Institutional and regulatory frameworks

Much of the continued economic underdevelopment and low human development of most of Africa’s resource-rich economies has been attributed to the natural resource governance regime. There is overwhelming evidence that the quality of institutions determines a country’s growth and development (Acemoglu, 2008; North, 1990). Strong economic governance institutions are equally critical facilitators of economic growth and development (Acemoglu et al., 2001). Mehlum et al. (2006) argue that institutions may be decisive for how natural resources affect economic growth. This has been evidenced in countries with a poor rule of law and weak institutions, where natural resources impede growth as entrepreneurial resources shift from production into unproductive activities, undermining the economy’s ability to respond to external shocks (Rodrik, 1998). The growth effects of revenue booms work depending on governance qualities, mainly institutional effectiveness (Collier and Goderis, 2007).

Sustainable Development Goals:

No Poverty

Decent Work and Economic Growth

Reduced Inequalities