While Chad’s GDP increased from 220.8 dollars in 2002 to 660.2 in 2005, there has been no economic and social transformation since the discovery of black gold, according to two reports from the Bank. world.
The two documents entitled “How can Chad get out of the maze of growth?” And “Chad: Fostering export diversification to stimulate growth”, propose possible actions in the short and medium term, to accelerate the transformation of the pats economy, said Francois Nankobogo, World Bank Resident Representative in Chad.
Both reports indicate that higher oil revenues during the 2000s have not been used optimally to improve the country’s infrastructure and invest in human and physical capital.
Rather than fueling productive investment, Ndjamena has increased military spending by 5 between 2005 and 2009. “Oil has even made Chad’s economy less competitive and more vulnerable to exogenous shocks,” the report says, citing three constraints. Chad’s growth, namely insecurity, dependence on oil and the sub-optimal intervention of the state.
According to the World Bank, the poverty rate is expected to increase to 39.8 percent in 2019.
