Mining Boosts Local Corruption in Africa Despite Initial Reduction

Does mining worsen local corruption in Africa? While natural resources often begin in less corrupt areas, new analysis shows they eventually increase bribe demands across 496 mines and 92,762 survey respondents.

Key Finding: Mining increases the likelihood of citizens reporting bribes paid to officials.

• Methodology: This study employs difference-in-differences techniques comparing mining areas before and after mine operations began, connecting Afrobarometer survey data with industrial mining spatial information.
• Mechanism: Local economic activity linked differently to corruption in mining versus non-mining regions, suggesting mineral revenues incentivize existing officials.

This nuanced result clarifies the resource curse debate at a micro-level.