The environmental and socioeconomic performance of multinational mining companies in the developing world economy

Abstract

This paper critically reviews how the large‐scale mining industry has performed in the developing world economy. The strategies adopted by a number of developing world governments in recent years to promote foreign investment in mineral exploration and extraction activities raises the question of how multinational mining companies have approached environmental and associated challenges. Although codes of practice and regulatory agencies are generally in an impoverished and piecemeal state throughout the developing world, representatives from regional governments nevertheless expect multinational mining corporations to engage in environmental best practice and contribute to local community development in exchange for their licenses to export minerals. After reviewing the impacts of mining in the developing world economy, the performance of the industry is examined more precisely through case study analysis of sub‐Saharan Africa, Asia/Eastern Europe and Latin America.