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PESTEL Analysis - Essay Example

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PESTEL Analysis

The presence of mining will inflate wages and keep the exchange rate strong, which can prevent other sectors, for example, agriculture, from being internationally competitive and thus from realizing the opportunity for export-driven growth (Mining and Poverty Reduction online).
The higher incomes of mine workers can lead to rising local prices-with the poor left behind; at the same time, the poor and nonmining population may have only limited access to services provided by the mine (Mining and Poverty Reduction online).
The often harsh living conditions for miners in small-scale mining as well as in large-scale mining, along with the lack of information and education about prevention, can contribute to a high prevalence of human immunodeficiency virus (HIV) and other communicable diseases among miners and their families. Also, work-related injuries and health risks-lung cancer, for example-reduce the miners' life expectancy and often put families in particularly precarious situations (Mining and Poverty Reduction online).
Mining activities can have a negative impact on the livelihood of indigenous people, with sociocultural conflicts surrounding the establishment of mining activities in otherwise rural areas or in the "wilderness" (Mining and Poverty Reduction online).
Environmental damage can be caused by mining. ...Show more

Summary

Mining can be an important source of foreign exchange and fiscal receipts for governments. When managed well, the net foreign exchange and taxes generated by mining can be used by governments as an engine for overall economic growth and as a source of financing to support national budgets for social-sector and poverty reduction programs (Mining and Poverty Reduction online).
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PESTEL Analysis essay example
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