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Teale Walheim Development Consultant

December 6, 2013

Dear President Obiang and Minister of Labor, It is my honor to submit to you the requested policy report of which dissects Equatorial Guinea’s unemployment problem and provides a policy recommendation that works to alleviate the issue. Tactical analysis was used to root out the underlining issues that have caused high unemployment rates in Equatorial Guinea. It has become clear that the underinvestment and underdevelopment of the education and agricultural sectors in addition to a poor business environment have arrested Equatorial Guineans ability to secure long-term employment. It is in the best interest of the government to immediately initiate an aggressive policy agenda to repair the employment situation. Accordingly, I have included in the report a recommendation for a strategic policy plan that addresses Equatorial Guinea’s short-term and long-term unemployment problem. After careful consideration of a number of policy options, I propose a multilayered approach that includes an increase in investment for the education and agriculture sectors. It is vital that education becomes a priority due to its ability to provide the skills needed in the labor market. Agriculture must again become an economic pillar for Equatorial Guinea as it can provide jobs for rural communities as well as diversify the economy thus decreasing the reliance on oil. Additionally, it is crucial that the business environment be improved to foster entrepreneurs and encourage foreign investment. In conclusion I have provided an implementation plan for which I recommend a special task force be created under your guidance in order to execute the proposed agenda. Equatorial Guinea is a great nation on the brink of unlimited prosperity. It is of the greatest honor that I have the ability to work with you on this important path towards development. Please do not hesitate to contact me regarding any questions or concerns you may have.

Respectfully Yours,

Teale Walheim Development Consultant

The Honorable President Obiang & The Minister of Labor and Social Development

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From: Teale Walheim To: Equatorial Guinea’s Ministry of Labor and Social Security Date: October 11, 2013 Re: Unemployment Management and Social Development in Equatorial Guinea _______________________________________________________________________ Executive Summary

Equatorial Guinea has become one of the richest countries in Africa, yet the majority of

its population still lives in dire poverty, surviving on less than $2 a day (AEO, 2008, pg 298).

The Equatoguinean government has invested the majority of its national funds to establish the oil

industry and consequently its funding for agricultural production (their primary source of income

before the discovery of oil and a large job provider) has greatly decreased (CIA, 2013). As a

result, unemployment has become an increasingly critical problem exacerbated by the fact that

approximately 60% of the country’s population is under the age of 25 years old (AEO, 2012).

The government’s failure to provide its citizens with sufficient education and training facilities in

combination with a thin market for employment opportunities and underinvestment in agriculture

have restricted Equatoguinean’s ability to escape the poverty trap that cripples much of the

country. It is critical that President Obiang and the Ministry of Labor and Social Security act

now to implement policies that support youth development in education and vocational training

as well as policies that enable the market to diversify and foster sectors other than oil.

This policy memo examines the historical, political, economic and social context of the

unemployment problem in Equatorial Guinea. It will explore the incentives of key stakeholders

and diagnosis the type of failures that have lead to the current situation as well as offer a clear

problem definition. After a detailed comparative analysis of several policy solutions, it has been

recommended that President Obiang and the Minister of Labor implement a three-layered policy

agenda that reinvests in primary education as well as technical and vocational training and

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education programs, in additional to revitalizing the agriculture sector and improve the overall

business environment. The combination of these three policy initiatives will combat short term

and long-term unemployment and consequently secure economic stability and advance social

development within Equatorial Guinea.

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Historical Context

Equatorial Guinea is a small West African country located on the coastline between

Cameroon and Gabon with a population of roughly 735,000 people (CIA, 2013) (See Appendix

I). It gained independence from Spain in 1968 and since has had two presidents who have ruled

over the country with authoritative power. The current president, Teodoro Obiang Nguema, has

been reelected four times though the legitimacy of the democratic elections has been widely

questioned (CIA, 2013). In 1996, Equatorial Guinea discovered large oil reserves off their

coastline and quickly became one of the largest oil exporters in Africa (CIA, 2013). Oil revenue

has greatly increased the country’s GDP over the last decade and now Equatorial Guinea is one

of the richest countries on the continent.

Despite the impressive GDP, Equatorial Guinea’s economic growth has not translated

into improved social infrastructure. Close to 77% of the population still lives in extreme poverty

surviving on less that $2 a day. (CGDev, 2011, pg 1). Education and health services remain

severely inadequate and roughly 57% of the population lives without better access to water

sources (CGDev, 2011). Unemployment is endemic and a primary factor contributing to the

poverty in Equatorial Guinea. A national survey of unemployment reported that 65.5% of the

households in Malabo, 57% in Bata and 65% in other regions “no-one was working” (AEO,

2012, pg 11). “The quality of life for most citizens of Equatorial Guinea has stagnated, and, by

many measures, has actually declined in recent years” (Open Society, 2010). Income disparities

and inequality have become increasingly apparent in contrast to the lifestyle of the political elite

and those working in the oil industry.

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Government & Political Context

The dichotomy between the rich elite who prosper from the oil industry and the greater

population living in extreme poverty continues to widen calling into question the motives of the

government. GEPetrol, the state owned oil company, is directly linked to President Obiang and

his family who are at the center of allegations of large scale corruption and excessive personal

spending (CGDev, 2011). “Gross misappropriation of the nation’s resources has continued for

well over two decades, enriching members of the Nguema/Mongomo group and making

Equatorial Guinea an almost perfect kleptocracy” (Open Society, 2010). Exact estimates of

internal oil revenue are kept secret from the public and foreign investors regularly complain of

the extremely high informal costs of doing business within the country (CGDev, 2011).

In 2007 Equatorial Guinea applied for candidacy in the Extractive Industries

Transparency Initiative (EITI) but was later rejected due to low levels of social participation and

the fact that “macroeconomic and socio-demographic data are also deficient in quality, timing

and coverage, and even the most basic data are very hard for the public to access” (IMF, 2013).

President Obiang and his close circle of political leaders have profited greatly from the oil

industry and have a vested interest to keep it a government priority. Some believe “the non-

investment in social services is, in a way, a policy intended to avoid the emergence of economic

or political rivals” (Campos-Serrano, 2013, para 42).

However, throughout Obiang’s presidency, he has been determined to “secure external

validations and legitimacy for (his) regime” and as he approaches the end of his life (he is 71

years old) his desire to secure a positive political legacy could be a great opportunity to persuade

him to make drastic changes to improve the lives of his citizens (GCDev, 2011).

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Economic Context

Equatorial Guinea’s economy is currently heavily dependent on oil and natural gas

exports, which combined account for close to 95% of their GDP (EIA) (See Appendix III).

