Contributing to sustainable development through multi‐stakeholder processes: practical steps to avoid the “resource curse”

Purpose – This paper aims to identify the factors that have allowed some counties to avoid the so‐called “resource curse”; to determine practical steps that can be taken by companies, governments, local communities and aid agencies in collaboration to enhance mining's contribution to poverty reduction. Design/methodology/approach – Research was conducted collaboratively with the UNCTAD and the World Bank Group, overseen by an independent advisory group, and tested through two multi‐stakeholder workshops. Industry involvement in the initiative took place through an ICMM working group comprising around 20 companies and chambers of mines. Findings – Success depended on three factors: reformed mineral legislation, improved macroeconomic management and some improvements in governance. Research limitations/implications – Although the robust nature of the processes employed can be demonstrated, the explicit aim of identifying factors that allow certain “successful” countries to avoid the resource curse has inherent limitations. Practical implications – Companies, governments, donors and other actors need to work together to help strengthen capacity in mining countries and regions, particularly at the sub‐national level. Originality/value – Mining and metals companies have been at the forefront of some of the most innovative multi‐stakeholder processes of any industry sector. The paper outlines the causes, such as its poor reputation among stakeholder groups, and explores how the industry has sought to become more accountable to its stakeholders by demonstrably improving its sustainable development performance.