Luanda, Angola, 29 Nov – The World Bank is due to present a report Thursday in Luanda entitled, “Oil, increased growth and equality” showing the results of consultations with the Angolan government between 2004 and 2006, according to Angolan news agency Angpop.
According to Angpop, the study focuses on four main issues – socio-economic reality, the existing options for managing mineral wealth with negative macroeconomic consequences, the main constraints on diversifying the economy beyond the mineral sectors and, the challenges and opportunities for increasing the well-being of the population.
The document, to be presented at Universidade Católica in Luanda, identifies six key areas for which a plan is required, taking into account the development of a wide-based growth strategy.
The report is expected to say that, in the first instance, Angola needs to conclude its transition to a market economy as, after its independence in 1975, the Angolan government opted for a centralized economic system which now is considered to have constrained, along with the increasing dependence on oil, the development of solid institutions to promote the emergence of a dynamic private sector.
In macroeconomic terms, the study says, the continued deficiencies in the design and execution of policies still need to be resolved.
The need to improve the business climate and the investment climate is also mentioned in the document, according to which, “if the authorities want to promote a wide-based economic recovery, with more jobs and higher incomes, they will have to immediately implement measures to allow companies to compete more effectively in an open economy.”
In terms of areas with potential outside the mining sectors, the report says that agriculture is important as a source of employment and income, for which reason it should not be neglected.
The World Bank charges that governmental measures should support the proliferation of small-scale farmers whilst promoting a climate to encourage investment from the private commercial sector. (macauhub)