economic activities of equatorial region (briefly)
Answers
Equatorial Guinea’s economic freedom score is 42.0, making its economy the 175th freest in the 2018 Index. Its overall score has decreased by 3.0 points, primarily because of a plunge of 27-plus points in the fiscal health indicator. Equatorial Guinea is ranked 45th among 47 countries in the Sub-Saharan Africa region, and its overall score is below the regional and world averages.
Oil was the major source of high economic growth in recent years, and the government was criticized for its lack of transparency about and misuse of oil revenues. Now that Equatorial Guinea’s hydrocarbons boom has ended, the government cannot rely on debt-financed investment to support growth. Overall, economic development has been uneven, and poverty remains daunting. Persistent institutional weaknesses impede development of a more vibrant private sector. The rule of law is weak. Pervasive corruption and onerous regulations are major hurdles for foreign and domestic investment.
BACKGROUND
Equatorial Guinea gained independence from Spain in 1968. President Teodoro Obiang seized power in 1979 and won reelection to another seven-year term in 2016 with 93 percent of the vote. The opposition protested the result as fraudulent. The government is trying to develop agriculture, fishing, financial services, and tourism to diversify the economy. It renewed diplomatic ties with Israel in July 2016 and joined OPEC in May 2017. During its oil boom, Equatorial Guinea was one of Africa’s fastest-growing economies and sub-Saharan Africa’s third-largest oil producer, but its economy is now in decline. In 2014, U.S. authorities seized more than $30 million in assets from Obiang’s son (and vice president) Teodorín, who faces charges in France for money laundering and embezzlement.
RULE OF LAW