Political Economy of the Mining Sector in Ghana

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...

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Main Authors: Ayee, Joseph, Soreide, Tina, Shukla, G. P., Le, Tuan Minh
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
OIL
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110721153754
http://hdl.handle.net/10986/3494
id okr-10986-3494
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ABUSE
ABUSES
ACCESS TO INFORMATION
ACCOUNTABILITY
ACCOUNTING
ADMINISTRATIVE CAPACITY
ADMINISTRATIVE FUNCTIONS
ADMINISTRATIVE PROCESS
ALLOCATION OF RESPONSIBILITIES
ANTI-CORRUPTION
ANTICORRUPTION
ANTICORRUPTION LEGISLATIONS
ANTICORRUPTION PLAN
APPOINTEES
ASSETS
ASYMMETRIC INFORMATION
AUDITOR
AUDITS
AUTHORITY
BAUXITE
BEST PRACTICES
BIDDING
CASH FLOWS
CENTRAL GOVERNMENT
CENTRALIZATION
CITIZENS
CIVIL SOCIETY
CIVIL SOCIETY ORGANIZATIONS
COLLUSION
COMPLAINTS
CONFLICT OF INTEREST
CONFLICT OF INTERESTS
CONSTITUENCIES
CONSTITUTION
CORPORATE TAXES
CORRUPT
CORRUPTION
COUNCILS
CRIME
CRONIES
DEBT
DECENTRALIZATION
DECISION MAKERS
DECISION MAKING
DECISION-MAKING
DEMOCRACIES
DEMOCRACY
DEMOCRATIC DEVELOPMENT
DEMOCRATIC GOVERNANCE
DEREGULATION
DIAMONDS
DISCLOSURE
DISTRICTS
DIVIDENDS
ECONOMIC GROWTH
ECONOMIC SITUATION
EFFECTIVE USE
EITI
ELECTED OFFICIALS
EMBEZZLEMENT
EMPLOYMENT GENERATION
ENACTMENT
ENVIRONMENTAL
ENVIRONMENTAL COSTS
ENVIRONMENTAL DEGRADATION
ENVIRONMENTAL IMPACT
ENVIRONMENTAL IMPACT ASSESSMENTS
ENVIRONMENTAL IMPACTS
ENVIRONMENTAL PROBLEMS
ENVIRONMENTAL PROTECTION
EXECUTION
EXECUTIVE POWER
EXPENDITURE
EXPENDITURES
EXPLOITATION
EXTRACTIVE INDUSTRIES
EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE
FINANCIAL CONTRIBUTION
FINANCIAL TRANSFERS
FOREIGN DIRECT INVESTMENT
FOREIGN EXCHANGE
FOREIGN INVESTMENT
FORESTRY
FORMAL INSTITUTIONS
FRAUD
GEOLOGICAL SURVEY
GOLD
GOLD DEPOSITS
GOLD MINES
GOLD MINING
GOLD PRODUCTION
GOOD GOVERNANCE
GOVERNMENT AGENCIES
GOVERNMENT MINISTRIES
GOVERNMENT REPRESENTATIVE
GOVERNMENT REVENUES
GOVERNMENT'S POLICY
HEALTH PROBLEMS
HUMAN RESOURCE
HUMAN RESOURCE DEVELOPMENT
HUMAN RIGHTS
INITIATIVE
INSTITUTIONAL BARRIERS
INSTITUTIONAL CAPACITY
INSTITUTIONAL FRAMEWORK
INTEGRITY
INTERNAL REVENUE
INVESTIGATION
INVESTMENT CLIMATE
JUDICIARY
JUSTICE
KICKBACKS
LABOR FORCE
LACK OF COMPETITION
LACK OF TRANSPARENCY
LAWS
LEADERSHIP
LEGAL FRAMEWORK
LEGAL PROVISIONS
LEGAL REFORM
LEGISLATION
LIABILITY
LOCAL GOVERNMENT
MANGANESE
MARKET PRICES
MEDIA
MEMBERS OF PARLIAMENT
MINERAL COMMODITIES
MINERAL COMMODITY
MINERAL EXPORTS
MINERAL RESOURCE
MINERAL RESOURCES
