Africa's Oil: A Blessing or a Curse?

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African Development Bank Chief Warns Against Populist Policies

Amid the news of new oil findings in West Africa, African Development Bank President Donald Kaberuka warned governments against using the extra cash from oil and gas exports to pursue populist policies like raising public sector wages.

"[They should) avoid using the resources to rapidly increase recurrent expenditure. That is what people will be expecting but that would be the wrong thing to do," he told Reuters.

Instead, he said extra revenues should be channeled into areas such as infrastructure and education to ensure that the nations are building solid foundations for the future.

(Photo: REUTERS/Rafael Marchante)

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