Will Tanzania’s Natural Gas Endowment Generate Sustainable Development?

Ross Harvey ()
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Ross Harvey: South African Institute of International Affairs

A chapter in Value Chains in Sub-Saharan Africa, 2019, pp 151-165 from Springer

Abstract: Abstract Considerable natural gas deposits have recently been discovered in Tanzania. After providing information on these discoveries in terms of magnitude, potential value and their role within Tanzania’s economic reality, the author reviews the literature on the relationship between resource abundance and underdevelopment. He introduces a game theory model that helps to visualise the set of incentives facing ruling elites in resource-abundant, institutionally weak states. Against this background, the strength of Tanzania’s governance institutions—including those specific to the oil and gas sector—is assessed. The authors concludes by suggesting practical policy steps to strengthen Tanzania’s institutions, as these must be designed in a way that guarantees that neither citizens nor the government prefer violence over taxation and work respectively to access profits generated in the resource sector.

Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:aaechp:978-3-030-06206-4_10

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DOI: 10.1007/978-3-030-06206-4_10

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