World Report

Carlos Feijó, Special Economic and Legal Presidential Advisor

pecial Economic and Legal Presidential Advisor Carlos Feijó, a respected Angolan legal scholar who has been involved in the creation of the country’s new investment laws, has been active in refuting accusations against Angola in the international press and has met extensively with the international community in order to make better known the progressive reforms Angola has undertaken. In particular, Dr Feijó has been effective in countering claims that Angola has been lax in fighting the effects of Dutch Disease, the economic phenomenon that occurs when a developing country is overly dependent on oil revenues. According to Dr Feijó, Angola’s new investment laws, which were passed in early 2003, were designed precisely to combat Dutch Disease and to promote the diversity of the Angolan economy. Additional investor incentives were also created to draw investment to non-oil sectors, and correct regional imbalances by stimulating economic growth in areas of the country most affected by the war and most in need of development.

Dr Feijó says that Angola needs both public and private investment to back its development, and that it is Angola’s responsibility to create the conditions that will support private investors. He comments, “The State by itself does not have the capacity to tackle the development challenges that exist in Angola so we need private investment, both domestic and foreign. For that to happen, Angola must have institutions, laws, courts and a favourable macroeconomic framework.” Although Angola’s new investment law acts to protect investors, the Angolan judicial system needs extensive general reform, and this will only be possible in the short-term through aid from the international donor community. An international donor conference is certainly on the cards for Angola, but a costly and unnecessary delay of two years has occurred, according to Dr Feijó, as the conference was contingent on an agreement with the International Monetary Fund (IMF). He explains, “A good relationship with the IMF is important, but it is also necessary that Angola acts quickly to remedy the state of destruction in the country caused by the war, and this is the fundamental role of a donor conference. By putting conditions on the conference, we change its spirit as well. Furthermore, our programmes and economic reforms are not nearly as effective while this level of destruction exists in the country.”