Gold mining and the golden rule: a challenge for producers and consumers in developing countries

Abstract

The environmental and social impact of gold mining is particularly acute and hence there has been a call on the part of numerous activists to reconsider the necessity of mining this metal when more supplies of gold are above than below ground. This is especially true since gold is eminently recyclable and is primarily used for ornamentation. However, the key issue with regard to the gold industry is that unlike most luxury commodities, the largest areas of gold consumption are found in impoverished developing countries. Cultural factors play an important role in gold consumption and Western anti-mining activists are often tepid on this issue to avoid being blamed for lack of sensitivity. Yet, if developing countries are to accuse developed countries of over-consumption and resulting environmental impacts, they must also evaluate their own consumption patterns of gold. This paper explores the ways in which this issue can be approached as an integrated societal concern. By following these measures, both developed and developing countries can avoid breaking the “golden rule” of personal accountability and reduce the potential for conflict.