Virtual Kollage: The negative effects of exploiting natural resources

Posted by / Tuesday, 15 November 2016 / No comments

The negative effects of exploiting natural resources




THE NEGATIVE EFFECTS OF EXPLOITING NATURAL RESOURCES
Environmental degradation
One of the negative effects of the exploitation of the natural resources of Ghana is that it destroys the environment. Gold mining, especially, the one undertaken by small scale miners or ‘Galamsey’ pollutes water sources and the air.

Threat to sustainable development
Another problem with the exploitation of Ghana’s natural resources is that of sustainability. Some of the natural resources are not renewable, like gold, bauxite and manganese etc. Over-exploitation of such resources may lead shortage. The renewable resources like timber may also run into difficulties because enough trees are not replanted to replace the ones that are felled. 

Strengthens our dependency
As we lack the human and technological resources for the effective exploitation of our natural resources, we are left with no option than depending on expatriate experts and technology, this deepens our dependency on the industrialized countries.        

Huge capital outflows by foreigners
The foreigners who invest in our extractive industries repatriate huge sums. Even today, investments by foreign companies in service industries, constantly take their profits back to their countries of origin. This limits the financial capability of a nation to develop.

Inadequate technology transfer
Foreign investors who invest in the extractive industries usually keep most of the managerial positions to themselves, no indigenous Ghanaians are allowed at the top. Their involvement in our economy, therefore, does help in the transfer of technology.

Decline in commodity prices
The prices of primary commodities such as gold, and cocoa are not stable in the international market markets. This has led to a reduction in the revenue the state makes from the export of her natural resources. 


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