Madagascar--Coming Oil Boom
Madagascar Oil sees crude flowing from island soon Reuters. 30 Oct 2012.
If they do end up having a lot of oil, they could do well to get an intelligent economic advisor in place. I might suggest someone with experience like Dr. Robert Looney, a former economic advisor to Iran. Typically newly resource rich states focus on avoiding Dutch Disease as Nigeria did during their 1970's oil boom (during the last three decades of the 20th century they experienced a $300 billion windfall). In focusing on this, though, they can neglect other important economic factors such as managing RER (real exchange rate) and inflation. Sage advice and more information can be found on this topic in Okongo-Iweala's excellent 2008 IMF article Nigeria's Shot at Redemption. There are extensive notes on the article here.
Links:
http://www.mocoh.com/?q=en/node/17
Cross posted here: http://kruzoo.blogspot.com/p/mada-articles.html
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