Chatham House Report
John V Mitchell and Paul Stevens, July 2008
Since 2003, countries whose economies depend on the export of oil and gas have enjoyed a surge of revenue driven by rising oil prices and, in some countries, rising export volumes. The press has captured petroleum-fuelled prosperity in images of futuristic construction plans and the rocketing assets of sovereign wealth funds. However, this obscures important differences among oil and gas exporters in terms of reserves size and social development challenges.
Based on a major study of twelve hydrocarbon-exporting countries, this report shows that the boom does not guarantee economic sustainability for these countries, most of which face hard policy choices over domestic consumption, development spending and rates of economic growth. The report estimates the timeframes these countries have in which to make the necessary changes and examine their prospects for success given the existing human, institutional and technical capacity, competitive advantages, infrastructure and access to capital.