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Ghana׳s extractive industries and community benefit sharing: The case for cash transfers

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  • Standing, André

Abstract

While many African countries do not have a strong track record of managing mineral wealth well, Ghana is often considered a model of best practice, based on the government׳s distribution of a proportion of mining rents to mining affected communities. However, corruption and mismanagement by local authorities and traditional leaders undermine this policy. The paper considers the policy implications, arguing that the usual remedies promoted by the development community of transparency and social accountability are unlikely to be effective. An alternative policy is gaining more international support, which involves using the wealth from natural resource sectors to fund a universal cash transfer scheme. The paper considers the feasibility and potential benefits of this in Ghana, not only in terms of improving the developmental contribution of mineral wealth, but also how a cash transfer scheme may overcome corruption and poor governance.

Suggested Citation

  • Standing, André, 2014. "Ghana׳s extractive industries and community benefit sharing: The case for cash transfers," Resources Policy, Elsevier, vol. 40(C), pages 74-82.
    • Handle: RePEc:eee:jrpoli:v:40:y:2014:i:c:p:74-82
    DOI: 10.1016/j.resourpol.2014.03.003
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    References listed on IDEAS

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    Cited by:

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    2. Adams, Dawda & Adams, Kweku & Ullah, Subhan & Ullah, Farid, 2019. "Globalisation, governance, accountability and the natural resource ‘curse’: Implications for socio-economic growth of oil-rich developing countries," Resources Policy, Elsevier, vol. 61(C), pages 128-140.
    3. Sanchez, Emerson M. & Lamchek, Jayson S., 2023. "Creating a sovereign wealth fund in a corruption-riddled country: Energizing transparency and sound governance with direct benefit-sharing," Resources Policy, Elsevier, vol. 81(C).
    4. Poncian, Japhace & Jose, Jim, 2019. "Resource governance and community participation: Making hydrocarbon extraction work for Tanzania," Resources Policy, Elsevier, vol. 62(C), pages 84-93.
    5. Abdul-Gafaru Abdulai, 2017. "Competitive clientelism and the political economy of mining in Ghana," Global Development Institute Working Paper Series esid-078-17, GDI, The University of Manchester.
    6. Lawer, Eric Tamatey & Lukas, Martin C. & Jørgensen, Stig H., 2017. "The neglected role of local institutions in the ‘resource curse’ debate. Limestone mining in the Krobo region of Ghana," Resources Policy, Elsevier, vol. 54(C), pages 43-52.
    7. Roy Maconachie & Radhika Srinivasan & Nicholas Menzies, 2015. "Responding to the Challenge of Fragility and Security in West Africa," World Bank Publications - Reports 22511, The World Bank Group.
    8. van der Ploeg, Lidewij & Vanclay, Frank, 2018. "Challenges in implementing the corporate responsibility to respect human rights in the context of project-induced displacement and resettlement," Resources Policy, Elsevier, vol. 55(C), pages 210-222.
    9. Henri, Pr Atangana Ondoa, 2019. "Natural resources curse: A reality in Africa," Resources Policy, Elsevier, vol. 63(C), pages 1-1.

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