JOHANNESBURG
An expert on African economies predicted Friday that the current boom in oil and other mineral prices won't be short-lived, and said Africa's leaders need to act quickly to ensure the riches are spent wisely.
Paul Collier, director of Oxford University's Centre for the Study of African Economies, said Africa has seen its wealth stolen by both foreigners and by homegrown elites. Collier explores the phenomenon known as the resource curse in a new book, "The Plundered Planet."
Speaking at a World Bank conference, Collier said demand in Asia will ensure commodites prices will remain high for some time. He counseled Africans to establish independent banks to manage their economies. He suggested leaders ensure they have the information and expertise to make the best deals with multinational mining companies. And he also called for citizens to push politicians to use commodities earnings for development.
His fixes work best in democracies, Collier added in an interview with the Associated Press. But he said not all African countries have time to put democracy in place.
"Harnessing natural resources is just too urgent," he said.
The World Bank brought policy makers from Latin America and Africa to Johannesburg to hear Collier and other speakers, and to share experiences with the booms and busts of economies dependent on exporting raw materials. A new World Bank report on Latin America found that while the resource curse is a reality for many countries, others have used their wealth "as a springboard for development."
By DONNA BRYSON
Donna Bryson can be reached on http://twitter.com/dbrysonAP
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