| The Chad-Cameroon Oil and Pipeline Project (CCPP) has inspired hope and fears to two categories of people. Its supporters hoped to see at last a resource generating activity that would allow Chad to effectively fight against its chronic poverty. For the CCPP supporters, the oil investment is a unique opportunity this country has to ignite its economic and social development. However, the CCPP opponents expressed fears to see Chad on the list of those countries whose socio-economic conditions worsen following a massive inflow of revenue generated by natural resources. Chad being a poor country, politically unstable, corrupt, and lacking qualified human resource was believed to be highly exposed to the resource curse phenomenon. A decade after the CCPP implementation, critics, including the World Bank, the CCPP "political insurer" contrastingly recognize in this oil investment a financial success but a social failure. This research supports this view.;The main finding of this study is that not only the project seems to be a social failure, but its effect on the overall economic growth and the non-oil modern economic sectors, notably the manufacturing and the services sectors is not beneficial either. With the oil investment, bad years tend to be worse, and good years tend to be moderate in the manufacturing and the services sectors in terms of per worker constant value added. Besides, no positive shift in life expectancy and under-5 mortality series related to the oil era has been established by the econometric model.;The main conclusion of the study is that maybe the expected pace of change is inaccurately speculated with regard to the extent of challenges the country faces, including that of human resource. However, the persistence of corruption and weaknesses in the public management makes it impossible for analysts to believe in future improvements. A considerable effort is needed from the Government of Chad if it is to redeem the credibility and the trust overly indispensable for beneficial cooperation from the population and development partners. |
