Prize for Excellence in Development Research for Selina Bezzola

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 ¨C 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 ¨C but only modestly. In an experimental set-?up around two mines in Burkina Faso, she further finds that CSR activities that invest in public water infrastructure ¨C hence taking over the responsibility of local governments ¨C can weaken the perceived legitimacy of the local government by citizens but might at the same time stimulate political participation.