Do small-scale mining activities lead to economic growth for a developing country?

Answer 1

Small scale mining and mining in general isn't always the best solution for a mineral rich country. In many instances it can create more conflict and more corruption within the country. If there is very little rule of law (respect for rules, justice and general order), mining will not be regulated and it will be controlled by corruption. There will be little safety protocols and violations of human rights. There are some instances where artisan mining has shown some benefits and there are case studies of such. With my experience in Africa and other developing countries, having minerals is a bit of a curse as corruption runs hand-in-hand.

Overall, it is not the best solution for economic growth for a developing country. It is by far better to have strategic solutions around solid education (often times in the rural areas teachers of primary school perhaps only have primary school education), with respect for integrity (favors are often asked by teachers of female students for grades and test results), and accountability for where the school fees are going. A better policy would also have dialogue between the education sector and the private sector to ensure there are jobs that relate to what schools are teaching and to bring more youth into the vocational education sector.

There is a trend that is necessary with growing climate change concerns to keep things in the ground. Gold mining for example requires exhaustive chemicals and can be disastrous for scare water regions where it takes all the water or contaminates it. This creates insecurity and conflict which is not good for economic growth.

There are no panaceas in international development. Here are some links on the topic.

https://www.usaid.gov/news-information/fact-sheets/artisanal-gold-mining

https://www.theguardian.com/sustainable-business/small-scale-mining-sustainable

https://foreignpolicy.com/2016/01/14/u-s-squanders-488-million-on-afghan-mining-projects-sigar/

http://www.dpa-international.com/topic/working-one-foot-grave-philippines-small-scale-miners-171202-99-110735