The Practice of Mining and Inclusive Wealth Development in Developing Countries

This paper is based upon a review of studies of mining companies, most of them being Canadian, in Chile, northern Canada, Tanzania, Guatemala, Ghana, Sierra Leone and the Democratic Republic of Congo. In spite of often well-meaning efforts, the wealth produced by most mining firms in developing areas largely benefits those immediately involved, sometimes neighbouring communities, and often those in the governing strata. Typically, mining takes place in enclaves and fosters enclave development rather than the kind of inclusive wealth development favoured by the UN’s recently published Inclusive Wealth Report. One way mining operations can foster more inclusive wealth development is to adopt much broader approaches towards the construction of the various physical and social infrastructures required for their own operations. By collaborating with diverse regional, provincial and/or national agencies and businesses, these infrastructures—roads, water, electricity, health services, schools and security—may be developed to serve larger populations and areas beyond their immediate operating sites. Established mining firms can also foster more inclusive wealth development by establishing more formal, collaborative relationships with artisanal miners.