Abstract
This paper examines the impacts of mining-sector reform in Ghana at both the macroeconomic and microeconomic levels. Since the inception of the national Economic Recovery Program (ERP) in 1983, the Ghanaian government, under the guidance of the IMF and World Bank, has amended numerous policies to establish a more attractive investment climate for foreign mineral-exploration and extraction companies. The country's mining industry has since expanded rapidly, experiencing by 2004 a fivefold increase in annual gold output and big rises in bauxite, diamond, and manganese production; however, at the same time, the perpetual expansion of mining and allied activities has strained indigenous communities: some subsistence groups have been displaced outright, and/or have been victimized by excessive mine pollution.
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