Oil and community development in Gabon: The case of Gamba

Abstract

The article examines the role of an oil company in community development in Gamba in Gabon, Africa's fifth-largest oil producer. It aims to contribute to the literature on the impact of oil corporations’ social initiatives in developing countries. The study builds an innovative theoretical framework from on-the-ground data using the grounded theory method to explain and evaluate the scope of the social investments undertaken by the oil company. The research revealed three main dimensions around which the oil company contributed to community development in Gamba: infrastructure, health and education. The data show that the extent to which it invested in community initiatives was determined by the needs of business operation and implementing initiatives that supported the business. Furthermore, it is apparent that initiatives were directed by the notion that its intervention would not shift the social power balance from the State to itself due to increasing public expectations. To eradicate community dependency, it also suspended some of the services that it provided, primarily engaging in cooperative partnerships with the State when the State was unable to finance community projects that were crucial for operations. Further research should examine other host oil communities and their interactions with their respective oil companies.