Resource-cursed Africa

Once again, Bremen University’s African Development Perspectives Research Group has chosen a much-discussed topic. Thanks not least to the participation of numerous African scholars, the group’s most recent yearbook has become a heavyweight in terms of both content and scope, dealing with the “curse of resources”.

The first part of the book focuses on commodity economies and their weaknesses. The second part spotlights Nigeria, discus­sing in case studies various op­tions for diversifing the economy with the goal of reducing the dependence on oil. The third part focuses on Cameroon’s efforts to escape its dependence on primary-sector goods. The final part consists of a comprehensive set of reviews of recent publications on the topic, as well as a survey of reports on various institutions and initiatives concerned.

Many of the articles deal with the new race for African commodities, and they contain useful information. However, this book could have done with an introductory summary which went beyond purely economic considerations, describing in greater detail the global political environment. To focus on economics while largely ignoring politics results in just as incomplete a picture as would be the case the other way around.

The book contains few new insights, but rather confirms existing knowledge. For instance, it is stated again that good institutions and sound economic policymaking can minimise and even reverse the “curse of resources”. Once more, reference is made to Norway’s oil wealth in this context. To what extent Norway’s experience can serve as a model for African countries, however, remains largely open.

A more fruitful idea in view of growing global competition, particularly for oil, appears to be the establishment of effective international controls. In his introduction, Karl Wohlmuth argues that weak states and their governments, on the one hand, and major international corporations, on the other, are very unequal partners. In many cases, neither the governments nor the people in the oil-producing areas are aware of the cashflow generated by the exploitation of raw materials. And they certainly derive no benefit (with the exception of accomplices, perhaps).

The commentaries and analyses contained in this yearbook will be of great interest to anyone interested in commodity economies, particularly with respect to Nigeria and Cameroon. There is much knowledge to be gained by selective reading. It does not make for easy reading, however – even the most dedicated bookworm will need time to gradually process the large number of essays.

Henning Melber