The Prospective Role of Oil Exploitation in the Socio-Economic Development of Chad

Abstract

This study aims at discover the role that can be played by oil exploitation in socio-economic development in Chad, through discovering the effect of oil exploitation on the key sectors of the Chadian-economy. Further the study aims at focusing on the fact that sound allocation and management of resources is a basic condition to the success of development process in Chad. This study uses the descriptive analytical method in collection and analysis of data to get the results and it depends on secondary data. This study has been divided into three main chapters: Chapter one is introduction. Chapter two is literature review. Chapter three involves the analysis that explains the role can be played by oil exploitation in development of Chad. This study has concluded that the most important factors that led to underdevelopment of Chadian economy and deterioration of living standards of the population could by summarized in points which are: (i) Colonial power has not established economic projects and infrastructure during Colonial period, (ii) Deterioration of security and political conditions after independence, (iii) The Landlocked position of Chad, has produced economic fragmentation. Further this study has concluded that oil exploitation would change the economic outlook of Chad and accelerate socio-economic development. The balance of trade of Chad would have surplus for the first time since independence by 2004. The Improvement in balance of trade would positively affect investment thus production increases through a multiplier accelerator process. Through the study of the experience of some countries in allocation and management of oil revenue, the study has concluded that mal-allocation and mismanagement of oil revenue would lead to appearance of political, social, economic and ecological problems and postpone the development process.