Integrated Assessment of Artisanal and Small-Scale Gold Mining in Ghana — Part 3: Social Sciences and Economics

Abstract

This article is one of three synthesis reports resulting from an integrated assessment (IA) of artisanal and small-scale gold mining (ASGM) in Ghana. Given the complexities that involve multiple drivers and diverse disciplines influencing ASGM, an IA framework was used to analyze economic, social, health, and environmental data and to co-develop evidence-based responses in collaboration with pertinent stakeholders. We look at both micro- and macro-economic processes surrounding ASGM, including causes, challenges, and consequences. At the micro-level, social and economic evidence suggests that the principal reasons whereby most people engage in ASGM involve “push” factors aimed at meeting livelihood goals. ASGM provides an important source of income for both proximate and distant communities, representing a means of survival for impoverished farmers as well as an engine for small business growth. However, miners and their families often end up in a “poverty trap” of low productivity and indebtedness, which reduce even further their economic options. At a macro level, Ghana’s ASGM activities contribute significantly to the national economy even though they are sometimes operating illegally and at a disadvantage compared to large-scale industrial mining companies. Nevertheless, complex issues of land tenure, social stability, mining regulation and taxation, and environmental degradation undermine the viability and sustainability of ASGM as a livelihood strategy. Although more research is needed to understand these complex relationships, we point to key findings and insights from social science and economics research that can guide policies and actions aimed to address the unique challenges of ASGM in Ghana and elsewhere.

Criminalization of “galamsey” and livelihoods in Ghana: Limits and consequences

“…This is particularly the case because “for individual miners and their families, participation in ASM is partly motivated by the need to generate cash to purchase the basic necessities of daily life. Under conditions of unemployment and poverty, where most alternative work involves low or no pay, participation in ASM, legal or not has become a primary means of survival for many” (Wilson et al, , p. 8135).…”

“…However, since the government of Ghana took steps to begin to formalize the small-scale mining sector in 1989, about 30,000 artisanal miners brought in US$68.56 million in gold and US$71.5 million in diamonds from 1989 to 1994 (Nyameke, 1995). Hence, this study focuses on the informal ASM sector because of its potential to contribute to poverty reduction as a significant number of people depend directly or indirectly on it for their livelihood (Tschakert 2009b;Wilson, Renne, Roncoli, Agyei-Baffour, & Tenkorang, 2015). However, some journalists, policymakers, and politicians have extensively reported, documented and complained respectively about the negative social impacts and pervasive environmental degradation caused by the ASM sector (Bansah, Yalley, & Dumakor-Dupey, 2016;Hilson, 2002).…”

Freshwater Ecosystem Services in Mining Regions: Modelling Options for Policy Development Support

“…Human consultation provides crucial knowledge on local perceptions and distribution of natural benefits among stakeholders [110]. Incorporating people's concerns at the microscale [20,111] and trivial livelihood activities [112] contribute to ESA's legitimacy. However, few articles applied a stakeholder-engaging ESA framework [26,80,86].…”

Unsafe Occupational Health Behaviors: Understanding Mercury-Related Environmental Health Risks to Artisanal Gold Miners in Ghana

“…However, the rise in gold prices, coupled with political and socio-economic instability in some areas in the 1970s, made gold mining appealing again to poor operators who could not afford more modern technology (Wilson et al, 2015). This past decade's boom in gold prices piqued the interest of both artisanal and industrial mining operations.…”

“…First, Ghana is the second largest African gold producer and the ninth largest globally. Artisanal miners contribute significant to this production (Wilson et al, 2015). Ghana accounts for over 3% of world gold production.…”