Feature:
Avoiding oil resource curse in Ghana,
a myth or reality?
21 January, 2011 | By Mathias Kwame Alagbo
----------------------------------------------------------------------------------
producing Nations.
While there was pomp and pageantry with dignitaries including
Traditional rulers and the two surviving former heads of State, Flt Lt.
Jerry John Rawlings and Mr John Agyekum Kufuor gracing the
occasion, there remained a lingering concern on the minds of many
as to whether Ghana’s new oil find can bring happiness and
blessings to the Nation or will lead to the manifestation of the much
talk about ‘natural resource curse’ syndrome.?
As the President implored all Ghanaians to rejoice and celebrate the
historic event of the new oil find, he seemed to be aware of the
Challenges as he called on all appointees of his government to
ensure that the oil find is a blessing to Ghanaians and further stressed
that we as a nation are assuming very serious responsibilities hence
the need to work hard and not rest on our oars.
The above concerns are very legitimate and requires attention, in
that Africa as a continent is endowed with renewable natural
resources like water, forestry and fisheries and non -renewable
natural resources like, coal, gas, oil, diamond, gold, bauxite etc
which in all serves as a backbone for economies around the world,
as well as being central to many livelihoods. Unfortunately, the same
resources that have transformed deserts into blistering modern cities
in Gulf States of Qatar, UAE, Saudi Arabia and Brunei among
others have rather become a catalyst in turning Africa’s economic
and social development in an anti clockwise direction with much
pain, deaths and destruction in its wake.
Many schools of thought including this author contends that if Ghana
can safeguard her democratic rule in the midst of the myriad socio-
economic and political problems and challenges it faces while her
sister nations around her are embroiled in the many wars and arm
conflicts that are raging on, then yes, Ghana once again can show
that oil and other natural resource finds can be a blessing and not a
curse ‘‘if and only if’’ we can walk the walk just as we talk the talk.
To most students of security, the bridge between stability and chaos
is a very thin line and as such Ghana is not too different from her
neighbours like Nigeria, Sierra Leone and Liberia which are living
examples of unforgettable memories of hardship natural resources
can bring when such resources are not judiciously harnessed and
applied for the benefit of all.
To avoid any chance of being caught up in a quagmire of oil related
conflicts, Ghana must as a matter of urgency securitize poverty,
deprivation, justice, political patronage and other rent seeking
behaviours in the form of corruption which allow a few access to
resources which are often diverted from fruitful economic activities
to the detriment of the masses.
Often times, the ‘greed and grievance’ theory has been trumpeted as
the cause of most natural resource induced wars in Africa and
elsewhere. This is largely true, because whenever a combination of
certain conditions such as large scale export of primary
commodities, low level of education of majority and attendant high
proportion of unemployed youth, economic decline and lack of
opportunities for livelihood which is quite prevalent in Africa are
identified together, conflict is bound to raise its ugly head.
A brief historical background to the Sierra Leonean carnage
revealed the existence of the above conditions which existed for
decades and acted as a catalyst that sped up the arm rebellion like a
wild fire.
In her book World On Fire; How Exporting Free Market
Democracy Breeds Ethnic Hatred & Global Instability, Amy
Chua corroborates other Scholars assertion of greed motivated
conflicts, when she described the reign of terror that destroyed
Sierra Leone between 1991 and 1999 as ‘the deliberate handiwork
of vicious, self-interested butchers and thieves’.
She further noted that, the movement of the Revolutionary United
Front (RUF) has no ideology and to her, the mission of the RUF led
by Fodday Sankoh, was a blatant grab for power and wealth,
through the mobilization of hungry, disaffected and angry teenage
foot soldiers from a destitute, demoralized, 70 percent illiterate
provincial population that for years had seen the nearby diamond
mines generating fantastic wealth for politicians and a handful of
Lebanese cronies. The exploits of Fodday Sankoh as observed
above was largely possible because the masses have been neglected
for so long that the youth became hopeless and helpless and all a
rebel leader needs to promise them was ‘jobs’ and ‘a better
tomorrow’ to gain their loyalty.
A critical analyses of the Niger Delta conflict in Nigeria showed
similarity to the Sierra Leonean situation where greedy and vicious
rebels are able to recruit hopeless youths who have given up on life
as corrupt politicians have allegedly colluded with foreign
conglomerates in a symbiotic relationship to siphon off the wealth
into individual pockets while paying little attention to the populace
especially those directly affected by the oil exploitation through
pollution, degradation and poisoning that arises from toxic chemicals
and spillage of oils thus denying them any means of livelihood.
