sharing in governance of extractive industries

Reflections on the contribution of petroleum revenues to the implementation of Ghana's national medium‐term development strategy

Since independence, the political and planning processes in Ghana have evolved to reflect modern development dynamics. The discovery of oil in commercial quantities was yet another opportunity to transform the country through consolidated development plans and fast track the rate of inclusive development. The recent development framework, Ghana Shared Growth and Development Agenda (GSGDA I AND II) coincided with the initial stages of oil production. This paper seeks to: (i) ascertain the extent to which the revenue accruing from oil production has been used to boost human and infrastructural development; (ii) the contribution of oil revenue in closing funding gap present in the Ghana Shared Growth and Development Agenda (GSGDA I and II), and (iii) the extent to which expenditure from oil revenues were in line with the GGSGDA (I and II) 2010–2017. Regarding the first objective, the paper finds that oil investment was significant in the rail (72%) and housing (75%) sectors; medium in the road sector (17.6%) but poor in water (3%), ports development (0%) and educational (2%) sectors. Overall, the average contribution to core infrastructural development is found to be around 8%. Regarding the second objective, the paper finds that the contribution of oil revenue to bridging the funding gap in critical infrastructure is only 6.7%. Concerning the third objective, the research finds some mismatch between the use of oil revenue and the objectives of the GSGDA (I and II). The study therefore, recommends fiscal discipline, investment guidelines, proper budget execution, and prudent spending of oil revenues


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