Publication: São Tomé and Príncipe : A Country Economic Memorandum
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2004-09-01
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2013-07-09
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This report assesses the progress made by Sao Tome and Principe over the past decade, and presents a set of recommendations on policy and institutional change that might help the economy perform better in the future. This exercise is important, on one hand, in light of the need to manage the country's higher income expected shortly from its oil resources so as to make it the basis of permanent improvement in the lives of its people. After the Introduction, Chapter 2 reviews the country's recent reform and policy initiatives, its macroeconomic and sectoral performance, and the effectiveness of public policy during the later 1990s. Chapter 3 outlines the constraints to private-sector-led growth. It also analyzes the two sectoral sources that hold the most promise for economic diversification; agriculture and tourism. Chapter 4 examines the main economic development challenges the country faces in achieving growth and poverty alleviation: human resource development, economic management, continued institutional reforms, and capacity building. It provides medium-term recommendations for policy reforms to underpin the process of efficient and sustained growth and poverty reduction. In Chapter 5, macroeconomic projections provide an indication of Sao Tome's medium-term prospects.
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“World Bank. 2004. São Tomé and Príncipe : A Country Economic Memorandum. © World Bank. http://hdl.handle.net/10986/14400 License: CC BY 3.0 IGO.”
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Publication Country Economic Memorandum for Sao Tome and Principe - Background Note 4(World Bank, Washington, DC, 2019-06-26)Sao Tomé and Príncipe is surrounded by oil-producing neighbors, but haven’t found commercially viable oil in its territory so far. São Tomé and Príncipe (STP) is surrounded by major oil producing countries including Nigeria, Equatorial Guinea, and Gabon, but there has not been any commercial oil or gas discoveries in the country’s waters yet. STP is exploring for oil in two different zones under different jurisdiction: the Joint Development Zone (JDZ) with Nigeria, and the Exclusive Economic Zone (EEZ). There are talks as well for a joint exploration zone with Equatorial Guinea. The purpose of this note is to update the status of oil and gas exploration in STP and provide a probability and timeline for eventual discoveries and commercial production. The answers to these questions are key to the country’s long-term development prospects, as it would alter dramatically STP’s development path.Publication Country Economic Memorandum for Sao Tome and Principe - Background Note 7(World Bank, Washington, DC, 2019-06-26)This note explores land governance-related constraints holding back the growth potential of the agriculture and tourism sectors in the Democratic Republic of São Tomé and Príncipe (STP). The absence of a proper land information system and a weak land governance framework are identified as the major constraints to rural development and tourism. This note provides insights, identifies the most salient weaknesses, and presents recommendations to address these issues. The first section describes the history of land tenure in the country. 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Close to a third of fish stocks are fully fished or overfished, climate change is impacting coastal and marine ecosystems through a variety of vectors, unbridled development in the coastal zone is causing erosion, widespread desalination in semi enclosed seas is threatening fauna and flora alike, and marine pollution, particularly from land-based sources is reaching such a proportion that its impacts cannot even be accurately measured. The role of healthy oceans in stabilizing climate and keeping the planet cool is now better understood, and increasingly given the prominence and visibility it deserves in the global action arena. It is also known that business as usual in the different economic sectors associated with coastal and marine ecosystems will have great environmental and social impacts, which are expected to disproportionally affect vulnerable groups of the population, particularly women and girls. This is reflected in Sustainable Development Goal (SDG) 14 - Life Below Water, which calls to conserve and sustainably use the oceans, seas, and marine resources for sustainable development. In this context, the concept of the Blue Economy is particularly relevant and applicable to STP. Different institutions have different definitions of the Blue Economy, which is understood by the Bank as the sustainable and integrated development of oceanic sectors in healthy oceans. There is growing recognition that overfishing, marine pollution, and coastal erosion, among other issues, are pushing oceans to a tipping point to the detriment of the millions who depend on healthy oceans for jobs, nutrition, economic growth, and climate regulation. 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This background note has four sections: the first examines the general theoretical conditions for the sustainability of exchange rate pegs, the second assesses whether these conditions exist or are relevant for STP, a small, open economy with a small financial sector, and the third provides analysis of the drivers of the country’s current account deficit. Policymakers could mitigate risks to the peg by broadening the country’s revenue base, developing a domestic debt market, and diversifying exports.
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