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Social sustainability in mineral-driven development

Author

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  • Richard M. Auty

    (Department of Geography, Lancaster University, UK)

Abstract

Social capital as well as natural capital must be incorporated into sustainable development. This is especially vital in mineral-driven economies because the government has a key role in substituting produced and social capital for the depleting natural capital (the ore). A typology of political states captures key facets of social capital at the national level: it shows that mineral economies, like most resource-rich countries, tend to engender political states that are prone to government failure. One consequence is that local communities (which often lack social capital) must bargain directly with multinational mining firms which, for their part, must internalize many welfare functions. Although local groups can use environmental issues to extract higher rents, this has heightened dependence on the depleting mineral asset and is not sustainable. A social audit can help promote sustainable development by creating a consensus-building transparency for deploying the mineral rents. © 1998 John Wiley & Sons, Ltd.

Suggested Citation

  • Richard M. Auty, 1998. "Social sustainability in mineral-driven development," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(4), pages 487-500.
    • Handle: RePEc:wly:jintdv:v:10:y:1998:i:4:p:487-500
    DOI: 10.1002/(SICI)1099-1328(199806)10:4<487::AID-JID540>3.0.CO;2-Y
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    References listed on IDEAS

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    Cited by:

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    2. Elkhan Richard Sadik-Zada, 2021. "Addressing the growth and employment effects of the extractive industries: white and black box illustrations from Kazakhstan," Post-Communist Economies, Taylor & Francis Journals, vol. 33(4), pages 402-434, May.
    3. Miriam Altman, 2001. "Employment promotion in a minerals economy," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(6), pages 691-709.
    4. Elkhan Richard Sadik-Zada & Wilhelm Loewenstein & Yadulla Hasanli, 2019. "Commodity Revenues, Agricultural Sector and the Magnitude of Deindustrialization: A Novel Multisector Perspective," Economies, MDPI, vol. 7(4), pages 1-15, November.
    5. Martha Macintyre & Wendy Mee & Fiona Solomon, 2008. "Evaluating social performance in the context of an ‘audit culture’: a pilot social review of a gold mine in Papua New Guinea," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(2), pages 100-110, March.
    6. Elkhan Richard Sadik‐Zada, 2021. "Natural resources, technological progress, and economic modernization," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 381-404, February.
    7. Bürgi Bonanomi, Elisabeth & Elsig, Manfred & Espa, Ilaria, 2015. "The Commodity Sector and Related Governance Challenges from a Sustainable Development Perspective: The Example of Switzerland Current Research Gaps," Papers 865, World Trade Institute.

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