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Ghana - Economy-wide impact of oil discovery in Ghana (English)

Ghana's oil will start to flow in 2011, maybe even before, and most of its known reserves will be extracted in the immediate years after. The promise of oil generates expectations of all sorts, the more so as Ghana currently grapples with a macroeconomic crisis of significant proportions. This overview discusses the Ghana-specific nature of these challenges and explores possible options to address them. In doing so, it builds on seven thematic chapters which look at different aspects of the question: (1) oil facts, (2) political economy, (3) public financial management, (4) infrastructure, (5) private sector development, (6) agriculture, and (7) poverty. While the overview tries to bring together the findings of these different chapters, further details and discussions on each of these topics can be found in o f the chapters themselves. It concludes that while oil revenue will not be large enough to radically transform Ghana, it could, if improperly managed, impose enough stress on non-oil sectors to severely undermine Ghana's medium term development prospects. Hence the huge premium and responsibilities put on Ghana's successive authorities to wisely manage the oil wealth to promote the development of the non-oil sectors.


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    Ghana - Economy-wide impact of oil discovery in Ghana

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    oil revenue;gas;Public Financial Management;real interest rate;real exchange rate appreciation;public financial management system;annual population growth rate;public sector wage bill;finance and economic;impact on poverty reduction;social return;permanent income;government revenue;Fiscal Sustainability;world price;Political Economy;budget execution;public good;political force;payroll management;institutional framework;dutch disease;fiscal regime;cubic feet;capital expenditure;gas to industry;per capita income;external public debt;oil price volatility;gas industries;urban land tenure;access to finance;public resource allocation;political economy dimension;barrier to entry;fiscal responsibility law;oil per day;allocation of fund;capacity for investment;Rule of Law;competitive procurement method;global competitiveness index;domestic consumer price;access to land;public sector productivity;electricity generation mix;world development indicator;revenue management framework;infrastructure and growth;weak enforcement capacity;social accountability mechanism;per capita term;windfall oil revenue;global economic crisis;domestic price inflation;electricity generation capacity;public debt sustainability;progressive tariff structure;effective service delivery;natural gas liquid;crude oil price;hard budget constraint;Public Goods;downstream activity;downstream activities;dry gas;fiscal balance;proven reserve;price forecast;energy subsidies;direct transfer;reference price;consensus building;interest cost;fiscal consolidation;gross revenue;institutional stability;oil discovery;Energy Sector;contingent liability;contingent liabilities;export competitiveness;investment climate;democratic transition;infrastructure financing;policy option;domestic supply;discretionary power;windfall revenues;concessional term;food processing;fiscal deficit;stabilization fund;Extractive Industry;formal sector;labor regulation;minimum wage;government income;oil fund;productivity level;oil supply;budget transparency;procurement rule;investment expenditure;competitive tender;private activity;financial return;operational expense;gas discovery;economic stagnation;equity structure;worth emphasizing;commercial reserve;conservative assumption;general budget;Investment strategies;transparent manner;national interest;marginal productivity;commercial investment;domestic gas;speculative bubble;targeted transfer;factor price;relative price;political pressure;barrel price;electricity cost;Capital Inflows;price assumptions;stock market;oil reserve;sovereign bond;interest income;domestic investment;public transfer;vulnerable consumer;electricity consumer;production cost;cost-recovery mechanism;safety standard;agricultural sector;pending issues;price fluctuation;open competition;extension service;causal relationship;legal framework;power supply;pressure rise;storage capacity;utility tariff;patronage politics;gas exploitation;Gas Pipeline;power station;direct heating;gas conversion;gas reserve;global market;gas infrastructure;public deficit;environmental issue;regulatory quality;gas resource;fight corruption;social polarization;ethnic identities;ethnic grievance;binding constraint;foreign client;domestic input;upstream activity;foreign company;quantitative analysis;express intention;external imbalance;external deficit;absorptive capacity;personal interest;political structure;long-term growth;poverty alleviation;derived demand;environment preservation;production facility;dry process;Power Generation;world market;corporate taxation;equity ownership;improving competitiveness;increased transparency;cost-benefit analysis;institutional determinants;manufacturing sector;Labor Market;infrastructure constraints;factor market;agricultural competitiveness;base case;infrastructure spending;business indicator;commercial exploitation;net oil;sensitivity analysis;domestic demand;political incentive;macroeconomic situation;minimizing risk;government effectiveness;equity perspective



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Ghana - Economy-wide impact of oil discovery in Ghana (English). Washington, D.C. : World Bank Group.