Abstract
The paper discusses the role of small-scale mining in economic development. In particular, it focuses on the problems of managing small-scale mining for countries facing economic difficulties where the black economy operates alongside the official economy. The paper suggests an incentive scheme to deal with illegal operations. It also proposes a special financial and fiscal regime for small-scale mining to ensure that it is a productive and viable activity. The paper suggests that the role of governments in small-scale mining is an active one without any equity participation. It discusses some of the areas in which government can assist in small-scale mining.
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