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

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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