Gold: Benefits To Nations & Their Citizens
The companies that are involved in the mining of gold generally try to purchase supplies in the area that their mining operations are located in wherever it is possible, and they also try to keep their labour force as local as possible. Therefore, even when we allow for some measure of importation for products which are not readily available in the specific nation where the mining is ongoing, as well as the outflow of capital in order to allow for dividends and profits to shareholders, the impact of a gold mining company on the balance of payments of any developing country is extremely significant. In some of these countries this source of income exceeds any one other source, therefore those countries can readily be acknowledged to be gold producing countries first and foremost: Gold becomes their single most significant aspect of income generation through the exportation of natural resources.
Metals mining overall, and gold mining specifically, is relatively unfettered by the subsidies applied by some countries to various resources and agricultural businesses. These subsidies tend to distort the market balances and therefore have the result that their products are being priced at levels which may be unrealistic on the high side or unrealistic on the low side.
However, developing countries benefit from the mining of gold not only in the form of increased revenue of their exportation of their resources. The positions which are created through the training of the local workers to become skilled employees, as well as the transfer of technology from developed countries to developing countries, is as significant to many nations as is the high levels of tax income and royalty payments that go directly to their federal governments. (Let's not dwell on the considerable percentages that get annulled through corruption at this point.)
It is also important to note that in developing countries there is an effect of multiplication for every job that is granted, as there will be other jobs which pop up in that area in order to serve the needs of the workers. These businesses include service businesses, food delivery and restaurants, clothing stores, financial institutions and the list goes on and on.
In the cases of some of these developing countries, the existence of a thriving gold mining resource industry in the nation has sparked the development for a considerable industry for jewellery manufacturing which is not set up in the conventional gold working centers of Europe and the Middle East, but right in the same country. After all it does make sense that the location where the gold is mined could be the location where that gold is manipulated into a final form for the utilization of the consumer in the highly developed countries.
There are many improvements which gold mining can bring to developing countries, and these improvements can be measured along the lines of the infrastructure ameliorations in the social, financial, legal and physical configurations of the country. The creation of a comprehensive industry of gold mining can often be the primary phase in the launching of a nation towards the development of an overall balanced level of industry.