Dealing with the issues of deprivation in the catchment areas of
Ghana’s oil find deserves serious attention as extreme inequalities
both in income and standard of living in a society often leads to
violence, civil unrest, political and economic instability.
As the oil production in the Jubilee filed is taking shape, the residents
of Sekondi/Takoradi metropolis and its environs have began to feel
the heat of rising cost of living. There are reports of rents being
doubled and landlords ejecting tenants so they can rent their houses
to the highest bidder notably, the financial institutions and other
service providers which is already leading to unusual tension.
Farming and fishing which has been the main occupation of the
people of western region are now facing serious threats as a result of
the oil find. Fishermen, who for generations derive their livelihood
from fishing activities now faces restrictions in their operations as the
need to secure and protect oil production facilities becomes
paramount.
A news report carried by myjoyonline.com on Tuesday 11th
January, 2011 edition reveals that, several thousands of farmlands in
the Western region are facing the threat of extinction as both
government and private multinational organizations seek vast tracts
of land to build facilities ranging from refineries to gas processing
plants to support the country’s emerging oil and gas industry which
as a matter of fact has implications for food production.
Even though it is understood compensation will be paid for these
tracks of lands, the question is what happen next to these inhabitants
in a couple of years after squandering these compensation
packages? Will these farmers acquire new plots and continue with
food production to support the economy? My guess is that some of
these farmers may give up farming for good which in turn raises
further question as to whether they have the necessary skills and
qualifications to participate in the new oil economy? One will want
to find out what intervention measures there are now in place or in
the pipeline to cushion the vulnerable that have no chance to
participate in the industry but will be severely affected by the
expected sky rise cost of living?
The tendency of corruption to thrive is high and equally requires
serious attention as this has been the main reason why for decades,
African countries with oil and other natural resources have very little
to show in terms of improved standard of living for its citizens and
real economic growth.
The 2004 Human Right Watch report claims that in Angola for
instance, '$4.22 billion in oil revenue went missing between 1997
and 2002 apparently stolen by State actors, a situation that led to
civil unrests and inequality rises with over 70% of the population
living below the poverty line. The Nigerian and the Sierra Leonean
cases bore similar footprints of corruption where state actors
allegedly divert resources to private accounts when the country cries
for survival. Ghana can avoid this when politicians and policy
makers can adequately account for our oil money and its utilization is
done in an open and transparent manner leaving no room for
suspicion and complaint.
People’s predisposition to conflict at times stem from the fact that,
there are very limited or no mechanism to address their grievances.
In the Niger Delta of Nigeria, the inability of the federal government
to address the grievances of the locals ranging from pollution of
water bodies, oil spillage to deprivation of the means of livelihood
encourages many to resort to arm conflicts to seek justice.
It is in this light that the role of state institutions and civic society
organizations will be key to avoiding oil conflicts in Ghana. Reports
of spillage, degradation and poisoning of water bodies by gold and
other mineral mining companies in this country has been reported
every now and again but the question is do we as a nation have
adequate mechanisms in place to respond and ensure justice for our
local people when they cry out?.
Are the legally mandated institutions of the state like the
Environmental Protection Agency, the Police and the Courts
proactive, fair and firm enough to ensure all stakeholders play by the
rules? Are these institutions independent enough to respond without
fear or favour no matter how powerful or powerless any of the
parties’ maybe?
Ensuring that the necessary laws that safeguard the petroleum
industry which clearly spells out rights and responsibilities of various
stakeholders in the production and management of the oil will go a
long way to help. Our justice systems require capacity building to
deal with the grievances and misunderstandings that will arise
between the multinationals and the local communities in which they
operate. It must be pragmatic and responsive to every concern of all
stakeholders. Fairness must be ensured and law to work for all.
It must be noted that when our justice system becomes fair and the
rule of law, transparency and accountability prevails, it will make it
very difficult for corruption to flourish in the first place.
Countries like Canada, Australia and Norway have enjoyed peace,
stability, growth and development because of strong institutions that
safeguard the exploitation and usage of their natural resources and
as such Ghana can learn from them.
There are no short cuts to achieving development and avoiding
‘natural resource curse’ and as such only a bold, dynamic, and a
visionary leadership can deliver these through making and taking of
hard but pragmatic decisions to safeguard our future as a nation.
God bless Ghana.
------------------------------------------------------------------
Authored by: Mathias Kwame Alagbo/kabrocky@yahoo.co.uk
Avoiding oil resource curse in Ghana,
a myth or reality?
