Ghana has been exporting natural resources like gold, timber, and cocoa since independence 65 years ago. This hasn't brought about improvement in the wellbeing of ordinary Ghanaians: poverty is still widespread, the infrastructure is poor, and the country hasn't advanced in terms of industrialization. Ghana is still an underdeveloped country.
Oil wealth and the well-being of the subaltern classes in Sub-Saharan Africa: A critical analysis of the resource curse in Ghana
Dr
Jasper Abembia Ayelazuno
(He/Him)
Verified academic
Associate Professor
Faculty of Communication and Cultural Studies
University for Development Studies
jasper obtained his phd in political science from york university in canada, his ma from sussex university in england, and his ba (hons) from university of ghana, legon. he is presently an associate professor and vice dean at university for development studies, ghana.
Ghanaian
A historical analysis of natural resource extraction in Ghana shows that oil production will never bring about the improvement of the wellbeing of ordinary people, especially those who are dispossessed by the oil industry.
About
My understanding of development is that it should promote the well being of ordinary people, those at the lower ranks of society. How can Ghana’s oil wealth promote this kind of development?
Bad governance and institutions are viewed widely as the threat to the development prospects of Ghana’s oil wealth. My research demonstrates that good institutions alone will not solve the “resource curse” problem in Africa. It is the dynamics of the capitalist global economy which interact with bad governance to deprive ordinary Africans the benefits of their natural resources. This research shows that the capitalist global economy is ruled by racial capitalism, which is not concerned about the welfare of Africans.
Key Findings
Oil in commercial quantities was discovered in Ghana in 2007, and production started in 2010. There was euphoria about the development prospects of oil, and many Ghanaians hoped that they will benefit from it. However, the history of minerals extraction in Ghana shows that this was a pipe dream.
The foreign companies that have been mining gold in Ghana for decades are only interested in making profits. The gold is exported raw abroad, leaving Ghana as an exporter of raw materials. The oil companies are doing the same thing, so oil will never improve the wellbeing of ordinary people.
How to use
The state of Ghana carries a big responsibility because oil wealth is vested in the President, on behalf of the Ghanaians. This means that the President and the government should manage the oil – from signing contracts, to the oil revenue that they get – in such a way that the welfare of Ghanaians is prioritized.
The state of Ghana carries a big responsibility because oil wealth is vested in the President, on behalf of the Ghanaians. This means that the President and the government should manage the oil – from signing contracts, to the oil revenue that they get – in such a way that the welfare of Ghanaians is prioritized.
The state of Ghana carries a big responsibility because oil wealth is vested in the President, on behalf of the Ghanaians. This means that the President and the government should manage the oil – from signing contracts, to the oil revenue that they get – in such a way that the welfare of Ghanaians is prioritized.
The state of Ghana carries a big responsibility because oil wealth is vested in the President, on behalf of the Ghanaians. This means that the President and the government should manage the oil – from signing contracts, to the oil revenue that they get – in such a way that the welfare of Ghanaians is prioritized.
The state of Ghana carries a big responsibility because oil wealth is vested in the President, on behalf of the Ghanaians. This means that the President and the government should manage the oil – from signing contracts, to the oil revenue that they get – in such a way that the welfare of Ghanaians is prioritized.
The full paper is not available open access
<!– [if supportFields]>Â BIBLIOGRAPHY <![endif]–>Ayelazuno, J. (2014). Oil wealth and the well-being of the subaltern classes in Sub-Saharan Africa: A critical analysis of the resource curse in Ghana. Resources Policy, 40, 66-73. doi:https://doi.org/10.1016/j.resourpol.2013.06.009
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About this research
This research was independently conducted and did not receive funding from outside of the university.
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UN Sustainable Development Goals
This research contributes to the following SDGs
About this research
This research was independently conducted and did not receive funding from outside of the university.
Recommended for
What it means
For the ordinary Ghanaians, who are interested in how their lives would be improved by oil extraction, this research shows that they are going to lose their livelihoods due to oil, since most of them are farming around the onshore area where the oil pipes will pass through. The ordinary people (e.g., farmers, fishers), especially women, must exercise their democratic right to hold the government accountable. They have to be politically active, in terms of organizing grassroots movements to hold both the oil companies and their government accountable.
This research also shows that most oil companies are only interested in exploiting Ghana and its resources. By reinvesting their profits, oil companies can strengthen their relationship with Ghana’s economy. This can be done by, for instance, reinvesting in oil refineries in Ghana and selling the oil back to the Ghanaians, instead of exporting raw oil.
Methodology
The method used for this research is historical and documentary analysis. I took a long historical view of Ghana’s extractive industry, of how Ghana has been producing and exporting raw materials like gold, timber and cocoa for several decades without development. The pattern that was identified in this historical analysis – exploitation by racial capitalism – was then applied to oil extraction in Ghana.
Glossary
Resource Curse
The mainstream notion of resource curse is limited to internal factors such as bad governance and mismanagement of oil rents, leading to political instability, deindustrialization, low economic growth, etc. However, from a critical political economy perspective, these are all symptoms of a deeper and long historical problem of the exploitation of Africa by global racial capitalism. Resource curse is, therefore, racial imperialist exploitation of African natural resources – and in the post-independence era, doing this with the complicity of a corrupt political class and top public servants – leaving in its trail deleterious environmental and social effects on the subaltern classes.
Let your research make a social impact
Smaranda Bob prepared this research following an interview with Jasper Abembia Ayelazuno.
