CGD in the News

Oil Debate Needs to Happen in Uganda, Not Washington (AllAfrica.com)

August 19, 2011
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Senior fellow Alan Gelb's working paper on oil to cash in Uganda was mentioned in an AllAfrica.com/Daily Monitor article about Ugandan oil revenues.

From the Article

A working paper recently published by the Washington DC based Centre for Global Development (as reported in the Daily Monitor earlier this week), argues that Uganda's future oil revenues should be distributed equally, in cash, to all Ugandan citizens.

Under such a scheme, during peak oil production--about six years from now--every Uganda man, woman and child would receive an annual cash payment of around $50, depending on the world price of oil. This would be a huge boost for low-income households. All of this, the authors say, would benefit the economy as a whole and, over time, generate more tax revenue for government.

The authors urge this arrangement largely because of Uganda's "deteriorating governance". They fear that government's apparent plans to invest oil revenues in infrastructure development will fall prey to corrupt rake-offs, and that "oil rents, if unchecked, could simply turn into additional sources of patronage to perpetuate the regime."

Read it Here.