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Sub Saharan Africa Research Paper

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Sub saharan Africa consists of a collection of African countries who’s supply of natural resources made many hopeful. Despite its potential, there has been many obstacles in the way of economic growth. Africa, as a whole, has shown no real growth in per capita GDP over the period of 1968- 1990. (Easterly & Levine) This was a period that was plagued with issues due to the oil crises of the 1970s and 1980s which came with a large package of economic hardships. These issues include a rise in interest rates, trade deficits, current account deficits, falling growth rates, a rise in inflation, and a poor performing agriculture and industrial sector. (Muhula & Ndegwa 275) These issues created an environment host to many social issues, like poverty …show more content…
Oil, in particular, has the ability to drastically effect the success of a sub-saharan country due to external factors. Both increases in oil demand and the oil crisis was the result of a variety of international conditions. Foreign interest in the Sub Saharan African commodities stimulated growth in the 1990’s after two decades of decline. China, Europe, United States, and India were areas that showed major interest in Sub Saharan Africa’s oil market. A major reason for the high demand was the anticipated shortages or decline in availability of energy supplies. In 2004, Africa had around 7% of the worlds oil reserves while accounting for 11% of its production. (Southall) Also, demand for oil is expected to increase even more due to projected increases in global consumption. Africa in particular was attractive was due to the fact that its countries had little to no preexisting conflict with certain developed countries. The United States, for example, was trying to decrease their dependence on Middle Eastern countries for resources due to growing hostility. (Southall 133 ) The continued reliance on the Middle East would threaten their energy …show more content…
In a Study by Markus Brückner and Antonio Ciccone, they have found that, consistent with their expectations, negative shocks in commodities like oil or gold would be accompanied with an increase in violence. The surge of violence may makes conflict like civil war much more likely. (Brückner & Ciccone 537) We can examine this relationship by looking at a specific Sub Saharan country who had it’s own dealings with conflict: Angola. In 1992, conflict broke out between two political groups in Angola, UNITA and MPLA, driven by competition over natural resources. UNITA ended up seizing Angola’s diamond fields and used them to fund continued war efforts. In response MPLA decided to regroup and refund their forces using the rapidly growing petroleum market. (Billon 103) Angola’s commodities and their value was used to prolong a war, even when the economy does well. The oil and mineral companies consumed a silent and complicit role by not doing much to stop the conflict. Angola didn’t need a negative oil shock to pair with their surge of violence. During this period, Angola was dealing with many internal conflicts and the oil market was booming despite the other economic downfalls they

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