Mineral Resource Rents and Human Development: The Case of Western Ghana

Abstract

Africa is endowed with abundance of natural resources but faces huge human development challenges. Managing mineral resources for development is a major challenge to many mineral wealth countries.  The focus of this paper is on the human development challenges in Ghana and how mineral rents can contribute to ameliorating these development challenges. The paper argues that in order for mineral rents to be managed responsibly to promote human development, there should be a paradigm shift to focus on how the mining sector is governed. Due to the finite nature of mineral resources, the paper argues that revenues from mineral resources should be invested in human capacity building and medical care delivery. Further, the mining sector should be integrated with other non-mining sectors of the economy to create jobs and provide alternative livelihoods, which will go a long way to assist in the general expansion and growth of Ghana’s economy. Although this paper is a case study of the Ghanaian experience, it can serve as a springboard to appreciate the role mineral rents can play to promote development with human face in other sub – Saharan mineral wealth countries.

Keywords: Mineral resource, Rents, Human development, People centred and Development