MINERAL REVENUES
MINERAL SECTOR
MINERAL WEALTH
MINERALS
MINING AREAS
MINING COMMUNITIES
MINING COMPANIES
MINING GOVERNANCE
MINING INDUSTRY
MINING POLICIES
MINING REFORM
MINING SECTOR
MINING SECTOR REFORMS
MINISTER
MINISTERS
MINISTERS OF STATE
MINISTRY OF FINANCE
MONOPOLY
MOTIVATIONS
MULTINATIONALS
NATIONAL ELECTIONS
NATURAL RESOURCES
OFFICEHOLDER
OIL
OIL INDUSTRY
OIL SECTOR
OLD MINES
PARASTATAL ORGANIZATIONS
PATRONAGE
PENALTIES
PENALTY
PERSONAL GAINS
POLICE
POLICY DECISIONS
POLITICAL APPOINTEES
POLITICAL CORRUPTION
POLITICAL ECONOMY
POLITICAL INSTABILITY
POLITICAL POWER
POLITICIAN
POLITICIANS
POLLUTION
POPULISM
PRESIDENCY
PRESIDENTS
PRODUCTION COSTS
PRODUCTION OF GOLD
PRODUCTION TECHNOLOGY
PROPERTY VALUES
PROSECUTION
PUBLIC FINANCE
PUBLIC INSTITUTIONS
PUBLIC OFFICIALS
PUBLIC OPINION
PUBLIC PROCUREMENT
PUBLIC SECTOR
PUBLIC SERVICE
REGULATORY FRAMEWORK
REHABILITATION
REPRESENTATIVES
RESOURCE CURSE
RESOURCE MANAGEMENT
REVENUE ADMINISTRATION
REVENUE COLLECTION
REVENUE MANAGEMENT
RISK OF CORRUPTION
ROYALTY
RULE OF LAW
RULING PARTY
RURAL COMMUNITIES
SALT
SANCTIONS
SCANDALS
SEPARATION OF POWERS
SERVICE DELIVERIES
SILVER
SOCIAL WELFARE
SOCIOECONOMIC DEVELOPMENT
STATE AGENCIES
STATE ENTERPRISES
STATE INSTITUTIONS
STATE REVENUES
STATE SECURITY
STEEL
SUSTAINABLE DEVELOPMENT
TAX ADMINISTRATION
TAX AUDITING
TAX COLLECTION
TAX INCENTIVES
TAX LAW
TAX PAYMENTS
TAX RATE
TAX RATES
TAX REGIME
TAX REVENUE
TAX REVENUES
TAXATION
TECHNOCRATS
TECHNOLOGY TRANSFERS
VOTING
spellingShingle ABUSE
ABUSES
ACCESS TO INFORMATION
ACCOUNTABILITY
ACCOUNTING
ADMINISTRATIVE CAPACITY
ADMINISTRATIVE FUNCTIONS
ADMINISTRATIVE PROCESS
ALLOCATION OF RESPONSIBILITIES
ANTI-CORRUPTION
ANTICORRUPTION
ANTICORRUPTION LEGISLATIONS
ANTICORRUPTION PLAN
APPOINTEES
ASSETS
ASYMMETRIC INFORMATION
AUDITOR
AUDITS
AUTHORITY
BAUXITE
BEST PRACTICES
BIDDING
CASH FLOWS
CENTRAL GOVERNMENT
CENTRALIZATION
CITIZENS
CIVIL SOCIETY
CIVIL SOCIETY ORGANIZATIONS
COLLUSION
COMPLAINTS
CONFLICT OF INTEREST
CONFLICT OF INTERESTS
CONSTITUENCIES
CONSTITUTION
CORPORATE TAXES
CORRUPT
CORRUPTION
COUNCILS
CRIME
CRONIES
DEBT
DECENTRALIZATION
DECISION MAKERS
DECISION MAKING
DECISION-MAKING
DEMOCRACIES
DEMOCRACY
DEMOCRATIC DEVELOPMENT
DEMOCRATIC GOVERNANCE
DEREGULATION
DIAMONDS
DISCLOSURE
DISTRICTS
DIVIDENDS
ECONOMIC GROWTH
ECONOMIC SITUATION
EFFECTIVE USE
EITI
ELECTED OFFICIALS
EMBEZZLEMENT
EMPLOYMENT GENERATION
ENACTMENT
ENVIRONMENTAL
ENVIRONMENTAL COSTS
ENVIRONMENTAL DEGRADATION
ENVIRONMENTAL IMPACT
ENVIRONMENTAL IMPACT ASSESSMENTS
ENVIRONMENTAL IMPACTS
ENVIRONMENTAL PROBLEMS
