Mining transnational corporations and developing nations: The case of gold in the 1990

The global economy has experienced considerable shocks, planned restructuring and unplanned evolution in the five decades following World War II. Dozens of nations have gained independence and new fields of study have been born. Large transnational corporations have emerged as the dominant force in the global economy, transcending geopolitical boundaries and the efforts of nations to control their profits and operations. Within this context, minerals-led developing nations have attempted to maximize or optimize the resource rents derived from their mining industries, which are often owned and operated by mining transnational corporations (MTNCs). The performance of minerals-led developing nations has generally not been positive.;This dissertation assesses the efforts of development theory and its applicability to developing nations with respect to mining transnational corporations, and, specifically, to the gold mining industry. The gold mining industry has experienced considerable evolution following the termination of the gold standard over two decades ago. Technological advancements in exploration and gold recovery have enabled the development of many new mines. Whereas gold used to be produced primarily in South Africa, the former U.S.S.R., Canada and the United States, gold is now being mined in a number of widely scattered developing nations. These new mines are a direct result of the rapid increase in the global demand for gold. Gold mining is one of the few mineral industries which will experience considerable growth during the 1990s.;Because the new gold mines have only been operating for the last several years, the dissertation discusses the policies and experiences of several minerals-led developing nations during the 1960s, 1970s, and 1980s. Specific attention is given to the interaction between MTNCs, national governments, and local communities impacted by mining. The data suggests that MTNCs and the governments of developing nations establish several common objectives and mechanisms for communication. The data indicate that impacted local communities are excluded from this communication, and ultimately forced to bear most of the negative impacts of minerals development, while retaining limited levels of the economic surpluses.;The dissertation concludes that under present development scenarios, local communities should reject gold mining. Alternative strategies for minerals development which stress the inclusion of local communities in project planning and decision making, are also discussed.