Socioeconomic and Fiscal Impact of Large-Scale Gold Mining in Mali

This paper analyzes the socioeconomic,
fiscal, and governance impact of gold mining in Mali. The
analysis finds that, at the national level, mining plays an
important role by contributing to export earnings and
overall government fiscal revenue. In 2013, the mining
sector represented 7 percent of gross domestic product,
contributed 1.5 percent to growth in total gross domestic
product, and accounted for 65 percent of total export
earnings and 25 percent of total government budget revenues.
At the local level, despite higher population growth, there
is some evidence that outcomes (poverty and infrastructure
services) are marginally better in mining communes compared
with non-mining communes. Local governments receive fiscal
windfalls that are spent significantly on education capital
expenditures and current expenditures (salaries and
non-salaries). Non-salary current expenditures are 10 times
higher in mining areas. Analysis of the political economy of
public service provision at the local level suggests that
technical or absorptive capacities may be the bottleneck to
increasing the local benefit of mining instead of corruption
or accountability.