This paper looks in detail at the relationship between economic fluctuations on world markets and ASM livelihoods and extending on the conclusion that price is not the most important risk for the ASM sector. The paper argues that price stabilisation should therefore not be seen as a priority for policy and demonstrates that the history of price intervention schemes, particularly in the agricultural sector, is not encouraging. The paper looks at schemes which assist producers in coping with price and other risks and finds that these are likely to be more beneficial than schemes which aim to alter risk distributions. The paper concludes that policy towards the ASM sector should be seen as part of an overall rural development strategy.
Bannock Consulting Ltd. Vulnerability of Artisanal and Small-Scale Mining to CommodityPrice Fluctuation. PAPER 3: Price and Other Risks in the Artisanal and Small-Scale Mining Industry. (2005) 59 pp.