Draft – Do Not Quote or Cite Without Permission AN EMPIRICAL INVESTIGATION OF MINING AND SUSTAINABLE DEVELOPMENT

The definition of sustainable development is often taken from the so-called “Brundtland” report, requiring that activities of the current generation not detract from the potential welfare of future generations. Mining is often held up as unsustainable in this regard since the extracted resource is non-renewable. Yet Brundtland’s definition of sustainable development also requires that the current generation address the disparity in welfare across the globe, a facet of Brundtland’s report that most have ignored. This paper examines the impact of mining on the welfare of the poor. It finds that poverty levels in the poorest mining and oil intensive economies are lower than expected given these economies’ geographical location and level of income, and that extractive activities are therefore completely consistent with sustainable development.