Mining Effects on Rural Livelihoods, Adopted Strategies and the Role of Stakeholder and Regulatory Institutions in Ghana. Evidence of the Amansie West District of Ghana

Isaac Boakye Danquah^1, , S.C Fialor¹ and Robert Aidoo¹

¹Department of Agric Economics, Agribusiness and Extension, KNUST, Kumasi, Ghana

Cite this paper:
Isaac Boakye Danquah, S.C Fialor and Robert Aidoo. Mining Effects on Rural Livelihoods, Adopted Strategies and the Role of Stakeholder and Regulatory Institutions in Ghana. Evidence of the Amansie West District of Ghana. American Journal of Rural Development. 2017; 5(1):19-29. doi: 10.12691/ajrd-5-1-3

Abstract

The study determines the effects of mining on rural livelihoods, adopted strategies and the role of stakeholder and regulatory institutions. The study achieves this by investigating the status of key rural livelihood indicators, what influence the choice of livelihood strategies in mining communities and the assessment of institutional performance. The role of institutions even though a key instrument in ensuring sustainable livelihoods is mostly not considered in livelihood studies of developing countries. The study employed both quantitative and qualitative methods of data analysis. The significant difference in the means of income, yield value and labour cost between non-mining and mining communities is an evidence of the threat posed on communities in the study area by mining and its activities. The multinomial logit result showed that farmers’ choice of livelihood in mining communities was influenced by gender, age, family size, leadership status of household head, labour cost, annual household income, number of years of education and extension training. Farmers diversified into non-farm and off-farm livelihood strategies in order to increase or sustain income in mining communities. The study determined the performance of stakeholder and regulatory institutions through their relations and how effective functions are performed. Four (4) institutions namely EPA, MoFA, COCOBOD and Amansie West District Assembly were found significant in their relations to other institutions whilst three (3) institutions were found significant in the performance of their functions. The study concluded that poor relations and ineffective performance of stakeholder and regulatory institutions resulted in unregulated exposure and depletion of livelihood resources such as land, forest and water bodies in mining communities. The study therefore recommended that there should be inter-institutional policy that would link stakeholder and regulatory institutions together for effective performance of functions and sustainable livelihoods.

Keywords:
mining livelihood household effects rural non-mining farmers regulatory institutions strategy

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

References:

[1]	Twerefou K. Daniel, Ernest Aryeetey, Osei Baffour, (2007), “Impact of Mining Sector Reforms on Output, Employment and Incomes in Ghana 1980-2002”, Technical Publication No. 75 ISSER 2007.
[2]	Campbell B. (2004). Regulating mining in Africa: For whose benefit? Discussion paper 26. Nordic Africa Institute. ISSN 1104-8417.
[3]	Campbell B. (2006). Good Governance, Security and Mining in Africa. Minerals and Raw Materials Report, 2006. Taylor and Francis.
[4]	UNCTAD (United Nations Conference on Trade and Development). 2007. World Investment Report 2007. Geneva: UNCTAD.
[5]	Ellis, F., (1998). Household strategies and rural livelihood diversification. The Journal of Development Studies. 35 (1), pp.1-38.
[6]	Yaro I.J .2010. “The Impact of Mining on Livelihoods of Local Communities:A Case Study of Newmont Ahafo South Mining Project of Brong Ahafo Region of Ghana. International Institute of Social Studies.The Hague, The Netherlands December, 2010.
[7]	DFID (1999). Sustainable livelihoods guidance sheets. training.itcilo.it/.../SLA%20Guidance%20notes%20Section%202.pdf accessed 23/9/2009
[8]	Roland-Holst, D., Epprecht, M. & Otte, J. (2007a). External Shocks, Producer Risk, and Adjustment in Smallholder Livestock Production: The Case of HPAI in Viet Nam. FAO–PPLPI Research Report
[9]	Carney Diana, Michael Drinkwater, Tamara Rusinow, Koos Neefjes, Samir Wanmali, Naresh Singh (1999). “Livelihoods Approaches Compared. A brief comparison of the livelihoods approaches of the UK Department for International Development (DFID), CARE, Oxfam and the United Nations Development Programme (UNDP)”. DFID, November 1999.
[10]	Lopez R. S. Andrade (2008). “Livelihood strategies of farmers in Bolivar, Ecuador: asset distribution, activity selection and income generation decisions in rural households” Virginia Polytechnic Institute and State University.
[11]	J.P. Leones and S. Feldman. 1998. Nonfarm Activity and Rural Household Income: Evidence from Phillipine Microdata. Economic Development and Cultural Change. Vol. 46, No.4 (July 1998), pp789-806, The University of Chicago press.
[12]	Adelman I, and Morris, C.T. (1972), “The measurement of institutional characteristics of nation: methodological considerations in measuring”. Ed. Nancy Baster. Frank Cass and Co. Ltd, London.
[13]	FAO, 2006, “FAO Briefs On Import Surges” No. 5 Ghana: rice, poultry and tomato paste. November, 2006.
[14]	Danquah I.B, Egyir I.S (2014). “Factors that Influence Household Demand for Locally Produced Brown Rice in Ghana”. Journal of Economic and Sustainable Development. IISTE. ISSN 2222-1700(paper), Vol.5, No.7, 2014.
[15]	Nyamekye, E. (1996). Socio-Economic Impact of MineClosures, Accra: Green Earth.
[16]	Skoufias, E. 2003. “Economic Crises and Natural Disasters: Coping Strategies and Policy Impli- cations.” World Development 31: 1087-102.
[17]	Block, S.A., L. Keiss, P. Webb, S. Kosen, R. Moench-Pfanner, M.W. Bloem, and C.P. Timmer. 2004. “Macro Shocks and Micro Outcomes: Child Nutrition during Indonesia’s Crisis.” Economics and Human Biology 2:21-44.
[18]	Barrett, C.B., and D.G. Maxwell. 2005. Food aid after Fifty Years: Recasting Its Role. London: Routledge.
[19]	Dilruba Khatun and B.C. Roy, 2012. Rural livelihood diversification in West Bengal: Determinants and Constraints. Agricultural Economics Research Review Vol. 25(No.1) January-June 2012 pp 115-124.
[20]	Babatunde, R.O.; Olagunju, F.I.; Fakayode, S.B. and Adejobi, A.O. 2010. Determinants of participation in off- farm employment among small-holder farming households in Kwara State, Nigeria.
[21]	Ayee Joseph, Tina Søreide, G. P. Shukla, and Tuan Minh Le (2011). Political Economy of the Mining Sector in Ghana. Policy Research Paper 5730. The World Bank. African Region. July 2011.