Salo, M., Hiedanpaa, J., Karlsson, T., Ávila Cárcamo, L., Kotilainen, J., Jounela, P., García Rumrrill, R.
A growing number of governments and donors are promoting the formalization of artisanal and small-scale mining (ASM). They believe that doing so puts them in a better position to govern the sector, and manage the social and environmental impacts of its activities. This paper reflects critically on attempts made to formalize ASM in Madre de Dios in Peruvian Amazonia.
Can state gold-buying programmes (SGBPs) be an effective tool for governments – to not only bolster state financial reserves, but also to reform the sector, raising its standards and improving its environmental and social outcomes? And can these programmes operate in countries that often lack institutional capacity, infrastructure and stability? This paper analyses case studies in five countries, drawing out the challenges and potential factors for success in developing an effective SGBP.