13.07.2015 Views

Mining in Africa: regulation and development - School of Politics ...

Mining in Africa: regulation and development - School of Politics ...

Mining in Africa: regulation and development - School of Politics ...

SHOW MORE
SHOW LESS
  • No tags were found...

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

This article was downloaded by: [Bush, Ray][University <strong>of</strong> Leeds]On: 14 December 2010Access details: Access Details: [subscription number 773557620]Publisher RoutledgeInforma Ltd Registered <strong>in</strong> Engl<strong>and</strong> <strong>and</strong> Wales Registered Number: 1072954 Registered <strong>of</strong>fice: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UKReview <strong>of</strong> <strong>Africa</strong>n Political EconomyPublication details, <strong>in</strong>clud<strong>in</strong>g <strong>in</strong>structions for authors <strong>and</strong> subscription <strong>in</strong>formation:http://www.<strong>in</strong>formaworld.com/smpp/title~content=t713443496<strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>in</strong> <strong>Africa</strong>: <strong>regulation</strong> <strong>and</strong> <strong>development</strong>Ray Bush aaUniversity <strong>of</strong> Leeds, UKOnl<strong>in</strong>e publication date: 13 December 2010To cite this Article Bush, Ray(2010) '<strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>in</strong> <strong>Africa</strong>: <strong>regulation</strong> <strong>and</strong> <strong>development</strong>', Review <strong>of</strong> <strong>Africa</strong>n Political Economy,37: 126, 547 — 548To l<strong>in</strong>k to this Article: DOI: 10.1080/03056244.2010.530956URL: http://dx.doi.org/10.1080/03056244.2010.530956PLEASE SCROLL DOWN FOR ARTICLEFull terms <strong>and</strong> conditions <strong>of</strong> use: http://www.<strong>in</strong>formaworld.com/terms-<strong>and</strong>-conditions-<strong>of</strong>-access.pdfThis article may be used for research, teach<strong>in</strong>g <strong>and</strong> private study purposes. Any substantial orsystematic reproduction, re-distribution, re-sell<strong>in</strong>g, loan or sub-licens<strong>in</strong>g, systematic supply ordistribution <strong>in</strong> any form to anyone is expressly forbidden.The publisher does not give any warranty express or implied or make any representation that the contentswill be complete or accurate or up to date. The accuracy <strong>of</strong> any <strong>in</strong>structions, formulae <strong>and</strong> drug dosesshould be <strong>in</strong>dependently verified with primary sources. The publisher shall not be liable for any loss,actions, claims, proceed<strong>in</strong>gs, dem<strong>and</strong> or costs or damages whatsoever or howsoever caused aris<strong>in</strong>g directlyor <strong>in</strong>directly <strong>in</strong> connection with or aris<strong>in</strong>g out <strong>of</strong> the use <strong>of</strong> this material.


