Artisanal gold and transformational exchange: toward a public-private partnership in Tanzania

Human rights abuses, environmental predations and governance failures plague artisanal gold mining in Tanzania. Gold's exchange value and the illegality of most artisanal gold product challenge the traditional fair trade model, a potential solution. Additionally, memories of the government's earlier failed effort to serve as a sole purchaser of artisanal gold undercut enthusiasm for statist interventions. This paper presents an alternative: a public-private partnership (PPP) that would engage one or more private banks, an agency within the Ministry of Energy and Minerals and NGOs or international initiatives specifically aimed at improving conditions for artisanal mine operators. The concept of transformational exchange, wherein a set of business transactions substantially affects societal expectations, modifies behavior and promotes sustainable mechanisms, frames the proposal. (C) 2009 Elsevier Ltd. All rights reserved.