MINING MULTINATIONALS AND DEVELOPING-COUNTRIES - THEORY AND PRACTICE IN PAPUA-NEW-GUINEA

The theoretical approaches to the role of multinational mining operations in developing countries are examined in the light of the experience of Papua New Guinea. Existing theories tend to focus dn the nation-state level, and it is argued that regional and local factors are consequently relatively ignored. The importance of the interactions between groups working at different geographic scales within Papua New Guinea is highlighted. Impacts of the mining industry (economic, political, social and environmental) at the various scales are briefly described and the responses to these impacts discussed. It is found that the greatest social and environmental costs fall on the local population around the mine sites, while economic and political benefits are concentrated at the national and international scales. Finally, a model of the multinational-developing country relationship is proposed to take account of the influence of local and regional actors.