Review <strong>of</strong> <strong>Africa</strong>n Political EconomyVol. 37, No. 126, December 2010, 547–548Downloaded By: [Bush, Ray][University <strong>of</strong> Leeds] At: 11:04 14 December 2010BOOK REVIEW<strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>in</strong> <strong>Africa</strong>: <strong>regulation</strong> <strong>and</strong> <strong>development</strong>,edited by Bonnie Campbell, London,Pluto Books; Ottawa, International DevelopmentResearch Centre; <strong>and</strong> Uppsala,Nordiska Afrika<strong>in</strong>stitutet, 2009, 288 pp.,£25.00 (paperback), ISBN 9780745329390This is a timely <strong>and</strong> important collection <strong>of</strong>essays edited by a foremost commentatoron m<strong>in</strong><strong>in</strong>g <strong>and</strong> its consequences <strong>in</strong> <strong>Africa</strong>.Bonnie Campbell has assembled a radicalcritique <strong>of</strong> the strategy <strong>of</strong> the <strong>in</strong>ternationalf<strong>in</strong>ancial <strong>in</strong>stitutions regard<strong>in</strong>g the extractivessector, with case studies <strong>of</strong> Ghana, Gu<strong>in</strong>ea,Mali, Madagascar <strong>and</strong> Democratic Republic<strong>of</strong> Congo (DRC), provid<strong>in</strong>g for an Englishaudience exceptionally rigorous analysis <strong>of</strong>some important Francophone states. Theanalysis goes beyond the usually dom<strong>in</strong>ant<strong>and</strong> rather fatuous characterisations <strong>of</strong> the‘resource curse’ – the catchphrase used tosummarise economic underachievement <strong>of</strong>m<strong>in</strong>eral-rich economies. Instead, the casestudies <strong>in</strong> this collection highlight theimportance <strong>of</strong> historical detail, the necessity<strong>of</strong> characteris<strong>in</strong>g relations <strong>of</strong> power betweenstates, companies <strong>and</strong> donors without los<strong>in</strong>gsight <strong>of</strong> m<strong>in</strong>ers, m<strong>in</strong><strong>in</strong>g communities <strong>and</strong>the failures <strong>of</strong> resource availability topromote susta<strong>in</strong>able <strong>and</strong> equitable growth.The essays come at what Campbell callsa ‘turn<strong>in</strong>g po<strong>in</strong>t’ regard<strong>in</strong>g <strong>Africa</strong>n m<strong>in</strong><strong>in</strong>gregimes. She <strong>and</strong> her contributors havepa<strong>in</strong>stak<strong>in</strong>gly <strong>and</strong> with forensic analysis,explored the transformations that havetaken place, <strong>and</strong> the gaps that exist betweenm<strong>in</strong><strong>in</strong>g codes <strong>and</strong> actual outcomes <strong>of</strong>m<strong>in</strong><strong>in</strong>g, the lack <strong>of</strong> benefits that accrue to<strong>Africa</strong>n states <strong>and</strong> the challenges to stateauthority that emerge from unrealisedexpectations <strong>and</strong> promises made by <strong>in</strong>ternationalf<strong>in</strong>ancial <strong>in</strong>stitutions (IFIs) <strong>and</strong> companies.The book explores the consequences<strong>of</strong> the ways <strong>in</strong> which m<strong>in</strong><strong>in</strong>g companies <strong>and</strong>the World Bank have used codes, regulatoryframeworks, chid<strong>in</strong>gs over corruption, theabsence <strong>of</strong> transparency <strong>and</strong> ‘weak governance’to challenge the fundamental legitimacy<strong>of</strong> <strong>Africa</strong>n states. Campbell <strong>and</strong> hercontributors argue that the <strong>Africa</strong>n state haseffectively had its role redef<strong>in</strong>ed <strong>and</strong> its <strong>in</strong>stitutionalcapacity reduced. Probably mostimportant <strong>of</strong> all, the book demonstrateshow any notion that m<strong>in</strong><strong>in</strong>g promotes <strong>development</strong>has disappeared. These essays highlightthat donor <strong>and</strong> m<strong>in</strong><strong>in</strong>g company<strong>in</strong>fatuation with good governance <strong>and</strong>accountability ‘run the danger <strong>of</strong> treat<strong>in</strong>gthe symptoms <strong>of</strong> a particular “politics <strong>of</strong>m<strong>in</strong><strong>in</strong>g” <strong>and</strong> not the relations <strong>of</strong> <strong>in</strong>fluence<strong>and</strong> power which makes such dysfunctionalprocesses possible’ (p. 3).<strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>in</strong> <strong>Africa</strong> uses as its benchmarksthe recommendations <strong>of</strong> the World BankGroup’s Extractive Industries Review(EIR). The book notes scath<strong>in</strong>gly that therecommendations <strong>of</strong> that review, not leastthat the World Bank should effectivelyimprove conditions <strong>of</strong> the poor, protecthuman rights <strong>and</strong> defend <strong>in</strong>digenouspeoples <strong>and</strong> the environment <strong>in</strong> m<strong>in</strong><strong>in</strong>gareas, have been ignored by the WorldBank Group (WBG). Campbell is diplomaticat times, <strong>in</strong>dicat<strong>in</strong>g that the World Bank’sresponse to the EIR ‘was a pale rejo<strong>in</strong>der towhat had been proposed’ (p. 4) but she <strong>and</strong>her collaborators also overwhelm<strong>in</strong>gly documentthat the m<strong>in</strong><strong>in</strong>g regimes adopted <strong>and</strong>promoted by the WBG condition ways <strong>in</strong>which (under)<strong>development</strong> is susta<strong>in</strong>ed <strong>and</strong>ISSN 0305-6244 pr<strong>in</strong>t/ISSN 1740-1720 onl<strong>in</strong>eDOI: 10.1080/03056244.2010.530956http://www.<strong>in</strong>formaworld.com