ENVIRONMENTAL PROTECTION
EXECUTION
EXECUTIVE POWER
EXPENDITURE
EXPENDITURES
EXPLOITATION
EXTRACTIVE INDUSTRIES
EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE
FINANCIAL CONTRIBUTION
FINANCIAL TRANSFERS
FOREIGN DIRECT INVESTMENT
FOREIGN EXCHANGE
FOREIGN INVESTMENT
FORESTRY
FORMAL INSTITUTIONS
FRAUD
GEOLOGICAL SURVEY
GOLD
GOLD DEPOSITS
GOLD MINES
GOLD MINING
GOLD PRODUCTION
GOOD GOVERNANCE
GOVERNMENT AGENCIES
GOVERNMENT MINISTRIES
GOVERNMENT REPRESENTATIVE
GOVERNMENT REVENUES
GOVERNMENT'S POLICY
HEALTH PROBLEMS
HUMAN RESOURCE
HUMAN RESOURCE DEVELOPMENT
HUMAN RIGHTS
INITIATIVE
INSTITUTIONAL BARRIERS
INSTITUTIONAL CAPACITY
INSTITUTIONAL FRAMEWORK
INTEGRITY
INTERNAL REVENUE
INVESTIGATION
INVESTMENT CLIMATE
JUDICIARY
JUSTICE
KICKBACKS
LABOR FORCE
LACK OF COMPETITION
LACK OF TRANSPARENCY
LAWS
LEADERSHIP
LEGAL FRAMEWORK
LEGAL PROVISIONS
LEGAL REFORM
LEGISLATION
LIABILITY
LOCAL GOVERNMENT
MANGANESE
MARKET PRICES
MEDIA
MEMBERS OF PARLIAMENT
MINERAL COMMODITIES
MINERAL COMMODITY
MINERAL EXPORTS
MINERAL RESOURCE
MINERAL RESOURCES
MINERAL REVENUES
MINERAL SECTOR
MINERAL WEALTH
MINERALS
MINING AREAS
MINING COMMUNITIES
MINING COMPANIES
MINING GOVERNANCE
MINING INDUSTRY
MINING POLICIES
MINING REFORM
MINING SECTOR
MINING SECTOR REFORMS
MINISTER
MINISTERS
MINISTERS OF STATE
MINISTRY OF FINANCE
MONOPOLY
MOTIVATIONS
MULTINATIONALS
NATIONAL ELECTIONS
NATURAL RESOURCES
OFFICEHOLDER
OIL
OIL INDUSTRY
OIL SECTOR
OLD MINES
PARASTATAL ORGANIZATIONS
PATRONAGE
PENALTIES
PENALTY
PERSONAL GAINS
POLICE
POLICY DECISIONS
POLITICAL APPOINTEES
POLITICAL CORRUPTION
POLITICAL ECONOMY
POLITICAL INSTABILITY
POLITICAL POWER
POLITICIAN
POLITICIANS
POLLUTION
POPULISM
PRESIDENCY
PRESIDENTS
PRODUCTION COSTS
PRODUCTION OF GOLD
PRODUCTION TECHNOLOGY
PROPERTY VALUES
PROSECUTION
PUBLIC FINANCE
PUBLIC INSTITUTIONS
PUBLIC OFFICIALS
PUBLIC OPINION
PUBLIC PROCUREMENT
PUBLIC SECTOR
PUBLIC SERVICE
REGULATORY FRAMEWORK
REHABILITATION
REPRESENTATIVES
RESOURCE CURSE
RESOURCE MANAGEMENT
REVENUE ADMINISTRATION
REVENUE COLLECTION
REVENUE MANAGEMENT
RISK OF CORRUPTION
ROYALTY
RULE OF LAW
RULING PARTY
RURAL COMMUNITIES
SALT
SANCTIONS
SCANDALS
SEPARATION OF POWERS
SERVICE DELIVERIES
SILVER
SOCIAL WELFARE
SOCIOECONOMIC DEVELOPMENT
STATE AGENCIES
STATE ENTERPRISES
STATE INSTITUTIONS
STATE REVENUES
STATE SECURITY
STEEL
SUSTAINABLE DEVELOPMENT
TAX ADMINISTRATION
TAX AUDITING
TAX COLLECTION
TAX INCENTIVES
TAX LAW
TAX PAYMENTS
TAX RATE
TAX RATES
TAX REGIME
TAX REVENUE
TAX REVENUES
TAXATION
TECHNOCRATS
TECHNOLOGY TRANSFERS
VOTING
Ayee, Joseph
Soreide, Tina
Shukla, G. P.
