Delivering Aid to Grassroots Industries: A Critical Evaluation of Small-scale Mining Support Services

This paper examines the effects and effectiveness of small-scale mining support services in developing countries. In the past 10-15 years, several governments, having recognized the potential economic significance of small-scale mining, have sought to regularize operations. Most, however, have failed to acknowledge the importance of providing continued technological and financial support to resident miners - a key to facilitating increased formalization in this informal sector of industry. The paper argues that the crux of the problem is neglect on the part of governments, which not only fail to integrate crucial behavioural- and institutional-side factors into decision-making processes, but also tend to leave unstable, financially volatile small-scale mining support projects to stand on their own. Itis concluded that small-scale mining support-schemes could be vastly improved if governments: (a) begin constructing district support-centres; (b) improve the distribution and availability of financial assistance; and (c) conduct technological demonstration projects.