Turning Smallness into Uniqueness : Six Key Challenges to Unlock Sao Tome and Principe Growth’s Potential
Economic growth in Sao Tome and Príncipe (STP) has long been driven by an unsustainable reliance on public expenditures, especially grant- and loan-financed public investment. STP needs to turn its smallness into uniqueness to unlock its growth pot...
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| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/567101564039933351/Turning-Smallness-into-Uniqueness-Six-Key-Challenges-to-Unlock-Sao-Tome-and-Principe-Growth-s-Potential-Summary-Report http://hdl.handle.net/10986/32143 |
| Summary: | Economic growth in Sao Tome and Príncipe
(STP) has long been driven by an unsustainable reliance on
public expenditures, especially grant- and loan-financed
public investment. STP needs to turn its smallness into
uniqueness to unlock its growth potential. To accomplish
this transformation, this image must be matched by a more
balanced growth in which the private sector plays a larger
role and with a more effective government. Tourism,
agriculture, and fisheries could drive the country’s
transition to a more balanced growth pattern. This Country
Economic Memorandum (CEM) highlights six key challenges that
STP must overcome as it transitions to a more balanced
growth pattern and it offers policy recommendations for
addressing each challenge. Accomplishing this rebalancing
will require STP to address six key challenges at the
macroeconomic, structural, and sectoral level. These
include: (i) The twin budget and current-account deficits;
(ii) Weak trade connectivity by both air and sea; (iii)
Credit constraints caused by a high level of non-performing
loans and difficulties enforcing commercial contracts; (iv)
Uncertainty surrounding property rights and land tenure; (v)
Poor-quality infrastructure, especially in the energy and
transportation sector; and (vi) The overexploitation of
marine resources. |
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