How Mining Industry Contribute to Ghana’s Economy
Abstract
In Ghana, mining subsector is one of the most crucial parts in the growth and development of its socioeconomic aspects. Ghana is ranked the tenth globally in gold mining. The industry is pivotal contributor to the country’s exports as it accounts for its 5 percent of Ghana’s GDP. It also makes up to 37 percent of what Ghana exports.
Gold makes up 95 percent of exported minerals, of the country’s mining thus making it the second country in Africa producing gold. Ghana also mines other supplementary products including bauxite, salt, gasoline and manganese. Therefore, how does mining contribute to the country’s economy?
This is a very crucial question that will be the main focus of this research study. In relation to the findings of the study, quarrying and mining industry accounts for up to an estimated 1 percent of the country’s employment. Additionally, following small scale mining legalization in late 1980s and early 1990s, there has been increased employment indirect and directly. This is in particular to the growing population in the country and it accounts for significant percentage of the overall population.
Restructuring is one of the factors that influence growth of mining industry back in 1980s. More specifically, encouraging foreign and local investors in the private sector to indulge in mining industry was the key focus of restructuring.
Annotated Bibliography
Economic commission for Africa, ‘Ghana: Country Case Study’’ Economic Report on Africa, 2013, Print.
This report focuses on analyzing factors that have played a critical role in influencing mining sector in Ghana. In regards to the author, restricting laws and policy systems that were placed put in place created a very strong foundation for growth of the industry. In turn, this has contributed greatly to the country’s GDP of the country by creating new industries and more jobs.
However, the policies in place have not benefited mining workers, boost farmers and the country’s economy. This report will additionally provide sufficient information on the drivers of mining industry thus enhancing it to impact Ghana’s economy positively.
Aryee, Benjamin. Ghana’s mining sector: its contribution to the national economy. Resource Policy 27. Accra: Pergamon, 2001. Print.
Economy Recovery Program (ERP), created by the government ideally 1983, provided a very strong foundation for growth and development of mining and minerals sector. In relative to the author of this paper, he clearly analyses the impact that large industries in Ghana had on the country’s economy. Additionally, this provides an overall view of how the industry is fairing on, challenges they are facing and how they can comfortably deal with the challenges.
Even though the industry has progressed a great deal economic development in the country, it has not fully optimized its potential.
Aryeetey, E., Osei, B and Twerefou, D.K. Globalization, employment and livelihoods in the mining sector of Ghana. ESSER Occasional Paper. 2004. Print.
This research analyses mining and minerals industry processes and what it has undergone over the past years. This is additionally to the new reforms introduced in early 1980s to enhance the industry at large. The industry is a key contributor to socio economic growth in Ghana.
Akabzaa, T.M. Boom and Dislocation: The Environmental and Social Impacts of Mining in the Wassa West District of the Western Region of Ghana. Accra: Third World Network-Africa Publication, 2000. Print.
According to the writer, mining industry in the country is improving the economy. However, there is still no evidence to show that the country’s mining industry is improving. However, with better government policies from the government, the situation is bound to change for the better.
Ayee, Joseph, and Gangadhar P. Shukla. Political Economy of the Mining Sector in Ghana. Washington, D.C.: The World Bank, 2011. Print.
Even though Ghana has for the past years been known to produce vast minerals, it has also not optimized the industry to propel the economy to greater heights. Coming up with better and renewed policies to enhance the industry is one way that will play a crucial role in overcoming the challenges.
Alpine, Robin W. L., and James Pickett. Agriculture, liberalization and economic growth in Ghana and Côte d’Ivoire, 1960-1990. Paris: OECD, 1993. Print.
Much of the country’s growth output is attributed to the mining industry in addition to agriculture. This is also considered to have played a crucial role in promoting growth of the economy to the current state of 5 percent.
Gier, Jaclyn J.. Mining women: gender in the development of a global industry, 1670-2000. Basingstoke: Palgrave Macmillan, 2009. Print.
