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Structural Adjustment and Subsistence Industry: Artisanal Gold Mining in Ghana
Author(s) -
Hilson Gavin,
Potter Clive
Publication year - 2005
Publication title -
development and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.267
H-Index - 93
eISSN - 1467-7660
pISSN - 0012-155X
DOI - 10.1111/j.0012-155x.2005.00404.x
Subject(s) - subsistence agriculture , gold mining , poverty , government (linguistics) , investment (military) , multinational corporation , business , foreign direct investment , structural adjustment , scale (ratio) , economic growth , economics , development economics , economic policy , natural resource economics , market economy , political science , geography , politics , finance , archaeology , agriculture , linguistics , chemistry , philosophy , cartography , law , macroeconomics
Since the implementation of Ghana's national Structural Adjustment Programme (SAP), policies associated with the programme have been criticized for perpetuating poverty within the country's subsistence economy. This article brings new evidence to bear on the contention that the SAP has both fuelled the uncontrolled growth of informal, poverty‐driven artisanal gold mining and further marginalized its impoverished participants. Throughout the adjustment period, it has been a central goal of the government to promote the expansion of large‐scale gold mining through foreign investment. Confronted with the challenge of resuscitating a deteriorating gold mining industry, the government introduced a number of tax breaks and policies in an effort to create an attractive investment climate for foreign multinational mining companies. The rapid rise in exploration and excavation activities that has since taken place has displaced thousands of previously‐undisturbed subsistence artisanal gold miners. This, along with a laissez faire land concession allocation procedure, has exacerbated conflicts between mining parties. Despite legalizing small‐scale mining in 1989, the Ghanaian government continues to implement procedurally complex and bureaucratically unwieldy regulations and policies for artisanal operators which have the effect of favouring the interests of established large‐scale miners.