Congratulations to Selina Bezzola for receiving the Prize for Excellence in Development Research!
The German Economic Association's Research Group on Development Economics has honoured Selina Bezzola for her outstanding dissertation on the impact of corporate social responsibility activities of mining companies in Africa.
Selina Bezzola completed her PhD at the ETH Development Economics Group in 2020. In her dissertation, she contributes to a better understanding whether natural resource extraction constitutes a curse or a blessing for people living close to mines – a long standing debate in both academia and policy. This question is particular relevant to many African countries, which have seen a mining boom over the past decade.
Selina Bezzola analyzed one specific aspect of international mining: corporate social responsibility (CSR) activities, i.e. all those investments that companies undertake to mitigate local negative environmental externalities and/or to improve the wellbeing of local communities that are not mandated by laws and regulations. CSR investments have been criticized by many for being a pure PR strategy. However, there has been little empirical research on what drives companies to adopt CSR strategies on the one hand and what effect this has on local communities on the other hand.
CSR as a remedy for tensions with local communities
Analyzing data of mining industries across the continent, her research shows that CSR activities seem to be mostly used to counteract evolving tensions with local communities and reduce operational risks. This strategy seems to work as the probability of conflict in local communities is reduced – but only modestly. Moreover, mining communities that have little conflict propensity to begin with are still better off than those with high operational risks who are “in need” of CSR. A more sustainable approach to local development than CSR activities would be to actively involve local communities in decision-making, increase transparency and better manage negative environmental or social externalities from the start. In an experimental set-up around two mines in Burkina Faso, she further finds that CSR activities that invest in public water infrastructure – hence taking over the responsibility of local governments – can weaken the perceived legitimacy of the local government by citizens but might at the same time stimulate political participation.
About the Prize for Excellence in Applied Development Research
The German Economic Association's Research Group on Development Economics annually awards three Excellence Awards in Development Research for three dissertations that show both excellence in research and high policy relevance. The award is sponsored by the KfW Development Bank.
References:
Bezzola, Selina Silvia (2020). “The consequences of Corporate Social Responsibilities for mining communities in Africa”
external page KfW Development Bank
external page Research Group on Development Economics – Prize Winners 2021