Ayee, JosephSoreide, TinaShukla, G. P.Le, Tuan Minh2012-03-192012-03-192011-07-01https://hdl.handle.net/10986/3494With a focus on the institutional set-up and the political environment as central to understanding and rectifying the poor impact of mining on Ghana's economic development, this paper highlights the vulnerabilities in mining sector governance along the industry value chain. The authors explain why it has been difficult to implement policies that would have improved social welfare. They find that incentive problems in institutions directly or peripherally involved in mining governance are a major factor, as are an excessively centralized policy-making process, a powerful executive president, strong party loyalty, a system of political patronage, lack of transparency, and weak institutional capacity at the political and regulatory levels. The paper argues that the net impact of mining on economic development is likely to be enhanced with appropriate reforms in governance. Most importantly, there should be a greater awareness of incentive problems at the political level and their possible implications for sector performance and the economy at large. The set of checks and balances, as stipulated by the Constitution, have to be reinforced. Furthermore, capacity building at different levels and institutions is needed and should be combined with efforts to enhance incentives for institutional performance.CC BY 3.0 IGOABUSEABUSESACCESS TO INFORMATIONACCOUNTABILITYACCOUNTINGADMINISTRATIVE CAPACITYADMINISTRATIVE FUNCTIONSADMINISTRATIVE PROCESSALLOCATION OF RESPONSIBILITIESANTI-CORRUPTIONANTICORRUPTIONANTICORRUPTION LEGISLATIONSANTICORRUPTION PLANAPPOINTEESASSETSASYMMETRIC INFORMATIONAUDITORAUDITSAUTHORITYBAUXITEBEST PRACTICESBIDDINGCASH FLOWSCENTRAL GOVERNMENTCENTRALIZATIONCITIZENSCIVIL SOCIETYCIVIL SOCIETY ORGANIZATIONSCOLLUSIONCOMPLAINTSCONFLICT OF INTERESTCONFLICT OF INTERESTSCONSTITUENCIESCONSTITUTIONCORPORATE TAXESCORRUPTCORRUPTIONCOUNCILSCRIMECRONIESDEBTDECENTRALIZATIONDECISION MAKERSDECISION MAKINGDECISION-MAKINGDEMOCRACIESDEMOCRACYDEMOCRATIC DEVELOPMENTDEMOCRATIC GOVERNANCEDEREGULATIONDIAMONDSDISCLOSUREDISTRICTSDIVIDENDSECONOMIC GROWTHECONOMIC SITUATIONEFFECTIVE USEEITIELECTED OFFICIALSEMBEZZLEMENTEMPLOYMENT GENERATIONENACTMENTENVIRONMENTALENVIRONMENTAL COSTSENVIRONMENTAL DEGRADATIONENVIRONMENTAL IMPACTENVIRONMENTAL IMPACT ASSESSMENTSENVIRONMENTAL IMPACTSENVIRONMENTAL PROBLEMSENVIRONMENTAL PROTECTIONEXECUTIONEXECUTIVE POWEREXPENDITUREEXPENDITURESEXPLOITATIONEXTRACTIVE INDUSTRIESEXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVEFINANCIAL CONTRIBUTIONFINANCIAL TRANSFERSFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN INVESTMENTFORESTRYFORMAL INSTITUTIONSFRAUDGEOLOGICAL SURVEYGOLDGOLD DEPOSITSGOLD MINESGOLD MININGGOLD PRODUCTIONGOOD GOVERNANCEGOVERNMENT AGENCIESGOVERNMENT MINISTRIESGOVERNMENT REPRESENTATIVEGOVERNMENT REVENUESGOVERNMENT'S POLICYHEALTH PROBLEMSHUMAN RESOURCEHUMAN RESOURCE DEVELOPMENTHUMAN RIGHTSINITIATIVEINSTITUTIONAL BARRIERSINSTITUTIONAL CAPACITYINSTITUTIONAL FRAMEWORKINTEGRITYINTERNAL REVENUEINVESTIGATIONINVESTMENT CLIMATEJUDICIARYJUSTICEKICKBACKSLABOR FORCELACK OF COMPETITIONLACK OF TRANSPARENCYLAWSLEADERSHIPLEGAL FRAMEWORKLEGAL PROVISIONSLEGAL REFORMLEGISLATIONLIABILITYLOCAL GOVERNMENTMANGANESEMARKET PRICESMEDIAMEMBERS OF PARLIAMENTMINERAL COMMODITIESMINERAL COMMODITYMINERAL EXPORTSMINERAL RESOURCEMINERAL RESOURCESMINERAL REVENUESMINERAL SECTORMINERAL WEALTHMINERALSMINING AREASMINING COMMUNITIESMINING COMPANIESMINING GOVERNANCEMINING INDUSTRYMINING POLICIESMINING REFORMMINING SECTORMINING SECTOR REFORMSMINISTERMINISTERSMINISTERS OF STATEMINISTRY OF FINANCEMONOPOLYMOTIVATIONSMULTINATIONALSNATIONAL ELECTIONSNATURAL RESOURCESOFFICEHOLDEROILOIL INDUSTRYOIL SECTOROLD MINESPARASTATAL ORGANIZATIONSPATRONAGEPENALTIESPENALTYPERSONAL GAINSPOLICEPOLICY DECISIONSPOLITICAL APPOINTEESPOLITICAL CORRUPTIONPOLITICAL ECONOMYPOLITICAL INSTABILITYPOLITICAL POWERPOLITICIANPOLITICIANSPOLLUTIONPOPULISMPRESIDENCYPRESIDENTSPRODUCTION COSTSPRODUCTION OF GOLDPRODUCTION TECHNOLOGYPROPERTY VALUESPROSECUTIONPUBLIC FINANCEPUBLIC INSTITUTIONSPUBLIC OFFICIALSPUBLIC OPINIONPUBLIC PROCUREMENTPUBLIC SECTORPUBLIC SERVICEREGULATORY FRAMEWORKREHABILITATIONREPRESENTATIVESRESOURCE CURSERESOURCE MANAGEMENTREVENUE ADMINISTRATIONREVENUE COLLECTIONREVENUE MANAGEMENTRISK OF CORRUPTIONROYALTYRULE OF LAWRULING PARTYRURAL COMMUNITIESSALTSANCTIONSSCANDALSSEPARATION OF POWERSSERVICE DELIVERIESSILVERSOCIAL WELFARESOCIOECONOMIC DEVELOPMENTSTATE AGENCIESSTATE ENTERPRISESSTATE INSTITUTIONSSTATE REVENUESSTATE SECURITYSTEELSUSTAINABLE DEVELOPMENTTAX ADMINISTRATIONTAX AUDITINGTAX COLLECTIONTAX INCENTIVESTAX LAWTAX PAYMENTSTAX RATETAX RATESTAX REGIMETAX REVENUETAX REVENUESTAXATIONTECHNOCRATSTECHNOLOGY TRANSFERSVOTINGWorld Bank10.1596/1813-9450-5730