Chad Cameroon Pipeline Case Study

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In this paper I will discuss the Chad-Cameroon Pipeline Project, its goals and eventual failures. The aim of the Project was to build a 1,070 km underground pipeline to transport oil from three oil fields in the Southwest of Chad, through Cameroon, and ending in a floating facility in the Atlantic Ocean (“Chad-Cameroon Pipeline Project”, 2017 para 1). Although the Pipeline succeeded in being built and generating revenue, the Project did not succeed in using that revenue for poverty reduction. Unfortunately, the World Bank focused predominantly on the economic aspects of the project, while overlooking the political and the social sectors. In this paper I will begin with an overview of the project, its goals and its underlying motives. I will …show more content…
Neoliberal refers to the goal of an open global economy, free of barriers and in partnership with private sectors (Robinson 2008 pp. 17-18). The Bank’s partnership with the private transnational corporation, ExxonMobil, points towards capitalism’s need for extensive expansion through neoliberal means, i.e. the opening of Chad up to the global market. Through these means, a country will enter the global market, something which is essential for a country's Development, according to Neoliberalism. Robinson (2008) explains the World Bank’s role as one of the Bretton Woods Trio, a group created to regulate “trade and monetary relations of the capitalist world” (p. 12). The World Bank’s Global North agenda (capitalist neoliberalism) became clear as the project’s sole focus was to create long-term sustainable development and “generate revenues for Chad’s poverty reduction” (“The Chad-Cameroon Development Project”, 2010 para 1). The World Bank hoped that the revenue generated from the project would be able to jump start Chad’s economic activity, following Modernisation Theory’s big push model (a large influx of wealth to a country will kick-start it along the universal stages of Development). Furthermore, the Pipeline would require infrastructure to accompany it in order to keep it running (roads, airports etc.) which would in turn further its …show more content…
This lack of consideration led to the revenue generated by the project being used by the Chadian government for purchasing weapons, rather than for poverty reduction (Getson 2008 p. 138). The Bank had attempted to stop this from happening by setting up the Revenue Management Program, the goal of which was to ensure that oil revenues were spent in sectors connected to alleviating poverty such as education, health and social services, rural development, infrastructure, environmental and water resources (Pegg 2009 p. 313). Issues arose in the early stages of the project when Chadians who did not support the project were silenced by the Chadian government. For example, a member of the Chadian parliament was jailed for speaking out against the project and a proposed protest organized by the people against the pipeline was banned (Germond-Duret 2014 p. 237). These early warning signs came in 1998 and 2000, pointing towards a government that was unconcerned with the opinions of its citizens. Although the Pipeline Project was intended to help the Chadians, these citizens’ input was not heard, nor allowed. Despite the warning signs, the World Bank still went through with the project, putting its trust in the Chadian government and the

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