The Resource Curse
Critics of mining have argued that a “resource curse” plagues developing countries, in which the extraction of minerals contributes to poverty, corruption and a host of economic woes. Recently, Resource Initiatives for the World Gold Council in collaboration with the International Council on Mining and Metals (ICMM) investigated the actual effects of large-scale gold mining on the economy of a key producing country: Tanzania.
Their findings, based on 40 years of exploration and production data from the largest gold producers in the country, strongly refuted the central claims of the “resource curse” argument. Instead, they showed that few industries had provided greater support for the economy in crucial areas such as foreign exchange earnings, and even tax payments.
