Selected Policy Notes for Incoming Administration of Angola
The Angolan economy is at a juncture. The current growth model based on oil wealth is nearly exhausted,and has not delivered inclusive growth and shared prosperity. The challenge for the administration is to restore macroeconomic stability and lay...
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| Format: | Policy Note |
| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/745961539853916418/Selected-Policy-Notes-for-Incoming-Administration-of-Angola http://hdl.handle.net/10986/30632 |
| Summary: | The Angolan economy is at a juncture.
The current growth model based on oil wealth is nearly
exhausted,and has not delivered inclusive growth and shared
prosperity. The challenge for the administration is to
restore macroeconomic stability and lay the foundations for
a new, more inclusive growth model that can support a young
and growing population.Oil and mineral wealth allowed Angola
to sustain a long civil conflict and to pay for
post-conflict reconstruction, but it will not allow Angola
to reach higher stages on the development ladder.Angola
faces two broad policy challenges that need to be addressed
urgently: The growing internal and external imbalances
following the adjustment to lower oil prices pose an
immediate challenge of macro stabilization. Prospects of
persistently low oil prices and diminishing oil reserves
call for a new sustainable and inclusive growth model that
promotes economic diversification. The first priority is to
restore macroeconomic stability.Restoring macroeconomic
balance is essential to providing a foundation for long-term
sustainable growth.The second priority calls for a new and
more inclusive economic growth model to achieve sustained
growth and to further improvements in human development and
poverty outcomes.Sustainable inclusive growth and economic
diversification require strong institutions and a more
conducive environment for greater private sector
participation.The new Administration is well aware of these
challenges and has started to carry-out much needed
adjustment.The objective of these Angola Policy Notes,
written from the perspective of the World Bank, are to
support the government in its reform agenda. The 15 concise
policy notes range from consideration of short-term macro
stability to policies in support of economic diversification
and long-term inclusive growth. The policy notes reflect the
World Bank’s past and current engagement in Angola in
several sectors, and provide a short diagnostic of the
current situation and present policy options for reforms.
Recommendations are assessed according to technical and
political feasibility of delivering results within a time
horizon of three to five-years. |
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