Building mining's economic linkages: A critical review of local content policy theory

Weldegiorgis, Fitsum S.; Dietsche, Evelyn; Franks, Daniel M.

doi:10.1016/j.resourpol.2021.102312

Cited by 12 publications

(11 citation statements)

References 53 publications

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“…While the economic and environmental aspects of diamond mining have received significant scholarly attention [22,23], the focus often remains on the industry's potential for economic development and its impact on the environment [24][25][26]. However, this narrow lens overlooks the intricate social dynamics that unfold within these communities, dynamics that shape not only the miners' lives but also the potential for conflict and sustainable development.…”

Section: Literature Reviewmentioning

confidence: 99%

“…[22], for instance, highlights the economic potential of diamond mining, arguing that it can contribute to poverty reduction and regional development. Similarly, [23] emphasize the role of diamond mining in promoting economic diversification and job creation. While these perspectives are valuable, they need to capture the lived experiences of miners and the complex social fabric woven within these communities.…”

Section: Literature Reviewmentioning

confidence: 99%

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From Glimmer to Grind: Unveiling the Conflict Potential beneath South Kalimantan's Diamonds

Rochgiyanti,

Arisanty,

Rajiani

et al. 2024

Preprint

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This study delves into the intricate social dynamics beneath South Kalimantan's traditional diamond mines, revealing a potential for conflict amidst the promise of economic uplift. Going beyond conventional economic and environmental perspectives, the research employs Galtung's Conflict Theory, examining the interplay of attitudes, behaviours, norms, values, and political influences. By adopting this nuanced approach, the study unveils hidden fault lines within these communities, providing a comprehensive understanding of how diverse factors converge to create discord. The consequences of unaddressed conflict include shattered livelihoods, environmental degradation, and fractured communities. The study employs rigorous quantitative methods to empower stakeholders in proactive conflict management, including questionnaires and Structural Equation Modeling (SEM) with data from 400 respondents. The findings underscore the significant roles of behaviours, attitudes, norms, and politics in fueling tension, with values demonstrating surprisingly less direct influence. This insight is a roadmap for conflict prevention and sustainable development, allowing stakeholders to tailor interventions based on specific conflict-driving factors. The study urges a shift from reactive to proactive measures, envisioning a future where prosperity continues to glimmer and communities thrive in harmony, free from conflict.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

From Glimmer to Grind: Unveiling the Conflict Potential beneath South Kalimantan's Diamonds

Rochgiyanti,

Arisanty,

Rajiani

et al. 2024

Preprint

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“…According to Hirschman (1958), this concept is premised on the potential of industries to procure inputs (backward linkages (BL)) and sell outputs (forward linkages (FL)) to other industries, which generates multiplier effects in the wider economy. To understand how inter‐sectoral linkages might contribute to economic diversification, it is necessary to conceptualise resource endowments very broadly, considering natural resources, human capital and technological and institutional capabilities (Weldegiorgis et al., 2021). This paper analyses inter‐sectoral linkages with the mining industry within the overall Australian economy, as one part of several factors that could potentially contribute to economic transformation through diversification.…”

Section: Introductionmentioning

confidence: 99%

Inter‐sectoral economic linkages in the Australian mining industry: Analysis using partial hypothetical extraction method

Weldegiorgis,

Dietsche,

Ahmad

et al. 2023

Aus J Agri & Res Econ

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The mining industry is not only one of Australia's main economic sectors but also one that the country is considered to have managed well. However, little is known about the industry's potential to contribute to the structural change of Australia's economy. We use the national input–output (IO) tables and apply the partial hypothetical extraction method (P‐HEM) within both the Leontief and Gosh IO frameworks to examine the inter‐sectoral linkages of the Australian mining and quarrying sector. Ee find that this sector demonstrates strong backward linkages (BL), but forward linkages (FL) appear to be weak, and they mainly involve non‐metallic materials. The mining and quarrying sector appears to generate linkages with the business services sector and the construction sector, which can potentially contribute to diversifying the economy. Such linkages may be realised via skilling and reallocating skilled labour and technical supplier capacity as well as via developing physical infrastructure that supports existing and new economic sectors. We find that the identified linkage pathways via the construction sector are tied to energy‐intensive but coal‐dependent sectors. Thus, these pathways are vulnerable because of the climate‐related need to move away from combusting coal and invest in cleaner sources of energy.

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“…The analysis in this paper is framed from an economic transformation rationale that pivots inter-sectoral linkages as a pathway to diversification and structural change rather than an end goal by itself. This rationale is premised on mining-based economic development not only seen in the narrow sense of building supply chains, but to also account for more broadly conceived inter-sectoral linkages and diversification inputs, such as the development of technical capability, technology, infrastructure, and institutional capacity [11]. Framing linkage building along these lines enables us to understand not just, for example, the types of inputs that local suppliers provide to the mining and quarrying sector, but also the impact of local procurement on the broader economy, providing a stimulus for other economic sectors and potentially inducing structural change.…”

Section: Introductionmentioning

confidence: 99%

Inter-Sectoral Economic Linkages in the Mining Industries of Botswana and Tanzania: Analysis Using Partial Hypothetical Extraction Method

Weldegiorgis

Dietsche²,

Ahmad

2023

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Fiscal and local content policies aimed at promoting linkages between mining and other economic sectors have been informed by theories built on historical observations dating back to the 1950s. This paper contends that there is a need to rethink theories about mining-based economic linkages and the prospects for structural change based on an improved understanding of existing and potential inter-sectoral linkages. Using the input–output tables for Tanzania and Botswana, we apply the Partial Hypothetical Extraction Method within the Leontief and Gosh input–output frameworks to examine the linkages between the mining and quarrying sector and other economic sectors within these two economies. We find that, for Botswana, possible linkage pathways lie in scaling-up coal, soda ash and salt mining and investing in glass, polymer, and chemicals manufacturing. For Tanzania, opportunities for linkage pathways lie with the mining and manufacturing of non-metallic and construction materials as well as metallic minerals and natural gas. For both countries, the prospects for transforming their economies away from a heavy reliance on mineral extraction hinges on leveraging extractives for infrastructure, innovative technology, and technical skills, as well as capturing business opportunities, knowledge, and financial returns to invest in more diversified economic activities.

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Building mining's economic linkages: A critical review of local content policy theory

Cited by 12 publications

References 53 publications

From Glimmer to Grind: Unveiling the Conflict Potential beneath South Kalimantan's Diamonds

From Glimmer to Grind: Unveiling the Conflict Potential beneath South Kalimantan's Diamonds

Inter‐sectoral economic linkages in the Australian mining industry: Analysis using partial hypothetical extraction method

Inter-Sectoral Economic Linkages in the Mining Industries of Botswana and Tanzania: Analysis Using Partial Hypothetical Extraction Method

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