For years, energy has been heavily subsidized in the MENA region. As stated by the IMF, in 2011 energy subsidies represented 8.5 % of GDP and 22 % of government revenue, at a total cost of $240 billion. Moreover, “six of the world’s largest subsidizing countries are found in MENA, led by Kuwait, Iran, Saudi Arabia, and Qatar, where residents pay less than a third of international prices for fuel and electricity” [1]. For instance, to subsidise electricity and water in Abu Dhabi in 2014, the government spent DH17.5 billion. Also, in the summer of 2014, the Saudi Arabian government burnt 900,000 barrels of oil a month to meet the demand of the already subsidized electricity [2]. This situation was made possible by reserves representing about 57 % of the world’s proven oil reserves and 41 % of proven natural gas resources.[3] (more…)
Angola, rich in oil, gas, diamonds, and other minerals, plays a pivotal role in showcasing how natural resources can fuel a country's economic engine. Yet, with Angola identified as a Low Human Development Country and a significant portion of its population living below the poverty threshold, the question arises: Can Angola's growth in natural resources wealth translate into tangible social development? This article embarks on a journey through Angola's economic landscape to explore the interplay between its abundant natural riches and the quest for human development (more…)