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| Cyprus' president, Nicos Anastasiades |
An estimated 3.5 billion people live in countries endowed with oil, gas and mineral reserves. Despite the fact that the citizens of these countries are the legal owners of the natural resources, in many cases governments have hindered the efficient exploitation of such resources resulting in unequal wealth distribution, poverty and lack of sustainable economic development. Evidence suggests that this occurs mainly in under-developed countries, with high level corruption and lack of transparency considered among the main factors culpable.
There are a number of examples of nations with a long history of poor governance and corruption where, despite significant hydrocarbon discoveries and initial hope for long term development, an almost total economic collapse was experienced. Per capita income dropped to half of what it was before the hydrocarbons were discovered and only a fraction of total oil & gas revenues accruing to the government was transferred to the budget, with the majority not properly accounted for.
