Major Papers

Keywords

Mining, FDI, Poverty

Abstract

This study assesses the impacts of Foreign Direct Investment (FDI) in the mining sector on rural poverty in Ghana. To this end, the study uses qualitative research techniques, and employs New Institutionalist and Marxist theoretical perspectives. The study notes that large-scale mining activities in Ghana have intensified with increased foreign capital involvement in the mining industry following the mining sector reforms in 1986. The study finds that whilst mining has the potential to reduce rural poverty by way of revenue generation, employment creation, and Corporate Social Responsibility (CSR), the weak institutional capacity in the country manifesting through the pro-investor mining sector regulatory regime and the ineffective and corrupt mining support institutions, coupled with the capital-intensive nature of mining activities and the limited scope of CSR, has constrained the ability of mining to reduce poverty in mining communities in Ghana. However, the negative livelihood impacts of mining activities depriving rural people of their access to land, coupled with the social and environmental externalities they generate have worsened the plight of rural mining communities in the country. The study recommends that the Minerals and Mining Act be revised so as to limit mining methods to underground mining in order to mitigate the livelihood impacts of mining activities resulting from the lack of access to land due to surface mining, and also to generate more rents for the government to make sufficient disbursements to effect community development and poverty alleviation in mining communities. It is also recommended that the mining sector support institutions be strengthened to effectively enforce various environmental standards so as to save mining communities from pollution and environmental destruction arising out of mining activities.

Primary Advisor

Dr. Jesse S. Ovadia

Co-Advisor

Dr. Elena Maltseva

Program Reader

Gabriel Adu

Degree Name

Master of Arts

Department

Political Science

Document Type

Major Research Paper

Convocation Date

2018

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