Briefing from ROAPE Volume 32 Number 104/5
Chad-Cameroon Oil Pipeline: WB/ExxonMobil in ‘Last Chance Saloon’
One of the biggest issues facing global development is that oil exports have contributed so little to the welfare of developing countries. The 'paradox of plenty', or the 'resource curse' as it is generally known, is that countries rich in natural resources, especially oil, tend to suffer from lower living standards, slower growth rates and higher incidence of conflict than their resource-poor counterparts. Between 1970-1993, for example, resource-poor countries, without petroleum, grew four times more rapidly than resource-rich countries, with petroleum, despite the fact that they had half the savings.1 The World Bank and International Monetary Fund (IMF) have both confirmed that the greater a country's dependence on oil and mineral resources, the worse its growth performance.