Chadian Oil: Avoiding the Resource Curse

Abstract

All too often the benefits of natural resources are not realized by the portions of the population most in need. As has been seen time and time again, revenues from resources such as oil are mismanaged, or worse embezzled, by governments either unable or unwilling to dedicate funds to issues such as poverty, health care, and education. As Chad begins to explore the oil resources it has become a "model" for how revenues should be managed, due to a groundbreaking agreement between the government, oil companies, and the World Bank. This model is in jeopardy of failing, however, as the government of Chad is attempting to amend crucial legislation regarding oil revenues and their uses.