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IX. Conclusion

In addition to decades of war and humanitarian crisis, the Angolan public has had to bear the brunt of government mismanagement of billions of dollars in public funds. Such mismanagement has contributed to woefully inadequate social spending and underfunding of institutions necessary to protect human rights. It also has been accompanied by government unwillingness to hold free and fair elections, possibly because officials fear that the government has not sufficiently provided for the population and would not be able to retain power if Angolans were able to express their preferences freely.

From a human rights standpoint, the current situation is untenable. It is difficult to imagine that government programs or institutions essential to protecting human rights will be able to function properly until the revenues of the state and its expenditures are fully and accurately disclosed. Only then will the Angolan public begin to have the tools required to exercise meaningful oversight over their government. Without such steps, the dire humanitarian situation may worsen and Angolans’ rights to health and education will not be fulfilled. Historically, every effort to increase transparency and accountability has been met with government intransigence. The limited steps the government has taken, such as releasing the executive summary of the first Oil Diagnostic report and authorizing the publication of the 2003 IMF Article IV Staff Report are positive. But they are small steps and much more remains to be done to make the government genuinely accountable.

However, a small window of opportunity for reform may have opened. The government has mismanaged the economy to the point where it can no longer rely on past practices, lurching forward from crisis to crisis and still avoiding accountability. But if Angolans are going to finally have the opportunity to exercise adequate oversight over their collective wealth and its use, it will require a concerted effort by the government and consistent pressure from the international community.

The proposed Soros initiative is a positive step that could facilitate greater transparency. Given Angola’s record of failing to implement promised reforms, however, additional efforts are necessary. One important tool would be another IMF SMP with detailed requirements of public disclosure and accountability. Regardless of what one may think of the overall economic proscriptions of the IMF, it is clear that the Fund has been one of the most consistent and forceful proponents for government transparency in Angola. However, the government has not expressed much interest in a new IMF program. If negotiations between the IMF and government continue, it is crucial that the international community generally, and the IMF in particular, insist upon full audits of Angola’s oil revenues and expenditures; publication of data; revision of laws that prevent government oversight; and full disclosure of debt. Otherwise Angola will remain an example of how not to govern and how mass impoverishment can coexist with substantial natural resource wealth.


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January 2003