Political economy of the mining sector in ghana
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Political economy of the mining sector in ghana
Policy Research Working Paper5730Political Economy of the Mining Sector in GhanaJoseph AyeeTina SoreideG. R ShuklaTuan Minh I.eThe World BankAfrica Re Political economy of the mining sector in ghana egionPublic Sector Reform and Capacity Building Unit40725Polio- Research Working Paper 5730AbstractWith 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 vu Political economy of the mining sector in ghana lnerabilities in mining sector governance along the industry value chain. The authors explain why it has been difficult to implement policies that wouPolitical economy of the mining sector in ghana
ld have improved social welfare. They find that incentive problems in institutions directly or peripherally involved in mining governance are a major Policy Research Working Paper5730Political Economy of the Mining Sector in GhanaJoseph AyeeTina SoreideG. R ShuklaTuan Minh I.eThe World BankAfrica Re Political economy of the mining sector in ghana , lackof 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 pr Political economy of the mining sector in ghana oblems at the political level and their possible implications for sector performance and the economy at large. The set of checks and balances, as stipPolitical economy of the mining sector in ghana
ulated by the Constitution, have to be reinforced. Furthermore, capacity building at different levels and institutions is needed and should be combinePolicy Research Working Paper5730Political Economy of the Mining Sector in GhanaJoseph AyeeTina SoreideG. R ShuklaTuan Minh I.eThe World BankAfrica Re Political economy of the mining sector in ghana ica Region. It is part of a larger effort by the World Bank to provide open access to its research and make a contribution to development policy discussions around the world. Policy Research Working Papers arc also posted on the Web at http://ccon.woridbank.org. The author may be contacted at rIeCdw Political economy of the mining sector in ghana orldbank.org.Ihe hdicy Research Working Riper Series disseminules the finding ofwork in progress 10 encourage the exchange of ideas about developmentPolitical economy of the mining sector in ghana
issues. An objective of the tenet is to get the finding out quickly. even if the presentations are less than fully polished. the papers carry the namePolicy Research Working Paper5730Political Economy of the Mining Sector in GhanaJoseph AyeeTina SoreideG. R ShuklaTuan Minh I.eThe World BankAfrica Re Political economy of the mining sector in ghana ors. '{hey do not nxvessartfy represent the views of the International Rank for Recemstnution and DevelopmerufWorld Bank and its affiliated organizations. or those of the Exccunte Directors of the World Bank or the govern merits they represent.Produced by the Research Support TeamPolitical Economy o Political economy of the mining sector in ghana f the Mining Sector in GhanaJoseph Ayee, Tina Sore ide, c. p. Sbukfa, and Pnan Minh LrJoseph Arce is Professor and Deputy Vice-Chancellor. UniversityPolitical economy of the mining sector in ghana
of KwaZulu-Natal, South Africa; 'lĩna Soreidc is an Economist and Senior R«">rairliri al the Chi. Micbelscn Institute, Norway; G. p. Shukla is ProfessPolicy Research Working Paper5730Political Economy of the Mining Sector in GhanaJoseph AyeeTina SoreideG. R ShuklaTuan Minh I.eThe World BankAfrica Re Political economy of the mining sector in ghana heir gratitude to Anand Rajaram (Sector Manager, Ari PR) for lus active guidance and encouragement of the political economy program in Africa, and suggested editonal revisions to tins paper Tile authors also wish to acknowledge the extremely usefill advice and country knowledge provided by Ishac Diw Political economy of the mining sector in ghana an (Country Director), Katherine Bam (then Senior Operations Officer), and the Ghana country management team. Management support from Sudlur Shctty anPolitical economy of the mining sector in ghana
d Marcelo Giugalc (successive Dưectors, Africa PREM) and Deborah Wetzel and Linda van Gelder (successive Dưectors, Public Sector Governance) is gratefPolicy Research Working Paper5730Political Economy of the Mining Sector in GhanaJoseph AyeeTina SoreideG. R ShuklaTuan Minh I.eThe World BankAfrica Re Political economy of the mining sector in ghana ira, Thad Dunning, Verena Fritz, Charles McPherson, Alexandra Gillies, Adnan Vatansever, and other colleagues at the World Bank and IMF who have generously attended working sessions and provided insightful comments.The paper is part of the World Bank’s flagship research on political economy of natur Political economy of the mining sector in ghana al resource management. The authors acknowledge the generous funding by the Bank Netherlands Partnership Program and the Governance Partnership FaciliPolitical economy of the mining sector in ghana
