With the recent economic turmoil and the declining value of the dollar, some people are turning to gold for economic security in their time of need. In recent months, the price of gold has jumped to a high of nearly $1,000 per ounce.

In light of this, the World Bank’s private branch, the International Finance Corporation (IFC), has helped finance AngloGold Ashanti and Newmont Mining to open gold mines in the rich reserves of Ghana. These organizations claim that by developing the region's resources, they will be able to stimulate economic growth and pull the country's people out of poverty.

However, several NGOs in the region and the above Al Jazeera report claim that is the exact opposite of what this initiative has accomplished. Ghanaians in the west have been experiencing harder times as a direct result of the gold mines. Only the multinational companies that own the mines seem to be reaping the economic benefits. According to Al Jazeera, only 3 percent of the gold profits go back into Ghana.

To build the mines, these companies have also taken over many of the villagers’ farmland where they live and work. Many of the land owners of the region claim that the companies did not compensate them enough for their precious land. The people who worked on the farms were also only paid for a single harvest. Without these farms, many of these farmers have nowhere to live and no way to survive.

Furthermore, Oxfam and FIAN claim that the companies are not respecting the rights and safety of the nearby villagers. Community water sources have been polluted from improper drainage from the worker housing compounds and from the disposal of dangerous chemicals used in mining.

The development of the gold mines could lead to greater problems for Ghana on a national scale. The fertile lands of western Ghana allow even a small farm to be self-sustainable for several generations, which has helped to keep Ghana’s food stores stable. However, by favoring the gold mines over farms, Ghana may eventually begin to suffer the effects of the food crisis that is already plaguing many of its neighbors.

Despite record prices, the real beneficiaries of Ghana's gold remain questionable. Is it the people of Ghana, as the IFC and the mining companies insist, or is it the mining companies themselves?

Can the mining industry brighten Congo’s economy? Possibly, says NPR’s Gwen Thompkins. The corrupt dictatorship of Mobutu Sese Seko and years of civil war have all but destroyed the economy of the Democratic Republic of the Congo. While political stability has increased since the DRC held its first free elections in 2006, weak infrastructure and continued regional violence still hinder any kind of substantial economic growth.

In the past, the profits gained from the country’s vast mineral resources have largely gone into the pockets of middlemen and corrupt government officials, with little benefit to the average Congolese. Yet the DRC sits atop what remain the world’s largest reserves of copper, tantalum, and coltan – minerals that are used in everything from cell phones to jet engines. Investors are showing increased interest in gaining access to these minerals: state-owned China Railway Group is set to fund $2.9 billion joint investment project in partnership with Gecamines, the DRC's state mining company. If carried out correctly, the excavation and sale of mineral resources could jumpstart the DRC’s economy and help get it back on its feet.

Could mining boost DRC's economy? Photo: FredR (flickr)