The two small island countries of Equatorial Guinea (EG) and São Tomé and Principe (STP) have experienced several governance problems over the years, recently compounded by the discovery of oil and the prospect of oil revenues. Fears of the ‘resource curse’ and the potential for conflict have resulted in a series of reforms projects.
There is little documentation available on the situation in EG and on current governance and conflict prevention activities. Most of the literature on EG centres on the poor governance record of the ruling regime and the impact of the oil boom since the 1990s. High per capita income levels have not improved the general welfare of the population and have benefited only the elite although some progress has been made in recent years. Much of the literature critiques the U.S. for its close ties with the ruling regime and advocates that the U.S. (in addition to International Financial Institutions) use economic leverage to induce reforms.
This is far greater documentation of governance and conflict prevention activities in STP. Much of the literature is complimentary of the country’s adoption of reforms and effective governance frameworks. While oil production has not yet begun, many instruments and mechanisms for managing the prospect of high oil revenues have already been put in place.
