The challenge of mineral wealth: Using resource endowments to foster sustainable development

Abstract

The purpose of this research was to identify the factors that have allowed some countries to avoid the so-called resource curse, and to determine practical, collaborative steps that can be taken by companies, governments, local communities, and aid agencies to enhance mining's contribution to poverty reduction. Research was conducted collaboratively with the UNCTAD and the World Bank Group, overseen by an independent advisory group, and tested through two multi-stakeholder workshops. Industry involvement in the initiative took place through an International Council on Mining and Metals (ICMM) working group comprising around 20 companies and chambers of mines. Success depended on three factors: reformed mineral legislation, improved macroeconomic management, and some improvements in governance. Although the robust nature of the processes employed can be demonstrated, the explicit aim of identifying factors that allow certain successful countries to avoid the resource curse has inherent limitations. Companies, governments, donors, and other actors need to work together to help strengthen capacity in mining countries and regions, particularly at the sub-national level. Mining and metals companies have been at the forefront of some of the most innovative multi-stakeholder processes of any industry sector. This paper outlines why some companies collaborated to take a leadership role, and explores how the industry has sought to become more accountable to its stakeholders by demonstrably improving its sustainable development performance. © Springer-Verlag Berlin Heidelberg 2009.