Understanding the experience of formalization of the informal sector: a governance framework analysis of artisanal and small-scale gold mining in Tanzania

Abstract

The recognition of the informal sector’s contribution to economic development has promoted a global policy agenda for formalization of the sector into the mainstream economy. The main purpose of this Thesis was to consider the experiences of informal sector workers, and possible governance frameworks for formalization of the informal sector, in the context of artisanal and small-scale gold mining (ASGM). The research was conducted in a challenging physical environment in four ASGM sites in Mwime, Kahama Tanzania. The study investigated the ‘problem of formalization’, around the main research question; if we are to attempt greater formalization of the informal sector, what would be the most appropriate form(s) of governance for these arrangements? Pragmatism guided the investigation, with mixed methods utilised for data collection. The study covered 90 participants for qualitative interviews (key informants, semi-structured interviews, and focus group interviews) and for the survey.

Results showed an interesting shift in perception from Government and in public attitudes toward the recognition of, and trust in miners. Miners themselves expressed a willingness to formalize, despite some miners arguing that it is difficult until someone ‘holds the hand of the miner’. Employing a ‘vertical’ and ‘horizontal’ Conceptual Framework (Figure 3), the Thesis captured different governance possibilities for formalization of ASGM, which provides a novel lens for viewing the ‘problem of formalization’. Overall, if a transition towards further formalization of the informal ASGM is to be realised, the Government and all relevant actors need to be incentivised effectively to help find a solution. A ‘mixed modality’ of formalization might be effective, including vertical and horizontal elements. Despite indications that formalization remains challenging (particularly given the power imbalances, resource constraints, rent seeking and corruption that condition the current ASGM context). This Thesis contributes to knowledge regarding future directions for research on formalization of the informal sector.