The Boom, the Bust, and the Dynamics of Oil Resource Management in Ghana

Abstract

Oil resources are neither a curse nor a blessing. In order to translate Ghana’s oil resources into inclusive development amid high expectations, several laws and regulations have been passed and new institutions created. Despite the presence of the new institutions, laws, and regulations, spending from petroleum revenues appears to be rather thinly spread and inefficient, defeating the purpose of diversification and leading to high debt and cost over-runs. On a positive note, the government and Bank of Ghana have been complying with most of the transparency requirements. It is essential that spending from petroleum revenues is guided by a medium- to long-term inclusive development strategy based on proper needs assessment, global trends, feasibility studies, and possible growth dynamics. Expenditure needs to be rationalized and investment guidelines developed and implemented.