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Old 05-30-2018, 01:31 PM
 
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Interesting breakdown on how an African country like Ghana should go about benefiting from resources like gold and oil.


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If gold is so important and Ghana produces so much, why are gold-producing communities and districts in Ghana so poor? The answer is simple: Ghanaian leaders do not think or act in geopolitical or geo-strategic terms. They have no understanding of the geopolitical importance of gold that is how to use the metal to benefit its people and the country’s economic position. They think gold is just one of the products produced cheaply around the world. They just allow gold to be exported immediately it is produced without thinking of adding value to it or transforming it into many uses. Furthermore, while Ghana’s untapped gold reserve is about 1,200 metric tons of gold reserves, most of the concessions to mine gold are controlled by foreign companies such as Newmont, and Anglo Gold Ashanti with the Ghanaian government holding negligible mostly about 10% shares in those companies. Because the concessions are in the hands of foreign companies, they are the ones that take the lion share of profits with Ghanaians only getting the crumbs falling from the tables of the foreign companies.

https://www.modernghana.com/news/827...not-benef.html
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Old 05-30-2018, 02:01 PM
 
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That article compared Ghana with Norway.

I'd be interested in a Ghana Botswana comparison. Like how has Botswana been able to benefit from it's diamonds and how that could translate to lessons for Ghana and it's gold?


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Old 06-10-2018, 01:25 AM
 
Location: Cebu, Philippines
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Botswana is an artificial anomaly in Africa, created by the money of South African and then Zimbabwean investors looking for a place where they could influence the local regime to be friendly to their interests. Think Switzerland in the 1930s while the rest of Europe was economically destabilizing.

There is no realistic expectation that any other country in Africa will follow the model of either Botswana or Norway.
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Old 06-10-2018, 10:18 AM
 
Location: Katy,Texas
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Botswana is a much smaller country population wise and so it’s much easier for their natural resources even with government mismanagement to affect the everyday citizen.
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Old 06-10-2018, 01:10 PM
 
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Originally Posted by cebuan View Post

Botswana is an artificial anomaly in Africa, created by the money of South African and then Zimbabwean investors looking for a place where they could influence the local regime to be friendly to their interests. Think Switzerland in the 1930s while the rest of Europe was economically destabilizing.

There is no realistic expectation that any other country in Africa will follow the model of either Botswana or Norway.
So the more free market economic and democratic policies of Botswana's post colonial leaders have nothing to do with Botswana's results?



"Unlike other countries in Africa, his administration adopted market-friendly policies to foster economic development. Khama promised low and stable taxes to mining companies, liberalized trade, and increased personal freedoms. He maintained low marginal income tax rates to deter tax evasion and corruption..."

Seretse Khama - Wikipedia, the free encyclopedia
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Old 06-10-2018, 01:56 PM
 
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Originally Posted by NigerianNightmare View Post

Botswana is a much smaller country population wise and so it’s much easier for their natural resources even with government mismanagement to affect the everyday citizen.
Not sure how much population size plays in this vs the political and economic policies of a country. Oil rich Equatorial Guinea has one million plus people compared to Botswana's two million plus. Yet Equatorial Guinea has had one corrupt repressive gov't after another keeping that country poor. So it's probably more about the policies coming from a gov't instead of the population size that plays a bigger role in development.
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Old 06-10-2018, 06:05 PM
 
Location: Cebu, Philippines
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Originally Posted by Motion View Post
So the more free market economic and democratic policies of Botswana's post colonial leaders have nothing to do with Botswana's results?



"Unlike other countries in Africa, his administration adopted market-friendly policies to foster economic development. Khama promised low and stable taxes to mining companies, liberalized trade, and increased personal freedoms. He maintained low marginal income tax rates to deter tax evasion and corruption..."

Seretse Khama - Wikipedia, the free encyclopedia
It had everything to do with it. But the reason Botswana took a step in that direction was because the wealthy investors from South Africa and Zimbabwe rewarded them handsomely to create a safe environment for them to transplant their investments. In a sense, the Botswana administration was "bribed" to create and enforce a business-friendly government -- Essentially, RSA and Zimbabwe in exile. Which other African countries did not do because nobody made it in their best interests to do so.

Reme Dumont's "False Start in Africa" is essential reading on this. In 1962, as post-colonial Africa was emerging, he explained, prophetically, exactly what would happen in Africa and why.
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