The resource curse has generated much research since the 1970s because natural resource rich countries in the developing world seem to perform poorly economically and on development indicators compared to resource poor ones. Researchers and development practitioners have explained the curse in terms of how natural resource windfalls are implicated in a country’s poor economic growth, governance, government borrowing and debt, currency movement, decline in manufacturing and agricultural sectors, environmental degradation and violent conflicts. Indeed, whereas the growth rate of resource rich economies has been erratic, it is essential to put the explanation and whom the growth benefit in context.
The existing literature on the curse is problematic for its methodological nationalism where it does not account adequately for global and local factors (actors, agencies and structures) interact with national politics in shaping the differentiated impact of natural resource windfalls on development. While this study recognised the importance of the national economy in shaping the impact of resource windfalls on development, it relies on actor network theory (ANT) to analyse the problematic impact of natural resources (the curse) as a socially constructed phenomenon and conditioned through interactions between a ‘globalised assemblage’. The assemblage comprises transnational oil companies, states, CSOs, global energy discourses and local politics. Thus, where the curse manifests, it is produced through the interaction between actors, agency and structures, and the resource rich economies are sometimes governed through a transnational contract of extraversion. In Africa, weak democracy is noted as the main factor that shape the impact of oil, this study uses network perspective to analyse the diverse actors, agencies and structures that condition the impact of oil, and whether or not the curse will manifest in a democratic setting on the continent.
This study revealed that while Ghana is not experiencing a curse, oil can be problematic for development in the developing world, even in a democratic setting due to the negative impacts of oil; global; national and local politics. Ghana’s case yet revealed that while democracy does not insulate a country from oil-related development challenges, it can mitigate them. Competitive electoral pressure has compelled the state to be responsive, by directing oil windfalls for provision of social services. This study also revealed that the directionality of the problematic impacts oil are not predetermined since Ghana’s currency has depreciated instead of it appreciating as noted in curse literature. There are also temporalities and spatialities to the problematic nature impact oil where increased Ghana government borrowing is creating a ‘deferred debt curse’ and similarly, whereas oil positively impacted the national provision of social services, fisher-folks experienced decline in income due to restrictions on fishing.