29.01.2015 Views

1FW2e8F

1FW2e8F

1FW2e8F

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

SECTION 1 2 3<br />

WHAT CAN BE DONE<br />

(CASE STUDY CONTINUED)<br />

This was accompanied by a range of new progressive social<br />

programmes funded by renegotiating the country’s contracts for its<br />

oil and gas at a time of high global commodity prices. 503 A much larger<br />

number of people now benefit from the exploitation of the country’s<br />

natural resources.<br />

The government, responding to the demands of the people, used the<br />

natural resource windfall to invest in infrastructure, targeted social<br />

programmes and increases in the universal pension entitlement. 504<br />

It has also raised the minimum wage, and increased public spending<br />

on healthcare and education. Even though more spending on these<br />

services is needed, poverty 505 and inequality 506 in the country have fallen<br />

continually for the past 10 years.<br />

Significant challenges remain. To date, the oil and gas windfall has<br />

allowed the government to avoid the issue of tax reform, where<br />

significant redistributive and sustainable potential remains. 507 This<br />

means that the country’s economic model has so far been almost<br />

entirely based on revenue from extractive industries, which in the longrun<br />

can undermine sustainable, pro-poor development.<br />

111

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!