Source: World Bank Wealth of Nations; World Bank. “To end extreme poverty, getting back to pre-COVID-19 reduction rates is not enough.” November 30, 2022. https://blogs.worldbank.org/developmenttalk/end-extreme-poverty-getting-back-pre-covid-19-reduction-rates-not-enough.
Note: NR= SSA Non-Resource countries; RR: SSA Resource-Rich countries.
- Resource-rich CEMAC countries should focus on converting natural resources into other forms of wealth, that is, using natural resources to invest in physical capital, human capital, and institutions (or intangible capital), with the goal of achieving a better balance between natural resources and the other assets.iii
- Effective institutions are key in helping resource-dependent countries escape the resource curse. For example, Botswana and Chileiv are success stories among developing countries thanks to sound economic policies and prudent economic management, including in managing resource wealth and breaking the cycle of pro-cyclical fiscal policies.
Ongoing reforms as part of the second CEMAC’s Economic and Financial Reforms Program (PREF-CEMAC II) are a welcome step. The timely and effective implementation of the policies foreseen in PREF-CEMAC II remains key for fostering a stronger, sustained, pro-poor and inclusive, and more diversified growth path in Central Africa.
i Cust, J., Rivera, B. A., and Zeufack, A. 2022. The Dog that Didn’t Bark: The Missed Opportunity of Africa’s Resource Boom. Policy Research Working Paper; 10120.
ii Cust et al. (2022).
iii Van Eeghen, M. W., Gill, I., Izvorski, I., and De Rosa, D. 2013. Diversified development : making the most of natural resources in Eurasia (English). Europe and Central Asia Studies Washington, D.C. : World Bank Group.
iv Izvorski, I., Coulibaly, S., and Doumbia, D. 2018. Reinvigorating Growth in Resource-Rich Sub-Saharan Africa; Reinvigorating Growth in Resource-Rich Sub-Saharan Africa. © World Bank, Washington, DC.
