The Employment, Income and Foreign Exchange Effects of Small-Scale Mining (‘Galamsey’) – Working Paper 4

Posted on July 12, 2017 by admin

Abstract: Small-scale mining, largely the illegal type popularly known as ‘galamsey’, has been destroying the environment and creating social problems across the country. The first objective of this paper is to detail and analyze the employment, income and foreign exchange effects of the small-scale mining industry. Secondly, it is to propose ways of addressing the bad effects that will increase rather than diminish these good effects of the industry. Government’s corrective action must not make it difficult or impossible for people to be employed in and earn income and foreign exchange from small-scale mining while it is promoting legalization and formalization of operation, protection of the environment, and control of bad social effects. This must be done in these respects: (i) Strengthen institutions for monitoring and controlling small-scale and ‘galamsey’ activities; (ii) enforce guidelines for the protection of the environment’ (iii) control bad social effects; (iv) assist miners to legalize operations; (v) advise and assist miners to operate formally and professionally; (vi) review Ghana’s mineral land concession system; (vii) encourage education by Non-Governmental Organizations and Advocacy Groups; (viii) reinforce employment creation, income generation, and foreign exchange earnings; and (ix) undertake alternative livelihood programs.

Authors: Kwamena Essilfie Adjaye*, Kwasi Ampofo+

Download: GGDP_WP4_Economic-Effects-of-Small-scale-Mining-1.1 pdfIcon

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How the Constitution Review Process Should Be Completed – Working Paper 3

Posted on August 11, 2016 by admin

Our new Working Paper titled “How the Constitution Review Process Should Be Completed” is published and can be downloaded via the link below.

GHANAS-1992-CONSTITUTION-@-22-A-LOOK-AT-THE-PAST-THE-PRESENT-AND-THE-FUTUREAbstract: The 1992 Constitution has endured longer than previous constitutions, nonetheless there have been calls for amendment of some provisions. These calls were heeded when a Constitution Review Commission (CRC) was established in January 2010. After reviewing the major opinions from nationwide hearings and many memoranda, the CRC presented its report in December 2011, a report in which many recommendations were made.

The Government studied these recommendations and stated its position on the recommendations in a White Paper issued in June 2012. Then the Government set up a Constitution Review Implementation Committee (CRIC) in October 2012 to implement the recommendations, which fall into two categories, those that require referenda and those that don’t. But a lawsuit in July 2014 challenging its constitutionality stalled the work of the CRC until there was a favourable ruling in October 2015.

This ruling notwithstanding, the CRC’s recommendations have still not been implemented. The work of the CRC and its recommendations are evaluated, with emphasis on two major issues, decentralisation and the death penalty.

Recommendations are then made on how decentralisation can be strengthened, including on how to create new districts and elect chief executives of metropolitan, municipal and district assemblies; on how to abolish the death penalty; and on how to complete the CRC’s work. Our overriding recommendation is that all the recommendations of the CRC should be implemented by the end of December 2017.

Authors: Kwamena Essilfie Adjaye1*, Ernest Amoabeng Ortsin2 and Anthony Hugh Cobbinah3

Download link: GGDP_WP3_Constitution-Review-Process-Final pdfIcon

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The Impact of ‘Brexit’ on Ghana-UK Economic Relations

Posted on June 30, 2016 by admin

Brexit‘Brexit’, the unprecedented outcome of the 23 June 2016 referendum on the United Kingdom’s membership of the European Union (EU), has caused shock and turmoil in global markets. The value of stocks and the British Pound Sterling have all been badly hit in the days after the referendum. As at the close of day on 24 June, the United Kingdom’s FTSE 100 stock market index closed down over -3.15%, the Euro Stoxx 50 index down -8.62%, DAC and CAC 40 at -6.82% and 8.04%, respectively. Brent crude oil fell 4.91% to less than US$48 per barrel whereas the spot price of gold gained +4.69% to US$1,316 an ounce. Conversely, many emerging market currencies recorded some gains. For example, the South African Rand made major gains against the Sterling.

In concluding, Ghana may have to start bilateral talks with the UK to renegotiate various agreements before it formally exits from the EU. A weaker pound could make UK imports into Ghana relatively cheaper and whereas Ghanaian exports to the UK could earn less, all things being equal. We are likely to see lower remittances from Ghanaians in the UK in the short term. While Ghana may benefit from an upside in gold prices in the short term, the net effect of this on the economy given the country’s high debt service costs and currency pressures remains uncertain. We could potentially see more skilled economic migrants relocating to the United Kingdom from Ghana should an “Australian-style points system” for immigration to be applied migrant workers, if all requirements are met. This could, however, also have a detrimental effect on the quality of services in Ghana especially in areas such as the health sector.

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Download Paper: GGDP_CIN12_Ghana_UK-Trade-Post-Brexit_Final

 

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