21 January, 2011 | By Mathias Kwame Alagbo
----------------------------------------------------------------------------------
- On Wednesday 15th
December 2010 at exactly
09:45 GMT, the world’s
attention was on Ghana as
President John Atta Mills
descended on the FPSO
Kwame Nkrumah aboard a
golden helicopter to
ceremoniously pour out
Ghana’s first oil and
producing Nations.
While there was pomp and pageantry with dignitaries including
Traditional rulers and the two surviving former heads of State, Flt Lt.
Jerry John Rawlings and Mr John Agyekum Kufuor gracing the
occasion, there remained a lingering concern on the minds of many
as to whether Ghana’s new oil find can bring happiness and
blessings to the Nation or will lead to the manifestation of the much
talk about ‘natural resource curse’ syndrome.?
As the President implored all Ghanaians to rejoice and celebrate the
historic event of the new oil find, he seemed to be aware of the
Challenges as he called on all appointees of his government to
ensure that the oil find is a blessing to Ghanaians and further stressed
that we as a nation are assuming very serious responsibilities hence
the need to work hard and not rest on our oars.
The above concerns are very legitimate and requires attention, in
that Africa as a continent is endowed with renewable natural
resources like water, forestry and fisheries and non -renewable
natural resources like, coal, gas, oil, diamond, gold, bauxite etc
which in all serves as a backbone for economies around the world,
as well as being central to many livelihoods. Unfortunately, the same
resources that have transformed deserts into blistering modern cities
in Gulf States of Qatar, UAE, Saudi Arabia and Brunei among
others have rather become a catalyst in turning Africa’s economic
and social development in an anti clockwise direction with much
pain, deaths and destruction in its wake.
Many schools of thought including this author contends that if Ghana
can safeguard her democratic rule in the midst of the myriad socio-
economic and political problems and challenges it faces while her
sister nations around her are embroiled in the many wars and arm
conflicts that are raging on, then yes, Ghana once again can show
that oil and other natural resource finds can be a blessing and not a
curse ‘‘if and only if’’ we can walk the walk just as we talk the talk.
To most students of security, the bridge between stability and chaos
is a very thin line and as such Ghana is not too different from her
neighbours like Nigeria, Sierra Leone and Liberia which are living
examples of unforgettable memories of hardship natural resources
can bring when such resources are not judiciously harnessed and
applied for the benefit of all.
To avoid any chance of being caught up in a quagmire of oil related
conflicts, Ghana must as a matter of urgency securitize poverty,
deprivation, justice, political patronage and other rent seeking
behaviours in the form of corruption which allow a few access to
resources which are often diverted from fruitful economic activities
to the detriment of the masses.
Often times, the ‘greed and grievance’ theory has been trumpeted as
the cause of most natural resource induced wars in Africa and
elsewhere. This is largely true, because whenever a combination of
certain conditions such as large scale export of primary
commodities, low level of education of majority and attendant high
proportion of unemployed youth, economic decline and lack of
opportunities for livelihood which is quite prevalent in Africa are
identified together, conflict is bound to raise its ugly head.
A brief historical background to the Sierra Leonean carnage
revealed the existence of the above conditions which existed for
decades and acted as a catalyst that sped up the arm rebellion like a
wild fire.
In her book World On Fire; How Exporting Free Market
Democracy Breeds Ethnic Hatred & Global Instability, Amy
Chua corroborates other Scholars assertion of greed motivated
conflicts, when she described the reign of terror that destroyed
Sierra Leone between 1991 and 1999 as ‘the deliberate handiwork
of vicious, self-interested butchers and thieves’.
She further noted that, the movement of the Revolutionary United
Front (RUF) has no ideology and to her, the mission of the RUF led
by Fodday Sankoh, was a blatant grab for power and wealth,
through the mobilization of hungry, disaffected and angry teenage
foot soldiers from a destitute, demoralized, 70 percent illiterate
provincial population that for years had seen the nearby diamond
mines generating fantastic wealth for politicians and a handful of
Lebanese cronies. The exploits of Fodday Sankoh as observed
above was largely possible because the masses have been neglected
for so long that the youth became hopeless and helpless and all a
rebel leader needs to promise them was ‘jobs’ and ‘a better
tomorrow’ to gain their loyalty.
A critical analyses of the Niger Delta conflict in Nigeria showed
similarity to the Sierra Leonean situation where greedy and vicious
rebels are able to recruit hopeless youths who have given up on life
as corrupt politicians have allegedly colluded with foreign
conglomerates in a symbiotic relationship to siphon off the wealth
into individual pockets while paying little attention to the populace
especially those directly affected by the oil exploitation through
pollution, degradation and poisoning that arises from toxic chemicals
and spillage of oils thus denying them any means of livelihood.