However before the discovery of oil their economy relied primarily on the production and

exportation of cocoa, coffee and timber (CIA). Since the Equatoguinean government has

invested the majority of its funds to strengthen the oil industry, the agricultural industry has

suffered. Today agricultural exports account for less that 2% of the total GDP. Cocoa production,

for example, has fallen from 3000 tonnes exported in 2007 to only 859 tonnes in 2011 (AEO,

2012, pg 5) (See Appendix III). Barriers affecting the production of coffee and cocoa are “the

lack of material and financial support to farmers and the condition of the road infrastructure”

(AEO, 2008, pg 288). Even though the majority of the population survives on subsistence

farming, the government’s lack of investment in large-scale agriculture production has greatly

diminished the opportunity to transform the sector into a primary job creator and economic

powerhouse (UN, 2013).

Regrettably the oil industry, which accounts for only 4% of the labor force, does not

sufficiently supply enough jobs to substitute the labor markets dependency on agriculture (AEO,

2012). Additionally, the oil industry jobs generally require a high level of skill sets that are not

prevalent among Equatoguineans. The reliance on oil revenue and the lack of economic diversity

are major issues Equatorial Guinea faces, especially considering the large portions of the young

people attempting to enter the workforce.

Extremely inefficient and unnecessary regulations are being imposed on the private

sector obstructing the diversification and the improvement of the domestic economic

environment. In 2012 the World Bank ranked Equatorial Guinea 155th out of 183 countries in

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their Doing Business Report (AEO, 2012, pg 9). Long “procedures for starting a business and

waiting times, at 21 days and 137 days respectively” does not encourage entrepreneurship nor

does the “excessive bureaucracy,…corruption and arbitrary behavior” of public institutions

(AEO, 2012, pg 9). The IMF insists, “promoting greater access to credit for small- and medium-

sized enterprises should also be a priority” (IMF, 2013). Needless obstacles must be cleared

away to create an accessible and efficient path for a successful private sector to emerge.

Social Context

Similar to many other African countries, Equatorial Guinea is experiencing a youth

bulge. Over 60% of the population is under the age of 25 years and “the economy is unable to

generate enough jobs to deal with this growth in the active population” (AEO, 2012, pg 13).

Conversely, with the increases in foreign investment and private sector businesses, some argue

unemployment is due to an “under-qualified workforce (rather) than to insufficient vacancies”

(AEO, 2008, pg 296). It is reasonable to assume that the greater problem is a combination of the

two. The low availability of job opportunities as well as a lack of marketable skills is

contributing to high unemployment rates. Another contributing factor is the increased

competition for jobs from “thousands of immigrants from near and far” flocking to Equatorial

Guinea after the discovery of oil (Campos-Serrona, 2013, para 1). The youth bulge exacerbates

all of these problems as more and more people enter their prime working years without the skills

and opportunities to succeed (See Appendix II).

The education and vocational training facilities currently in place provide too few

locations to sufficiently supply the workforce with the desired number of workers. Schools are ill

equipped and teachers are poorly trained to adequately prepare students for the current work

force (AEO, 2008). Corruption is also intertwined in the educational systems as “teachers with

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political connections but no experience or accreditation were hired, even though they seldom

appeared at the classes they purportedly taught” (Open Society, 2010). Additionally, higher

education is free to citizens but is only available in Malabo and Bata thus alienating much of the

rural population (AEO, 2012).

Stakeholders Analysis

The key stakeholders in this situation are President Obiang and Minister of Labor.

Currently there is “no demonstrable differences in interest between the executive and the

legislative” power indicating that all final decisions concerning the nation come directly from the

President (GCDev, 2011, pg 7). Thus if a policy is recommended by the Minister of Labor, the

President will have to give his stamp of approval creating a two tiered key stakeholder (see

Appendix V).

The President it also a primary stakeholder considering he has the executive power to

affect the policy decision. He has a strong personal interest in seeing his country prosper thus

bolstering his international reputation however he also has a large financial stake in policy

reform concerning the oil industry. The unemployed population is a primary stakeholder as their

livelihood and future security is at stake if employment opportunities do not improve or continue

to deteriorate. The Ministry of Labor is a primary stakeholder as his budget and resource will be

at stake.

Secondary stakeholders include the Ministers of Education, Mining and Energy, and

Agriculture as they all have considerable interest in any policy reform as it may greatly affect

their budgets and resources. Additionally they have the ability to influence the President’s

decision. Farmers and teachers are also secondary stakeholders who have their job security and

governmental support at stake however they have very little influence and resources available.

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International development agencies like USAID and the African Union Bank have a

vested interest in the policy decision though they have little power besides creating awareness of

the unemployment or poverty situation in the country therefore they are considered external

stakeholders. Current partners in the oil industry are considered external stakeholders as they

potentially could use their power to sway the final policy decision one way or another but

because they would only be marginally affected, they have little incentive to get involved. One

official from Marathon Oil told the Washington Post that, “We think we have a positive affect on

the conditions that exist in Equatorial Guinea” (Blum, 2004). Foreign investors are also external

stakeholders who have little power to affect a decision but still have an interest in the final

outcome as they could profit from a stable economy and a market of higher skilled local workers.

Current Policy

Currently there is not a specific policy addressing the unemployment problem in

Equatorial Guinea (AEO, 2012). They have initiated an economic and social development plan

(PNDES) “which aims to diversify the economy envisages measures to support youth

employment “(AEO, 2012, pg 2). Unfortunately poor management and lack of accountability has

lead to little progress in this initiative (AEO, 2012). The government also formed the National

Development Plan 2020 in which it supports an agenda to diversify the economy in response to

anticipated decreases in oil revenue. However, “it remains a wish-list, with no firm commitments

– a reflection of both capacity constraints, a lack of political will and enforceable oversight”

(GCdev, 2011, pg 8). A specific policy framework is needed to isolate both the governmental

and market failures to improve the overall employment environment.

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Government Failures

Equatorial Guinea’s high unemployment rate is directly linked to a variety of government

failures. The Economist Intelligence Unit named Equatorial Guinea one of the least democratic

countries in the world ranking it 160th out of 167 countries in its 2012 democracy index (EIU,

2012). The public lacks the ability to instruct the government on its needs and the Equatoguinean

government seems disinterested in listening to its constituents thus attributing to an uneven

distribution of power in the hands of a few. The IMF states that the Equatorial Guinea’s “fiscal

administration is dominated by the executive branch of government, with inherent dangers of

overcentralized and inadequate checks and balances” (as cited in CGdev, 2011, pg 7).

