Oil Discovery and its effect on democratic growth in Ghana Essay

Oil Discovery and its effect on democratic growth in Ghana - Essay Example Over the last decade, oil explorations in the Atlantic Ocean off to the coast of Western and Southern Africa have ushered the region of Sub-Saharan Africa into an oil boom. There was a rapid incursion of multinational oil companies from around the world seeking to exploit these untouched oil reserves (Jerome 9). This oil boom has given Sub-Saharan countries such as Nigeria, Angola and Sudan great opportunity to turn their situations upside down and steer their country towards a better future. However, in the midst of this great opportunity rest numerous pathologies such as high level of corruption, high risks of civil war, low prevalence of democracy, high poverty rates and poor economic growth (Jerome 9). Thus, the ensuing years of the oil boom was marked by a drastic realization for these countries. When Ghana gained its independence in 1957 from the British, it had one of the strongest economies in Africa. However, years after it gained its independence, numerous domestic problems have caused the economy to drop and further decline till the year 1980. For more than 15 years, Ghana was able to slowly recover through economic reforms and Ghana is now considered as one of the Africa’s brightest prospects. However, what made Ghana attain such status quo is the recent oil discovery in offshore Tan/West Cape three Points Basin in the Western Region of Ghana. Oil companies who led the explorations were Kosmos Energy of US and Tullow Oil of UK under the supervision of Ghana National Petroleum Corporation (GNPC). In an instant, Ghana joined the ranks of its fellow African countries who are also producing oil and it is also expected that for the next two decades, billions of pounds and dollars are expected to pour in Ghana (Lerrick 7). Unfortunately, the excitement did not last long for the people. Once the jubilation was over, people begin to wonder whether it is really oil that their economy needs in order to achieve its goal. Ghanaian