Reference no: EM133596652
Case: Gabon, a Central African nation along the continent's Atlantic coast, has been in the news following a successful military coup's deposition of president Ali Bongo, the third in a line of family power that has ruled the country for 55 years. The news comes after years of frustration among the Gabonese people, as abundant oil and natural resource reserves have resulted in deep pockets for the elite, but a crumbling quality of life for the rest.
The former French colony gained independence in 1960, and shortly after, was under the power of Omar Bongo, who would go on to lead the country for 41 years. Ali, one of 54 children of the authoritarian ruler, took office in 2009. Brice Clotaire Oligui Nguema, a former bodyguard for the Bongo family, now holds power in transition since the coup took place in August 2023.
For the Gabonese people, this change in power, even at the hands of a military coup, is relief from the financial manipulation that has doomed their livelihoods for decades. Despite one of the highest GDPs per capita in Africa, a third of the country is living under the poverty line and a similar number are without jobs. The Bongo family and their cohorts live in luxury villages, while blocks away there's no running water and electricity is limited. Corruption has plagued Gabon heavily as public funds and resource profits have been redirected back to the Bongo family. Gabon touts democracy with their presidential election, but corruption is believed to spread into the election process and in reality it was an authoritarian regime. Ali Bongo had won the 2023 election by a 65% - 35% margin shortly before his deposition.
With people dancing and celebrating in the streets, there's optimism that the military coup's ousting of Bongo authoritarianism will bring a brighter future to Gabon. It's yet to be seen whether this change will provide permanent welfare or if this optimism is temporary. Although there is a regime change imminent, it remains to be seen how much more the political systems will transform due to the new governing elect. The political systems in place currently need to be overhauled in order to bring international business to a secure foundation for its international investors.
The current political and therefore economic risk is too high in the region for new investment until the situation becomes more stable. The current risk is largely on a macro scale. The ousting of Bongo will likely bring a level of expropriation by the new governing class. Where the elite had lined their pockets and businesses with favorable opportunities, will likely undergo seizure and nationalization. Allowing the new group in power to try and open the region up to market identities aligned with their military ideology after the pursuit of a democratic rule had failed them in the past.
The coup and overthrow of the former leader may now reduce most if not all regulation. As the democratic system failed, the military held power may begin to behave like an autocracy. This political system will support more government control, which in this case is the military. Gabon as a whole would prosper under a mixed system, however the transition of power and government framework will dictate how this transition can take place.
Provide a response with additional information regarding the statement above.