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Linkages in Ghana's gold mining industry: Challenging the enclave thesis

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  • Bloch, Robin
  • Owusu, George
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    Abstract

    By 2009, Ghana was the second-ranked African producer after South Africa, and had become the world's ninth largest producer of gold, at some 3.8% of global production, up from 2.6% five years earlier. Gold production volumes and revenues rose significantly over the decade from 2000. Yet gold mining tends to be perceived negatively in Ghana, and is seen as providing far less than it should in terms of public revenue, employment, skills development and spillovers, and localised economic development. Gold mining is often depicted as having an enclave status, disconnected and isolated from the rest of the economy. In contrast, the research findings here demonstrate that after a period of strong investment and growth, gold mining can no longer be viewed as an enclave activity: it is in fact more deeply linked into the Ghanaian economy than hitherto understood, through a set of as yet under-researched but promising economic linkages, notably backward linkages, which can potentially be strengthened by policy and support measures.

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    Bibliographic Info

    Article provided by Elsevier in its journal Resources Policy.

    Volume (Year): 37 (2012)
    Issue (Month): 4 ()
    Pages: 434-442

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    Handle: RePEc:eee:jrpoli:v:37:y:2012:i:4:p:434-442

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    Web page: http://www.elsevier.com/locate/inca/30467

    Related research

    Keywords: Enclave; Ghana; Gold mining; Linkages; Global value chains; Industrialisation;

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    References

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    1. World Bank, 2012. "Increasing Local Procurement By the Mining Industry in West Africa : Road-test version," World Bank Other Operational Studies 2724, The World Bank.
    2. Walker, M.I. & Minnitt, R.C.A., 2006. "Understanding the dynamics and competitiveness of the South African minerals inputs cluster," Resources Policy, Elsevier, vol. 31(1), pages 12-26, March.
    3. Aryee, Benjamin N. A., 2001. "Ghana's mining sector: its contribution to the national economy," Resources Policy, Elsevier, vol. 27(2), pages 61-75, June.
    4. Hilson, Gavin, 2002. "Harvesting mineral riches: 1000 years of gold mining in Ghana," Resources Policy, Elsevier, vol. 28(1-2), pages 13-26.
    5. Heeks, Richard, 1998. "Small Enterprise Development and the 'Dutch Disease' in a Small Economy: The Case of Brunei," General Discussion Papers 30563, University of Manchester, Institute for Development Policy and Management (IDPM).
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    Cited by:
    1. Mensah, Justice Tei & Botchway, Ebo, 2013. "Ghana's salt industry: A neglected sector for economic development?," Resources Policy, Elsevier, vol. 38(3), pages 288-294.

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