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Concession Stands: How Mining Investments Incite Protest in Africa

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  • Christensen, Darin

Abstract

Foreign investment in Africa's mineral resources has increased dramatically. This paper addresses three questions raised by this trend: do commercial mining investments increase the likelihood of social or armed conflict? If so, when are these disputes most prevalent? And, finally, what mechanisms help explain these conflicts? I show, first, that mining has contrasting effects on social and armed conflict: while the probability of protests or riots increases (roughly doubling) after mining starts, there is no increase in rebel activity. Second, I show that the probability of social conflict rises with plausibly exogenous increases in world commodity prices. Finally, I compile additional geo-spatial and survey data to explore potential mechanisms, including reporting bias, environmental harm, in-migration, inequality, and governance. Finding little evidence consistent with these accounts, I develop an explanation related to incomplete information—a common cause of conflict in industrial and international relations. This mechanism rationalizes why mining induces protest, why these conflicts are exacerbated by rising prices, and why transparency dampens the relationship between prices and protest.

Suggested Citation

  • Christensen, Darin, 2019. "Concession Stands: How Mining Investments Incite Protest in Africa," International Organization, Cambridge University Press, vol. 73(1), pages 65-101, January.
    • Handle: RePEc:cup:intorg:v:73:y:2019:i:01:p:65-101_00
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    Cited by:

    1. Nicolas Berman & Mathieu Couttenier & Victoire Girard, 2023. "Mineral Resources and the Salience of Ethnic Identities," The Economic Journal, Royal Economic Society, vol. 133(653), pages 1705-1737.
    2. Bose, Purabi, 2023. "Equitable land-use policy? Indigenous peoples’ resistance to mining-induced deforestation," Land Use Policy, Elsevier, vol. 129(C).
    3. van der Merwe, Antoinette & Cabernard, Livia & Günther, Isabel, 2023. "Urban mining: The relevance of information, transaction costs and externalities," Ecological Economics, Elsevier, vol. 205(C).
    4. Sini, Snow & Abdul-Rahim, A.S. & Sulaiman, Chindo, 2021. "Does natural resource influence conflict in Africa? Evidence from panel nonlinear relationship," Resources Policy, Elsevier, vol. 74(C).
    5. Bazillier, Remi & Girard, Victoire, 2020. "The gold digger and the machine. Evidence on the distributive effect of the artisanal and industrial gold rushes in Burkina Faso," Journal of Development Economics, Elsevier, vol. 143(C).
    6. Gong, Do Young & Kim-Leffingwell, Sanghoon & Shen, Shuyuan & Yang, Yujeong, 2024. "Money backfires: How Chinese investment fuels anti-China protests abroad," World Development, Elsevier, vol. 178(C).
    7. Haslam, Paul Alexander, 2021. "The micro-politics of corporate responsibility: How companies shape protest in communities affected by mining," World Development, Elsevier, vol. 139(C).
    8. Xiaoliang Wang & Danlin Yu & Chunhua Yuan, 2021. "Complementary Development between China and Sub-Sahara Africa: Examining China’s Mining Investment Strategies in Africa," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    9. Bornschier, Simon & Vogt, Manuel, 2024. "The Politics of Extractivism: Mining, Institutional Responsiveness, and Social Resistance," World Development, Elsevier, vol. 176(C).
    10. Reeder, Bryce W. & Arce, Moises & Siefkas, Adrian, 2022. "Environmental justice organizations and the diffusion of conflicts over mining in Latin America," World Development, Elsevier, vol. 154(C).
    11. Girard, Victoire & Kudebayeva, Alma & Toews, Gerhard, 2020. "Inflated Expectations and Commodity Prices: Evidence from Kazakhstan," GLO Discussion Paper Series 469, Global Labor Organization (GLO), revised 2020.
    12. McCauley, John F. & Pearson, Margaret M. & Wang, Xiaonan, 2022. "Does Chinese FDI in Africa inspire support for a china model of development?," World Development, Elsevier, vol. 150(C).
    13. Kate Odziemkowska & Sinziana Dorobantu, 2021. "Contracting Beyond the Market," Organization Science, INFORMS, vol. 32(3), pages 776-803, May.
    14. Strauch, Rebecca & Jansesberger, Viktoria & Koos, Sebastian & Spilker, Gabriele, 2024. "Voices of change in the Global South: Understanding the dynamics of environmental protest," Working Papers 37, University of Konstanz, Cluster of Excellence "The Politics of Inequality. Perceptions, Participation and Policies".
    15. Muhammad Shafiullah & Usman Khalid & Luke Emeka Okafor, 2023. "Do birds of a feather flock together? Analyzing environmental performance and tourist behavior using a gravity approach," Tourism Economics, , vol. 29(5), pages 1139-1163, August.
    16. Vrolijk, Kasper, 2023. "How does globalisation affect social cohesion?," IDOS Discussion Papers 5/2023, German Institute of Development and Sustainability (IDOS).
    17. Kate Odziemkowska & Witold J. Henisz, 2021. "Webs of Influence: Secondary Stakeholder Actions and Cross-National Corporate Social Performance," Organization Science, INFORMS, vol. 32(1), pages 233-255, January.
    18. Bezzola, Selina & Günther, Isabel & Brugger, Fritz & Lefoll, Erwin, 2022. "CSR and local conflicts in African mining communities," World Development, Elsevier, vol. 158(C).
    19. Victoire Girard & Nicolas Berman & Mathieu Couttenier, 2020. "Natural resources and the salience of ethnic identities," NOVAFRICA Working Paper Series wp2007, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    20. Wegenast, Tim & Beck, Jule, 2020. "Mining, rural livelihoods and food security: A disaggregated analysis of sub-Saharan Africa," World Development, Elsevier, vol. 130(C).

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