Angola and the Resource Curse

In this assignment, you are required to read the Harvard Case study, “Angola and the Resource Curse”, by Musacchio, Werker, and Schlefer, 2010. The case can be found under Assessment Folder on BlackBoard.
Please provide detailed discussions and answers to the following questions:
1) Is oil a curse or a blessing in Angola?
The following questions would be a helpful guide to the answer.
(40 marks)
a. What are the political and governance implications of “Dutch Disease”?
b. How does oil impact economic planning and effective governance?
c. What is Angola doing with the oil revenue i.e. Consuming and/or Investing? You need
to justify your answers with actual calculations.
2) Is China a friend or foe? (30 marks)
The following questions would be a helpful guide to the answer.
a. Does the Chinese approach lead to more corruption or less?
b. What were the advantages and disadvantages from the relationship with China? Your
answers should have three themes: development, global dynamic, and corruption.
3) Would you invest in Angola? (30 marks)
The following questions would be a helpful guide to the answer.
a. What issues, other than oil industry volatility affect the business landscape?
b. Is there investment opportunity in Angola? Which of the following investments
Sovereign debt, equity in Sonangol, or Foreign Direct Investment (FDI) in a consumer product company
represent the better investment opportunity in Angola?

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