Sunday, November 13, 2011

Re: Nigeria, SWFs, and the Resource Curse? Two New Papers

Nigeria, SWFs, and the Resource Curse? Two New Papers

“Sovereign Wealth Fund (SWF) is not the magic wand that can turn around the economy and welfare of the majority of Nigerians, but true federalism­. If Nigeria can be run like a true federal democracy, the country would be transforme­d, but the rogues in power want to continue using public funds to play their games of Monopoly and Totopoly in and out of the corridors of power.

What we need in Nigeria is not the SWF, but accountabi­lity and transparen­cy in public service and an end to the impunity of the corrupt ruling class.

$3 billion was collected as bribes by public officers in a single year in Nigeria!

Without accountabi­lity and transparen­cy in governance­, the SWF will be mismanaged and looted by the same kleptomani­acs in power..”

Read the story:

This is a joint post with Stephanie Majerowicz. Nigeria, perhaps the world's poster child for the oil curse, is the latest country to deploy a sovereign wealth fund as a tool to try to better manage national income. At the same time, Nigeria is struggling with depleted savings and growing fiscal concerns, even in a time of high oil prices. Will the sovereign wealth fund help Nigeria get back on track? What are the chances it won't be raided by politicians with short-time horizons, as in the past? Could cash transfers help? Two new background papers from CGD's Oil2Cash Initiative look at these questions from... MORE

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