Poverty relief

National spending

Poverty in ChadWhen oil was discovered in Chad, international organisations like the World Bank and European Union helped to finance pipeline construction and provide loans for the industry.

In return for this investment, Chad agreed to spend a certain portion of the country’s oil revenues on poverty-reduction measures. The country adopted its first ‘National Poverty Reduction Strategy’ in 2003.

Military spending

By 2009, military spending had risen to over 300 million dollars (compared to just 14 million in 2000). Chad now has one of the best-equipped armies in sub-Saharan Africa.

However, in 2006, the amount of oil money spent on development began to reduce. This led the World Bank to pull out of investment programmes in Chad, though more recently the Bank has begun to re-engage with the country.

To date, the unstable security situation in Chad, as well as weak and ineffective spending on social services, mean Chad has failed to make progress in many key development areas.

Therefore, despite the country’s oil wealth, Chad’s population remains among the world’s poorest – see Poverty & Healthcare.