Abstract
Abstract The economic under-performance of many mineral economies compared with some other developing countries poses problems for multinational mining companies (MNCs). MNCs will be attacked by “green ayatollahs”, who will use natural capital and environmental damage to press for “social sustainability”. But economic under-performance is not inevitable: mismanaged mineral economies are associated with specific types of political economy. Mining MNCs can mitigate the potential problems by encouraging institutions which enhance the quality of government, by improving the transparency of mineral rent flows and by accommodating reasonable requests from host communities.
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