This study focuses on the local and regional impact of large-scale gold mining in Africa in the context of a mineral boom in the region since 2000. It contributes to filling a gap in the
literature on the welfare effects of mineral resources, which, until now, has concentrated more on the national or macroeconomic impacts. Economists have long been intrigued by the paradox that
a rich endowment of natural resources may retard economic performance, particularly in the case of mineral-exporting developing countries. Studies of this phenomenon, known as the “resource
curse,” examine the economy-wide consequences of mineral exports.1Africa’s resource boom has lifted growth, but has been less successful in improving people’s welfare. Yet much of the focus in
academic and policy circles has been on appropriate management of the macro-fiscal and governance risks that have historically undermined development outcomes. This study focuses instead on the
fortune of local communities where resources are located. It aims to better inform public policy and corporate behavior on the welfare of communities in Africa in which the extraction of
resources takes place.