Downloaded By: [Bush, Ray][University <strong>of</strong> Leeds] At: 11:04 14 December 2010548 Book reviewreproduced by the extractives sector as it iscurrently organised.The case studies <strong>of</strong> Ghana (Akabzaa),Mali (Belem), Madagascar (Sarras<strong>in</strong>) <strong>and</strong>Democratic Republic <strong>of</strong> Congo (Mazalto)highlight the detail <strong>of</strong> m<strong>in</strong><strong>in</strong>g sectorreforms, promoted <strong>and</strong> <strong>of</strong>ten directed bythe WBG, with the rhetoric <strong>of</strong> improv<strong>in</strong>gliv<strong>in</strong>g conditions, promot<strong>in</strong>g <strong>development</strong><strong>and</strong> transparency, yet the outcomes entrencha <strong>development</strong> model <strong>in</strong>tended to attractforeign direct <strong>in</strong>vestment (FDI). And it isFDI which disables <strong>development</strong>, underm<strong>in</strong><strong>in</strong>gstate authority <strong>and</strong> policy space.In explor<strong>in</strong>g the detail <strong>of</strong> country extractivesector reforms <strong>in</strong> the diverse mix <strong>of</strong>cases, this book is a powerful document <strong>of</strong>the need for a radical <strong>and</strong> dramatic reform<strong>of</strong> the extractives sector. It disproves theidea that companies have embracedmean<strong>in</strong>gful corporate responsibility, <strong>and</strong>demonstrates that the <strong>development</strong> model<strong>of</strong> externalisation <strong>of</strong> <strong>Africa</strong>n economiesmerely serves the <strong>in</strong>terests <strong>of</strong> foreigncapital <strong>and</strong> some local elites, while exacerbat<strong>in</strong>gpoverty <strong>and</strong> <strong>in</strong>equality. The bookargues the need for <strong>Africa</strong>n states <strong>and</strong>m<strong>in</strong><strong>in</strong>g communities to create <strong>and</strong> empowerreform <strong>of</strong> the extractives sector <strong>and</strong> therewas certa<strong>in</strong>ly an opportunity <strong>in</strong> thiscollection, not always used, to highlight theimportance <strong>of</strong> local community strugglesaga<strong>in</strong>st companies <strong>and</strong> states as locallivelihoods became transformed <strong>and</strong> peopledispossessed <strong>of</strong> l<strong>and</strong> <strong>and</strong> opportunity.The <strong>Africa</strong>n Union (AU) is <strong>in</strong> theprocess <strong>of</strong> embrac<strong>in</strong>g its own vision for<strong>Africa</strong>n m<strong>in</strong><strong>in</strong>g (AU 2008) but unfortunately<strong>Africa</strong>n governments rema<strong>in</strong>, itseems, too wedded to donor-driven governanceagendas as the panacea for m<strong>in</strong><strong>in</strong>gsector reform. There seems little energyfor active reformulation <strong>of</strong> strategies forcontrol <strong>and</strong> <strong>regulation</strong> <strong>of</strong> m<strong>in</strong><strong>in</strong>g companiesbut the vision document, AU debate <strong>and</strong> the<strong>in</strong>ternational study group established toexplore policy <strong>in</strong> the extractives sectormay promote a more radical policy <strong>in</strong>itiative.This is certa<strong>in</strong>ly needed.<strong>M<strong>in</strong><strong>in</strong>g</strong> transnational corporations(TNCs) are <strong>in</strong> many respects ‘outriders’ forcapitalism. There may only be five m<strong>in</strong><strong>in</strong>g<strong>and</strong> quarry<strong>in</strong>g TNCs <strong>in</strong> the top 100 companieslisted <strong>in</strong> the 2009 World Investment Report,but they held more than US$250 billion <strong>in</strong>assets <strong>and</strong> more than US$126 billion <strong>in</strong> sales<strong>in</strong> 2008. As a proportion <strong>of</strong> global FDIflows, <strong>in</strong>vestment <strong>in</strong> extractive <strong>in</strong>dustriesmay also be relatively small but m<strong>in</strong><strong>in</strong>gTNC <strong>in</strong>fluence is disproportionate to theirsize. The pr<strong>of</strong>itability <strong>of</strong> extraction <strong>and</strong> sales<strong>of</strong> processed metals <strong>and</strong> precious stones isextremely high. One estimate was that for80% <strong>of</strong> the world metal m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry, bycapitalisation, net pr<strong>of</strong>its rose from US$4.4billion <strong>in</strong> 2002 to US$67 billion <strong>in</strong> 2006 –the <strong>in</strong>crease <strong>in</strong> pr<strong>of</strong>it between 2005 <strong>and</strong>2006, follow<strong>in</strong>g the spike <strong>in</strong> commodityprices was an extraord<strong>in</strong>ary 64% – this translated<strong>in</strong>to an <strong>in</strong>crease <strong>of</strong> 1423% comparedwith 2002 levels with a return on equity <strong>of</strong>33% compared with 26% <strong>in</strong> 2005 (PricewaterhouseCoopers2007, pp. 3, 5). <strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>in</strong><strong>Africa</strong> provides important build<strong>in</strong>g blocks toconfront the rhetoric <strong>of</strong> the WBG, m<strong>in</strong><strong>in</strong>gTNCs <strong>and</strong> donors that promote FDI as theonly promoter <strong>of</strong> capital accumulation <strong>in</strong><strong>Africa</strong>. <strong>Africa</strong>n resource-dependent statesneed now to embrace the importance <strong>of</strong> thecritical analysis to help deepen a vision form<strong>in</strong><strong>in</strong>g that is a real alternative to the hegemony<strong>of</strong> the IFI <strong>and</strong> TNCs.ReferencesAU, 2008. <strong>Africa</strong>n m<strong>in</strong><strong>in</strong>g vision 2050. <strong>Africa</strong>nUnion Conference <strong>of</strong> M<strong>in</strong>isters Responsiblefor M<strong>in</strong>eral Resources Development, 1stOrd<strong>in</strong>ary Session 13–17 October 2008.Mimeo.PricewaterhouseCoopers, 2007. Metals <strong>and</strong>m<strong>in</strong><strong>in</strong>g: review <strong>of</strong> global trends <strong>in</strong> them<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry. Available from http://www.pwc.com/za/en/publications/global-trends-<strong>in</strong>m<strong>in</strong><strong>in</strong>g-<strong>in</strong>dustry-2007.jhtml[Accessed 6 July2010].Ray BushUniversity <strong>of</strong> Leeds, UKEmail: r.c.bush@leeds.ac.uk# 2010, Ray Bush

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!