Information service of the Pontifical Mission Societies since 1927
Libreville (Agenzia Fides)- The government of Gabon has issued orders for the prices of some prime necessities to be kept under control for the next six months. The products include palm oil, sweetened concentrated milk, powdered milk and certain building materials such as cement.
At the end of August the government warned shopkeepers to lower prices following recent increases, which it said were 'excessive'. Prime Minister Jean Eyéghé Ndong described as "debatable" motives put forward by wholesalers and shopkeepers to justify the higher prices: rising prices of fuel and prime agricultural materials at the world level, as well as an increase in the minimum wage in Gabon.
Besides contingent motives, Gabon is affected by what is called “Dutch Disease”: an economy over dependent on oil exports and tending to abandon other economic sectors, (agriculture and manufacturing of product), preferring, thanks to a strong currency (deriving from exports of hydrocarbons) to import goods and foodstuffs to satisfy national needs. The name comes from the fact that this economic phenomenon was first noted in Holland in the 1970s when the discovery of gas fields pushed the country to abandon traditional sectors of the economy and import manufactured goods.
Gabon is one of Africa's oldest petroleum producers: the first tanker sailed from the coast of Gabon in 1957. Since then the country has developed an economy which is to a great extent dependent on crude oil export, to the detriment of farming and other activities. Gabon has abundant fertile land and water, but it left its farming sector in a state of abandon preferring to import food from abroad from French potatoes to South African tomatoes.
The country is also forced to import refined fuel, since Gabon has no refineries. The increase in oil products is a double edged sword: on the one hand there is greater income thanks to rising prices of crude oil, on the other one has to pay more for gasoline, oil and other imported goods which are affected by rising transport costs.
The manna petroleum is running out. In 1998 Gabon produced 350,000 barrels of oil a day; in 2001 production dropped to 250,000. (L.M.) (Agenzia Fides 13/9/2007 righe 36 parole 423)
