Main Issues of Angolan Economy
The reforms will not touch anyone when the profits from the situation are concentrated in hands; well, getting rid of them will not affect the vast greater part of the population in the short term. The adjustment and liberalization of some branches of the economy will have positive effect on poor part of the population, as they could receive profits from such area of economy as agriculture, because Angola has strong comparative advantage in this sphere. Except oil production the impact should be made exactly on agriculture, as it also very important for the economy of the country. One more aim of the government is renew the export of coffee, as it is very profitable for economy and can help to save it from decrease.
There are two important fields, which require some changes in order to reach a national consensus on plan for growth and development. The first one is the question of mineral payment from oil, diamonds and other sources, and the conclusion of the ways of spending the income. The second issue is the difference in economic interests between agricultural territories and urban populations. According to the latest statistics, 50% of national income of Angola comes from oil production and export, so it is one of the most profitable fields of economy. The government is trying to solve the most vulnerable questions, which are: how to explore the mineral resources and how to spend the money. As one of the countries which possess such reserves of oil, there is a danger of the rapid use of oil riches. Large foreign exchange has the probable to make bad effects on the domestic arrangement of production and utilization because of short run incentives to detain the large rents available. But still they can be avoided if the international exchange money is spent on imports.
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