"The discovery of oil in Africa has rarely brought about positive socio-economic outcomes. Indeed, quite the opposite is true: regions with an abundance of non-renewable sub-surface resources nearly always experience declining development and less economic growth than countries with fewer such resources.
Nigeria offers a disturbing example of this trend. Since production began in the mid 1960s, Nigeria has seen an oil bonanza worth more than $340 billion. But the economy remains in absolute tatters: more than 70% of Nigerians live in conditions of intractable poverty – earning less than a dollar a day – and the infant mortality rate is among the highest in the world. Indeed, Nigerians are significantly poorer today than they were at the start of the oil boom. Average incomes are less than one third what they were in 1980, and despite ballooning petroleum revenues per capita GDP remains at about 1965 levels. Similar problems plague Africa’s other major petroleum producers, like Chad, Angola, Gabon, and Equatorial Guinea."
Excerpted from the Foreign Policy in Focus article "Saving Uganda from Its Oil."
