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Mining in Africa: Regulation and Development
The continent of Africa is rich in minerals needed by Western economies, but rather than forming the basis for economic growth the mining industry contributes very little to African development Investigating the impact of the 2003 Extractive Industries Review on a number of African countries, the contributors find that a key dimension of the problem lies in the regulatory frameworks imposed on the African countries by the IMF and World Bank. They aim to convince academics, governments and industry that regulation needs to be reformed to create a mining industry favourable to social and economic development and environmental protection. The book takes a multidisciplinary approach and provides a historical perspective of each country, making it ideal for students of development studies and development organisations.
- GenresAfrica
288 pages, Paperback
First published January 1, 2009
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May 18, 2019
Paradox of Plenty
Campbell's 2009 case studies of five African resource-wealthy countries in the Global South was compiled to illustrate problems and current trends in problem solving in the mining projects sponsored by the World Bank Group. They were chosen around their (mostly) francophone languages because the author felt that the current literature had done a good job of covering the work done by English speaking researchers. At the beginning, I mistook this to mean that the author saw much progress in these sectors represented by the five chosen countries, from which other states could model similar strategies and best practices. In actuality, they remain problematic as well; and the study is meant to add to the current literature as an open dialogue reflecting the current state of African mining concessions.
Though the book deals with the politics of mining, (and civil society protests) the author writes from the standpoint of facts. It refrains from any politicization of the issues. Instead, the book is basically a recap of the Extractive Industries Review (EIR) which was written as a dedicated study of the problem and meant to inform future World Bank Group investments.
To be clear, I dislike the terminology of ‘Global South,’ as much as I dislike the term 3rd World Countries, since they are both a contradiction in terms. It seems misleading to me. Of course, we always change our language to keep ahead of the stigmatism perceived to follow stereotypical labeling and hierarchies. I prefer the denotation of the term “Developing Countries.” But, the various arms of the World Bank Group (WBG) are tasked with lending money to stimulate investment in the Global South. Mining concessions are a part of that investment. Since mining is a problematic sector inherently in any country, there is much to work with in any attempt to improve mining operations in any given African country. But, the most important fact is that Africa is blessed with mineral wealth; a wealth that, for whatever reason, has failed to be translated to the people or governments of the bulk of the continent.
International companies are involved at every level with mining these countries. Though the minerals are streaming out of the country, many endemic problems cause the revenue received by these countries to be as little as 5 % of their already bare economy. What’s more, when big industry leases land for a mining project, the local artisan and small scale miners (ASM) are often left with little option for mining that does not involve illegality. About 90% of the world’s miners are ASM, and mine independently, often with nothing more than hand tools. They are sometimes called Creuseurs. With the environmental problems, health issues of mining, displacement of populations, and the increasing reliance on expatriates instead of nationals; it almost seems like international companies are more of a problem than a solution.
The rationale is to invest in the country. Africa historically had education, housing, and adequate subsistence on the continent for their lifestyle. They had languages and writing. But, centuries of slavery, that culminated in guns being traded to some tribes for slaves from other tribes worked; in an open attempt to breed conflict between the tribes. Then, during the colonization phase things were worse. All existing governmental structures were destroyed and a substitute government was put in place. After independence, many African countries struggle with poor governmental structure and tribal conflict. This of course was not covered in the book… but I feel it adds to the background of the issue. And, it makes me wonder if perhaps from a purely African perspective, resource-rich countries were better left alone to mine their own resources using their current ASM methods. This would function to leave all the profit to them, while decreasing the supply of minerals on the market, and driving up the price. Win-win for Africa. This would strengthen fragile governance structures, and drive a booming market economy alongside the mining industry.
The five countries covered in this detailed work are Ghana, Guinea, Mali, Madagascar, and the Democratic Republic of the Congo (DRC.) Ghana alone is English speaking, and the others are all French speaking, as well as local tribal languages. The Malagasy language is also spoken in Madagascar. The author divided the book up in distinct chapters for each country, attempting to treat them as individual cases. But, they can be grouped based on the specific issues being dealt with:
- Ghana, Guinea, and Mali all were treated on the subject of Poverty Reduction.
- Mali and Madagascar are the subject of environmental protection problems.
- The DRC struggles with many issues of human rights violations and a lack of strong governance.
The book details the many problems in the mining sector. But, it also details solutions that are needed, including more transparency, community involvement, governmental input, and increased regulation of human rights using strictly regional approaches.
I am sharing the links below to Youtube videos that may give a good visual of ASM mining.
Creuseurs - Small Scale Miners in DR Congo
Artisanal Gold Mining in Mali
This was my stop in Ghana on my Journey Around the World in 80 Books for 2019. I read this in the Kindle format, which is statistically illustrated, with numerous tables, and a few maps. I highly recommend the book for anyone interested in Africa and/or mining. I also think the Kindle is indispensable, since it is not only highly formatted for Kindle with search features active, but the flashcard features add much to the learning experience in non-fiction works like this. My next stop will be the country of Togo.
