http://www.economist.com/node/21552265
This article discussed the recent major oil discovery in Kenya. Eastern Africa is a region that has often been overlooked, but with the discovery of natural resources and particularly as these nonrenewable resources become more and more scarce the region will garner more attention. The author discussed the lack of regulations on these resources in the country. How do you think the government should involve itself in the natural resource market in East Africa and what effects will these discoveries have long term?
3 comments:
With the discovery of the Oil in Kenya, investors/speculators will start to pay (close) attention on eastern Africa for sure. Therefore, regulations or rules set forth by the local governments will be crucial for the exploitation of the oil resources discovered recently. Moreover, this will directly related to the entire development of the country. To better make use of this resource, the local governments might want have a look on rules set by experienced countries which also have abundant oil resources or the local governments might want work together with experienced investors who know how to make profit in a sustainable manner.
I think that a lot of government should increase regulation. Many African countries are blessed with an abundance of natural riches, but the majority of the people do not benefit. Sometimes the few people who do exploit these riches are not even inhabitants of the country, but foreign investors.
I agree with Hudson regarding regulation. The problem is that most governments in these areas are corrupt. Even if they regulate, the majority of earnings will only be shared among a few people. I feel that intervention by the UN or foreign governments may help to channel earnings to the general public.
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