A few months ago, as I was walking through the streets of Bissau, the capital of Guinea Bissau, I reflected on what had happened to this country over the last 20 years. It had gone through a number of coups and a civil war; its economy had barely been diversified; electricity and water access was still a major issue. There was the city of Bissau on one side, where a semblance of services where provided, and the rest of the country on the other.
Luck has struck the region of East Africa: for a couple of years now, new announcements of natural resource discoveries are being made every few months. Mozambique has found some of the largest natural gas deposits in the world, while Tanzania, Uganda, and Kenya have also discovered gas and oil. Exploration is still ongoing, so even more discoveries could be forthcoming. Luck has definitely struck the region, but the main question is: how will the people in these countries benefit from this?
If I had to pick one critical source of exports and a key driver of economic growth for Armenia, I would pick mining.
But mining is a risky business and is fraught with hurdles. Exploration often comes up empty. Investments are very large, in excess of hundreds of millions dollars. Commodity prices can change dramatically and governments can change policies and taxes. Moreover, there can be large environmental and social risks associated with things like tailings, dams, and resettlement policies.
A risky business does not, however, mean that mining is or should be an irresponsible business. Many of these risks can be mitigated or eliminated. This requires proper policies, laws, regulations, careful implementation, and planning for life when the mine closes – all of this even before the mine opens. Supporting policies, such as easy access to updated geological information and predictability in transferring licenses, reduce the risk in exploration.
These are some of the views and reports relevant to our readers that caught our attention this week.
“When a housewife in a working-class district of Mexico City gets fed up with the lack of working lights in her local park, she logs on to Twitter and complains directly to the city's mayor.
In an age of incessant digital chatter -- and in a city of 22 million -- this might seem futile. But the mayor, who has more than 600,000 Twitter followers, replies to her complaint within hours. He orders the city's public works department to take action. Several weeks later, he posts photos of new lights being installed in the park and thanks the woman for bringing the problem to his attention.
In fact, the mayor's Twitter feed reads like a gritty chronicle of life in a megacity. Potholes, of course, but also complaints and announcements about garbage collection, crime, traffic lights, construction delays, power outages, water supplies, bike lanes, flooded sewers, corruption, air quality, and the proverbial rude bureaucrat.” READ MORE