Handbooks of Research Methods and Applications series
Edited by Charlie Karlsson, Martin Andersson and Therese Norman
Chapter 26: Using social and economic impact assessment to guide local supplier development initiatives
The recent resource boom in developed countries such as Australia and Canada has brought regional development issues within resource-driven communities to the fore. There are well-documented negative and positive social and economic impacts of rapid resource development on local communities (Ivanova et al., 2007; Krogman et al., 2010). There is, however, little guidance in the literature on which tools of impact assessment to use under which circumstances. This chapter examines one area of resource activity, namely, the purchasing of goods and services by mining, oil and gas companies in the regions and communities in which their operations are located. Specifically, consideration is given as to the selection of impact assessment tools so that local procurement can contribute to sustainable regional development. The chapter suggests a broad set of indicators and assessment approaches to maximize the positive impacts of resource development that arise from the participation of local businesses in mining supply chains, while minimizing the negative impacts. The enhanced local procurement will help to reduce the leakages of positive social and economic impacts from the local community.
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