Angola is one of the largest oil exporting countries in Africa with contradicting issues like wealth inequality and underdevelopment. Angola is facing such problems despite having a very high gross domestic product (GDP). Economists classify such countries as a rentier state. They are the states, which gets unordinary revenues from natural resources. Angola is one of such countries because of its high dependence on oil, a natural resource. The Problems facing Angola are common to other rentier countries which economist refers to as a resource curse. The resource curse is a situation where countries rich in natural resources face authoritarian leadership, which withholds citizen accountability to resource allocation. This study analyses resource cause in Angola, its causes and the effects it has on the country and the surrounding. Also, it suggests a policy to solve the problem, its benefits, and challenges.
Analysis of Angola's Resource Curse
There are enough economic statistics to qualify Angola as a rentier state. The country depends heavily on a natural resource, oil that contributes to 95 percent of all export and 45 percent of the country GDP (Central Intelligence Agency, n.d). However, the presence of oils has brought many problems than benefits in the country. The crisis includes authoritarian government, unequal distribution of wealth, political instability and conflicts between groups. Most of the Angolan citizens are suffering more than it would have been without the resource.
Although the country holds fair elections, the political system is far from democracy with leaders exhibiting an authoritarian regime. The government institutions, serve selected individuals and institutions such as the elite, military and the president (Cameron, 2017). Such institutions aim for a share of the profit from oil and therefore shift their service from the citizens to the government officials. As a result, the government can avoid developments without anybody questioning leaving the citizens to suffer more than the time of civil war. The government and a few elite people manipulate the institutions to protect them as they pocket most of the revenue collected from the oil. Also, government threats make the institutions to protect the presidency from corruption scandals (Baumgartner, 2016). All those mechanisms keep the government free from public criticism.
The current regime has gone further to make Angola a one-party state. Selfishness to consume profit from the natural resource is driving such aims. It, therefore, means that there will be no opposition to oversee the corruption going on in the oil field. All those in opposition join the government to squander oil money. The government is centralized with the president at the top and a sophisticated protection network below (Cameron, 2017). The president uses the system to bring confusion against each to prevent them from seeing a huge amount of money going into the pockets of a few and not to the citizens. There are therefore regular ignited conflicts between different political and business groups to represent the presidency as a clean office. The various constituents whom the president uses are equal in political power, and they include the Movement for To
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