David J.X. Gonzalez

Environmental degradation and human-rights abuses are often associated with small, illegal mining operations around the world. Peru, among the world’s major gold producers, offers a case study on how local development could help solving a global problem. About 20 percent of Peru’s gold production comes from illegal and informal mines, and a crackdown on the small miners causes more problems than it solves, suggests David Gonzalez, a Fox International Fellow of Yale University. He argues for a holistic approach to prevent illegal mining: “Enforcement should focus on organized criminal networks, which enable illegal mining with material and financial support, falsify gold certificates, and move gold from mines to buyers in Peru and abroad. Rather than punishing workers, authorities would have a greater impact by developing alternative livelihoods that draw workers away from the mines.” Governments could promote alternative industries including ecotourism and agroforestry. Mechanisms could be put into place to raise awareness and certify the origin of gold products, to reduce criminal networks. Miners, manufacturers, and buyers of gold have a responsibility to ensure ethical standards, and reduce social and environmental costs.