Government officials are not under pressure to get reelected, as their seats are secure as long as

they stay in the President’s good graces. Additionally the Equatorial Guinean government does

not publically disclose any information regarding the country’s oil revenue or a concrete annual

fiscal budget representing a debilitating example of information asymmetry (CGdev, 2011).

Failure to disclose the financial situation of the country encourages corruption from the people

who have access to the information and further alienates those who do not.

Large oil revenues in combination with the lack of transparency and accountability within

the government have already led to large-scale corruption and mismanagement of funds.

Therefore the oil industry and its informal benefits have led to government shortsightedness as it

has poured the majority of its funds into oil production for quick increases in revenue while

ignoring the needs of the social development that is essential for the long term prosperity (AEO,

2012). It also illuminates the government’s unwillingness to allocate funds to industries like

agriculture or education that provide little incentives but have the ability to create jobs for rural

communities.

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Within the bureaucratic sector “monitoring mechanisms are inadequate and there is a lack

of expertise in the area” attributing to the major managerial inefficiencies in nearly every public

institution (AEO, 2012, pg 9). Lack of capacity and competition within government institutions

has lead to long delays on business permits and stagnation in the private sector.

Market Failures

One market failure that has greatly affected Equatorial Guinea’s employment rate is the

negative externality of the rise in the oil industry. After the discovery of oil, the Equatoguinean

government switched its economic focus from agriculture, which supplied the majority of the

population with jobs, to oil production that had “limited use of a local workforce and other local

resources” (Campos-Serrano, 2013, para 6). The government has been slow to respond to this

externality and as a result inequality between the oil industry beneficiaries and the rest of the

population has been amplified.

Young citizens are having a particularly difficult time accessing information about jobs in

the market without a national employment agency to provide updates on possible opportunities

(AEO, 2012). Unfortunately, “as a result those responsible for human resources in private and

public sectors sometimes seek to make a profit by offering jobs to the highest bidder” (AEO,

2012, pg 13). Inadequate access to advantageous information about employment prospects is a

clear example of information asymmetry.

Equatorial Guinea’s thin market economy is the primary market failure contributing their

unemployment rate. As the country’s GDP becomes increasingly dependent on oil, other

industries have suffered. The lack of diversity in the economy has greatly reduced the number of

job opportunities available to the public.

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Expected Consequences if Problem is Not Addressed

African Development Bank, OECD Development center, the IMF and the United Nations

Development Programme all agree that high unemployment rates will greatly damage the future

of Equatorial Guinea. Young citizens who are unable to enter the workforce and collect steady

incomes will continue to contribute to the poverty cycle currently in rotation. Instead of

contributing to their families and to the local economy, they will become an additional burden on

both. Women are disproportionately affected by unemployment and if nothing is done to

improve their employment possibilities, gender equality will further deteriorate. Furthermore,

unemployment will intensify the disparity between the majority of the population and the rich

elite creating social instability.

If preparations are not made to integrate the youth bulge into the workforce, not only will

there be civil unrest but the economy will lack the essential labor market to help it diversify.

Without a well-educated, aptly trained populace Equatorial Guinea will not be able to support a

private sector to sustain a growing economy. As a result foreign investment will decrease and

Equatorial Guinea’s international reputation will suffer. It is crucial that the unemployment

problem in Equatorial Guinea be dealt with immediately as the World Bank has estimated that

each year approximately 25,000 to 49,000 additional young people will enter the workforce

without the opportunities or the skills to secure a job (AEO, 2012). To increase social welfare

and the overall efficiency of the public sector, the Equatoguinean government must intervene to

ensure that their young citizens are adequately supported and prepared to enter the work force.

Only then will they be able to contribute to society, elevating not only themselves but also the

prosperity of their country (See Appendix X).

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Problem Definition

  The Equatoguinean government’s financial preference and economic reliance on the oil

industry has arrested the development of alternative public sectors and ignored the need to

revitalize their educational system to adequately supply its citizens with the skills needed to

support a domestic economy. In the face of an increasingly young population, growing income

disparities and international pressure to address the extreme poverty in a country with such a

high GDP, President Obiang and the Ministry of Labor must intervene to ensure its citizens’

basic human rights are maintained and secure long-term economic prosperity for the entire

country.

Policy Response

The unemployment problem in Equatorial Guinea will have grave short run and long run

consequences. It requires a collective policy agenda that is supported and implemented by the

government to achieve the outlined goals and objectives. Furthermore, to ensure that the best

policy option is chosen, every possible alternative must be examined. Each policy option will be

weighed by an evaluation criterion that focuses on effectiveness, equity, social feasibility,

political feasibility, and cost effectiveness.

Goals and Objectives

Equatorial Guinea must establish a comprehensive development plan that aligns priorities

of both President Obiang and the Minister of Labor in addition to the unemployed citizens and

secondary stakeholders. It must works to combat unemployment through improved education,

healthcare, rural infrastructure and business environment. To achieve this goal the following

objectives will need to be addressed:

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Objective #1: Without political support, no policy will succeed. Therefore, it is of the

upmost importance that the Equatoguinean government, more specifically President

Obiang champions the policy plan. He has the centralized power and financial ability to

push an agenda to the forefront and implement it efficiently.

Objective #2: Increased development of Equatorial Guinea’s rural infrastructure,

education and water and sanitation system is needed to ensure that the basic human needs

of its citizens are met.

Objective #3: Revitalization of alternative sectors that employ more people and provide

economic security for the nation in addition to improved business environment.

Objective #4: Access to information and increased transparency must be an overarching

objective to establish trust between the government and its citizens and confidence in the

domestic market.

Monitoring and Evaluation

To ensure that the recommended policy agenda is implemented effectively and succeeds

in achieving the proposed objective, a clear monitoring and evaluation process must be used. The

Equatoguinean government will have the majority of responsibility to monitor and evaluate the

proposed policies but will also be assisted by international development agencies and watchdog

organizations such as the IMF and Extractive Industries Transparency Initiative (EITI). Under

Appendix VII, distinct indicators and data measurements are provided for each corresponding

objective and will be used to evaluate the selected policy plan.

Policy Alternatives

The policy alternatives listed below will be presented to President Obiang and the

Minister of Labor and Social Development as potential solutions to satisfy the objectives above.

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Each alternative policy has been researched, utilized in other African countries and evaluated by

various international development experts.

