Question

In: Economics

With reference to the “Galamsey” issues in the country and cocoa farming, suggest and explain one...

With reference to the “Galamsey” issues in the country and cocoa farming, suggest and explain one private means of resolving this issue

Solutions

Expert Solution

Galamsey issue is concerned with small - scale illegal gold mining in Ghana. Many poor families make life out of the illegal trade by working in unsafe, and unhealthy conditions.

The government can bring in mining experts from developed nations such as USA, who in turn can use their higher technological machineries and other capabilities to find approximate value of the precious metal. If mining it on a large scale is economically feasible, government should hold a transparent auction with the condition of employing workers from the local population, one from each family.

The mining contract should go to the highest bidder. The highest bidder would mostly be a successful mining company with safety gears and other protective equipments being provided to the workers involved. This would ensure higher remuneration to the workers as well as their safety and welfare on a greater level.

Cocoa is the largest export commodity for the country. Right now its farming is too extensive and unsustainable. The government should ensure sustainable develpment of Cocoa as a cash crop. Local authorities should take on the responsibility of enforcing regulations regarding forest clearing and agro-chemical application.

Government can allow for contract farming for cocoa along with a strong enforcement of the farming activities. Private firms would have to necessarily employ local population. Private firms participating in the contract farming would bring in state of the art technology, which will allow a sustainable use of the land, and other resources, to produce and export cocoa.


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