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Political economy of the mining sector in Ghana

Author

Listed:
  • Ayee, Joseph
  • Soreide, Tina
  • Shukla, G. P.
  • Le, Tuan Minh

Abstract

With a focus on the institutional set-up and the political environment as central to understanding and rectifying the poor impact of mining on Ghana's economic development, this paper highlights the vulnerabilities in mining sector governance along the industry value chain. The authors explain why it has been difficult to implement policies that would have improved social welfare. They find that incentive problems in institutions directly or peripherally involved in mining governance are a major factor, as are an excessively centralized policy-making process, a powerful executive president, strong party loyalty, a system of political patronage, lack of transparency, and weak institutional capacity at the political and regulatory levels. The paper argues that the net impact of mining on economic development is likely to be enhanced with appropriate reforms in governance. Most importantly, there should be a greater awareness of incentive problems at the political level and their possible implications for sector performance and the economy at large. The set of checks and balances, as stipulated by the Constitution, have to be reinforced. Furthermore, capacity building at different levels and institutions is needed and should be combined with efforts to enhance incentives for institutional performance.

Suggested Citation

  • Ayee, Joseph & Soreide, Tina & Shukla, G. P. & Le, Tuan Minh, 2011. "Political economy of the mining sector in Ghana," Policy Research Working Paper Series 5730, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5730
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    Citations

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    Cited by:

    1. Keith Slack, 2017. "Capturing economic and social benefits at the community level: Opportunities and obstacles for civil society," WIDER Working Paper Series 051, World Institute for Development Economic Research (UNU-WIDER).
    2. Berumen, Sergio A. & Pérez-Megino, Luis P., 2016. "Ranking Socioeconómico para el Desarrollo de las Regiones Carboníferas en Europa || Socioeconomic Ranking for the Development of coal-mining regions in Europe," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 21(1), pages 39-57, June.
    3. Ousman Gajigo & Emelly Mutambatsere & Guirane Samba Ndiaye, 2012. "Working Paper 147 - Gold Mining in Africa-Maximizing Economic Returns for Countries," Working Paper Series 378, African Development Bank.
    4. repec:eee:jrpoli:v:54:y:2017:i:c:p:43-52 is not listed on IDEAS
    5. Al-Kasim, Farouk & Søreide, Tina & Williams, Aled, 2013. "Corruption and reduced oil production: An additional resource curse factor?," Energy Policy, Elsevier, vol. 54(C), pages 137-147.
    6. Boakye, Daniel & Dessus, Sebastien & Foday, Yusuf & Oppong, Felix, 2012. "Investing mineral wealth in development assets : Ghana, Liberia and Sierra Leone," Policy Research Working Paper Series 6089, The World Bank.
    7. Vera Martínez Jorge, 2013. "Atributos de calidad del servicio de la telefonía móvil para clientes mexicanos y su impacto en la satisfacción y en la lealtad hacia la marca," Contaduría y Administración, Accounting and Management, vol. 58(3), pages 39-63, julio-sep.
    8. Teschner, Benjamin A., 2012. "Small-scale mining in Ghana: The government and the galamsey," Resources Policy, Elsevier, vol. 37(3), pages 308-314.

    More about this item

    Keywords

    National Governance; Environmental Economics&Policies; Public Sector Corruption&Anticorruption Measures; Mining&Extractive Industry (Non-Energy); Governance Indicators;

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