Illicit Chinese Small-Scale Mining in Ghana: Beyond Institutional Weakness?

Abstract

While the engagement of Chinese migrants in small-scale mining in Ghana has gained traction in scholarship, the extant literature pays little attention to how the relationship between the so-called formal institutions (e.g., the Minerals Commission and Ministry of Land and Natural Resources) and informal institutions (e.g., the chieftaincy and customary land institutions) enables illegalities in the mining industry. This paper addresses this gap in the literature, focusing on the relationship between formal state and informal customary land institutions in the small-scale mining sector. Using an institutional analytical framework, we argue that the increasing involvement of the Chinese in small-scale mining in Ghana is an expression of a bigger and deep-seated problem characterized largely by uncoordinated interactions between key state and customary institutions. This, we suggest, creates parallel operations of formal and informal systems that promote different levels of agency and maneuvering among actors―breeding uncertainty, bureaucratic logjams, and illegalities in the mining industry. Based on our findings, we recommend that a more efficient coordination between the relevant state and traditional land governing institutions could curb the proliferation of illegal mining activities, and in particular, those involving Chinese migrants. As part of the conclusion, we suggest that future empirical research be conducted to explore the interactions between formal and informal institutions and how they affect mining activities.