Sustaining Development: Extractive Industries and Local Communities

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For mineral-rich countries, large-scale extractive industry projects are a double-edged sword. On one hand, mining royalties and taxes provide funds that can be invested in infrastructure and social services. Mining projects can also create local jobs and spur demand for locally produced goods and services, supporting livelihoods and spurring economic growth. On the other hand, mining revenues can be—and there is plenty of evidence that they routinely are—spirited or frittered away, leaving little to show by way of long-term productive investment or better living standards. Moreover, mining booms undermine growth in other industries by skewing labor demand and swelling the […]

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