Professor Godfred Bokpin, a renowned economist at the University of Ghana Business School, has sounded the alarm on the country's reliance on a growth model fueled by illegal mining, environmental destruction, and primary commodities. Speaking on Joy FM's Super Morning Show on Monday, August 24, Prof Bokpin warned that such a model is doomed to fail.
A Flawed Growth Model
Professor Bokpin criticized the government for placing too much emphasis on the foreign exchange earnings and macroeconomic gains associated with gold purchases and exports through the Ghana Gold Board (GoldBod). He argued that this approach ignores the environmental costs of gold production, which are substantial.
Illegal mining, commonly known as galamsey, has ravaged Ghana's forests, water bodies, and ecosystems. Prof Bokpin stressed that any growth model that relies heavily on environmental destruction and primary commodities is inherently weak and unsustainable.
The Environmental Toll
Prof Bokpin called for a comprehensive value-chain assessment of the gold sector that takes into account both the financial contribution of GoldBod and the environmental damage associated with illegal mining. He emphasized that Ghana cannot truly determine whether it has benefited from the current gold boom without comparing the financial gains with the full cost of the destruction of forests, water bodies, and ecological systems.
The economist also criticized the government's approach to illegal mining, saying that the celebration of gains from gold trading should not overshadow the long-term environmental consequences of the activity. He described as selfish any attempt to celebrate macroeconomic stability while overlooking the damage being inflicted on the environment and the implications for future generations.
A Risky Economic Strategy
Prof Bokpin warned that Ghana's recent economic gains remain vulnerable to global commodity price shocks. He noted that a sharp decline in gold prices could reverse the gains within six to eight months, further highlighting the risks of relying heavily on gold and other primary commodities to drive economic growth.
The economist's comments come at a time when Ghana is grappling with the environmental and economic consequences of its gold mining industry. As the country continues to navigate the complexities of economic development, Prof Bokpin's warning serves as a timely reminder of the need for a more sustainable and environmentally conscious approach.
A Call to Action
Prof Bokpin's critique of the government's approach to illegal mining and the gold sector serves as a call to action for policymakers to reevaluate their strategy. By prioritizing environmental sustainability and long-term economic growth, Ghana can create a more resilient and equitable economy that benefits all its citizens.
Source: JOY
Related Stories
Professor Warns Against Trade-Offs Between Economic Growth and Environmental Protection
Boako Fires Back at GoldBod’s ‘Questionable’ Profit Claim
US Green Card Holders to Receive Long-Awaited Perks
Reno Residents Face Evacuation Orders as Wildfire Draws Near
Virtual Asset Sandbox Approval for Mansu: SEC Gives Green Light
