93 comments on World Oil Exports [01] Angola
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93 comments on World Oil Exports [01] Angola
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They should get Norwegian advisors. (No, not the oil fund, the intersting part is that they did not let the oil incomes ruin the rest of their economy and invests in long lasting infrastrucure and knowledge. )
They should get non-corrupt politicians and civil servants + working judiciary and police system. Besides, Norwegian Oil & Energy Company Norsk-Hydro of Norway has already been accused of corruption in Angola, so I doubt that advice from would help a lot.
Advice doesn't help, when politicians and oil company figures can get away with corruption routinely. Those guys already have the best advise: embezzle the money, put it in an account of a money laundering bank on Jersey and with the leftovers fund expansions in oil production, so you can steal more the next year.
Angola was at rank 147 out of 179 countries in the Transparency international 2007 Corruption Index rankings. If you think corruption in China is bad, it ranks at 70.
Global Witness wrote a whole report on corruption in Oil & Gas industry (both NOC and IOC) and it's a sad read (2004). CorpWatch also details how Angola oil deals are opaque and often involve shady arms deals that break various laws and regulations.
And as has been written in another thread, it is really difficult to fight corruption, when western banks work in collusion with the corrupt politicians. Banks in Switzerland and Jersey have been guilty of this and the practice continues.
On top of this, western investors are fighting over the rights to pour money into oil investments in Angola, usually caring very little for laws or ethics. The practice is easy, because World Bank has rated Angola as one of the most difficult places to do business, due to rampant cronyism and corruption.
What about the people? 70% of them live in abject absolute poverty (less than $1/day) and the rest who are not corrupt, mostly in very poor conditions. Oil sector is responsible for destroying much of the livelihood of fishermen in Cabinda, one of the poorest provinces.
It has been said many times and tons has been written about it, but let's say it again:
African oil producing nations are very unlikely to get out of poverty, until IOCs clean up their act, foreign banks stop laundering embezzled money, US/Switzerland/China/etc stop selling them arms and everybody imposes strict requirements on the government from the outside (trade/development/etc). It would probably take another 10 years to flush the system even semi-clean, but the lure of black gold is impossible to resist.