Over the past 30 years, real GDP inGhana has more than quadrupled, and in 2011 the countryjoined the ranks of Lower Middle-Income Countries (LMICs).Macroeconomic momentum has been driven in part by higherprices for Ghana’s main commodity exports, gold and cocoa,and the start of commercial oil production. This fits anoverall trend that has seen natural resource rents as apercentage of GDP more than double between 1990 and thepresent; approximately one-half of these rents come fromnon-renewable sources (oil, mineral, natural gas).Environmental unsustainability may impair Ghana’s economicgrowth, as demonstrated through two economic indicators. Thefirst is national wealth, the measurement of a country’sassets in produced capital, natural capital (renewable andnon-renewable), human capital, and net foreign assets, agauge of growth sustainability. Between 2000 and 2014, Ghanasaw total national wealth more than double. Growth ispredicated on efficiently and sustainably managing naturalcapital, a fact which can be demonstrated through increasein its per capita value over time, and reinvesting proceedsinto other forms of capital, primarily human (Lange et al.,2018). Yet, much of Ghana’s recent wealth growth came withliquidation of non-renewable assets and losses to renewableresources, as well as erosion of produced capital. Ghana’shigh population growth makes this a pressing concern sinceexisting capital stocks must be shared with younger andfuture generations.
PDF
download
878987797
028-85220240
