"The myth of oil prosperity runs wide and deep".
August 13, 2002 12:33 PM Subscribe
"The myth of oil prosperity runs wide and deep". "Petroleum-led development strategies have delivered nation after nation into a spiral of debt and dependency. And yet, governments, corporations, and international financial institutions continue to reinvest in the growing, global oil economy". Consider Nigeria, the point of focus of attention of environmentalists, human rights activists and fair trade advocates around the world. With its annual debt service obligation at over $4 bn, more than a third of its export income, Nigeria has in recent years pegged its annual budget allocation for actual debt servicing at $2 bn. Lower export earnings forced it to cut this to $1.5 bn in the 1999 budget. Who's to blame? Theftocracies, the IMF, World Bank, oil companies, foreign governments? Since it is clear that debt restructuring harms more than helps, will there be more debt relief, and finally, who ends up paying the banks when loans are written off?
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