Why do Citizens of Oil-Rich Nations Live in Poverty?
The slums of Luanda, Angola. (image: img131.imageshack.us)
On Friday, NPR’s Planet Money team addressed the oil paradox: why do citizens of oil-rich nations so frequently live in poverty?
To illustrate the point, the team arranged a meeting between Gregory Scheidler, an oilman living in a $20,000/month apartment in a gated Angolan community, and Ningeeto, the 18-year-old who sells Mr. Scheidler chewing gum on the corner every morning. Ningeeto has no education, and as becomes apparent through their meeting, very much dislikes his job, but has no other options.
In Angola, one of Africa’s largest oil producers, 68 percent of the population lives below the poverty line. According to Herman Cohen, a retired US diplomat formerly based in Angola, the answer is simple: the state is behaving like a private company. Instead of focusing on schools, infrastructure, and the needs of its people, the government-owned oil company has a private airline and invests in other countries in an effort to expand its wealth.
And so exists the paradox of oil, or the “oil curse” as its sometimes called. Nations rich in natural resources, making money hand over fist exploiting these resources, leave their own people behind to fend for themselves.
I am Angolian and I definitely agree with your article. The Angolian government is very corrupt and it steals most of the money that makes from the oil industry and other resources. I left my country 12 years ago and I have to say that I am one of the lucky ones. My parents were able to go to school, work hard, get scholarships and have great careers. However, this is not for every Angolian citizen and this upsets me very much. The Angolian government kills anyone that it’s against their laws or views and that’s the reason many Angolians get scared to speak up. 2010 is a new year for me, I am 21 years old and decide to back to my country (to live there). I believe that it’s my job as an Angolian citizen to help my people.
Thank you for sharing your point of view, Angola. I applaud your decision to use your privilege and education to improve the daily life of your countrymen. Best of luck to you.