Alternative #1: Status quo

The first alternative is to continue with the government’s current agenda. Equatorial

Guinea has seen recent improvements to infrastructure, healthcare and economic growth. New

deep-water ports, extensive road construction projects, and airports are revitalizing the

construction industry and paving a path to development (Foreign Policy, 2013). With 200

different companies managing over 1,500 new infrastructure projects within the country, the

Minister of Public Works and Infrastructure believes that these endeavors “will contribute to the

creation of jobs and pave the way for the functioning of many other sectors” (Foreign Policy,

2013, pg 5). Additionally, Equatorial Guinea’s national economic and social development plan

(PNDES) is an ambition document that strives to diversify the economy, improve the business

environment and alleviate poverty (AEO, 2012).

Though the PNDES is well intentioned, many of its goals and objectives have yet to be

achieved, its social development targets in particular. The African Development Bank reported

that “there is limited quantitative information regarding the implementation of the PNDES and

its impact assessment is constrained by a lack of reliable socio-economic data” (ADBG, 2012, pg

8). Additionally the African Development Bank argues that most of the infrastructure

improvements that have been made are focused on the energy and transportation industry in the

urban areas without any consideration given to the long-term development impact (ADBG,

2012). Much of the infrastructure has not aided the poorest communities and only supplied

temporary work, which cannot promote sustainable economic growth (ADBG, 2012).

Furthermore there has been no policy agenda to specifically promote youth employment. Though

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the PNDES aligns with many of the objectives listed above, the implementation of the necessary

policies has been arrested by the lack of institutional capacity and disregard of essential social

development goals.

Alternative #2: Revitalization of the Education Sector

A comprehensive education policy is geared to improve the future of Equatorial Guinea

both socially and economically. The proposed policy has three essentials layers that combat the

three areas in need of improvement. The first is increased spending on primary education as well

as providing incentives to increase enrollment and retention. The second is to increase the quality

of teaching, which is essential for the overall improvement of education in the country. The third

is to expand the technical and vocational education and training division for young adults and

align its focus to the needs of the labor market. A combination of these three objectives will

increase capacity at all ages thus providing the citizens of Equatorial Guinea with the employable

skills they need to improve their lives.

Though Equatorial Guinea has recently made great strides to provide universal primary

education to its citizens, quality standards remain low as well as completion rates, with only 50%

of students finishing primary school in 2006 (ADBG, 2012, pg 6). Even more concerning is the

fact that the government has decreased its spending on education in the last few years attributing

less than 1% of its total GDP to the sector (IMF Country Report, 2013, pg 8). The IMF

recommends that the Equatoguinean government’s “priorities in capital spending should also

switch from infrastructure toward education” as well as establish a framework to evaluate

teachers’ performance (IMF Country Report, 2013, pg 20). This policy would include a

commitment to increase funding to public schools to 5% of their GDP because it has been proven

that an “increase in public spending on education increases primary education enrolment in

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Africa by 21 to 28 per cent while increasing secondary education enrolment by 33 to 42 per

cent” (UNDS, 2012, pg 35). Additionally, in order to increase enrollment as well as retention, it

is recommended that the government provide a free meal during the school hours. This will not

only increase attendance but will also provide the children a nutritious meal that will enhance

their learning ability.

Teacher capacity is a central problem facing the Equatoguinean education sector;

therefore the government must establish a new criterion for evaluating the current teachers.

Additionally the government can regenerate their partnership with USAID to expand their

current teacher training programs as well as call on other international development agencies or

NGOS for technical assistance to dramatically increase the quality of teaching within Equatorial

Guinea. The government can also capitalize on the increased immigration into their country by

giving specific wage incentives for foreign teachers to work within their schools as a way to

boost capacity.

In order to increase the technical capacity of young adults entering an advanced labor

market, Equatorial Guinea must develop their technical and vocational education and training

(TVET) in the country. The government will be responsible for funding the schools and should

provide incentives for the private sector to take part in strengthening the program. Before

expanding the TVET division, the Minister of Labor must survey the private sector in order to

assess their demands. Given that “the ultimate objective of TVET is employability and

employment promotion, it is necessary to link training to the needs of the labor market” (African

Union TVET, 2007, pg 47). The International Labor Office has useful experience revitalizing

TVET in many countries around the world and it is recommended that the Equatoguinean

Minister of Education approach them for assistance in design and implementation of the program

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(African Union TVET, 2007). Additionally, it will be essential that the Minister of Education

call on the international community for help in providing technical assistance and training at the

start of the program.

Compared to the status quo alternative, revitalizing the education sector requires a

substantial increase in spending over a long period of time as well as the need for foreign

technical support. However, it has been proven that investment in education is essential to

combat unemployment and promote social and economic progress. Furthermore, President

Obiang has already publically committed to advancing the education system by building new

schools and USAID is currently training teachers. An aggressive policy agenda that compliments

these developments will not have many opponents and is financially viable given the

advancements of the energy industry.

Alternative #3: Improved Business Environment

Equatorial Guinea’s poor business environment is a significant barrier to employment

and developmental progress (see Appendix IV). To improve the business environment, policies

must be executed to create confidence, trust and efficiency within the market. First, extensive

deregulatory policies must be implemented in order to improve the business environment

allowing entrepreneurs and foreign investors to work effectively and proficiently within

Equatorial Guinea. The African Development Bank makes the claim that “African countries that

are rich in natural resources and have a business friendly environment can diversify FDI in other

sectors to reduce dependence on oil and mineral exports” (Improving Business, 2011, para 6).

Therefore, Equatorial Guinea must reduce the time it takes to register a business as well as

increase efficiency to register property rights. Enabling citizens to receive and establish credit is

also extremely important to encourage and support local entrepreneurs. In an effort to assist

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unemployed citizens in finding a job it is also recommended that the Minister of Labor create a

national employment agency.

Due to the low capacity in Equatoguinean public institutions it is recommended that the

government enlist the help of the African Development Bank which has given technical support

to Botswana, Mozambique and Sierra Leone to specifically “improve both the legal and

regulatory frameworks in order to encourage private investment, accelerate business

development and increase economic growth” (Business Enabling, 2013). Deregulating the

business environment will encourage the creation of more small and medium enterprises, which

in turn will increase the supply of new jobs.

The second part of the improved business environment policy plan would be to increase

transparency and access to information. In an effort to establish trust between the government, its

citizens and the international community, the Equatoguinean government must institute a

constitutional law that allows access to information. By increasing transparency within the

government, there will be less opportunity for rent seeking and it will allow for useful

information to be made available for foreign investors as well as local entrepreneurs.