Campbell's 2009 case studies of five African resource-wealthy countries in the Global South was compiled to illustrate problems and current trends in problem solving in the mining projects sponsored by the World Bank Group. They were chosen around their (mostly) francophone languages because the author felt that the current literature had done a good job of covering the work done by English speaking researchers. At the beginning, I mistook this to mean that the author saw much progress in these sectors represented by the five chosen countries, from which other states could model similar strategies and best practices. In actuality, they remain problematic as well; and the study is meant to add to the current literature as an open dialogue reflecting the current state of African mining concessions.
"The major reasons for the relatively poor labour absorptive capacity include the weak linkages between the mining sector and the rest of the national economy, and the shift from labour-intensive underground mining to capital-intensive surface mining."
Though the book deals with the politics of mining, (and civil society protests) the author writes from the standpoint of facts. It refrains from any politicization of the issues. Instead, the book is basically a recap of the Extractive Industries Review (EIR) which was written as a dedicated study of the problem and meant to inform future World Bank Group investments.
"Guinea is the world’s most important source of high-grade bauxite. According to the 2005 estimates of the World Trade Organization (WTO), Guinea has reserves of 20 billion tons of bauxite which are exceptional in both their quantity and quality. The country is responsible for approximately 40 per cent of world commerce of this resource, as well as approximately 40 per cent of the supply of bauxite to the United States."
To be clear, I dislike the terminology of ‘Global South,’ as much as I dislike the term 3rd World Countries, since they are both a contradiction in terms. It seems misleading to me. Of course, we always change our language to keep ahead of the stigmatism perceived to follow stereotypical labeling and hierarchies. I prefer the denotation of the term “Developing Countries.” But, the various arms of the World Bank Group (WBG) are tasked with lending money to stimulate investment in the Global South. Mining concessions are a part of that investment. Since mining is a problematic sector inherently in any country, there is much to work with in any attempt to improve mining operations in any given African country. But, the most important fact is that Africa is blessed with mineral wealth; a wealth that, for whatever reason, has failed to be translated to the people or governments of the bulk of the continent.
"...various tax allowances mean that corporate income tax payments by mining companies are minimal, despite their combined turnover in excess of US$600 million in 2002."
International companies are involved at every level with mining these countries. Though the minerals are streaming out of the country, many endemic problems cause the revenue received by these countries to be as little as 5 % of their already bare economy. What’s more, when big industry leases land for a mining project, the local artisan and small scale miners (ASM) are often left with little option for mining that does not involve illegality. About 90% of the world’s miners are ASM, and mine independently, often with nothing more than hand tools. They are sometimes called Creuseurs. With the environmental problems, health issues of mining, displacement of populations, and the increasing reliance on expatriates instead of nationals; it almost seems like international companies are more of a problem than a solution.
"The enclaved nature of mining is perhaps its most central characteristic: these operations are often very poorly integrated into the host countries’ economies."
The rationale is to invest in the country. Africa historically had education, housing, and adequate subsistence on the continent for their lifestyle. They had languages and writing. But, centuries of slavery, that culminated in guns being traded to some tribes for slaves from other tribes worked; in an open attempt to breed conflict between the tribes. Then, during the colonization phase things were worse. All existing governmental structures were destroyed and a substitute government was put in place. After independence, many African countries struggle with poor governmental structure and tribal conflict. This of course was not covered in the book… but I feel it adds to the background of the issue. And, it makes me wonder if perhaps from a purely African perspective, resource-rich countries were better left alone to mine their own resources using their current ASM methods. This would function to leave all the profit to them, while decreasing the supply of minerals on the market, and driving up the price. Win-win for Africa. This would strengthen fragile governance structures, and drive a booming market economy alongside the mining industry.
"The DRC is thought to have most probably 50 per cent of the world’s cobalt reserves, 10 per cent of its copper deposits, 30 per cent of its diamonds, as well as having an important potential for gold, uranium and manganese... The DRC is today the world’s leading cobalt producer."
"In countries with fragile institutions, the mining sector is recognized by many to have produced more misery than wealth for local populations."
The five countries covered in this detailed work are Ghana, Guinea, Mali, Madagascar, and the Democratic Republic of the Congo (DRC.) Ghana alone is English speaking, and the others are all French speaking, as well as local tribal languages. The Malagasy language is also spoken in Madagascar. The author divided the book up in distinct chapters for each country, attempting to treat them as individual cases. But, they can be grouped based on the specific issues being dealt with:
- Ghana, Guinea, and Mali all were treated on the subject of Poverty Reduction.
- Mali and Madagascar are the subject of environmental protection problems.
- The DRC struggles with many issues of human rights violations and a lack of strong governance.
The book details the many problems in the mining sector. But, it also details solutions that are needed, including more transparency, community involvement, governmental input, and increased regulation of human rights using strictly regional approaches.
I am sharing the links below to Youtube videos that may give a good visual of ASM mining.
Creuseurs - Small Scale Miners in DR Congo
Artisanal Gold Mining in Mali
This was my stop in Ghana on my Journey Around the World in 80 Books for 2019. I read this in the Kindle format, which is statistically illustrated, with numerous tables, and a few maps. I highly recommend the book for anyone interested in Africa and/or mining. I also think the Kindle is indispensable, since it is not only highly formatted for Kindle with search features active, but the flashcard features add much to the learning experience in non-fiction works like this. My next stop will be the country of Togo.
Displaying 1 of 1 review