Because of its importance to the global economy, gold production can contribute significantly to the socioeconomic development of countries participating in its mining and trading.
To realize gold’s developmental potential to the countries where it is produced, their governments must consider a range of governance questions. This briefing considers these questions, drawing on the results of the 2017 Resource Governance Index. Thirty-four of the eighty-one RGI sector assessments focus on mining, while the remainder focus on oil and gas. Each mining assessment focuses on the commodity with the greatest contribution to the country’s exports. For 13 of the mining assessments, the commodity of focus is gold.
Of the total gold production covered by the index, over 40 percent takes place in countries characterized by weak, poor or failing resource governance conditions, highlighting the need for action toward improved governance both by gold-producing countries and their trade partners. Trading companies, exchanges, refiners, end consumers (including banks) and the global gold trading hubs which regulate them have an opportunity to impact governance conditions where gold is sourced and contribute to sustainable economic development in these countries—many of which are home to the poorest people on the planet.