Background
It’s known as the “resource curse”: many countries rich in natural resources are essentially cursed by their bounty instead of blessed by it. Though international companies make a profit, communities can actually become poorer when large-scale mineral, gas, and oil companies operate on their lands. Why?
Few local benefits. Oil, gas, and mining are an important part of the economy in over 50 developing countries. But while governments and companies may benefit, the people most directly affected by these industries often do not. These industries generate few jobs, follow an unpredictable boom-and-bust cycle, and can displace people from the lands and farms where they earn a living.
The price of secrecy. Too often, companies and governments keep their contracts and revenues a secret, allowing mismanagement and corruption to flourish, and preventing the funds from reaching those who need them most. Although gold is the top export in Mali, its people are among the world’s poorest. Most Malians have little information about mining revenues, so they are unable to determine if they are receiving their fair share according to the law.
Environmental damage. In western Ghana, cyanide spills from a gold mine contaminated community water sources, causing serious health problems for residents of Prestea, Dumase, and other neighboring villages. Despite protests from local environmental groups, the mining company is now negotiating to expand its operations in the area.
Lack of decision-making power. In northern Peru, residents of the Yanta and Segunda y Cajas communities are locked into a struggle with the Minera Majaz mining company, which wants to build a copper mine on their lands without their consent—endangering fragile cloud forests, rivers, and farms. In late 2007, communities voted against the mine in a non-binding referendum, but the future remains uncertain.