The writer also addresses the issue of women taking part in mining jobs. It is a clear indication that mining industry has created more job opportunities for women and the youth. This in turn also improves the country’s general output and to boost its economy.
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Report on the aggregation/reconciliation of mining benefits in Ghana. Accra: Ministry of Finance and Economic Planning (Ghana Extractive Industries Transparency Initiative-GHEITI), 2007. Print.
Increasing mining industry policies in Ghana will also enhance its impact on the economy. Additionally, creating job opportunities should not take advantage of the vast labor workforce available. This will also enhance the effect of mining on the economy.
Leite, Sérgio Pereira. Ghana: economic development in a democratic environment. Washington, DC: International Monetary Fund, 2000. Print.
According to the writer, it is very critical to understand the impact of mining industry in Ghana’s economy, if given the right foundation. Although reforms in 1980s enhanced the situation and the impact that mining industry has on the economy is still not an option.
Economic Commission for Africa. Improving public participation in the sustainable development of mineral resources in Africa. 2005. Print.
According to the research report, despite the fact that Ghana’s economy has had a very significant effect on growth and development, the country has not reached its full potential. What’s more, with new reform policies, mining industry can still boost the economy to great heights.
Economic Commission for Africa (ECA). Improving Public Participation in the Sustainable Development of Mineral Resources in Africa. Addis Ababa: United Nations Economic Commission for Africa. 2004. Print.
Mining industry in Africa is growing fast and plays a crucial role in growth and development of many countries including Ghana. Setting the right and ideal measures will significantly enhance this sector and improve socio economy of the country.
ISSER (Institute of Statistical, Social and Economic Research). The State of the Ghanaian Economy in 2008. Accra: ISSER. 2009. Print.
The current state of Ghana’s economy is largely attributed to the role of reforms that were introduced in early 1980s. Even so, there are additional factors that should be considered because they contributed to growth of socio economy in the country.
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Works Cited
Aryee, Benjamin. Ghana’s mining sector: its contribution to the national economy. Resource Policy 27. Accra: Pergamon, 2001. Print.
Aryeetey, E., Osei, B and Twerefou, D.K. Globalization, employment and livelihoods in the mining sector of Ghana. ESSER Occasional Paper. 2004. Print.
Akabzaa, T.M. Boom and Dislocation: The Environmental and Social Impacts of Mining in the Wassa West District of the Western Region of Ghana. Accra: Third World Network-Africa Publication, 2000. Print.
Ayee, Joseph, and Gangadhar P. Shukla. Political Economy of the Mining Sector in Ghana. Washington, D.C.: The World Bank, 2011. Print.
Alpine, Robin W. L., and James Pickett. Agriculture, liberalization and economic growth in Ghana and Côte d’Ivoire, 1960-1990. Paris: OECD, 1993. Print.
Gier, Jaclyn J. Mining women: gender in the development of a global industry, 1670-2000. Basingstoke: Palgrave Macmillan, 2009. Print.
Report on the aggregation/reconciliation of mining benefits in Ghana. Accra: Ministry of Finance and Economic Planning (Ghana Extractive Industries Transparency Initiative-GHEITI):, 2007. Print.
Leite, Sérgio Pereira. Ghana: economic development in a democratic environment. Washington, DC: International Monetary Fund, 2000. Print.
ISSER (Institute of Statistical, Social and Economic Research). The State of the Ghanaian Economy in 2008. Accra: ISSER. 2009. Print.
Economic Commission for Africa (ECA). Improving Public Participation in the Sustainable Development of Mineral Resources in Africa. Addis Ababa: United Nations Economic Commission for Africa. 2004. Print.
Economic Commission for Africa. Improving public participation in the sustainable development of mineral resources in Africa. 2005. Print.
Economic Commision for Africa. “Ghana: Country Case Study.” Economic Report on Africa . 2013. Print.