As Kenya establishes the framework for exploitation of recent discoveries of large oil and gas deposits, the need for good governance in the sector becomes paramount. Related experience reveals that resource-rich developing countries often face a range of challenges in translating the potential benefits from such discoveries into the improved welfare of their citizens. The result is that the abundance of natural resources in most developing countries causes significant harm rather than bringing the expected benefits. This paradox where natural resource endowments occasion misery instead of plenty is well illustrated by crises in African mineral and oil exporters such as Sudan, Angola, Democratic Republic of Congo (DRC), Chad and Equatorial Guinea.
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