The Director General for the Economy and National Accounts, Pascual Nvo Mangue, was the first speaker on 25th April, on the panel of the Agenda for Economic Recovery 2019-2022 (AER).
His presentation highlighted various points: the justification for the Agenda for Economic Recovery (AER), the macroeconomic context for the country, the fiscal agenda, economic growth, the agenda for social inclusion, and finally, the institutional agenda.
He began by saying that the Republic of Equatorial Guinea has the potential to become an important player in the African and global economy, due to its natural resources and strategic position. However, this potential has, over the years, remained largely unexploited.
He also pointed out that the AER is a short and medium term strategy, which is being implemented with the aim of re-establishing economic growth and eliminating the obstacles that impede a solution to the problems of social, economic and cultural development in the country.
The aims are to transform our productive structure, diversifying our products and services from other sectors with competitive advantages; to seek mechanisms to improve public management of income and costs, in addition to improving the financial capacities of the State; to improve the institutional framework and create an operational programmatic framework in the social sector, which attends the needs of the population, in order to achieve Sustainable Human Development (SHD) and social cohesion on a national level.
Finally, he presented the four chapters on the AER, the first related to the macroeconomic area. From the mid nineties 1990-2010, Equatorial Guinea went through a period of exceptional economic growth, boosted by the spectacular boom in the oil sector.
The low global oil prices from 2004, combined with a constant reduction in the national production of hydrocarbons, put an end to the economic expansion of the country.
The second chapter covered the Fiscal Agenda. According to the UN, it will be necessary for developing countries to achieve fiscal income of at least 20% GDP in order to be able to generate the resources necessary to finance the SDG. According to the OECD, the average collection in member countries was 34.5% GDP in 2015; in Equatorial Guinea the sector has its own fiscal regime. Between 2006 and 2017, the average fiscal income to GDP was 8.5%, with only 1.66% corresponding to the non-oil sector.
The third chapter covered the Economic Growth Agenda. As a consequence of the development of the oil industry, between 2000 and 2008 the real average growth in Equatorial Guinea surpassed 30% and the country became the third largest producer of hydrocarbons in Sub-Saharan Africa (SSA).
The final chapter referred to the Institutional Agenda. This is crucial and essential for the achievement of all the measures proposed under the AER, in the various sub-agendas that make it up. Its importance is due to the fact that it covers the question of better governance or good government.
The meaning of good governance is debatable. In the first place, the term “governance” does not have only one meaning. However, the definition of good governance on which this agenda is based will focus on the content of the AIR, to promote good governance in the less advanced countries of the United Nations.
Source: Equatorial Guinea Press and Information Office