- published: 05 Mar 2015
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Gabon enjoys a per capita income four times that of most nations of sub-Saharan Africa. This has supported a sharp decline in extreme poverty; yet because of high income inequality a large proportion of the population remains poor.
Gabon depended on timber and manganese until oil was discovered offshore in the early 1970s. The oil sector now accounts for 50% of GDP and 80% of exports. Oil production is now declining from its peak of 370,000 barrels per day (59,000 m3/d) in 1997. The 1998 fall-off in oil prices had a negative impact on government revenues and the economy. Gabon public expenditures from the years of significant oil revenues have not been spent well.
Overspending on the Trans-Gabon (Transgabonais) Railway, the oil price of 1986, and the franc CFA devaluation of 1994 have caused debt problems. Gabon has earned a poor reputation with the Paris Club and the International Monetary Fund (IMF) for poor management of its debt and revenues. IMF missions (related to the now lapsed EFF program) have criticized the government for over-spending on off-budget items (in good years and bad), over-borrowing from the Central Bank, and slipping on the schedule for privatization and administrative reform.
Gabon ( /ɡəˈbɒn/; French pronunciation: [ɡabɔ̃]), officially the Gabonese Republic (French: République Gabonaise) is a state in west central Africa sharing borders with Equatorial Guinea to the northwest, Cameroon to the north, and with the Republic of the Congo curving around the east and south. The Gulf of Guinea, an arm of the Atlantic Ocean is to the west. It covers a land area of nearly 270,000 km² and has an estimated population of 1,500,000. Its capital and largest city is Libreville.
Since its independence from France on August 17, 1960, Gabon has been ruled by three presidents. In the early 1990s, Gabon introduced a multi-party system and a new democratic constitution that allowed for a more transparent electoral process and reformed many governmental institutions. Gabon is also a non-permanent member of the United Nations Security Council for the 2010-2011 term.
Low population density together with abundant natural resources and foreign private investment have helped make Gabon one of the most prosperous countries in Sub-Saharan Africa, with the highest HDI and the third highest GDP per capita (PPP) (after Equatorial Guinea and Botswana) in the region.