Additionally with the significant improvements in information and communication technologies,

efforts should be made by the Equatoguinean government to incorporate e-governance in public

administration (Oye, 2013). “The increased automation of processes reduces the need for person-

to-person contact in delivery of Government services to the people, and the less contact there is,

the less opportunity there is for rent-seeking behavior” (Oye, 2013, pg 8).

The improved business environment policy alternative will increase equity by promoting

a more well rounded private sector and it will be extremely cost effective with of the help of the

African Development Bank. Furthermore, most of the policies can be implemented quickly if

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President Obiang approves the initiative and could be seen as a quick win for the government.

However, the secretive culture of the government will prove to be major barrier to the

transparency proposal.

Alternative #4: Investment in Agriculture

With the majority of Equatorial Guinea’s population still reliant on subsistence farming,

it would be advantageous to implement policies that rejuvenate the agricultural sector. The

success stories of the Green Revolution in Asia prove that advances in agriculture not only

promotes economic stability but increases employment opportunities, food security and reduces

poverty (Salami, Kamara & Brixiova, 2010). The agriculture policy aims to dramatically

increase investment in agricultural technology and machinery with subsidies for improved seeds

and fertilizers. Rural roads must be built or repaved to improve the transportation of goods and

taxes should be removed to increase farmers’ profit of exported produce (Salami, Kamara &

Brixiova, 2010). Additionally, the government must put forth a positive campaign to improve the

image of agriculture as it is considered a lesser profession compared to the energy industry

(Salami, Kamara & Brixiova, 2010).

This policy alternative is inexpensive compared to the education policy but will be less

politically feasible because of Presidents Obiang’s preferential investment in the energy industry.

However, a boost in agricultural investment can bring about a dramatic increase in employment

as well as improvements in quality of life. Additionally, with a rise in agricultural production,

Equatorial Guinea would be less reliant on expensive imports and less vulnerable to external

shocks such as a decline in oil prices.

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Alternative #5: Combination of Alternatives 2, 3, and 4

The final policy alternative is to combine the education, improved business environment

and agriculture policies together as a multilayered agenda to combat unemployment and promote

social development within Equatorial Guinea. The education policy described earlier would be a

long-term initiative that invests in primary schools and TVET programs to increase human

capacity. Then by deregulating the business environment and promoting transparency, a more

educated population would be able to enter a liberalized market that offers many new job

opportunities. The agriculture policy would coincide with these two agendas and supply jobs in

rural communities, strengthening the economy and pulling Equatorial Guinean’s out of poverty.

President Obiang has the unique opportunity to use the countries immense natural wealth to

develop his country in a relatively short period of time. This multilayered policy agenda would

dramatically increase equity, is socially and fiscally feasible and would effectively achieve the

objectives. Political feasibility is weak but the unique circumstances of President Obiang’s age

and desire to establish a positive political legacy may provide the opportunity needed for this

ambitious agenda to succeed.

Evaluation Criteria

A variety of policy evaluation tools were used to select the best policy alternative that

addresses the goals and objectives. In Appendix VIII, every policy alternative is assessed in the

Criteria Alternative Matrix using the following principals each given a specific weight of

importance ranging from 5 (the highest) to 1 (the lowest):

Ø Effectiveness (5) – The ability of the policy to successfully achieve the goals and

objectives, which is essential for the development of the country, thus it is given a

weight of 5.

  22  

Ø Equity (5) – The capacity of the policy to equally distribute benefits to the

majority of the population. With extreme inequality dividing Equatorial Guinea it

is vital that the policy address the problems of as many citizens as possible

therefore Equity is also given the weight of 5.

Ø Socially Acceptable (2) – The willingness of society to consent to the new policy.

Since all of the policy alternatives address the concerns of the majority of society

and work to improve their lives, socially acceptable was given a weight of 2.

Ø Political Feasibility (5) – The willingness of government officials to accept,

support and implement the policy. This is of the utmost importance given that the

final decision to advance the policy agenda lies in the government’s hands.

Therefore this was given a weight of 5.

Ø Cost Effectiveness (3) – The comparison of relative cost of a policy to the

expected effectiveness of the policy to achieve the objectives. All the proposed

policies are essential steps toward development and must be implemented at some

point. The effectiveness has been proven in various countries to be worth the cost

therefore this is given the weight of 3.

Ø Administrative Feasibility (3) – The ability of public institutions to adjust and

implement a new policy. Institutional capacity has been a hindrance for change

within Equatorial Guinea and most policies will need the assistance of foreign

development agencies, therefore this was given a weight of 3.

A supplementary Objectives Matrix is provided in Appendix IX to compare and contrast

each policy alternatives’ ability to achieve the objectives. Three classifications are given to

  23  

distinguish the policies ability to either fully meet the objective, partially meet the objective or

unable to meet the objective.

Policy Recommendation

After extensive comparative analysis it is clear that policy alternative #5, the combination

of policies 2, 3, and 4, is the best policy option to address Equatorial Guinea’s unemployment

problem. As it has been clearly outlined earlier, the issue of unemployment is a combination of

various development obstacles that must be addressed before progress can be made. Policy #5

uses a multifaceted approach to tackle the barricades that are blocking citizens from gainful

employment.

Education must be a keystone investment that secures short-term and long-term capacity

building throughout the country. Improving the business environment will liberalize the market

for entrepreneurs and foreign investment resulting in an increase in employment capacity.

Fortifying the agriculture sector provides thousands of jobs for rural communities and diversifies

the Equatoguinean economy providing economic security. It is essential to combine all three

because providing education without job opportunities creates unemployment; job opportunities

without the required education amounts to unemployment and a uniform business environment

without job prospects leads to unemployment and a vulnerable economy. “Social policy should

be conceived as a key instrument that works in tandem with economic policy to ensure equitable

and socially sustainable development” (UNDS, 2012). To continue with the status quo would

result in a stagnation of social development, which will ultimately exacerbate unemployment and

foster resentment among the majority of Equatorial Guineans.

With the highest score of 95 in the Criteria Alternative Matrix, policy #5 is able to

incorporate all six principal respectively while the statue quo alternative scored the least out of

  24  

all the alternatives. Policy #5 fully meets every objective in the Objectives Matrix except for

Objective #1, where it only meets the objective partially. In both tools, it is clear that political

feasibility and government support are the main challenges for this policy option. Substantial

negotiations and strategy discussions with international agencies such as the African

Development Bank, EITI and the IMF will need to be held in order to create a collective

understanding of the importance of this policy agenda and all its elements for the future of

Equatorial Guinea. This effort in multiple different directions may result in the scaling back of

some of the policy components, as a few will be less feasible than others, for example,

introducing an access to information law. Fortunately, due to Equatorial Guinea’s extraordinary

wealth amassing from the energy industry, they are one of the few African nations able to

implement this policy agenda without foreign aid. However, there will be a need for technical

assistance as capacity within public institutions is insufficient.

