Photo: hauteboy

The main objective of this project is to analyse opportunities for diversification of the Angolan economy. In Angola, production, exports and government revenue are concentrated in natural resource based activities. These activities drive the value of domestic currencies up to levels at which other industries face difficulties competing. The concentrated resource-based Angolan economy also generates high rent that elicits contests for its capture. Diversification can in theory stimulate production that reduces Dutch disease problems and reduces the incentives for rent capture. The aim of the project is to identify conditions under which diversification represents a viable strategy to address resource related problems. The project consists of three sub-projects addressing the following questions:

1. Under what conditions is diversification feasible?

2. To what extent is diversification important to reduce resource curse problems?

3. What lessons can Angola draw from other countries’ diversification strategies?