Ghana has been ranked among mining dependent countries (MDCs) that are closing the socio-economic gap with global best-performing countries over time, a new report by the International Council on Mining and Metals (ICMM) indicates.
The new report finds that mining dependent countries that have undergone the biggest relative improvements in social progress include Ghana, Bolivia, Botswana, Indonesia and Peru.
Comparing the global socio-economic performances between 1995 and 2018, the report notes that 74 per cent of all mining dependent countries had overall socio-economic performances below the global average in 1995, but 77 per cent of MDCs managed to close the gap on the global leaders since 1995.
Based on the latest rankings which captures both mining dependent and hydrocarbon dependent countries, Ghana ranked 13 out of top 20 countries on resource governance index. Regards value realization metric, Ghana ranked 10/20 top countries with a score of 67/100. On account of revenue management, Ghana ranked 12/20 with a score of 65/100, whereas enabling environment metric, Ghana ranked 16/20 with a score of 70/100.
On three of the metrics, Ghana outperformed its sub-regional counterpart, Botswana (i.e. resource governance index, value realization and revenue management).
“The research indicates that most mining-dependent countries, which are among some of the poorest in the world, continue to close the socio-economic performance gap with non-resource dependent countries,” the ICMM revealed.
“However, governance matters. The research strongly suggests that the higher the quality of governance, the stronger the socio-economic progress observed in these countries. A stable, enabling environment has the strongest positive relationship with good socio-economic outcomes.”
“Life for people in MDCs is generally improving. Various metrics in the ICMM Social Progress Index indicate that MDCs have made substantial social progress since 1995. Citizens of these countries are generally healthier, wealthier and better educated. These achievements – both in absolute terms, but also in relative terms – are encouraging…”
Based on the analysis, the ICMM proposed that countries that are more peaceful, have lower levels of corruption, and a vocal and active civil society with sufficient civic space are better able to translate natural resources into social progress.
The report further stressed that, “having mining regulations and frameworks is an insufficient condition for good socio-economic outcomes and the analysis demonstrates that effective implementation is critical.”
ICMM’s Chief Executive Officer, Rohitesh Dhawan, commented: “This report builds on the extensive research we conducted in 2018, challenging the notion that an abundance of natural resources in host countries damages economic and social progress.
“However, without strong resource governance and, most critically, effective implementation of mining regulations and frameworks, host countries are unlikely to feel the benefits of mining operations. The mining industry has a central role to play in this as a catalyst for change, supporting effective implementation of the frameworks needed to help deliver the UN SDGs.”
The analysis from this report can be used as a baseline of the status of socio-economic progress in MDCs prior to the COVID-19 pandemic, the ICMM noted.
Considering the fact that countries look to rebuild to an even stronger status, the importance of understanding the linkage between effective resource governance and social progress will become increasingly important, the report suggests.
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