Equatorial Guinea

Definition

Equatorial Guinea is a small Central African country located on the west coast, composed of a mainland region called Río Muni and several islands, including Bioko Island, where the capital, Malabo, is situated. Known for its vast oil reserves, it has experienced rapid economic growth but also faces challenges related to governance, wealth distribution, and the so-called 'resource curse'.

5 Must Know Facts For Your Next Test

1. Equatorial Guinea is one of the richest countries in Africa in terms of GDP per capita due to its oil reserves, despite having a small population.
2. The country gained independence from Spain in 1968, and since then, it has been ruled by President Teodoro Obiang Nguema Mbasogo, who has been in power for decades.
3. The vast majority of oil revenues are concentrated in the hands of a small elite, leading to stark inequalities and social unrest among the general population.
4. Despite its wealth from oil, Equatorial Guinea has poor social indicators, such as high infant mortality rates and low levels of education and health care access.
5. The government has faced criticism for human rights abuses and lack of political freedom, making it one of the most repressive regimes in the world.

Review Questions

• How does Equatorial Guinea exemplify the resource curse phenomenon?
  • Equatorial Guinea showcases the resource curse as it has significant oil wealth yet struggles with governance and wealth distribution. The country's elite captures most of the profits from oil production, leading to extreme inequalities. Instead of broad-based economic growth benefiting all citizens, the wealth concentrated among a few results in poor public services and social unrest.
• Evaluate how the authoritarian regime in Equatorial Guinea impacts its economic management and social development.
  • The authoritarian regime in Equatorial Guinea has a profound effect on its economic management and social development. With President Teodoro Obiang Nguema Mbasogo holding power for decades, there is little accountability or transparency in how oil revenues are used. This lack of democratic governance contributes to inefficient allocation of resources and neglect of public services like health care and education, hindering overall social progress.
• Assess the implications of Equatorial Guinea's oil dependency on its long-term economic sustainability and social stability.
  • Equatorial Guinea's heavy reliance on oil creates significant risks for its long-term economic sustainability and social stability. As global energy transitions occur and demand for fossil fuels fluctuates, the economy may face instability due to falling oil prices. Additionally, this dependency can perpetuate governance issues by discouraging diversification of the economy, leaving the country vulnerable to external shocks while contributing to ongoing social tensions among an impoverished population amid vast wealth.

Related terms

Resource Curse: A paradox where countries with abundant natural resources often experience less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources.

Oil Boom: A significant increase in oil production and prices that can lead to rapid economic growth but may also result in unequal wealth distribution and environmental degradation.

Authoritarian Regime: A government characterized by the concentration of power in a single authority or a small group, often with limited political freedoms and human rights abuses.