Professional Documents
Culture Documents
PAf 201– Political Economy of Public Affairs
Prof. Rolando Bello
Negatives Are Still Negative:
A Critical Analysis of Peter Wallace Journal Paper entitled
Mining: It’s Not All Pluses, but they far outweigh the Negatives
Benevieve D. Villanueva
“The earth does not give up its mineral riches easily. People must tear
them from the earth with picks and shovels, drills and explosives. But the
work is well worth the trouble.”
The statement actually summarizes in its simplest term what Peter Wallace’s paper is
trying to assert about the potential of mining in the economic development of the Philippines
particularly on the local level.
So far, the Philippines is ranked among the top five leaders in the mining sector in
the world. Yet, for the fiscal year 2004, mining contributed only 4.3% of the countries GNP.
The factors of course were well discussed by Wallace, two of which are the controversies
associated with mining by the lobby groups and government failures.
There is no question about the benefits that mining can provide. As Wallace puts it,
employment, foreign exchange earnings and tax revenues”. In fact, I would agree that if the
government develop mechanisms for the enhancement of positive externalities, and that the
mining company engage in a better relationship with local communities in order to make
them fully aware of the benefits that mining could bring to the locality, the outcome of the
negotiation would be fairer, benefiting the company, the community and the State.
provided in the Mining Act”, the question lies on the ability of the Philippine government
for strict compliance and implementation.
Taking Bicol Region for instance where the Lafayette Mining activities in Rapu
Rapu had taken place, Mining is not new to the people of RapuRapu. It has been part of
Bicol activity for more than a century “but the industry remains backward and has hardly
uplifted the lives of the local population”. Based on 2004 study conducted by the Institute
for Environmental Conservation and Research in Ateneo de Naga University, gold mining
in Bicol did not alleviate poverty but actually worsened the poverty of local communities.
This claim is evident in the gold mining communities in Luklukan Sur, Jose Panganiban,
Camarines Norte and Sta. Barbara, RapuRapu island in Albay.
basis. The company was fined 10.7 million – without proper hearing and its closure costs the
company million dollar investment. Adding to the fact that Lafayette’s responsible reaction
to the spill accident has mitigated the damage locally. Yet, one need not forget, that the
people’s reaction towards the incident has a considerable foundation.
It was only a decade ago, March 24, 1996 to be exact, when Marcopper Mining in
Marinduque caused 34 million of tons of toxic mine tailing to spill down the Boac River.
Experts then declared the river BIOLOGICALLY DEAD. The closure of mining had caused
little alternative industry for the people particularly as the fishing industry has been
affected by the spill were compensated, other communities such as along MOGPOG and
CALANCAN Bay who also suffered from tailings spill and continual contamination were
not.
Wallace implied that Mining succeeds best in those countries that are democratic,
have pronounced propoor policy that they genuinely want to achieve and where there is
good governance and transparency in dealings with that government. This indeed true, and
poses challenge to the present administration which as observed by Wallace is promining.
However, just a side comment about it, knowing about the current scenario where in Wallace
probably is aware, in this statement, wasn’t he trying to put the promise of economic
prosperity of mining into the world of oblivion and impossibility? This would always turn
into the discussion of government failures.
End Notes
1
Romualdez, Benjamin G.,Showcasing Responsible Mining in the Philippines.AMCHAM JOURNAL,
April 2006
2.Cabarrus, Jose Miguel, Whatever is not grown is mined. AMCHAM JOURNAL, April 20061025
Bibliography
Padojinog, Winston Conrad. The Mining Industry: A Case for Developing a Framework for PreExploration
and Post Mine Development in the Philippines. Manila, Philippines, March 2006
Roque, Romero. Fostering the Positive Externalities of Mining Policy Options, March 2004