STEPS Gabon 2019 : structural transformation, employment, production and society

Abstract

The core objective of accelerating structural transformation (ST), there are three inherent dimensions to be assessed: employment (E), production (P), and society (S). This speaks directly to the need to fundamentally change economic and social structures, with employment playing a key role in linking economic growth (production) and social development (society), in both directions. Gabon has one of the continent’s least diversified economies and remains heavily dependent on revenue from its vast oil reserves.1 The decades-long dominance of the oil sector has impeded the development of other economic sectors, even though the country has immense natural riches and a skilled labor force. The oil sector has however, become less economically dominant as oil prices have fallen and as pressure for more sustainable and inclusive growth has encouraged Gabon to promote the development of alternative drivers of growth. To realize its sustainable development ambitions, Gabon will need to address a number of key threats to its structural transformation. Firstly, economic diversification through the promotion of sectors with higher added value, such as the manufacturing sector and high skill services, is urgently required to reduce the country’s dependency on oil and to provide a sustainable foundation for its long-term development.