Le, Tuan Minh
Political Economy of the Mining Sector in Ghana
geographic_facet Africa
Africa
West Africa
Sub-Saharan Africa
Ghana
relation Policy Research working paper ; no. WPS 5730
description 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.
format Publications & Research :: Policy Research Working Paper
author Ayee, Joseph
Soreide, Tina
Shukla, G. P.
Le, Tuan Minh
author_facet Ayee, Joseph
Soreide, Tina
Shukla, G. P.
Le, Tuan Minh
author_sort Ayee, Joseph
title Political Economy of the Mining Sector in Ghana
title_short Political Economy of the Mining Sector in Ghana
title_full Political Economy of the Mining Sector in Ghana
title_fullStr Political Economy of the Mining Sector in Ghana
title_full_unstemmed Political Economy of the Mining Sector in Ghana
title_sort political economy of the mining sector in ghana
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110721153754
http://hdl.handle.net/10986/3494
_version_ 1764387091050921984
spelling okr-10986-34942021-04-23T14:02:10Z Political Economy of the Mining Sector in Ghana Ayee, Joseph Soreide, Tina Shukla, G. P. Le, Tuan Minh ABUSE ABUSES ACCESS TO INFORMATION ACCOUNTABILITY ACCOUNTING ADMINISTRATIVE CAPACITY ADMINISTRATIVE FUNCTIONS ADMINISTRATIVE PROCESS ALLOCATION OF RESPONSIBILITIES ANTI-CORRUPTION ANTICORRUPTION ANTICORRUPTION LEGISLATIONS ANTICORRUPTION PLAN APPOINTEES ASSETS ASYMMETRIC INFORMATION AUDITOR AUDITS AUTHORITY BAUXITE BEST PRACTICES BIDDING CASH FLOWS CENTRAL GOVERNMENT CENTRALIZATION CITIZENS CIVIL SOCIETY CIVIL SOCIETY ORGANIZATIONS COLLUSION COMPLAINTS CONFLICT OF INTEREST CONFLICT OF INTERESTS CONSTITUENCIES CONSTITUTION CORPORATE TAXES CORRUPT CORRUPTION COUNCILS CRIME CRONIES DEBT DECENTRALIZATION DECISION MAKERS DECISION MAKING DECISION-MAKING DEMOCRACIES DEMOCRACY DEMOCRATIC DEVELOPMENT DEMOCRATIC GOVERNANCE DEREGULATION DIAMONDS DISCLOSURE DISTRICTS DIVIDENDS ECONOMIC GROWTH ECONOMIC SITUATION EFFECTIVE USE EITI ELECTED OFFICIALS EMBEZZLEMENT EMPLOYMENT GENERATION ENACTMENT ENVIRONMENTAL ENVIRONMENTAL COSTS ENVIRONMENTAL DEGRADATION ENVIRONMENTAL IMPACT ENVIRONMENTAL IMPACT ASSESSMENTS ENVIRONMENTAL IMPACTS ENVIRONMENTAL PROBLEMS ENVIRONMENTAL PROTECTION EXECUTION EXECUTIVE POWER EXPENDITURE EXPENDITURES EXPLOITATION EXTRACTIVE INDUSTRIES EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE FINANCIAL CONTRIBUTION FINANCIAL TRANSFERS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FORESTRY FORMAL INSTITUTIONS FRAUD GEOLOGICAL SURVEY GOLD GOLD DEPOSITS GOLD MINES GOLD MINING GOLD