Wednesday, September 10, 2008

Chad - Oil Curse strikes again

The curse of oil continues . In a supposedly ground-breaking agreement with the World Bank Chad was expected to use its oil revenues to benefit its peoples .

Alas the World Bank has cancelled an oil pipeline deal with Chad after a dispute with the government over failed pledges to use profits to tackle poverty. The bank said Chad had also failed to use revenues on health and education.

Instead the government had tapped more of the oil profits for military spending. Also President Idriss Deby over the past year has signed several decrees handing him personal control over the landlocked oil producer's finances and circumventing World Bank attempts to ensure a large share of oil profits go to social spending.

The bank had been warned by local and international development groups that the pipeline project had little chance of reducing poverty, said Ian Gary, senior policy advisor for extractive industries at Oxfam America.

Socialist Banner is not surprised .

No comments: