Text n◦3: WHY IS GABON POOR WHEN THE COUNTRY IS RICH IN

NATURAL RESOURCES?
Gabon is a Central African country bordered by Cameroon, Equatorial
Guinea and the Republic of Congo to the east and the Atlantic Ocean to the west. It
is one of Africa’s richest countries because of its natural resources: however, one-
third of Gabon’s citizens live below the poverty line, and the unemployment rate
5 is 20 to35 percent among young people. Why is Gabon poor when the country is
rich in natural resources?
The first reason for this is the decline in oil reserves and prices. Being the
fifth largest oil producer in Africa, Gabon has experienced strong economic growth
over the past decade. However, the country’s fiscal situation has worsened since
10 2015 after facing a decline in oil reserves. Gabon’s GDP growth slowed down to
3.9 percent in 2015. The declining of oil reserves and prices are one reason why
Gabon is poor.
Heavy dependency on the oil industry has led to a less diversified economy,
which is another answer to the question “why is Gabon poor?” One challenge to
15 the diversification of the economy is the poor quality of Gabon’s business climate.
The 2016 ‘’Doing Business'' report ranked Gabon 164 out of 189 countries.

Consequently, a rich nation has turned poor over the years. The Human
Development Index ranks Gabon 109th, which is miserably low given its potential
of oil and other natural resources. Data shows that about 30 percent of the
20 population remains vulnerable, living with a monthly income below the guaranteed
minimum wage of $1. Further, it has become increasingly difficult for people in 60
percent of the regions to have access to basic social services such as healthcare and
drinking water.

Aslam Kakar, THE BORGEN PROJECT. OCTOBER 9, 2017