The Role of Third Parties in the Creation of Excess Metal Capacity in the 1980s

This paper evaluates the contributions of "third parties" to surplus capacity in the world metals industries in the 1980s. Special attention is given to the role of international development agencies, such as the World Bank, that have made project loans to state mining enterprises. The paper also reviews the contributions to surplus capacity of the International Monetary Fund and evaluates the large volume of credits from commercial banks to developing countries. Although the credits to Third World countries during the 1970s facilitated the expansion of mining capacity in those countries, no one source of financing can be held responsible for a significant portion of the expansion.