GOVERNMENT POLICIES TOWARDS SMALL-SCALE MINING

The paper discusses the role of small-scale mining in economic develop ment. In particular, it focuses on the problems of managing small-scal e mining for countries facing economic difficulties where the black ec onomy operates alongside the official economy. The paper suggests an i ncentive scheme to deal with illegal operations. It also proposes a sp ecial financial and fiscal regime for small-scale mining to ensure tha t it is a productive and viable activity. The paper suggests that the role of governments in small-scale mining is an active one without any equity participation. It discusses some of the areas in which governm ent can assist in small-scale mining.