From Mining Informality to Public Financial Capacity: An Institutional Approach to the Formalization of Artisanal Mining Value Chains in the Democratic Republic of Congo

Abstract

This concept note proposes an innovative institutional approach to the formalization of artisanal and small-scale mining (ASM) value chains in the Democratic Republic of Congo (DRC). Grounded in institutional economics and political philosophy, the research challenges purely coercive regulatory frameworks. It argues that sustainable formalization relies on the strategic alignment of economic incentives among miners, cooperatives, traders, and the State. To test this hypothesis, the author designs the "CEAF" model (Formal Artisanal Mining Cooperatives), based on the functional decoupling of governance spaces and economic cohabitation. The project outlines a 90-day action-research pilot protocol (budget: $280,000) aimed at generating empirical evidence on voluntary compliance, transaction transparency, and domestic revenue mobilization. Keywords: Artisanal and Small-scale Mining (ASM); Institutional Economics; Formalization; Incentives; Resource Governance; Democratic Republic of Congo (DRC); Domestic Revenue Mobilization.