The salt came to Mali from Berbers and it was taxed during trade. When gold was exported it was also taxed. Mali made huge profits from taxing imports and exports. The Berbers needed to trade with the Malians, Mali’s gold fueled the rest of the world’s economy. The world’s dependence on gold gave a Mali a huge monopoly on trade.
Such properties make it useful in industrial application such as cutting and polishing tools. Before the 19th century, diamond minerals were known to be rare as it was found in India and Brazil. During 1870, large mines for diamond deposits were discovered in South Africa at a place near Orange River. Such became a threat to the few diamond producers despite the large supply, thus made the commodity a luxury instead of a commodity. Diagram - As we can see from Figure 1.1, the discovery of large mines in South Africa caused supply to increase which caused the price of diamond to fall.
Gold Exports and Cost Implications of Illegal Gold Mining in Ghana Isaac Ibrahim School of Economics, Huazhong University of Science and Technology, Wuhan, China Email: email@example.com Abstract: Precious commodity as its often called, gold has been a major export commodity and export earner for Ghana. Formally called the Gold Coast due to her large mineral reserves, Ghana has been the second largest producer of gold in Africa and seventh in the world. AngloGold Ashanti is the largest official mining company in Ghana. Along with other large mining companies, they extract, refine and export gold in Ghana. However, due to its lucrative nature, following liberalization, many small scale and mostly illegal gold miners have joined in to mine.
This made them one of the biggest contenders in the rubber industry. This improved their economy greatly and raised the country's standard of living. Investment also comes into play. Because of the Long Depression there was a large surplus of capital and many European countries invested in the works of their colonies. Trading companies were set up in the colonies.
What price would you put on a diamond or even gold, is certainly not the economy of an entire country. That is the case in South Africa with mining being their fuel to boost their economy. Their economy needed the boost due to political instability burying the country into the ground. Being the fuel that helped South Africa’s GDP raise by 20% it has helped this country improve so much over the years. Political instability is one of the key factors that has and still makes South Africa so dependent on the mining industry.
“The price of diamonds is too high” The international diamond cartel and more prominently De Beers, has used its dominant power and manipulation to create an illusion that has existed in the diamond market since the company was established in the 1880’s. The illusion of diamonds being rare and scarce led consumers to believe that their value would last forever and eliminated the option of resale in their eyes. This illusion is also what caused consumers to accept the prices of diamonds, a price that is inevitably too high. The modern diamond industry was launched in 1867 by the accidental discovery of diamonds in South Africa. This was an industry that would soon be taken over by an Englishman, Cecil Rhodes, who arrived in Kimberly Mine in 1874.
Traders that understood “basic economic principles such as supply, demand, and competition” (pg.39) knew that great profit could be earned from slavery. The slave traders used some of the most advanced business techniques, which helped, make many people wealthy. Slave traders greatly benefitted from the selling of slaves because of they were high in demand. The profits earned from the trading of slaves were so high that slave traders were “willing to borrow money at 30 percent interest” rate which gave an idea about their expectations for a profit. (pg.83) The traders expected to generate “a profit of 58 percent” from selling slaves so this gave the motivation to take risks.
As a result illicit mining and trading increased throughout countries in Africa and especially in Sierra Leone. To make matters worse, the government seemed to overlook the problem, if not sometimes encourage it. One Sierra Leone leader, Siaka Stevens, encouraged illicit trading to gain more control over the diamond mines. Succeeding leaders did the same, and with a corrupt government, the country of Sierra Leone was very vulnerable for a rebellion. Instead of bringing the continent of Africa out of its years of poverty stricken hardship, the discovery of diamonds in Africa only brought more of a curse as it fueled civil war, created political instability between governments, and caused unimaginable human suffering for African citizens.
Since imperialism promotes divisions between social classes, Hobson was instinctively opposed to Britain’s imperial system. As one of the greatest European empire builders of all time, Cecil Rhodes was a huge supporter of imperialism, sharply contrasting Hobson. He founded the De Beers Mining Company in South Africa and gained tremendous profits from his foreign enterprise. Ambitiously seeking to earn even more profits, Rhodes expanded his claims to various diamond mines around the world, eventually owning about 90% of the world’s production of diamonds. Even though he became one of the richest men in the world, Rhodes’ main ambition was not actually to obtain massive wealth; his true wish was “to render [him]self useful to [his] country” (Rhodes 4).
Yet the boon of possessing these resources has converted into bane for the African People. The phenomenon of Globalization has resulted into a major cause of the conflicts in Africa. African nations do possess natural resources, but because of their technological and scientific backwardness they do not have the capacity to harness these resources. As, a result these nations are forced to invite Multinational Corporations (MNCs) to do the Exploration and Production of these Resources. These MNCs hold enormous money power to manipulate the economy of the African Nations.