Natural resources and institutions: political and institutionnal levers in ECOWAS

Abstract

The Economic Community of West African States (ECOWAS) brings together 15 member states endowed with natural resource wealth but facing economic, social and political challenges. The effective management of these resources is a key lever for the sustainable development of the region. However, their exploitation is often hampered by institutional and governance problems... ECOWAS natural resources, including hydrocarbons, minerals, arable land and forests, represent significant potential to stimulate economic growth and reduce poverty. However, their ineffective management often leads to "resource curses", characterized by conflicts and corruption. Institutions play a key role in addressing these challenges. They are responsible for putting in place appropriate policies, regulating extractive industries and promoting transparency and accountability. This research aims to analyze the political and institutional levers of natural resources in ECOWAS countries. Using WDI and WGI data covering the period from 2000 to 2021, we applied multiple linear regression. The results show that natural resources influence corruption and stability in ECOWAS countries. The results also show that the effects are moderated depending on the quality of institutions. Improving legal frameworks, combating corruption and citizen participation are encouraged to strengthen natural resource management.

Keywords: Institutions, political levers, Natural resources, ECOWAS

JEL Classification: Q0, 00, 01

Paper type: Research paper