Interesting article on how Mozambique and several other countries are trying to avoid the fate of the “resource curse” following discoveries of coal and gas within their territories. Will be very interesting to see if such self-conscious awareness of the potential for conflict can be addressed through early institutional planning. If so, will really give me faith in the enlightenment ideal that social analysis and self-conscious reflection can improve the human condition! That said, not yet clear what they will do, except that many will insist on greater government transparency in handling contracts.
NEWS ANALYSIS: Resource curse casts a shadow on Mozambique’s door (Business Day)
AS INVESTORS flock to Mozambique because of vast coal and gas discoveries, the impoverished country is poised to begin a journey many other resource-rich emerging nations have already taken: trying to harness its resource wealth for the benefit of future generations.
Many have failed trying. Mozambique is now the latest country facing the difficult question: how to avoid the “resource curse”, whereby economies in resource-rich countries grow more slowly than others, as unwanted side-effects of this wealth, such as corruption, take hold.
Trinidad and Tobago, Uganda, Angola, Sao Tome and Norway are among the countries that have come forward recently to advise Mozambique on how it might avoid some of the most obvious pitfalls when it comes to managing its hydrocarbon bonanza.