ty which supported tills research. Tile paper does not reflect the official views of the World Bank, its Executive Board, member governments, or any oPolicy Research Working Paper5730Political Economy of the Mining Sector in GhanaJoseph AyeeTina SoreideG. R ShuklaTuan Minh I.eThe World BankAfrica Re Political economy of the mining sector in ghana neral endowment that led to the country being known in colonial times as the Gold Coast and despite being Africa’s second largest gold producer after South Africa, modern day Ghana has not succeeded in translating its mineral wealth into overall economic development. The net impact of the muung sect Political economy of the mining sector in ghana or on Ghana’s development has been relatively modest. Tins fact has been recognized by the Government and IS also manifested in increasing public discPolitical economy of the mining sector in ghana
ontent with the sector. Tile environmental consequences of mining, especially of the old mines, arc substantial, while transfers from the sector to thPolicy Research Working Paper5730Political Economy of the Mining Sector in GhanaJoseph AyeeTina SoreideG. R ShuklaTuan Minh I.eThe World BankAfrica Re Political economy of the mining sector in ghana titutional set-up and the political environment as central to understanding and rectifying the poor impact of mining on Ghana’s economic development, this paper higlilights the vulnerabilities U1 mining sector governance along the industry value chain and attempts to explain why it has been difficul Political economy of the mining sector in ghana t to implement policies that would have improved social welfare. Incentive problems in institutions directly or peripherally involved in mining governPolitical economy of the mining sector in ghana
ance are clearly a major factor in tlũs explanation as are an excessively centralized policy-making process, a powerfill executive president, strong pPolicy Research Working Paper5730Political Economy of the Mining Sector in GhanaJoseph AyeeTina SoreideG. R ShuklaTuan Minh I.eThe World BankAfrica Re Political economy of the mining sector in ghana complex political and institutional cliallenges, there are a number of opportunities that may facilitate an improvement in the governance of the mining sector They include (i) the shift in power after the 2008 election to the National Democratic Congress, which may allow the government to explore p Political economy of the mining sector in ghana ractical ways of implementing its election manifesto; (ii) the apparent willingness on the part of some of the larger mining companies to review the tPolitical economy of the mining sector in ghana
erms of then investment agreements; (ill) the constructive initiatives from the National Coalition on Muling and the Commission on Human Rights and AdPolicy Research Working Paper5730Political Economy of the Mining Sector in GhanaJoseph AyeeTina SoreideG. R ShuklaTuan Minh I.eThe World BankAfrica Re Political economy of the mining sector in ghana generated by Oil discover}- to review the challenges in the mining sector and draw policy lessons to avoid pitfalls and thereby make oil and mineral resources welfare-enhancing.The paper argues that the net impact of mining on economic development is likely to be enhanced with appropriate reforms i Political economy of the mining sector in ghana n governance. Most importantly, there should be a greater awareness of incentive problems at the political level and theữ possible implications for sePolitical economy of the mining sector in ghana
ctor performance and the economy at Luge. The set of checks and balances, as stipulated by the Constitution, have to be reinforced. Besides, capacity Policy Research Working Paper5730Political Economy of the Mining Sector in GhanaJoseph AyeeTina SoreideG. R ShuklaTuan Minh I.eThe World BankAfrica Re Political economy of the mining sector in ghana entsI.INTRODUCTION........................................................................6Policy Research Working Paper5730Political Economy of the Mining Sector in GhanaJoseph AyeeTina SoreideG. R ShuklaTuan Minh I.eThe World BankAfrica ReGọi ngay
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