Saving Ghana from Its Oil: A Critical Assessment of Preparations so Far Made

Abstract

Oil discoveries in many countries have led to the erosion of democratic processes and institutional structures. The “resource curse” syndrome manifests itself not only through the technical challenges of monetary and fiscal policy decisions, but also through the disregard of governments for collective decision-making in a participatory democracy. This paper assesses the preparations so far made in Ghana toward her oil production. It highlights the threats of oil to Ghana’s democracy and argues that even though Ghana is expected to start its first commercial oil production by the late 2010, the country is not ready to do so. To save the country from its oil, it recommends the need for inclusivity and transparency in the preparatory processes toward oil production to prevent cover-ups for corruption and unaccountable governance and conflict