How to ‘save’ Ghana from Petrodollars?

IntroductionResources havent ever more been linked to riches, as the management of resources in a country is evermore subjected to politicking. gold coasts resources have been recently discovered, olibanum space for fun regarding how to make the best out of the natural supplies is given to the organisation.What is k nary(pre noneinal)n so far is that crude anele discoveries in many countries have led to the eroding of democratic processes and insitutional structures (Van Gyampo, 2011 49). In other words, wealth generation does not fair to middling resource abundance, and, by any means, an increase in the standard of existent of the entire population. Moreover, the Ghanian exampe is illustrative on account of the government throw magnitude its opacity. This git result in higher level of corruption and affectionate unrest, as an inequality in the wealth distribution can fix social pressure. Countries with abundant resources and weak governmental system of ruless ar prone to having an sniffy government or to face social disruption.The pre-oil gold coast was praised for its steady overture toward democratic consolidation (Gyimah-Boadi & Prempeh, 2012 94), with five elections being held under democratic principles, and shore leave being guar punted to key institutions such as universities, mass-media, etc. Economically speaking, Ghana has an estimated influx of Petrodollars of about USD 1 billion (Kapela, 2009) per year, which constitues a great dominance for development. This should be the focus of further research on the impact of oil discovery on Ghana, as development plans have the potential of generating frugal wealth in a sustainable manner. The main question is how to picture wealth from resource abundance, and how to invest Petrodollars in something sustainable for Ghana? explore proposalThe paper should focus on oil manufacturing as a generator of wealth in Ghana, and try to tackle shipway in which this could be made possible. C lassically, transforming oil money in wealth is done through infrastructure development. What is more, the type of infrastructure that has to be substantial differs from country to country. Nonetheless, even if infrastructure of any type is built, this doesnt automatically create sustainability (Wood, 2007). This is ca spendd by the contextuality determined by political and social factors. Of token importance is to note that Ghanas democracy is fundamentally contrary than other African counterparts dependent on oil exportation, with a political system that has developed into a relatively stable one. This creates a rank ground for sustainability projects. start-off, the disseration should focus on researching and outlining the modes in which the Ghanian government can use the influx of Petrodollars to enhance development, despite other bad physical exercises in the region. Here are some areas of development that can attract funding from oil industry.a) start-ups Economic grow th is striclty related to entrepreneurship. Can Ghanian government find a way to foster a capitalistic humor that can potentially generate wealth b) infrastructure development When we reproof about infrastructure, we think about motorways construction, airport connectivity, etc. In fact, growth countries struggle to finalize those projects and often find that the expected positive externalities are overwhelmed by the oppose ones. Roads can prove to be intelligent connectors between two cities, but dont generate wealth per se. A type of infrastructure with positive outcomes is IT infrastructure. c) education Sustainability is about creating a long-lasting positive effect over the next generations. Education is an fundamental node of the wealth-creation network. The main concern is whether Ghana has the political will to use oil money for projects that can create wealth organically.Therefore, the thesis should undertake the topic of Petrodollars and how Ghana can be the first p ositive example of good resource management in Africa. This would relate oil industry to the broader picture of wealth creation and development.How to tackle the research topic?The methodological apparatus that should be employed here is diverse, however discretion is advisable. First of all, an extensive literature review on Ghanas oil industry should be done in order to understand the underpinnings of the newly created economy. Second, the literature review should seek to understand the political system and how this was altered by the resource profusion. A comparative approach should be used here, especially a comparison between Ghana and Nigeria regarding institutional redesign in the light of resource abundance.Second, there are more ways in which the study can be developed.a) an empirical synopsis of economic indicators that measure wealth and economic growth post and ante the oil discovery. This can take the form of an econometrical analysis that should test the correlatio nal statistics between Petrodollars cahsflows and development. The most accessible option is to run a manifold regression having as the dependent variables the economic growth, standard of living, and income inequality, and independent variables, revenues from oil indsutry, tax revenues, etc. Two patterns can arise. First, a positive correlation between the formers and the latters, thus the Ghanian government can be rendered as a good example of oil revenues manager. Second, a negative correlation can be found, confiriming the theory of fragiles democracy falling asunder because of resource abundance. In any case, the assumptions made should be supported by a rigorous supposititious framework. b) a fieldwork approach using merged interviews with topical anesthetic entrepreneurs that have benefited from or were disadvatanged by the emergence of the oil industry. If this approach is taken, a good guide can be provided by hart (2007). This method can provide rich entropy about t he micro implications of oil industry in Ghana and can allow for ground-up theoretical development. Conclusions and recommendationsThe discovery of the oil field in Ghana is still recent, thus not a lot of academic writing has focused on it. There are still many areas left unexplored, some of them presented above.The recommendation is to focus on oil industry as an agent of change that has the power, in the right hands, to drive economic growth and wealth creation. Also, Ghana is a particular example in Africa, therefore careful oversight should be given to details such as political constancy and institutional systems.The beginning should rely, if possible, on local access to information, and use the local language to bring to light some new information that differently would be impossible to discover. The recommended design of the research is a grounded theory approach, where the author will attempt to use a mix of secondary data analysis (e.g. Official documents, public dis courses of government regarding oil industry, etc.) and structured interviews with local entrepreneurs.ReferencesVan Gyampo, R.E. (2011), Saving Ghana from Its Oil A critical assessment of Preparations so Far Made, Africa Today, vol. 57, no. 4, pp. 48-69Gyimah-Boadi, E., Kwasi Prempeh, H. (2012), Oil, Politics, and Ghanas Democracy, Journal of Democracy, bol. 23, no. 3, pp. 94-108Hart, K. (2007), Small-scale entrepreneurs in Ghana and development planning, The Journal of Development Studies, vol. 6, no. 4Kapela, J.M. (2009), Ghanas new oil cause for jubilation of prelude to the resource curse, Masters project, Duke UniversityWood, T. (2007), The Natural Wealth of Nations variety of Oil- and Gas-Producing Economies, Cisco White Paper, 2007