By Januarius Asongu

Beginning with the question as to whether natural resources are a blessing or a curse, this paper analyzes the political economy of oil in Equatorial Guinea. It explores the country’s recent history and experience with oil-led development, arguing that the responsibility for its development lies in the hands of its leaders. The paper further places the EquatoGuinean experience within the framework of the resource curse. This framework shows that there is a link between natural resource abundance and poor development performance, dictatorship, and insecurity or civil conflict. It also explores the possible role that regional mechanisms, international organizations, and foreign governments can play in improving the situation. If these entities outside Equatorial Guinea cannot influence the situation in the country, then the paper concludes that the status quo will only be exacerbated. This will mean further enrichment of the leadership while underdevelopment continues along with authoritarian rule and instability.