Sustainable Economic Planning and Distribution of Mineral Rents in Local Communities: Evidence from Ghana

Abstract

Mineral-endowed Districts are among the most underdeveloped communities in Ghana, partly because Districts are structurally constrained from recouping socio-economic cost directly from mines. In 2016, Parliament passed the Minerals Development Fund Act, a tool to address the socio-economic development challenges in mining affected communities. The study examines the capacity of local government structures in utilizing the Minerals Development Fund and other mineral royalties to promote inclusive and sustainable economic development.Through interviews with 300 respondents aged between 15 and 65 and drawn from communities with mining operations in Prestea-Huni Valley and Wassa East Districts, the study finds that there are existential capacity gaps in development planning and community participation in the management of mineral resources in communities within the periphery of extractive activities.