An Institutional Analysis of the Resource Curse in Africa: Lessons for Ghana

Abstract

The experience of oil producing countries in Africa has largely been a negative one, with development indicators suffering as a resource curse takes effect. This article examines the role that institutions will play in preventing Ghana from falling victim to the curse of oil following its discovery of off-shore oil in 2007. It draws upon the experiences of two other African nations with off-shore oil reserves, Angola and Gabon, to highlight the potential dangers that Ghana faces in managing its oil resources. The analysis is based around the role that oil can play in breaking down formal mechanisms for guaranteeing accountability between state and society and promoting instead discretionary forms of governance that operate along neo-patrimonial lines. The leading role that Ghana’s highly developed civil society must take in preventing this from happening is stressed. More broadly, the article seeks to understand the internal dynamics of resource management in African states, arguing that this should serve as the departure point for future interactions between resource-rich African countries and external forces. The article will conclude by emphasizing the importance of Ghana’s building upon its success as a model for democracy in Africa by also acting as a leader in resource management on the continent.

Author’s Note: My interest in this topic follows from my interest in politics and development on the continent generally. This was really born during my trip to Tanzania in 2003 where I spent four months teaching prior to joining university. Since then I have returned to the continent a number of times, including a brief trip to Ghana in 2006 after doing some work in neighbouring Togo. The resource curse is an interesting topic for me because it draws on insights from many different disciplines including politics, economics and development. However it also relies on a firm understanding of contextual factors to account for the divergence in experiences between resource-rich countries and therefore, in the case of Ghana, relies heavily on an understanding of comparative African politics. Ghana’s prominence in both academia and the media as a leading light for democracy and good governance in Africa adds weight to this issue and there is a real sense that if Ghana cannot overcome these challenges then no country on the continent will be able to.