When a poor country finds oil, bad things often get worse. Countries rich in extractable natural resources, especially oil, frequently suffer from crummy governance, high poverty, endemic corruption and conflict. Is it possible to beat this oil curse? My guest on the Wonkcast this week, Todd Moss, CGD vice president for programs and senior fellow, says yes. He argues that a government that transfers some or all of its oil revenue to citizens in a universal, transparent, and regular taxable payment, could strengthen the social contract, fight corruption, and lay the foundation for future prosperity.
CGD Policy Blogs
This is a joint post with Stephanie Majerowicz.
A colleague recently returned from Senegal and commented that she was struck by the vast gap between that country’s youthful population and its aged leader. President Abdoulaye Wade is 85 years old while the median Senegalese citizen is just 18.7 years old. Perhaps that 66-year gap is one reason that Wade, who recently jammed through a change that allows him to run for a third term while disqualifying popular musician Youssou N’Dour, seems so out of touch.