Resources and economic growth: Is Africa (Ghana) different?

Í Policy Conference: Competitiveness & Diversification: Strategic Challenges in a Petroleum-Rich Economy.

ABSTRACT
Natural resources have important implications for the conduct of economic policies and the role and design of institutions in resource-rich countries. A brief review of the experiences of a few resource-rich countries, including Botswana and Mauritius, highlights the successes of
those that have done well as well as some of the fiscal, monetary and exchange rate policy issues that arose along the way. Special attention is given to Norway, the world’s third largest oil exporter and the role of good governance, including democracy. Several useful lessons can
be drawn from Norway’s experience. First, human capital matters most, as does democracy, an important aspect of social capital. Secondly, some ways of managing natural resources seem more conducive than others to the build up of human and social capital. These are general lessons by nature and thus also apply to Ghana and the rest of Africa.