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Lifting the Resource Curse: A Model for Responsible Mining in Ghana

In Ghana’s mining area, the Queen Mother calls for attention to quality education. [Photo: Becky Gadell]

“Communities with precious resources, such as gold or oil, are often worse off—not better off—for the existence of these resources, despite increased corporate social responsibility initiatives,” said Becky Gadell, RTI Senior Communications and Governance Specialist. This phenomenon is known as the “resource curse.”

For example, while mining companies in Ghana make hefty royalty and tax payments, little of that revenue flows back to communities. Furthermore, local governments, civic groups, and traditional authorities are often ill-equipped to work with companies on challenges that come with mining. Issues include resettlement of and compensation to families living on mining lands; lack of systems for community involvement in development planning and spending, environmental management, public safety, and grievance resolution; and lack of citizen access to information.

A partnership in Ghana aims to lift the resource curse by investing in sustainable local development and a roadmap for responsible mining. Gold Fields Ghana and Newmont Ghana Gold Ltd. have joined with USAID/Ghana to form the Ghana Responsible Mining Alliance (the Alliance). RTI provided technical assistance for Alliance work planning and collaboration with stakeholders from 2006 to 2007. In May 2008, RTI assumed the role of Alliance technical manager and implementer of technical assistance to strengthen local government capacity and promote improved mining practices.

Former Asutifi District Development Planning Officer, Kofi Antwi Boasiako, facilitates Alliance collaborative planning in his district. [Photo: USAID/Ghana]

The Alliance supports USAID’s commitment to sustainable development and the companies’ commitments to move beyond a traditional benefactor role to one of involved corporate-citizen investing in prosperous, healthy, and lasting communities.

Ghanaian stakeholders underscore the need to act on the Alliance’s commitment with concrete activities that improve conditions for people in mining communities. Accordingly, Alliance activities focus on:

• Local government capacity to work with citizens and mining companies to improve basic services; advocate for increased revenue flow to the local level; and strengthen systems for sharing information and resolving problems.
• Opportunities to enhance people’s livelihoods through development of the local private sector, such as supporting local entrepreneurs through training and access to microcredit and markets.
• Improved mining practices, including community involvement in environmental monitoring, public safety, and human rights.

The Alliance intends to change the way companies, local governments, and communities work together to prioritize, solve problems, and act on opportunities often overshadowed by conflict. “Mining community families are the ultimate judges of impact,” Gadell said. “If they say ‘life is getting better,’ the Alliance is working.”

More information: Becky Gadell,
e-mail rgadell@rti.org