This paper examines the impact of price fluctuations on livelihood strategies in ASM communities compared with other non-financial shocks and looks in detail at the existence of alternative income generating opportunities and the existence of support mechanisms. The analysis finds that for those already engaged in ASM activities, price fluctuations are unlikely to affect the decision to mine, but will impact the time spent on the activity and the number of family members involved. However, these relationships are multi-dimensional in nature, with additional factors such as the availability of alternative employment and the relative prices of agricultural produce. Furthermore, vulnerability of the ASM community to non-financial shocks such as land eviction, conflict with large mines or the government, accidents, environmental damage and social tension are at least as important. The paper therefore echoes previous recommendations in this series which advocates that governments adopt a holistic approach to policy intervention.
Bannock Consulting Ltd. Vulnerability of Artisanal and Small Scale Mining to Commodity Price Fluctuation. PAPER 5: The Impact of Price Fluctuations on Livelihood Strategies in Artisanal and Small-Scale Mining Communities Compared with other Non-Financial Shocks. (2005) 20 pp.