The oil boom in Central and West Africa could result in prosperity or disaster in the region, depending on how wisely the revenues are spent, according to a study released on Wednesday.
The report by the Centre for Strategic and International Studies said the growing oil exports of Nigeria and Angola will significantly enhance the global position of the two countries.
Also, greater attention will be focused on ”emergent, unstable producers” in the region — Equatorial Guinea, Chad and Sao Tome and Principe, the report said.
”With proven reserves of more than 60-billion barrels, the region today provides one in four new barrels of oil coming into world markets from outside the Persian Gulf,” said the report, titled Rising US stakes in Africa.
Secretary of State Colin Powell will address a Capitol Hill conference on Thursday at which the report will be discussed.
The study said the region could add 2,5-million to 3-million barrels a day to world markets in the next 7 to 10 years.
The rise in oil production ”could bring prosperity or disaster to a fragile region and to complex and expanding US interests there,” the study said.
The benefits, it said, will be felt throughout the region if the exporting nations achieve greater stability, invest wisely, improve governance and respect the rule of law.
US interests would be served as well, it said.
Alternatively, the report said, if these nations ”fall victim to the pattern of resource-rich developing nations, corruption will deepen, wealth will be squandered, competition for oil wealth will aggravate internal stability and cross-border violence, and the health, environmental conditions, and life chances of the region’s 200-million citizens will remain stalled.”
The study also warned of a growing terror threat to US interests in Africa.
US policy will have to contend with the factors that attract terrorists: weak states, deep economic deprivation and religious fissures.
The US response cannot be driven by security programs alone. ”It also requires sustained attention to economic development, human rights and democratisation,” the report said.
With a Muslim population of 300-million, the study noted that Africa provides a large pool for recruitment by Muslim extremists.
The US approach should emphasise constant engagement with Muslims representing the full spectrum of opinion, it added.
The report also recommended that the United States increase pressure on Saudi Arabia to regulate financial flows by Saudi charities to Islamic schools in Africa. The schools are alleged to teach students to be intolerant of non-Islamic religions. – Sapa-AP