The Discovery of Oil in Ghana: Which Socio-Economic Growth?

Abstract

By most standards, Ghana can, prudently enough, be defined as one of the most politically stable nations on the African continent, which in itself is, a prerequisite for economic prosperity.  On the one hand, this West African country possesses mineral resources, gold and diamonds in particular, hence its former name of Gold Coast, and on the other, it succeeded to establish a democratic tradition after long years of political upheavals. There is an expectation, then, that a momentous time like the one of oil discovery in 2007 would mean a quicker and steady economic growth and a better quality of life for Ghanaians. But this hydrocarbon potential does not produce wealth in itself, good economic management does. The present paper sets out to examine the impact the black gold had on national economy in Ghana, and by extension, the effect on its social life. It endeavours to inquire into the extent to which oil discovery responded to Ghanaian expectations and whether the administrations of Atta Mills and later Mahama exploited this new energy in a way that benefited more than just a small elite.   Findings tend to suggest that weak economic management in oil industry, predominantly characterized by a lack of transparency over oil revenues, in addition to a lack of discernment as to prioritized sectors, agriculture in particular, the cornerstone of national economy in Ghana, led to public disillusion.