PRODUCTION GOOD GOVERNANCE GOVERNMENT AGENCIES GOVERNMENT MINISTRIES GOVERNMENT REPRESENTATIVE GOVERNMENT REVENUES GOVERNMENT'S POLICY HEALTH PROBLEMS HUMAN RESOURCE HUMAN RESOURCE DEVELOPMENT HUMAN RIGHTS INITIATIVE INSTITUTIONAL BARRIERS INSTITUTIONAL CAPACITY INSTITUTIONAL FRAMEWORK INTEGRITY INTERNAL REVENUE INVESTIGATION INVESTMENT CLIMATE JUDICIARY JUSTICE KICKBACKS LABOR FORCE LACK OF COMPETITION LACK OF TRANSPARENCY LAWS LEADERSHIP LEGAL FRAMEWORK LEGAL PROVISIONS LEGAL REFORM LEGISLATION LIABILITY LOCAL GOVERNMENT MANGANESE MARKET PRICES MEDIA MEMBERS OF PARLIAMENT MINERAL COMMODITIES MINERAL COMMODITY MINERAL EXPORTS MINERAL RESOURCE MINERAL RESOURCES MINERAL REVENUES MINERAL SECTOR MINERAL WEALTH MINERALS MINING AREAS MINING COMMUNITIES MINING COMPANIES MINING GOVERNANCE MINING INDUSTRY MINING POLICIES MINING REFORM MINING SECTOR MINING SECTOR REFORMS MINISTER MINISTERS MINISTERS OF STATE MINISTRY OF FINANCE MONOPOLY MOTIVATIONS MULTINATIONALS NATIONAL ELECTIONS NATURAL RESOURCES OFFICEHOLDER OIL OIL INDUSTRY OIL SECTOR OLD MINES PARASTATAL ORGANIZATIONS PATRONAGE PENALTIES PENALTY PERSONAL GAINS POLICE POLICY DECISIONS POLITICAL APPOINTEES POLITICAL CORRUPTION POLITICAL ECONOMY POLITICAL INSTABILITY POLITICAL POWER POLITICIAN POLITICIANS POLLUTION POPULISM PRESIDENCY PRESIDENTS PRODUCTION COSTS PRODUCTION OF GOLD PRODUCTION TECHNOLOGY PROPERTY VALUES PROSECUTION PUBLIC FINANCE PUBLIC INSTITUTIONS PUBLIC OFFICIALS PUBLIC OPINION PUBLIC PROCUREMENT PUBLIC SECTOR PUBLIC SERVICE REGULATORY FRAMEWORK REHABILITATION REPRESENTATIVES RESOURCE CURSE RESOURCE MANAGEMENT REVENUE ADMINISTRATION REVENUE COLLECTION REVENUE MANAGEMENT RISK OF CORRUPTION ROYALTY RULE OF LAW RULING PARTY RURAL COMMUNITIES SALT SANCTIONS SCANDALS SEPARATION OF POWERS SERVICE DELIVERIES SILVER SOCIAL WELFARE SOCIOECONOMIC DEVELOPMENT STATE AGENCIES STATE ENTERPRISES STATE INSTITUTIONS STATE REVENUES STATE SECURITY STEEL SUSTAINABLE DEVELOPMENT TAX ADMINISTRATION TAX AUDITING TAX COLLECTION TAX INCENTIVES TAX LAW TAX PAYMENTS TAX RATE TAX RATES TAX REGIME TAX REVENUE TAX REVENUES TAXATION TECHNOCRATS TECHNOLOGY TRANSFERS VOTING 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. 2012-03-19T18:03:26Z 2012-03-19T18:03:26Z 2011-07-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110721153754 http://hdl.handle.net/10986/3494 English Policy Research working paper ; no. WPS 5730 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Publications & Research Africa Africa West Africa Sub-Saharan Africa Ghana