Risk Analysis

There are inherent risks around every policy agenda, and unfortunately this policy option

is not an exception. The greatest risk facing Equatorial Guinea’s ability to implement the policy

agenda is political turnover. President Obiang is approaching the end of his life and a political

turnover could have drastic effects on the implementation plan, which will take several years.

The success of this policy agenda relies on the government’s support and ability to follow

through with the plan. A possible negative externality of increased agricultural production is

environmental degradation. Many African nations are fighting the battle between profiting off

their land and protecting the environment; this may become an internal conflict for Equatorial

Guinea as well. Additionally, as the policy agenda begins to improve education, infrastructure

and employment opportunities within the country more of their less developed neighbors are

  25  

likely to immigrate to Equatorial Guinea creating more competition. Immigration laws will then

need to be addressed.

Implementation Plan

The recommended policy agenda is complex and multilayered; therefore the

implementation plan will be as well. In order to carry out each distinct policy, it is recommended

that a task force be established comprised of representatives from the Ministries of Education,

Labor, Agriculture, Economy and the Secretary General who will be the voice of President

Obiang. The Ministers of Education, Agriculture and Economy will be responsible for

implementing the policy assigned to their respective Ministry while the Minister of Labor and

the Secretary General will supervise and support the implementation of all the three agendas.

Additionally, the African Union Bank Group as well as the IMF and EITI will be consulting the

task force and providing technical assistance where it is needed. This group will create an action

plan and a timeline similar to the one presented in Appendix X.

To create excitement both internationally and domestically an awareness campaign

should set forth the goals the task force has committed to in an effort to motivate themselves as

well as the entire country. The task force will then outline the budget needed to implement each

policy with a detailed report supporting their financial requirements. President Obiang will give

all final approvals. The monitoring and evaluating of each policy will be performed every quarter

by the task force as well as the African Union Bank, the IMF and EITI. Please see Appendix X

for further implementation details.

Conclusion

Equatorial Guinea has become one of the wealthiest African nations on the continent due

to the discovery of oil reserves off their coastline. The country’s GDP has steadily increased as it

  26  

continues to collect royalties; however, the majority of the population has not seen the benefits of

this newfound affluence. Over half of the population lives on less than $2 a day with inadequate

education, a stagnant domestic economy and staggering rates of unemployment. The current

youth bulge further intensifies these issues; thus it is critical that the government intervene

immediately to correct the various government and market failures.

It is recommended that President Obiang and the Minister of Labor work in accordance

with all the ministries to adopt an aggressive policy agenda that seeks to improve the overall

development of the nation. First, education must become an overarching priority to improve the

lives of Equatoguineans and secure the advancement of society. Subsequently, agriculture must

again become a prosperous industry in order to diversify the economy, provide jobs for rural

communities and decrease the economy’s reliance on the energy sector. Finally, the government

needs to take the necessary steps to liberalize its markets and increase transparency in order to

encourage and support local entrepreneurs and foreign investors. Equatorial Guinea is in the

financial position to achieve these goals and catapult themselves into the league of developed

nations.

   

                           

  27  

Appendix  I    

-­‐Map  of  Equatorial  Guinea’s  Position  in  Africa    

 Source:  http://www.nationsonline.org/oneworld/equatorial_guinea.htm         -­‐Map  of  Equatorial  Guinea  

                                 

Source:  http://www.ephotopix.com/equatorial_guinea_province_map.html      

       

  28  

Appendix  II    -­‐  Equatorial  Guinean  Population  Growth  

   Source:  http://www.tradingeconomics.com/equatorial-­‐guinea/population      

-­‐ Equatorial  Guinea’s  Population  Distribution  by  Age    

 Source:  https://www.cia.gov/library/publications/the-­‐world-­‐factbook/geos/ek.html              

  29  

Appendix  III    

-­‐  Equatorial  Guinea’s  GDP  Growth    

 Source:  http://www.tradingeconomics.com/equatorial-­‐guinea/gdp    

-­‐ Equatorial  Guinea  Coffee  Production    

 Source:  http://www.indexmundi.com/agriculture/?country=gq&commodity=green-­‐coffee&graph=production                  

  30  

Appendix  IV    

-­‐  Equatorial  Guinea’s  property  rights  freedom  compared  to  South  Africa  and  the  United  States:  

 

 Source:  http://www.heritage.org/index/visualize?countries=equatorialguinea&type=8    

-­‐  Equatorial  Guinea’s  Doing  Business  Ranking  compared  to  other  African  Countries:    

 

   Source:  http://www.doingbusiness.org/~/media/giawb/doing%20business/documents/profiles/country/GNQ.pdf  

  31  

Appendix  V    

-­‐ Stakeholder’s  Analysis      

Primary  Stakeholders:        Stakeholder   Interests   Positions   Resources  

President  Obiang                          (Key  Stakeholder)  

*Gain  personal  wealth  and  retain  power.                                                                                                *Improve  the  international  reputation  of  the  country.                            *Increase  oil  industry  revenue.          

*His  decision  will  largely  depend  on  the  amount  of  wealth  the  results  will  provide.                                                  *However,  as  he  becomes  older,  he  is  becoming  more  conscious  of  what  his  legacy  will  be  and  he  has  a  large  desire  to  make  Equatorial  Guinea  a  rich  and  prosperous  nation  and  a  successful  example  of  African  development.        

*Complete  access  to  large  amounts  of  wealth  and  incoming  revenue  from  the  oil  industry.                                            *Complete  power  on  how  the  money  and  resources  is  distributed.                                                                                *Power  to  implement  large  scale  policy  reforms  

Ministry  of  Labor                            (Key  Stakeholder)  

*Decrease  unemployment  rates.                                          *Diversify  the  job  markets.                                    *Increase  education  and  vocational  training  for  youth.                                        *Increase  budget                                                          *Create  urgency  with  the  President  about  unemployed  youth.                                                                                                    *Create  unemployment  agency.              

*Convince  the  President  of  the  urgency  of  the  situation  with  youth  bulge  and  unemployment.                *Help  the  young  population  get  access  to  proper  education  and  training  for  jobs  currently  in  the  market.                                                                                            *Needs  increased  budget.    

