africa

21. Past the Resource Curse:
The “New Normal” of African
Economics and Politics
Paul A. Acquah
Former Governor, Bank of Ghana
Former Deputy Director, African Department, International Monetary Fund
21.1 Introduction
There are good reasons to be optimistic about Africa’s future, although there is often
a touch of skepticism in the refreshing new sentiments about Africa. The “resource
curse” theme is a good illustration of this ambiguity. There is enthusiasm about
new natural resources discoveries in Africa but, at the same time, apprehension
that large revenues from those resources, notably oil, gas, and minerals, might well
lead Africa to make policy choices that could put its future at risk, and extinguish
the light many now see at the end of the tunnel.
The experience of a number of countries, notably the Democratic Republic of Congo,
Libya, Nigeria, and Liberia, provides valid reasons for some skepticism. But this
experience also offers some recipes for what not to do, so as to avoid taking the
wrong turn at the fork in the road.
So the fundamental issue is how we see the future course and effectiveness of
economic policy, and in particular whether, on the basis of what is happening in the
natural resources sector across Africa today, we can find strong enough evidence
that there will be no growth reversal, no disappointment. Put differently: is there
reason to be optimistic, considering the strong policy performance and achieve-
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