As the demand for certain natural resources such as rare earths or lithium will continuously grow, local communities are likely to face more grievances caused by e.g. environmental degradation, dispossession or structural labor market shifts. A more systematic understanding on the contextual factors capable of promoting more sustainable forms of resource extraction and of preserving local livelihoods is imperative for the formulation of effective preventive measures by host governments, extractive firms and mining communities.
I therefore decided to take a closer look at institutional conditions under which extractive industries are likely to prompt local grievances. Among other results, we found that multinational resource extracting companies – especially when operating under insecure legal and political environments – produce more social dissent and state repression compared to local, state-owned firms. Our research further shows that Chinese mining companies are less likely to generate local employment opportunities in Africa compared to non-Chinese firms. Currently, we are analyzing under what contextual conditions international or domestic oil or mining firms promote local economic wealth, the provision of public goods, food security or women’s empowerment in Sub-Saharan Africa and Latin America.