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Impact of oil export revenue on economic growth and consumers wellbeing in Chad


par Kadidja Sarah Mamadou
IPAG Business School - MSC in Internationational Business Management 2021
  

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2.10Oil Export Revenue and Per Capita Income and Employment rate

In 2003 the average salary of a labourer of a month without including the bonuses used to be around XAF 59,995. This is almost double of the minimum amount that the government of Chad had promised which was approximately XAF 30,000. According to studies that various skilled oil field and semiskilled have an average salary of XAF 120,000 in a month. This amount excludes the different bonuses. The employees that are in oil sector have more salaries than the ones employed in the non-oil sector. As a result of this there is a shift in the number of employees in the oil sector from the non-oil sector. For examples the teachers in various institutes are leaving their jobs in order to get employed in the oil sector in order to earn more. This is damaging the overall social environment. Only the people employed in the oil industry are able to benefit from the oil revenues directly. No one else in the nation is gaining any advantage from the oil extraction. On the other hand they are going into a worse condition because of it (Limited et al., 2020; Urbain Thierry, Mallaye, &Araar, 2017). There is a change in the trends of employment rate. The oil industry has the maximum number of employees leaving the other sectors in need of man power and employees. Without the proper resources the other departments cannot function properly or be productive.

2.11Oil Export Revenue and Consumer Wellbeing

For Chad oil is acting as a poison which is destroying the natural environment of the country and is irreversibly tainting the soil, water, flora, fauna, people and health. The oil pipelines are going through the farmer's fields. These pipelines are passing from very close to the rural villages and are going through the rivers that are utilized for fishing. During the dry months the river beds are employed for planting maize, rice and vegetables. The forests that are near the water sources are also in danger of being spoiled. There is a huge risk of the contamination of the water supply of a huge part of the country because of the oil pipelines (D.-G. Gadom et al., 2017). To some context contamination is still existing. Drilling sites are draining in the canals. The surface is being polluted by the quarries. The ground water is also being affected by this. The pipeline ruptures and oil spilling is sullying the lands and the rivers. The overall revenue generated by the oil sector is not covering the damages caused by it. There is no proper mechanism that might detect if new spillages may occur. There is no procedure to detect or report any chemical leaks. The big holes dug in the ground for burying of the waste materials are known as quarries (Limited et al., 2020; Urbain Thierry et al., 2017). Land is taken from the farmers and then quarries are made on it and then it is returned to the people without any treatment or decontamination. Thus the lands become infertile. These untreated quarries sometime gather rainwater and contaminate that as well. The mosquito growth is increased that in return increases the diseases like malaria. Swimming in the lakes and rivers has become a hazard for animals and people. Due to the burning of excess waste and gases the air gets contaminated. The locals are getting ill because of it. The farms are no longer producing the fruits. The income generated through farming has gone way down and the farms are destroyed when it rains. Many issues are arising due to the high tension cables. The death rate in animals and children is increasing because of these dangerous cables. The illnesses caused because of this include anaemia and abortions. There is no point of filing complaints in the courts as they do nothing about ESSO (Brooks et al., 2019; Jaeger, Bechir, Harouna, Moto, &Utzinger, 2018). The plans for the waste management and other project guidelines are not implemented.

A transparent compensation system is not present. It is unjust and inadequate. The complete land is owned by the state and the villagers are only given a right to use it. The Consortium ESSO, takes the lands and when they give it back it is of no use anymore. The land productivity is left to none. The lands that were cultivated, lost their harvests. The farmers were dependant on such lands for their living. No compensation is given to the farmers for the damage to their land. There is no control or supervision of environmental or social aspects (Brooks et al., 2019; Djal-Gadom et al., 2017; G. D. Gadom et al., 2018). The revenue generated through the exportation of oil is used for building universities, hospitals and schools. The money is used for improving the road structure. Though the well-being of the consumers is benefiting from the export revenue the oil sector is doing more damage than benefit. It was planned that 5%of the oil export revenue would be used for compensation for the people but this money is not reaching the people. The lack of management skills has led to the wastage of the funds generated through oil exports.

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