Contents -- I. INTRODUCTION -- II. NATURAL RESOURCE DEPLETION, HABIT FORMATION, AND SUSTAINABLE FISCAL POLICY: LESSONS FROM GABON -- III. WHY DO BANKS NOT WANT TO BE BANKS? CREDIT GROWTH AND SOCIO- ECONOMIC DEVELOPMENT IN GABON -- IV. FUEL PRICE SUBSIDIES IN GABON: FISCAL COST AND SOCIAL IMPACT -- V. GABON: ASSESSING THE QUALITY OF PUBLIC INVESTMENT
Summary
Efficiency and equity reasons suggest placing a high priority on ensuring that fiscal policy is on a sustainable path. This chapter has sought to estimate the sustainable long-term non-oil primary deficit and the optimal adjustment path toward that level. The banks' inability to monitor effectively the quality of their loan portfolios, paired with the high interest-rate floor on deposits, are key factors behind the very low degree of financial intermediation. The reform of fuel price subsidies in Gabon is necessary to facilitate pro-poor economic growth
