Posted by Chester Morton / Tuesday 15 November 2016 / No comments
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.