Dealing with the issues of deprivation in the catchment areas of
Ghana’s oil find deserves serious attention as extreme inequalities
both in income and standard of living in a society often leads to
violence, civil unrest, political and economic instability.
As the oil production in the Jubilee filed is taking shape, the residents
of Sekondi/Takoradi metropolis and its environs have began to feel
the heat of rising cost of living. There are reports of rents being
doubled and landlords ejecting tenants so they can rent their houses
to the highest bidder notably, the financial institutions and other
service providers which is already leading to unusual tension.
Farming and fishing which has been the main occupation of the
people of western region are now facing serious threats as a result of
the oil find. Fishermen, who for generations derive their livelihood
from fishing activities now faces restrictions in their operations as the
need to secure and protect oil production facilities becomes
paramount.
A news report carried by myjoyonline.com on Tuesday 11th
January, 2011 edition reveals that, several thousands of farmlands in
the Western region are facing the threat of extinction as both
government and private multinational organizations seek vast tracts
of land to build facilities ranging from refineries to gas processing
plants to support the country’s emerging oil and gas industry which
as a matter of fact has implications for food production.
Even though it is understood compensation will be paid for these
tracks of lands, the question is what happen next to these inhabitants
in a couple of years after squandering these compensation
packages? Will these farmers acquire new plots and continue with
food production to support the economy? My guess is that some of
these farmers may give up farming for good which in turn raises
further question as to whether they have the necessary skills and
qualifications to participate in the new oil economy? One will want
to find out what intervention measures there are now in place or in
the pipeline to cushion the vulnerable that have no chance to
participate in the industry but will be severely affected by the
expected sky rise cost of living?
The tendency of corruption to thrive is high and equally requires
serious attention as this has been the main reason why for decades,
African countries with oil and other natural resources have very little
to show in terms of improved standard of living for its citizens and
real economic growth.
The 2004 Human Right Watch report claims that in Angola for
instance, '$4.22 billion in oil revenue went missing between 1997
and 2002 apparently stolen by State actors, a situation that led to
civil unrests and inequality rises with over 70% of the population
living below the poverty line. The Nigerian and the Sierra Leonean
cases bore similar footprints of corruption where state actors
allegedly divert resources to private accounts when the country cries
for survival. Ghana can avoid this when politicians and policy
makers can adequately account for our oil money and its utilization is
done in an open and transparent manner leaving no room for
suspicion and complaint.
People’s predisposition to conflict at times stem from the fact that,
there are very limited or no mechanism to address their grievances.
In the Niger Delta of Nigeria, the inability of the federal government
to address the grievances of the locals ranging from pollution of
water bodies, oil spillage to deprivation of the means of livelihood
encourages many to resort to arm conflicts to seek justice.
It is in this light that the role of state institutions and civic society
organizations will be key to avoiding oil conflicts in Ghana. Reports
of spillage, degradation and poisoning of water bodies by gold and
other mineral mining companies in this country has been reported
every now and again but the question is do we as a nation have
adequate mechanisms in place to respond and ensure justice for our
local people when they cry out?.
Are the legally mandated institutions of the state like the
Environmental Protection Agency, the Police and the Courts
proactive, fair and firm enough to ensure all stakeholders play by the
rules? Are these institutions independent enough to respond without
fear or favour no matter how powerful or powerless any of the
parties’ maybe?
Ensuring that the necessary laws that safeguard the petroleum
industry which clearly spells out rights and responsibilities of various
stakeholders in the production and management of the oil will go a
long way to help. Our justice systems require capacity building to
deal with the grievances and misunderstandings that will arise
between the multinationals and the local communities in which they
operate. It must be pragmatic and responsive to every concern of all
stakeholders. Fairness must be ensured and law to work for all.
It must be noted that when our justice system becomes fair and the
rule of law, transparency and accountability prevails, it will make it
very difficult for corruption to flourish in the first place.
Countries like Canada, Australia and Norway have enjoyed peace,
stability, growth and development because of strong institutions that
safeguard the exploitation and usage of their natural resources and
as such Ghana can learn from them.
There are no short cuts to achieving development and avoiding
‘natural resource curse’ and as such only a bold, dynamic, and a
visionary leadership can deliver these through making and taking of
hard but pragmatic decisions to safeguard our future as a nation.
God bless Ghana.
------------------------------------------------------------------
Authored by: Mathias Kwame Alagbo/kabrocky@yahoo.co.uk
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