverty among different social groups. Some people have benefited a lot more from extractive activities than others in host communities. This study contributes to development literature by revealing structural challenges or impediments to Ghana harnessing the strengths of the gold mining industry to meet SDGs 1 (end poverty) and 10 (reduced inequalities). There is a need to be critical of the argument that local content policies can address the enclave status of large-scale mining by stimulating the use of personnel, goods, and services within the domestic economy towards improving the development outcomes of the extractive sector. It is revealed that eliminating state bias toward multinational companies and the politics associated with the governance of the small-scale sector will be challenging, considering the extent to which the Ghanaian state depends on the large-scale mining sector for domestic revenue mobilization. While improved support from the government and its development partners may prove helpful in the long run, success in reforming the regulatory framework of the small-scale mining sector could be derailed by the deeply ingrained interest and influence of both state and non-state actors.
Sponsor
Grant Number
Social Sciences and Humanities Research Council of Canada (SSHRC)
Trinity College Dublin (TCD)
Description:
APPROVED
Author: Kwao, Benjamin
Advisor:
Carmody, PadraigCugurullo, Federico
Publisher:
Trinity College Dublin. School of Natural Sciences. Discipline of GeographyType of material:
ThesisAvailability:
Full text availableKeywords:
Poverty, Resource Curse, Gold Mining, Ghana, Livelihoods, Enclave, Mineral Royalties, Local Content PoliciesLicences: