Ideas to Action:

Independent research for global prosperity

Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

How to Turn Citizens into Owners of National Wealth

This post, co-authored with Alan Gelb, was originally published in Financial Times: This is Africa

On November 28 Anadarko Petroleum doubled the estimate of its massive Mozambique gas discovery. If this proves correct, Mozambique will become a major gas exporter and can expect a hefty windfall.

Mozambique is not alone. Per square mile, proven sub-soil assets in poor countries — notably in Africa — are only about one quarter of those in better-explored, rich countries. Not surprisingly, high prices and new technologies are driving new oil, gas, and mineral discoveries across the developing world. Billions of dollars will be pumped into countries like Uganda, Liberia, Papua New Guinea, Mongolia and Bolivia. While this should be good news, it also raises concerns.

Could Uganda Be the Next Niger Delta?

That’s the question in Alain Vicky’s piece this morning in Le Monde Diplomatique (gated). Vicky warns that oil discoveries in Uganda’s Bunyoro region threaten to heighten simmering tensions between the local communities whose ground is being drilled and the central government which is pocketing the cash. Unmet expectations and popular frustration with politicians could unleash violence and do raise concerns that Uganda might be heading for a rough patch.

A Constitutional Moment: Oil2Cash in the Arab World

It is thrilling to watch the overthrow of despots and dynasties as people power erupts across the Arab world. But the headiness of the moment can only lead to durable political change and meaningful economic progress if the new governments that emerge find a better way to handle oil revenue and other easy money (rents, in econo-speak) that have corrupted the outgoing regimes.