Discussion Post- Globalization Impact on Diamond Mining in Ghana

Discussion Post- Globalization Impact on Diamond Mining in Ghana
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Discussion Post- Globalization Impact on Diamond Mining in Ghana
Introduction
Globalization is the inclination towards more unified world economic systems, which puts more emphasis on markets and production on a world scale (Hill & Hult, 2016). Global markets are cropping up because of the merging of once separate markets, into one global village of interests. Contemporary consumers have developed the same norm in consumption and as such require a wider distribution of essential inputs or products. Production on a global scale, has been facilitated by the need to take advantage of the factors of production such as cheap labor, capital and land. All these are essential because organizations around the world have a keen interest in enjoying a competitive advantage, from their affordable production, through reduced cost of production (Hill & Hult, 2016). This has been made possible because of the emergence of global institutions such as World Trade Organization (WTO), International Monetary Fund (IMF), United Nations (UN), and the World Bank. These institutions are charged with the responsibility of regulating, managing and policing the global markets. In the same breath, they are supposed to establish treaties on a global scale, which will ensure that the business systems are running smoothly (Hill & Hult, 2016). This paper probes the impact of globalization on diamond mining in Ghana and how it has affected the Ghanaian economy.
Ghana is a West African country positioned on the Gulf of Guinea. It has many natural resources and the country has an area of 238,555 square Kilometers with a population of approximately 20 million people. Formerly it was a British protectorate and is also referred to as the Gold Coast because of plentiful reserves of gold (Yelpaala & Ali, 2005). Ghana is the second largest gold producer after South Africa in the Sub-Saharan region. It also deals with exports of bauxite, manganese and diamonds. Ghana’s mining sector has made a significant contribution to the economy with approximately 40% of gross foreign exchange. This figure is responsible for approximately 5.6% of the Gross Domestic Product (GDP) of Ghana. Statistics indicate that mining accounted for 38% of earnings from exports, 22.51% was from cocoa and 9.03% came from timber in the year 2000 (Yelpaala & Ali, 2005).
For centuries, communities and people who are directly or indirectly involved in the mining activities of small precious stone have been affected socio-economically. Ghana is known for the mining of diamonds and gold. In 1989, small scale mining was regularized and since then, Ghana’s mining sector, has been in a position to produce over 8.0 million carats of diamonds and 1.5 million ounces of gold (Amankwah & Amin-Sackey, 2003). The mining sector of Ghana has managed to create employment opportunities for many people leaving in the rural and remote areas where mining is taking place, because of the small-scale nature of the mining operations. It has also been able to create indirect jobs that benefit the economy in other sectors. This however, came with its own challenges to the envi...