Equatorial Guinea - an economic miracle?

It seems that Equatorial Guinea is destined to be inconspicuous. It is the smallest country in continental Africa: it has a more than 7,000 people . By area it is also tiny: this is the sixth most African country. Who will notice her so little? But that's not all. In the world, no fewer than five states have very similar names: not only neighboring Guinea-Bissau, but Papua New Guinea in the Pacific, as well as Guyana and French Guiana in South America.

Although Equatorial Guinea remains one of the most inconspicuous countries in the world, this is certainly not his fault. This country is the richest in Africa. Its per capita income as of 2010 was $ 703. Over the past few decades, its economy has developed faster than everyone else in the world. From 1993 to the power of the year, per capita GDP in Equatorial Guinea increased by 18.6% per year - twice as much as in China, which is considered the international leader in growth with a "total" of 9.1%. Tell me, what else should the country do to attract attention? Maybe capture the United States? Elect President Scarlett Johansson? Or paint the country in pink? the world is very unjust.

Economic development as development of productive potential If Equatorial Guinea develops much faster than China, why do we know nothing about the "economic miracle" of Equatorial Guinea, and in exchange we constantly hear about the "economic miracle" of China? One of the reasons is size: small countries ignore, even if things go very well for them. However, the phenomenal growth of incomes in Equatorial Guinea is usually not taken seriously by the fact that its prerequisite is the "gold mine": nothing has changed in the economy of the country, just in 1996 large oil fields were found on its territory. Without them the country would again be on the list of the poorest in the world, since it can not produce anything else.

Equatorial Guinea differs from these countries in that its success is not related to the increase in production capacity. A vivid example is the United States. At the end of the XIX century, the United States rapidly came to the first place in the world not only as the most developed industrial country, but also as the leading producer of many minerals. However, this was achieved not only due to the location of large mineral deposits in the country. An important role was played by the fact that she quickly learned how to effectively determine the location of deposits, extract and process minerals; to the family of the XIX century, the States were not the leader in the extraction of one of them. Unlike the US, Equatorial Guinea is unable to offer anything other than oil; Moreover, even oil can not be extracted by itself, so all of it in the territory of the country is extracted by American companies.

Equatorial Guinea is a special case, but its experience shows that economic growth, that is, an increase in output (income), is not equal to economic development. The generally accepted definition of the term "economic development" does not exist. However, it should be defined as a process of economic growth based on increasing production capacity. And under the production potential is the ability to organize and - it is important - to transform production activities.