When Gold Rushes in
With the recent economic turmoil and the declining value of the dollar, some people are turning to gold for economic security in their time of need. In recent months, the price of gold has jumped to a high of nearly $1,000 per ounce.
In light of this, the World Bank’s private branch, the International Finance Corporation (IFC), has helped finance AngloGold Ashanti and Newmont Mining to open gold mines in the rich reserves of Ghana. These organizations claim that by developing the region's resources, they will be able to stimulate economic growth and pull the country's people out of poverty.
However, several NGOs in the region and the above Al Jazeera report claim that is the exact opposite of what this initiative has accomplished. Ghanaians in the west have been experiencing harder times as a direct result of the gold mines. Only the multinational companies that own the mines seem to be reaping the economic benefits. According to Al Jazeera, only 3 percent of the gold profits go back into Ghana.
To build the mines, these companies have also taken over many of the villagers’ farmland where they live and work. Many of the land owners of the region claim that the companies did not compensate them enough for their precious land. The people who worked on the farms were also only paid for a single harvest. Without these farms, many of these farmers have nowhere to live and no way to survive.
Furthermore, Oxfam and FIAN claim that the companies are not respecting the rights and safety of the nearby villagers. Community water sources have been polluted from improper drainage from the worker housing compounds and from the disposal of dangerous chemicals used in mining.
The development of the gold mines could lead to greater problems for Ghana on a national scale. The fertile lands of western Ghana allow even a small farm to be self-sustainable for several generations, which has helped to keep Ghana’s food stores stable. However, by favoring the gold mines over farms, Ghana may eventually begin to suffer the effects of the food crisis that is already plaguing many of its neighbors.
Despite record prices, the real beneficiaries of Ghana's gold remain questionable. Is it the people of Ghana, as the IFC and the mining companies insist, or is it the mining companies themselves?
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Comments
It's not surprising to see
It's not surprising to see how a lot of Ghanans are being exploited by companies out to maximize the demand for gold. Something should be done to ensure that these exploitations be reported to a world wide audience, in order that these companies be condemned for their misdeeds.
Here is another example of
Here is another example of jumping too fast at an opportunity to make profit without first thinking of its adverse effect and consequences. And agricultural countries always seem to take the bait, they don't know, will lead them straight into the fire.
Even if gold is a largely
Even if gold is a largely demanded commodity, companies should still ensure social responsibility to the community where they are establishing their mining facilities. Exploitation always seem to take place in these gold-rich yet under develop nations, and its government usually looks the other way, all for the sake of self-enrichment.
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