Case | HBS Case Collection | September 2010

Angola and the Resource Curse

by Aldo Musacchio, Eric D. Werker and Jonathan Schlefer

Abstract

Since emerging from decades of conflict in 2002, Angola has been growing at a scorching double-digit rate, led by its oil industry. But the nation remains beset with seemingly intractable problems: immense inequality, low life expectancy, a non-diversified economy, and constant grumblings of corruption. The global financial crisis and subsequent fall in state oil revenue drives a loan-seeking Angola towards either the IMF, who demand extensive reforms, or the Chinese, who seek to take a direct stake in the nation's recovery. The case explores the dynamics of post-conflict recovery as well as the challenges associated with a reliance on oil wealth, including the resource curse and Dutch disease.

Keywords: Crime and Corruption; Developing Countries and Economies; Financial Crisis; Borrowing and Debt; Financial Institutions; Globalized Economies and Regions; Policy; Government Administration; Emerging Markets; Natural Environment; Angola;

Citation:

Musacchio, Aldo, Eric D. Werker, and Jonathan Schlefer. "Angola and the Resource Curse." Harvard Business School Case 711-016, September 2010.