The Chad-Cameroon Oil Pipeline Project – Chad & Cameroon

In this project, the World Bank intended to partner with the government of Chad to reallocate 72 percent of the country’s oil revenues to the poor and unfortunate (Rice, 2008). Chad is a sizable African country with large oil reserves. Chad is also one of the poorest and most corrupt countries in the world. Through the use of “institutional mechanisms” proposed by the project, records of oil revenues would be made more readily available (Clausen & Attaran, 2011). With this information, the government of Chad was supposed to distribute part of the oil revenue to actually developing the country and its social services, like education. The World Bank also offered to finance the construction of a pipeline which would connect Chad to the Atlantic coast off of Cameroon. However, once the plan was set in action, the government of Chad did not hold up their end of the bargain. Very little money was allocated to “poverty reduction” and social services for the poor (Rice, 2008). Instead, the money was used to strengthen Chad’s corrupt president’s power against political rebels. Therefore, the World Bank pulled out of the project, making this yet another failed attempt of the organization to do good through extractive industries in Africa (Rice, 2008). The worthwhile development values that apply to this case include: (1) make sure the economy is structured and strong, but do not focus solely on economic issues, and (2) consult with local leaders and the community to determine what they need the most. If the country’s economy was properly assessed prior to the World Bank’s project, it could have been more successful. If local leaders were consulted on the feasibility of the project, the World Bank may have been warned of the president’s corrupt and untrustworthy ways. They may have also come across a better solution as requested by the small communities and their leaders.

Rice, X. (2008, September 11). World Bank cancels pipeline deal with Chad after revenues misspent. The Guardian. Retrieved December 10, 2021,

Case Study Evaluation using Project Evaluation Tool

Inadequate
(given from an average score of 1.2 across the 7 values of worthwhile development)

Well-Being

Score: 2/5

The pipeline project in Chad failed to improve well-being due to Chad’s failure to use revenue for education and social services, leading to the World Bank’s withdrawal.

Equality

Score: 2/5

Chad’s revenue gains perpetuate unequal communities, leading to significant disparities and discriminatory practices, highlighting the need for urgent attention to address these issues.

Human Rights

Score: 2/5

The project failed to uphold human rights, instead using funds to harm individuals protesting corruption, demonstrating a limited commitment to these rights and requiring immediate correction.

Cultural Freedom

Score: 1/5

The pipeline project hinders cultural freedoms and cultural values, creating a disconnect between poor citizens and the rich government, denying access to basic necessities like education.

Agency and Empowerment

Score: 2/5

The Chad government’s pipeline project failed to significantly improve mobility for the poor, resulting in limited empowerment and insufficient support for participant agency and self-determination.

Responsibility

Score: 1/5

The pipeline project, despite not requiring further payments, greatly benefited the Chad government, while Cameroon and citizens saw no improvements or money being used for good.

Sustainability

Score: 1/5

The abandoned project in Chad, lacking sustainability measures, has caused further chaos and may harm future prospects due to its lack of meaningful measures.

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