*Has  the  ear  of  the  President  and  sufficient  knowledge  to  create  urgency.                                                                                          *Budget                                                                            *Influence                                                                                    *Ability  to  implement  policy  

Unemployed  Population    

*Gain  employment.              *Increase  income  and  get  out  of  poverty.                              *Get  the  proper  training  needed  to  get  a  job.        

*Desire  to  get  out  of  the  poverty  trap  with  good  education  and  job  opportunities.              *Believes  government  needs  to  intervene  to  help  support  the  private  sector  and  improve  education.    

*Does  not  have  access  to  the  President  but  can  voice  concerns  to  local  politicians                                                                                      *Very  little  power  and  influence  and  money                                                                                        *However  they  are  the  majority,  civil  unrest,  get  international  agencies  to  help.  

         

  32  

Secondary  Stakeholders:    

       

       

Stakeholders   Interests   Position   Resources  

Ministry  of  Education  

*Increase  budget  for  schools  and  vocational  training  centers                          *Receive  more  international  teachers  to  train  new  local  teachers                                                                                            *Build  more  schools  in  rural  areas  and  vocational  facilities  in  urban  centers.  

*Convince  the  President  to  focus  on  education  across  the  country  for  a  more  secure  future.                                *Increase  teacher  capacity                          *Implement  policy  that  increases  capacity  of  youth  for  current  job  market  

*Has  the  ear  of  the  President  and  sufficient  knowledge  to  create  urgency.                                                                                          *Budget                                                                *Ability  to  implement  policy.                              

Ministry  of  Mining,  Industry  and  Energy    

*Secure  finances  for  continued  growth  in  natural  resource  sector  *Create  more  infrastructure  (ports,  refineries)  in  the  sector                                      *Discover  more  oil  and  other  national  resources                                                        *Keep  foreign  investors  interested  in  the  country  

*Convince  President  to  continue  funding  for  Oil  and  other  natural  resource  industry                                                          *Attract  more  international  investors                                                                                          *More  education  and  more  jobs  for  the  population  is  good  but  not  at  their  expense    

*Has  the  ear  of  the  President  and  sufficient  knowledge  to  create  urgency.                                                                                          *Access  to  large  amount  of  funds                                                                                *Ability  to  implement  policy            *Lots  of  influence                                                        *Already  creating  some  jobs.                    

Ministry  of  Agriculture  

*Reinvest  in  agriculture                                      *Increase  agricultural  production  of  coffee,  cocao,  timber  and  fisheries                                                                                            *Increase  budget                                                            *Put  subsistence  farmers  to  work  to  take  advantage  of  great  agricultural  potential.  

*Convince  President  the  he  needs  to  reinvest  in  agriculture.                                  *Implement  policy  to  subsidize  agriculture  to  incentivize  farmers.          *Attract  foreign  countries  to  trade  with  internationally.    

*Has  ear  of  the  President  and  sufficient  knowledge  to  create  urgency.                                                                                            *Access  to  some  funding                                      *Ability  to  implement  Policy                                                                                                *Farmer  support    

Employed  Population  

*Job  security,                              *increase  income                                                                        *Want  to  see  family  properly  educated  and  employed                                                              *Equality                                                                *Security                                                          

*Believe  the  government  needs  to  increase.  education  and  diversify  market  support  younger  generation.                                          

*Very  little  power  and  very  few  resources.  

  33  

Teachers  

*Better  Pay                                          *More  Training                            *Better  Facilities                      *More  support  from  the  government  

*Believe  the  government  needs  to  prioritize  education  and  support  teachers.    

*Very  little  power                            *Could  mobilize  but  have  very  few  resources  and  very  little  money.  

Farmers  

*Want  government  to  increase  funding  for  large-­‐scale  production    *Increase  subsidies              *Access  to  foreign  trade  opportunities.  

*Believe  government  needs  to  reinvest  in  agriculture  to  provide  jobs  and  support  international  trade  of  agricultural  products  

*Very  little  power                              *Very  few  resources  and  are  not  well  organized.    

   External  Stakeholders:              

Stakeholders   Interests   Positions   Resources  

International  Development  Agencies  (USAID,  UNDP,  IMF,  

ADBG)  

*Improve  health  and  educational  sectors            *Train  local  teaching  staff                                                                  *Increase  Social  Protection                                            *Increase  equality                                *Alleviate  poverty                                *Ensure  human  rights  are  upheld  

*Government  should  allocate  more  resources  towards  health  and  education.                                              *A  country  as  rich  as  Equatorial  Guinea  should  not  have  its  citizens  living  such  extreme  poverty.  

*Power  is  limited,  can  only  add  pressure  on  the  government.                  *International  shame    *Increase  awareness  of  issues    

Potential  Foreign  Investors  

*Looks  for  opportunities  in  developing  countries  to  partner/trade  with      *Cheap  Labor  

*If  Equatorial  Guinea  can  become  more  business  friendly:  opening  borders,  decreasing  formalities,  and  decreasing  corruption  more  foreign  investors  will  come.  

*Limited  power  to  persuade  government  to  act,  can  only  give  them  incentives  to  reform  business  sectors.  

Current  Oil  Partner  (US,  Japan)  

*Continue  partnership  with  the  government        *Want  to  decrease  informal  costs  of  doing  business                                                    *Improve  business  reputation.                  

*If  the  Equatorial  Guinean  Government  can  improve  its  reputation  by  supporting  its  population  &  decreasing  corruption,  the  current  oil  companies  will  also  be  improving  their  reputation  for  doing  business  with  them.      

*Have  considerable  power  but  not  willing  to  use  it  because  they  don't  want  to  hurt  current  partnership.                                                        *Has  financial  resources  but  not  willing  to  use  it  for.    

   

  34  

     Appendix  VI    

-­‐ Problem  Tree    

 

                             

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  35  

Appendix  VII  -­‐ Objective  Monitoring  and  Evaluation  of  Policy  Agenda  

 

Objectives   Indicators   Data  to  measure  M&E  

#1  -­‐  Equatoguinean  government,  more  specifically  President  Obiang  champions  the  policy  plan  

*Policy  agenda  is  in  motion  and  being  implemented.                                                  

*Public  announcement  to  citizens  and  the  international  community  of  their  commitment  to  implement  the  policy  plan.  

#2  -­‐  Increased  development  of  Equatorial  Guinea’s  rural  infrastructure,  education  and  water  and  sanitation  system  is  needed  to  ensure  that  the  basic  human  needs  of  its  citizens  are  met.    

