Small-scale gold miners’ preferences on formalization: first steps toward sustainable supply chains in Colombia

Key Messages

• Artisanal and small-scale gold miners in remote areas of Colombia are willing to try formalization (obtaining a legal title to extract gold). However, they perceive costs can hinder the adoption of this formalization
• Bundles of preferences about benefits and costs of formalization are not uniform across commodities and depend upon previous experience with formalization and the strength of social capital formation.
• Gender seems to play an effect on preferences, but this impact is not consistent across the communities studied

Results suggest that policymakers should communicate transparently about the actual costs and benefits of formalization to avoid unmet expectations.