Asian Journal of Business Ethics

, Volume 3, Issue 2, pp 171–193 | Cite as

Corporate and public governance in mining: lessons from the Marcopper mine disaster in Marinduque, Philippines

  • John G. Lindon
  • Tristan A. Canare
  • Ronald U. Mendoza
Article

Abstract

The Philippines sits atop vast mineral deposits estimated to be worth around 47 trillion Philippine Pesos. Yet, mining in the Philippines has a mixed track record as far as its impact on human and economic development is concerned. This paper tries to draw lessons from the Marcopper Mine in Marinduque, Philippines, using a framework—what we call a “mining and human development causality chain”—to begin to think through how extractive industries can contribute to inclusive growth. Essentially, there is a chain of inputs and events that—when properly executed by various stakeholders—could lead to very strong economic and human development outcomes not just for the communities directly affected by the mine but also the country as a whole. Too often, this chain is easily broken by (both corporate and government) governance. Using a critical analysis of the Marinduque mining disaster, we illustrate how breaking this chain can completely reverse mining’s potential to assist in human development.

Keywords

Mining Corporate social responsibility Responsible mining Human development 

References

  1. Acemoglu, D., Johnson, S., & Robinson, J. (2003). An African success story: Botswana. In D. Rodrik (Ed.), In search of prosperity: analytical narratives on economic growth (pp. 80–119). Princeton: Princeton University Press.Google Scholar
  2. Arnott, R., Greenwald, B., Kanbur, R., & Nalebuff, B. (Eds.). (2003). Economics for an imperfect world: essays in honor of Joseph Stiglitz. Massachusetts: M.I.T.Google Scholar
  3. Bennagen, M.E. (1998). Estimation of environmental damages from mining pollution: the Marinduque mining accident. EEPSEA research report series. Singapore: economy and environment program for Southeast Asia.Google Scholar
  4. Benny, L., & Cook, L. (2009). Metals or management? Explaining Africa’s recent economic growth performance. American Economic Review, 99(2), 268–274.CrossRefGoogle Scholar
  5. Collier, P., & Hoeffler, A. (2002). On the incidence of civil war in Africa. Journal of Conflict Resolution, 46(1), 13–28.CrossRefGoogle Scholar
  6. Collier, P., & Venables, A. (2008). Managing resource revenues: lessons for low income countries. Oxford centre for the analysis of resource rich economies research paper, 2008–12.Google Scholar
  7. Community Based Monitoring System. (2008). The many faces of poverty (Vol. 2). Manila: Community Based Monitoring System.Google Scholar
  8. Conceicao, P., Fuentes, R., & Levine, S. (2011). Managing natural resources for human development in low income countries. UNDP working paper 2011–002.Google Scholar
  9. Corden, W. (1994). Booming sector and Dutch disease economics: survey and consolidation. Oxford Economic Papers New Series, 36, 359–380.Google Scholar
  10. Coumans, C. (1999a). Marcopper’s first major mine waste victim continues to suffer. resource document. Philippine Center for Investigative Journalism. http://pcij.org/stories/marcoppers-first-major-mine-waste-victim-continues-to-suffer/. Accessed 21 Mar 2013.
  11. Coumans, C. (1999b). Marinduque’s other toxic river. Resource document. Philippine Center for Investigative Journalism. http://pcij.org/stories/marinduques-other-toxic-river/. Accessed 21 March 2013.
  12. Department of Environment and Natural Resources. (1996). Multidisciplinary Environmental Compliance, Enforcement and Monitoring Team (MECEMT) Report, May 1996. Mimeo.Google Scholar
  13. Department of Environment and Natural Resources. (2012). Mineral resources. resource document. Department of Environment and Natural Resources. http://www.denr.gov.ph/index.php/component/content/article/16.html. Accessed 10 Oct 2012.
  14. Estudillo, J. (1997). Income inequality in the Philippines, 1961–1991. The Developing Economies, 35(1), 68–95.CrossRefGoogle Scholar
  15. Fellizar, F. (1997). Evaluation and assessment of Calancan Bay rehabilitation program (CBRP): final report.Google Scholar
  16. Fellizar, F., Velo, W. M. A., & Bernado, R. (2002). Ripples of hope over troubled waters: the Calancan bay experience. Los Banos: SEAMEO SEARCA.Google Scholar
