Professor Warns Against Trade-Offs Between Economic Growth and Environ

Professor Godfred Bokpin, a finance expert at the University of Ghana Business School, has sounded the alarm on the devastating impact of gold trading on Ghana's environment. Speaking on a radio show on August 24, he warned that the country risks sacrificing its long-term sustainability for short-term economic gains if environmental destruction continues to be treated as an acceptable cost of economic growth.

Environmental Costs of Gold Production Must Be Factored In

Professor Bokpin criticized attempts to justify the destruction of Ghana's environment with the macroeconomic gains associated with gold trading. He argued that Ghana cannot claim to be better off while forests, water bodies, and ecosystems are being destroyed through irresponsible mining, commonly known as galamsey. The professor emphasized that the environmental costs of gold production must be properly accounted for when assessing the sector's contribution to the economy.

A Comprehensive Value-Chain Analysis is Needed

Prof Bokpin called for a comprehensive value-chain analysis that takes into account the cost of environmental degradation and the loss of ecological integrity before determining whether the country had truly benefited from the gold boom. He maintained that the assessment of Ghana's gold sector should go beyond foreign exchange earnings, reserve accumulation, and improvements in key economic indicators. This approach, according to the professor, will provide a more accurate picture of the sector's true contribution to the economy.

A Sustainable Growth Model is Crucial

The professor warned that any growth model that is heavily reliant on environmental destruction and primary commodities is never sustainable. He said responsible leadership requires policymakers to pursue economic policies that protect the country's natural resources while creating sustainable prosperity. Professor Bokpin emphasized that policymakers must prioritize long-term sustainability over short-term economic gains.

The Road Ahead

The professor's warning comes as Ghana continues to grapple with the environmental and social impacts of gold trading. The country's policymakers will need to take a hard look at their economic policies and consider the long-term consequences of their decisions. By prioritizing sustainable growth and environmental protection, Ghana can create a more equitable and prosperous future for its citizens.

Source: JOY