After
working in many eager nations with diverse economies, Jose-Pablo Buerba, a professional
political economist from Mexico City, emphasizes a general hypersensitivity to
geographic location. Buerba consults with
manifold heads of state and ruling political authorities, working closely with
Ghana. His experience indicates that Ghana, as it rides the cusp of an economic
upsurge, is particularly “location-aware.” Moreover, hydrocarbon-rich Ghana is especially
cognizant of its geopolitical nexus because of its proximity to Nigeria, a
nearby country that exports millions of barrels of oil on a daily basis.
Despite
some shameful amounts of looting, kidnappings, pipeline sabotage, etc., Nigeria
continues to grow and to benefit from its already groomed oil production. This
has also had an encouraging effect on Ghana, which understands its own
potential as a major hydrocarbon producer and supplier. Ghana’s oil amounts to
perhaps 7 billion barrels, securing it a spot among the world’s top twenty-five
proven oil reserves. Additionally, some reports indicate that Ghana houses
several trillion cubic feet of natural gas. These resources and their numbers
present quite the emerging market.
Due
to its resources, private, rich world oil firms are making their presence in
Ghana known. They represent an added variable for Ghanaians and the future of
their economy. Said firms obviously want to explore ways in which they might
induce and usher in the exploitation of potentially large quantities of oil and
gas stores. They are also on site so that they can be the first in line to put
in bids for government contracts. Buerba suggests that one major obstacle,
which nations in Ghana’s position face, is the financial accountability vis-à-vis
government contracts with private firms. Ghanaians need to take good care to
see that the decisions their government makes favors their long-term economic
growth—not simply the profit of foreign firms.
One
Ghanaian economic advisor, Dr. Derrick Owusu-Ampofo, pleaded a year ago that
the government reserve approving proposals to privatize the Ghana Oil Company—a
completely state-owned company. In a 2013 article published on allAfrica.com,
Owusu-Ampofo signaled that foreign multinationals control the “upstream sector”
in the oil industry. He claimed it would be very problematic for Ghanaians to
therefore “hand over the downstream.” He also implored that Ghanaians seek to
co-operate the economy by actively controlling strategic investments, citing that
the “retail sector must be protected for the indigenous people…” Owusu-Ampofo
then closed by railing against foreign interest: “If God has blessed us with
one cash cow, we must keep all of it at home…!”
The
critical awareness that Ghana has about its oil, gas and location bespeaks
another important element of international relations, politics and current
trends in economic development. After witnessing the growth and economic boom
that can give rise to a city like Lagos, in Nigeria, it becomes very clear to a
country like Ghana that petroleum, and the production of its feedstock, can
support one of the world’s fastest growing cities, driving the economy
seemingly skyward for a time. What ensues may seem to be a mad rush to advance
the exploitation and extraction of petroleum, while it is still so highly
commodifiable and valuable to US consumers. Of course, it is no secret that
this drive can also make for easy entry with many multinational oil companies,
especially in countries whose governments may relax laws and undergo great
deregulation in order to seem friendly and inviting to foreign firms. After
all, they have supplies that they envision competing globally in order to meet
growing demands.
Something
must be said of the oil multinationals like the ones in Ghana, which often
promise to help countries capitalize on their natural resources by facilitating
extractions, or by proffering partnerships. While some businesses report
compliance with the promises made to many international governments, helping
them to extract oil and refine it, there is always
the risk of the unexpected consequences which have the power to alter the very
politics of a country outside democratic mechanisms already in place. Private
firms, it is understood, obey profit, but not necessarily the wellbeing of a
nation and its people.
Buerba
admits that Ghana can hope to eventually compete with a petroleum power like
Nigeria. By selling its oil competitively, and thereby experiencing an increase
in wealth spread across a much smaller population than that of Nigeria, Ghana
may seriously alter its economic landscape. It could be very empowering; distributing
wealth in such a way as to elevate per capita purchasing power parity (PPP) and its nominal gross domestic product
would greatly benefit Ghanaians and their economy. Still, the choice to privatize
presents Ghana and its people with quite the hurdle, not to mention securing
its reserves from the kinds of problems that surround Nigerian oil extraction
and manufacture.
Mateo
Pimentel lives
on the Mexican-US border, writing for many alternative political newsletters
and Web sites. Much of his work can be found on Axis of Logic, CounterPunch and
Dissident Voice.
© Copyright 2014 by AxisofLogic.com
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