*Enrollment  and  retention  numbers  increase.                                        *Number  or  roads  built  or  repaved  increases.                                    *Number  of  clean  water  pumps  and  sanitation  systems  increase.                                        *Increased  number  of  TVET  schools  open  in  all  areas  of  the  country.                                                                                              *Decrease  in  people  living  in  poverty.  

*Data  will  be  reported  by  the  Minister  of  Education  and  Minister  of  Social  Development.                *Additionally  international  agencies  will  preform  their  own  survey  and  report  their  data.  

#3  -­‐  Revitalization  of  alternative  sectors  that  employ  more  people  and  provide  economic  security  for  the  nation  in  addition  to  improved  business  environment.    

*Increase  number  of  small  and  medium  size  businesses.                                *Increase  agriculture  production                                            *Increases  in  manufacturing  and  service  jobs  positions.                                      *Increased  foreign  direct  investment.                                                                            *Decrease  in  unemployment  rate.  

*Increased  ranking  in  the  Doing  Business  index.                                                          *Government  will  collect  surveys  of  the  private  sector  to  monitor  new  businesses.  *Government  will  monitor  data  on  decreases  in  importing  food  and  increases  in  exporting  agricultural  products.                                        *African  Development  Bank  Group  will  help  monitor  and  evaluate  the  business  environment.  

#4  -­‐  Access  to  information  and  increased  transparency  must  be  an  overarching  objective  to  establish  trust  between  the  government  and  its  citizens  and  confidence  in  the  domestic  market.    

*Citizens  are  able  to  access  government  information.                            *Government  makes  progress  in  applying  to  EITI  again.                                                    *Increased  confidence  in  doing  business  within  the  country.    

*Accepted  into  EITI.                              *Pass  an  access  to  information  law.                                                                      *Increased  ranking  in  freedom  and  democracy  indexes.  

 

  36  

         Appendix  VIII    

-­‐ Alternative  Criteria  Matrix    

Criteria     Weight   Alternatives          

       #1  -­‐  Status  

Quo  #2  -­‐  

Education  #3  -­‐  Business  Environment  

#4  -­‐  Agriculture  

#5  -­‐  Combination  

(2,3,4)  Effectiveness  (5)   5   2   4   4   4   5  Equity  (5)   5   2   5   5   4   5  Socially  Acceptable  (2)   2   3   5   5   4   5  Politically  Feasible  (5)   5   4   3   3   4   3  Cost  Effective  (3)   3   2   3   5   5   4  Administrative  Feasibility  (3)   3   4   2   3   3   3  Total       64   85   94   92   96                                                

  37  

Appendix  IX     -­‐  Objectives  Matrix    

   Alternative  Policies                  

Objectives   #1  -­‐  Status  Quo  

#2  -­‐  Education  

#3  -­‐  Business  Environment  

#4  -­‐  Agriculture  

#5  -­‐  Combination  (2,3,4)  

#1  -­‐  Equatoguinean  government,  more  specifically  President  Obiang  champions  the  policy  plan  

✔ ✔ ✔ ✔ ✔

#2  -­‐  Increased  development  of  Equatorial  Guinea’s  rural  infrastructure,  education  and  water  and  sanitation  system  is  needed  to  ensure  that  the  basic  human  needs  of  its  citizens  are  met.    

✔ ✔ ✔ ✔ ✔

#3  -­‐  Revitalization  of  alternative  sectors  that  employ  more  people  and  provide  economic  security  for  the  nation  in  addition  to  improved  business  environment.    

✔ ✔ ✔ ✔ ✔ #4  -­‐  Access  to  information  and  increased  transparency  must  be  an  overarching  objective  to  establish  trust  between  the  government  and  its  citizens  and  confidence  in  the  domestic  market.    

✔ ✔ ✔ ✔ ✔

 Fully  meets  

the  objective   ✔

Meets  part  of  the  

objective  ✔

Does  not  meet  

objective  ✔

  38  

Appendix  X  -­‐ Policy  Implementation  Plan    

 

       

 

EDUCATION  POLICY  IMPLEMENTATION    

Secure  an  increase  of  5%  for  the  educabon  budget.  (Begin  next  fiscal  year  and  establish  this  budget  as  the  norm)  

Increase  enrollment  and  retenbon  by  providing  meals  in  primary  and  secondary  schools.  (Begin  in  2015  and  establish  as  customary)  

Work  with  USAID  and  other  internabonal  agencies  to  increase  teacher  training  and  implement  new  evaluabon  method.  (Begin  

immediately  and  create  a  nabonal  standard)  

Build  three  more  TVET  schools.  Then  work  with  Internabonal  Labor  Office  to  assess  the  labor  market  needs  and  provide  the  skills  

young  adults  need  to  secure  a  job.  (Assess  job  market  immediately  and  begin  building  one  TVET  school  every  5  years)  

IMPROVED  BUSINESS  ENVIRONMENT  POLICY  IMPLEMENTATION    

Deregulate  and  liberalize  the  market,  which  entails  decreasing  the  bme  to  register  a  business  and  increasing  property  rights  freedom.  (Begin  

Immediately)  

Work  with  the  African  Union  Bank  Group  to  implement  accessible  credit  policy  within  the  nabonal  bank  and  create  a  nabonal  employment  

agency.  (Begin  Immediately)  

Create  a  consbtubonal  law  allowing  for  access  to  informabon  and  reapply  to  EITI  by  adhering  to  their  requirements.  (Begin  Immediately)  

Incorporate  e-­‐governance  systems  to  fight  against  rent  seeking  and  increase  efficiency  within  public  insbtubons.  (Begin  implementabon  

in  2020)  

  39  

 

                                               

AGRICULTURE  POLICY  IMPLEMENTATION  

Increase  investment  by  5%  in  the  agriculture  sector.  (Begin  in  next  fisical  year)  

Invest  in  improved  agriculture  machines  and  improved  seed  variebes.  Addibonally  provide  subsidies  to  farmers  for  them  to  

buy  the  improved  products.  (Begin  in  next  fiscal  year  and  subsequently  every  year  for  a  minimum  of  15  years)  

Build  or  repave  rural  roads  to  facilitate  easy  transportabon  of  agricultural  products  to  new  markets.  (Begin  next  fiscal  year  and  subsequently  every  year  for  a  minimum  of  10  

years)      

Inbate  an  internabonal  campaign  to  promote  Equatorial  Guinean  cocoa  and  coffee.  Addibonally  remove  all  taxes  

that  limit  farmers'  profits.  (Begin  in  2016)  

  40  

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