Thursday 11 July 2013

OIL IN GHANA AND THE WAY FORWARD

Joining the Organisation of Petroleum Exporting Countries sound a brilliant idea and news to a country but one we tend to forget is the effects this can turn out to have on the potential country. The effects range from economic to social and political and explodes when the necessary measures are not taken to curtail the situation at hand.

Oil like fire is a good master but a bad servant who can destroy the peace enjoyed by a country if not put under control or administered by proper administrators with laid down procedures to govern its exploration and exportation. Oil is meant to bring affluence to a country to enable citizens have a fair share of the national cake but what do we see in Nigeria, Democratic Republic of Congo, Equatorial Guinea, Sudan and the likes? What is meant to unite a country and bring wealth has turned to bring hatred and division.

Ghana is blessed with variety of natural resources, which included gold, bauxite, manganese, cocoa, timber and now oil. The discovery of oil in Ghana in 2007 was a big news which was welcomed by all Ghanaians and the joy that came to majority of Ghanaians in 2010 when the exploration started was awesome especially those living in the oil city (Takoradi).
President Mills launching the exploration of oil at the Jubilee Fields
But it's one thing having the natural resources and another benefiting from them. Whether the country benefits or not all depends on management in terms of administration of the resources to satisfy and meet the aspirations of citizens instead of a few people who are in power.

Natural resources without good management and unity is tantamount to underdevelopment and destruction or misuse of nutrual resources. The reverse is exactly true as a country endowed with natural resources coupled with good management and unity tends to develop. A reference can be made to most Arabic countries who have developed greatly as a result of good management of their oil, using to beautify the country. Dubai in the United Arab Emirate has become a 'must visit destination in our days all due to oil and its proper management.
Why can't African oil producing and exporting countries do the same to ensure the development of their countries and their people to attract investment into the continent?

Oil exploration, production and exportation only adds 6% to the Ghanaian economy as compare to Nigeria where it is 92% (BBC, 2010 and indexmundi, 2012) with Ghana ranked 88th on the league of oil exporting countries. Though 6% is not a lot but when managed properly can go a long way to reduce the level of poverty and increase living standards among those in the oil rich towns and the rest of the country.
The mistakes of other oil exporting countries that have resulted in kidnapping of expatriates and fatalities cannot be repeated in Ghana and the requisite steps should be taken to prevent them. Niger and Delta States in Nigeria are faced with atrocities including the kidnapping and killing of oil workers and even indigenes due to the neglect of the government of the needs of the community members especially the youth. It is heart breaking when your State is poor knowing that natural resource and in the case of the Western Region oil is in abundance but no focus is placed on your plight. This is why in Nigeria the youth engage themselves in unacceptable actions that at times leads to their death in the oil rich States of Delta.
This child should enjoy from the proceeds from the oil

A recent documentary on TV3 and Metro TV (two of the private TV stations in Ghana) reviewed the anger of the natives living in the surrounding areas where the oil is exploited. According to those interviewed by the reporters, they feel cheated and relegated to the background in terms of development as they receive no benefits from the oil exploration in their region or community. The fishermen mourned bitterly about the harm that the oil exploration is causing as it is having negative effect on their fishing activities and nature. The exploration activities affect the aquatic environment and it was sad seeing dead fishes washed ashore. The youth who also complained bitterly about them not having access to employment though they have the requisite qualification.
The government of Ghana must ensure that these poor communities readily benefit from the oil exploration in their communities in diverse ways. Royalties can be given to the Chiefs and other traditional authorities to embark on developmental activities that can be measured. Since the exploration in some communities has led to destruction of water or river bodies which serve the communities the government should ensure the construction of portable water system to cater for the water needs of these communities.

It is when the needs and plight of these communities are neglected that they resort to violent means of demanding their rights. Ghana has been and is still a safe haven and has protected it peaceful environment attracting a lot of foreigners into the country. For this reason the peace that the country is enjoying must be protected at all cost. This is what were ignored by Cameroon, Nigeria, Equatorial Guinea, Sudan and other African countries, which resulted in the destabilisation of their peace and internal wrangling retarding the development of the countries. Ghana has come a long way in terms of peace sustenance to allow the new discovery destroy their peace.

The discovery and exploration of oil in Ghana should not threaten the peaceful environment and the pace of development enjoyed by the country but should bring the country together in terms of political, social, cultural and economic development. If UAE has been able to achieve and reach where they are today then Ghana can.