13 August 2021

Mining dependent countries improving socio-economic situation, report

A new report from the International Council on Mining and Metals (ICMM) finds there has been significant progress in the socio-economic development of mining-dependent countries.

Cerro Rico, Potosi, Bolívia

Cerro Rico, Potosi, Bolívia

© Pedro Henrique Santos/Unsplash

The report, Social Progress in Mining-Dependent Countries: Analysing the role of resource governance in delivering the UN Sustainable Development Goals (SDGs) that analyses 41 social metrics grouped under 12 relevant SDGs. The report finds that across three quarters of the metrics, there has been significant progress.

However, the report also cautions that without strong resource governance and, most critically, effective implementation of mining regulations and frameworks, mining countries are unlikely to realise the full benefits of mining operations.

Metrics selected included neo-natal mortality, adult literacy, and access to electricity, findings show good progress across three quarters, with the greatest progress made in health and well-being, access to quality education, clean water, sanitation and more affordable and clean energy.

The biggest relative improvements were made in Bolivia, Botswana, Indonesia, Ghana, and Peru. Most mining-dependent countries continue to close the socio-economic performance gap with non-resource-dependent countries.

The research indicates that the higher the quality of governance, the stronger the socio-economic progress observed. It also confirms that social progress tends to have long gestation periods, with a clear time lag between the designing of a policy, implementation, and resulting development outcomes.

Having mining regulations and frameworks is an insufficient condition for good socio-economic outcomes, says the report, effective implementation is key. While many mining-dependent countries have invested time and effort in adopting clear and modern legislative frameworks, actual implementation is proving more challenging.

A stable enabling environment has the strongest positive relationship with good socio-economic outcomes. Countries that are more peaceful, have lower levels of corruption, and a vocal and active civil society with sufficient civic space are better able to translate natural resources into social progress.

Download the report from ICMM.

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