Has the promise of formalizing artisanal and small-scale mining (ASM) failed? The case of Zambia

This paper investigates whether the benefits assumed to flow from the formalization of the artisanal and small-scale mining (ASM) sector in developing countries actually materialize in contexts where it has taken place. While formalization's key proponent, Hernando De Soto, avers that it yields benefits, in particular, improved access to capital and government support, this study finds that such benefits accrue only to a limited extent. Using the case of Zambia's emerald sector, the paper analyzes the initial wave of ASM formalization that took place in the country in the 1980s, and finds that contrary to harnessing benefits for operators, formalization was used as a tool by the state to gain control of the sector and to displace operators to areas with low economic viability. The paper further finds that currently, a lack of state support and a policy framework skewed in favour of large-scale copper mining has worsened the outcomes of ASM operators in Zambia's emerald sector. As formalization is such an ambitious undertaking, the process requires not only strong political will but also robust implementing institutions, a point that is particularly crucial in sub-Saharan Africa, where the agencies spearheading formalization efforts are often weak and limited in capacity.