| Fuel for change: Equatorial Guinea’s Obiang commits to wide ranging reforms |
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| Written by Claire Furphy(1) |
| Friday, 16 July 2010 08:10 |
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One of the world’s longest-serving leaders, President Teodoro Obiang Nguema Mbasogo of Equatorial Guinea, in power since 1979, has announced a far-reaching programme of reform for one of Africa’s most corrupt and repressive nations. In his speech on 28 June 2010, President Obiang revealed a five-point "comprehensive reform" aimed at consolidating democracy and the rule of law and introducing transparency on oil and gas revenue.(2) Critics however, expect yet another round of false hopes. Obiang is widely criticised for ruling the country as his family's private property, without any respect for human rights, democracy or rule of law.(3) It is believed that, like his elections, the announcement is simply a public relations exercise to improve his image and encourage foreign investment. Obiang’s five-point reform programme is outlined in this article and the foundations of critics concerns are briefly discussed. Also included is a cursory overview of Equatorial Guinea’s present oil production and the future needs for investment of oil revenue. The five-point reformThe decades since independence from Spain have been typified by misrule, impoverishment, failed development, lack of investment and wasted aid in Equatorial Guinea.(4) Despite an economic growth rate of 5% in 2009,(5) due primarily to the exploitation of oil and gas reserves, about 70% of the Equatoguinean population live in poverty,(6) as the country's vast oil revenues are said to be mostly channelled to President Obiang’s family and clan. The political and economic situations in Equatorial Guinea have led to staunch criticism of Obiang personally, and of his regime. Obiang meanwhile believes the source of criticism against him to be "untrue and published without full assessment of the facts."(7) Despite his position concerning the veracity of the claims made against him, the Equatoguinean leader has committed to addressing criticisms by implementing a five-point programme over ten years "in close cooperation with the world community, the African Union and non-governmental organisations."(8) "Our objective is to create an atmosphere of peace, political stability, legal and administrative institutions and transparency in government,” the president said in his speech. "We also want to create trust with investors and provide fair treatment and opportunity to enjoy a reasonable rate of return."(9) First, Government will seek to ensure transparency and accountability in the oil sector. The Extractive Industries Transparency Reform will be aimed at strengthening Equatorial Guinea's efforts to qualify for membership of the Extractive Industries Transparency Initiative (EITI), thus securing investors.(10) Equatorial Guinea was suspended from the EITI, an international programme aimed at improving transparency in the use of resource revenues, in April 2010.(11) Last year Transparency International, which monitors graft from Berlin, ranked Equatorial Guinea as the world's ninth-most-corrupt country adding weight to claims by rights groups that the Government enriches itself with petrodollars while neglecting its citizens.(12) Furthermore, 90% of Equatorial Guinea’s GDP is generated through oil production.(13) Less than 2% of GDP is reserved for expenditure on public health and less than 1% on education, while President Obiang spends vast sums on defence.(14) Furthermore, the International Red Cross will be invited to install its headquarters in Equatorial Guinea and assist in reviewing and assessing all allegations of human rights violations in the country. Obiang announced that Government will also seek the assistance of the International Red Cross in monitoring the Criminal Justice System and prisons to ensure the humane treatment of those convicted of crimes. Finally, the reform programme will seek to enhance the protection of the environment. President Obiang announced that Government will continue to enforce protective measures already in place, such as the ban on the hunting of monkeys in national parklands and forests. In a rare show of humility President Obiang stated that Government "will not ask the global advocacy groups that have criticised us to look the other way and stop their criticisms, but we ask the international community to help us to help ourselves and help us implement this reform programme so that we become partners with the world's democracies."(19) Criticism aboundsObiang's "historic" speech has not been well received by many of his strongest critics. Both within and outside Equatorial Guinea, critics consider the speech an attempt to secure foreign investment and to raise the President’s poor international image.(20) One exiled opponent of his regime described Obiang as "laughing" at the Equatoguineans, adding that he is announcing reforms so that the international community will "leave him in peace, but there are no real reforms within the vague packages" he has devised. A spokesperson of the small exiled group National Front for the Liberation of Equatorial Guinea (FRENALIGE) added that the President "is a dictator without credibility" and "just could not be trusted."(21) As one of the world’s longest serving leaders, Obiang’s unfulfilled promise to create a democracy in Equatorial Guinea after his 1979 coup d’état has lead to his commitments being met with distrust and suspicion. While regular elections are held in Equatorial Guinea, they are considered to be neither free nor fair, not being accompanied by any of the essentials of democratic process including the rule of law, freedom of the press and freedom of expression or association.(23) Critics view Equatoguinean elections as nothing more than a claim to outsiders of the existence of a fledgling democracy. Critics also refer to such incidents as the 1990 multi-party elections, which were seen as an opportunity for democracy to be upheld and human rights standards to be respected. Instead, repression increased, with much of the opposition and free press exiled.(24) In addition, the large oil revenues from 1997 to the present day came with a promise of social reform, which has yet to be realised.(25) The need for investment in social developmentWhen the country discovered big offshore oil reserves in the 1990s, it drew a rapid influx of investment from mostly US energy firms such as Exxon Mobil, Marathon Oil and Hess that turned it into a big oil supplier.(26) However, the latest United Nations statistics reveal that production started to decline earlier this decade, and the pace of investment has fallen by about 30% between 2005 and 2008, to approximately US$ 1.3 billion.(27) According to the International Monetary Fund (IMF), the medium-term outlook for the economy is clouded by the onset of declining hydrocarbon production and overall growth is likely to drop due to lower oil output.(28) While oil has brought great wealth and growth to the Equatoguinean economy, and huge oil revenues have financed both public investment programmes and the accumulation of large financial assets and the development of basic infrastructure,(29) challenges related to declining oil production and poverty are cause for concern. According to the IMF, oil dependence will continue over the medium-term, with longer-term prospects dependant on the ability to develop alternative sources of value added through economic diversification.(30) These declines make immediate investment in areas of social development crucial, while oil revenue is still coming in. Strengthening human capital and diversifying the economy through investment in education, health care, tourism, housing, infrastructure and job creation outside of the oil industry are essential to ensuring that Equatorial Guinea can decrease its dependence on oil revenue. This would then secure future economic growth and work towards poverty eradication and prosperity. While critics have their doubts, and the implementation of reforms may not entirely mend decades of absent development, corruption and human rights abuse, it is a crucial step in the right direction. Concluding remarksThe announcement of wide-ranging reforms in a country that has a historical record since independence marred by corruption, human rights abuse and poverty would ordinarily be met with praise and optimism. However, the promises of reform made by a President who apparently runs his country as a family fief and is known for severe corruption have been met with well-founded scepticism and suspicion. Nevertheless, reforms implemented properly, contrary to critics’ expectations, are essential to the future growth and development of Equatorial Guinea. Dwindling oil reserves and a drop in production creates an urgent need for the current revenue acquired from the hydrocarbon industry to be invested in social development that will build human capital and diversify the economy, thus lessening dependence on oil and ensuring future growth without the valuable commodity. While Obiang’s five-point reform plan intends to do this, while also addressing issues of human rights abuse, the implementation of the reforms remains in doubt. In addition, changing the lives of Equatoguineans through reform may be even more difficult than taking Obiang’s promises seriously. As Obiang himself put it "We have a long way to go to achieve this ambitious program of reform and transparency. In many ways we have to fundamentally change the course of our history and parts of our culture. It will not be easy."(31) NOTES: (1) Claire Furphy is an External Consultant for Consultancy Africa Intelligence's Africa Watch Unit (
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