  17. Gelb, A., & Grasmann S. (2010). How should oil exporters spend their rents? Center fo Global Development Working Paper 221.Google Scholar
  18. Glyfason, T., & Zoega, G. (2001). Natural resources and economic growth: the role of investment. University of Copenhagen Economic Policy Research Unit Working Paper Series 2001–02.Google Scholar
  19. Ho, A. (2011, July 22). Philippines leads in income inequality in ASEAN. Philippine Daily Inquirer. http://business.inquirer.net/8377/philippines-leads-in-income-inequality-in-asean-says-study. Accessed 20 Nov 2012.
  20. Humphreys, M., Sachs, J., & Stiglitz, J. (2007). Escaping the resource curse. New York: Columbia University Press.Google Scholar
  21. Iimi, A. (2006). Did Botswana escape from the resource curse? IMF working paper 06138.Google Scholar
  22. Jensen, N., & Wantchekon, L. (2004). Resource wealth and political regimes in Africa. Comparative Political Studies, 37(7), 816–841.CrossRefGoogle Scholar
  23. Klohn Crippen (2001). Dams and Tapian Pit water release facilities initial screening assessment report, final report.Google Scholar
  24. Lange, G. M., & Wright, M. (2004). Sustainable development in mineral economies: the example of Botswana. Environment and Development Economics, 9(4), 485–505.Google Scholar
  25. Lederman, D., & Maloney, W. (2008). In search of the missing resource curse. World bank policy research working paper, No. 4766.Google Scholar
  26. Leite, C., & Weidmann, J. (1999). Does mother nature corrupt? IMF working papers, 99–85.Google Scholar
  27. Leith, D. (2003). The politics O\of power: Freeport In Suharto’s Indonesia. Honolulu: University Of Hawaii Press.Google Scholar
  28. Macdonald, I., & Southall, K. (2005). Mining ombudsman case report: Marinduque Island. Melbourne: Oxfam Australia.Google Scholar
  29. Mendoza, R. (2011, June 7). A middle ground on mining. Business world.Google Scholar
  30. Mendoza, R., Mcarthur And Lopez (2012). Devil’s excrement or manna from heaven? A survey of strategies in natural resource wealth management. Asian institute of management working paper, 12–004.Google Scholar
  31. Mines and Geosciences Bureau. (2011). Mining Industry Statistics 2011. Resource document. Mines and Geosciences Bureau. http://www.mgb.gov.ph/Files/Statistics/MineralIndustryStatistics.pdf. Accessed 15 Feb 2013.
  32. Ndulu, B., & O’Connell, S. (2007). Policy plus: African growth performance, 1960–2000. In B. Ndulu, L. Chakraborti, L. Lijane, V. Ramachandran, & J. Wolgin (Eds.), Challenges of African growth: opportunities, constraints, and strategic decisions. Washington: World Bank.CrossRefGoogle Scholar
  33. Pineda, J. G., & Rodriguez, F. (2010). Curse or blessing? Natural resources and human development. UNDP human development research paper, 2010–04.Google Scholar
  34. Regis, E. G. (2006). Assessment of the effects of acid mine drainage on Mogpog river ecosystem, Marinduque, Philippines, and possible impacts on human communities. Melbourne: Oxfam Australia.Google Scholar
  35. Sachs, J., & Warner, A. (1995). Natural resource abundance and economic growth. National bureau of economic research working paper 5938.Google Scholar
  36. Standing, A. (2007). Corruption and the extractive industries in Africa: can combating corruption cure the resource curse? Institute for security studies paper 153.Google Scholar
  37. Studwell, J. (2007). Asian godfathers: money and power in Hong Kong and South East Asia. London: Profile Books.Google Scholar
  38. The Economist. (2012 October 13). The lure of chilecon valley. The economist http://www.economist.com/node/21564589. Accessed 21 Mar 2013.
  39. Vick, S. G. (1990). Planning, design and analysis of tailings dams. Richmond: BiTech.Google Scholar
  40. Wright, G., & Czelusta, J. (2007). Resource-based growth past and present. In D. Lederman & W. F. Maloney (Eds.), Natural resources, neither curse nor destiny (pp. 183–211). Palo Alto: Stanford University Press.Google Scholar

Copyright information

© Springer Science+Business Media Dordrecht 2014

Authors and Affiliations

  • John G. Lindon
    • 1
  • Tristan A. Canare
    • 2
  • Ronald U. Mendoza
    • 2
  1. 1.Asian Institute of ManagementMakati CityPhilippines
  2. 2.Asian Institute of Management Policy CenterMakati CityPhilippines

Personalised recommendations