Professor Godfred Bokpin, a Ghanaian economist, has sounded a warning that the country's reliance on gold as a key driver of economic stability is unsustainable and poses a risk to its long-term survival. The focus on macroeconomic stability and the benefits of gold has overshadowed the severe environmental damage caused by irresponsible mining, Professor Bokpin said.
Ghana's Gold Rush: A Price to Pay for Short-Term Gains
Ghana's economic gains from gold production are fragile and could quickly be reversed if international gold prices fall sharply. Professor Bokpin warned that the country's vulnerability to fluctuations in global gold prices leaves it exposed to another major economic shock.
Speaking on the Joy FM Super Morning Show on Monday, August 24, Professor Bokpin questioned the sustainability of the gains being celebrated. He pointed to Ghana's exposure to fluctuations in global gold prices, saying that a significant decline in gold prices could wipe out the economic gains within months.
"When it's so exposed to price shock, global gold price shock, what kind of gain is that?" Professor Bokpin asked. "Everything could just go within six to eight months of that price shock."
The Human Cost of Irresponsible Mining
Professor Bokpin called for a value-chain approach that properly captures the environmental cost of gold production, particularly the destruction of water bodies and ecosystems. He said Ghana could only claim to be better off if the full economic, social, and environmental costs of gold production were incorporated into the analysis.
"If you put all of these things together, through the analysis, and you're able to say that we are far better off, then that's good news," Professor Bokpin said. "But if you do that, what is the gain? What are we celebrating?"
A Selfish Position: Sacrificing Long-Term Survival for Short-Term Praise
Professor Bokpin described the decision to tolerate severe environmental damage in pursuit of economic stability as selfish and a failure of leadership. He said Ghana must reconsider an economic model heavily dependent on the extraction and export of primary commodities, particularly where such activities come with high environmental costs.
"This is not leadership," Professor Bokpin said. "Countries that made it didn't do so by exploiting the environment like this. And any growth model that is heavily reliant on environmental destruction, primary commodities, is never sustainable."
A Lesson from Malaysia
Professor Bokpin cited Malaysia as an example of a country that successfully moved away from an economy heavily dependent on primary commodities. Malaysia once faced a situation similar to Ghana's current dependence on natural resources but gradually transformed its economy by reducing its reliance on primary commodities.
"What we are discussing today was what was prevailing in the 50s and 70s in Malaysia, when the economy was heavily driven by copper and tin," Professor Bokpin said. "From the 70s, 80s, 90s, they shifted away from primary commodities, and that is how Malaysia is where they are today."
A New Path Forward
Professor Bokpin urged Ghana to pursue a development strategy capable of creating sustainable prosperity without destroying the country's natural resources. He warned that the human cost of irresponsible mining should not be dismissed in the pursuit of economic indicators.
"If one person dies today because of irresponsible mining, what is the gain?" Professor Bokpin asked. "What are we celebrating?"
Source: Joy Online
