In October 2020, Mozambique’s central bank published a proposal for establishing a new sovereign wealth fund. The decisions made now about the structure and rules of the fund will have major ramifications on the country’s economic future and the wellbeing of its citizens.
Research for the 2021 edition of NRGI's Resource Governance Index has begun. The index measures the governance of oil, gas and mining sectors in resource-producing countries and provides freely available public data to help inform evidence-based decision-making.
The road to oil and gas riches is rapidly narrowing for some new producers. The crash in prices, triggered by the coronavirus pandemic, creates specific challenges for a group of "prospective producer" countries in sub-Saharan Africa.
Coronavirus containment measures have hit economies hard—and with them, government revenues. Most natural resource-dependent countries are experiencing a double shock as their main source of foreign currency has crashed along with fiscal revenues.
As NRGI gathers data in the effort to improve international benchmarks of national oil company performance and revenue management, figures from Extractive Industries Transparency Initiative reports are proving extremely valuable. This is especially the case in a number of African countries where state companies do not produce detailed financial reports on their own.
Resource-rich countries tend to experience slower economic growth and more social problems than do less-endowed countries—a phenomenon dubbed the “resource curse.” But it turns out that in many cases, economic growth begins to underperform long before the first drop of oil is produced; this we call the “presource curse.”
NRGI set out to collect total oil, gas and mining revenue data for the countries included in the Resource Governance Index to find out how many dollars flow to governments that mismanage the handling of their natural resources.
A 10-year boom in the prices of many commodities drew to a close last year. During previous booms, governments in developing countries have often squandered wealth accumulated through oil, gas and minerals, directing little of the proceeds toward effective investment or saving. When boom turned to bust, resource-rich countries were caught out, forced into debt spirals.