The natural resource curse and local communities: issues and implications for social sustainability

Purpose – This study aims to revisit the natural resource paradox debate by examining the impacts of offshore petroleum extractive activities on the social sustainability and development of coastal communities closer to the Jubilee oil fields in Ghana. Design/methodology/approach – The study used a qualitative approach involving 22 individual interviews, which was thematically analysed based on the inductive approach with the empirical results triangulated with secondary data. Findings – The study finds that socio-spatial inequality helps to explain the “curse” of natural resource in rural communities. The perceptual contradiction between multinational mining companies and local communities develops from the gaps in managerial cognition and stakeholder expectation regarding the impacts of offshore extractive activities. Research limitations/implications – The findings only apply to the offshore petroleum extractive industry in Ghana and might not be generalisable to other developing countries with similar levels of institutional maturity. Practical implications – This study informs policy and decision makers, especially key political actors regarding the impacts of socio-spatial inequality on fishing communities and how compensatory redistributive strategies might contribute to rural sustainability. Social implications – This study could enhance the corporate social responsibility (CSR) practices of large-scale mining companies in addressing the challenges and barriers to social sustainability in local communities. Originality/value – By highlighting the nuanced issues in the natural resource paradox debate, especially the legacy of socio-spatial inequality, this study adds to the body of literature on social sustainability and development in resource-rich developing countries.