How Natural Resources Exploitation and Government Instability Impact Economic Development in the Democratic Republic of the Congo

Introduction

Research problem

Despite possessing a wide array of valuable natural resources, social and economic development in the Democratic Republic of the Congo (hereinafter alternatively the Congo or the DRC) has been challenged on multiple fronts due in large part to the so-called resource curse wherein former European colonies remain dependent on extractive industries with little or no value-added enterprises involved (Curtis, 2013). In addition, the Congo has also faced many of the same challenges as other former European colonies with respect to chronic government instability. For example, according to Azam et al. (2002), The choice of bad policies seems to be the main proximate cause of slow growth in Africa [which] is traced to the lack of social capital and deficient political institutions (p. 177). While some limited progress has been made in addressing the specific issues that contribute to the current situation such as implementing a stronger legal framework that is intended to address corruption throughout the country, the Congo continues to face numerous challenges in its effort to realize the full range of benefits that can be achieved by leveraging its natural resources in more effective ways and the origins and current status of these issues are discussed further below.

Historical data, current issues, and increases in demand

Although the DRC attained independence from Belgium in 1960, the nation was roiled by social and political instability and it was not until 2019 that a transfer of power to a presidential candidate in the opposing party was accomplished without significant violence (Democratic Republic of Congo Background, 2022). This is not to say, however, that the Congo is out of the political woods yet, but it is to say that the nation has achieved some degree of political stability compared to the past 60 years. This is an important eventuality for the DRC as well as neighboring countries. Not only is the Congo the largest sub-Saharan African country, it also borders nine other countries. Moreover, the Congo possesses significant sources of natural resources including as much as $25 trillion worth of valuable mineral deposits such as gold, silver, coal, petroleum, diamonds, gold, silver and uranium as well as substantial timber resources (DRC overview, 2022), all of which are in increasingly high demand around the world today.

Notwithstanding its abundant natural resources, though, the DRCs economic performance remains stagnated in the colonial development model for multiple reasons but most especially the political instability that is a concomitant of institutionalized and systemic corruption at all level of the public and private sectors (Fotack, 2019). In addition, the nations gross domestic product (GDP) has suffered from continuing political instability as well as periodic regional violence that have combined to adversely affect national productivity and government revenues in ways that have increased the nations external debt (Democratic Republic of Congo Economy, 2022). The average per capita income for the nations 108 billion people is just $1,100 a year (slightly more than $3 per day) and its industries remain largely limited to extractive activities that serve as raw material exports to more affluent nations rather than value-added products. Furthermore, even those Congolese citizens that are fortunate to have jobs are frequently engaged in informal economy occupations including artisanal mining are exposed to toxic wastes and chemicals that damage their health and shorten their lives. Simply put, these people have no other alternatives and are forced to engage in these activities as a matter of survival in a land that could provide all of its citizenry with a decent standard of living and quality of life if corruption and the violence that goes hand-in-hand with it were eliminated from the national landscape.

In sum, despite its potential for economic growth, the DRC is mired in an untenable situation that is largely of its own making. In this regard, economic analysts with the U.S. government point out that, Progress on implementing substantive economic reforms remains slow because of political instability, bureaucratic inefficiency, corruption, and patronage, which also dampen international investment prospects (Democratic Republic of Congo Economy, 2022, para. 5).

The need for research on the problem

Resource theory was selected to identify potential solutions to the above-described problem, based on the realities that have continued to plague the DRC since its independence over 60 years ago (Dorsch et al., 2016). In this regard, Foa et al. (1999) report that, At the heart of the theory is the insight that humans rarely satisfy their physical and psychological needs in isolation, and that social interactions and relationships provide the means by which individuals can obtain needed resources from others (i.e., love, services, goods, money, information, and status) (p. 37).

In other words, resource theory provides a useful framework in which to examine the various self-interests that have impacted the DRCs ability to grow and proper despite its apparent ability to do so given its vast natural resources and large workforce. Indeed, the Congo continues to suffer from many of the same economic development constraints that existed prior to its independence despite the numerous opportunities over the years to implement economic reforms and value-added industries, and the country continues to largely serve only as major source of raw materials that are exported to nations with advanced economies (Fotack, 2019).

Based on the foregoing considerations, it was the hypothesis of this study that inefficient and suboptimal natural resources exploitation, government instability and widespread corruption at all levels are the root causes of the lack of economic development progress in the DRC to date. Therefore, identifying strategies to overcome these root causes represents a timely and valuable enterprise that has widespread implications for the Congo and its neighboring sub-Saharan African nations.

Research objectives

The overarching objective of this study was to determine the current status of the Congos economic and political development and what steps have proven effective in addressing these issues in the past. In support of this main objective, the study also sought to identify which strategies hold the most promise for the future development of this former Belgian colony as examined further below.

Literature Review

As noted throughout, the DRC is blessed with abundant valuable natural resources that are in high demand globally, as well as fertile soil that is conducive to a wide array of agricultural activities. Nevertheless, the nation is still struggling with many of the problems that it faced pre-independence, and little progress has been made in addressing the majority of these issues. For instance, according to U.S. analysts, Despite a wealth of fertile soil, hydroelectric power potential, and mineral resources, the [DRC] struggles with many socioeconomic problems, including high infant and maternal mortality rates, malnutrition, poor vaccination coverage, lack of access to improved water sources and sanitation, and frequent and early fertility (DRC people, 2022, para. 7).

Unfortunately, this panoply of major problems has been further exacerbated by a dearth of government investments in the nations infrastructure as well as periodic violence in many quarters of the country, all of which continue to increase in severity due to the corresponding political instability that has long characterized the DRCs public sector. Furthermore, the cumulative adverse effects of these problems are disproportionately experienced by the countrys most disadvantaged citizens. Indeed, nearly one in three Congolese children aged 5 years or under suffer from malnourishment despite the nations potential for increased agricultural production (DRC people, 2022).

In fact, the DRCs ability to provide even minimal levels of public services is limited in many parts of the country, most especially rural regions where a lack of transportation infrastructure is commonplace. In this regard, U.S. analysts emphasize that, The overall coverage of basic public services education, health, sanitation, and potable water is very limited and piecemeal, with substantial regional and rural/urban disparities (DRC people, 2022, para. 8). Given the paucity of existing contraception use and the Congolese cultural preferences for large families, the already high number of children per woman in the Congo (nearly five) is projected to increase in severity for the foreseeable future, adding yet more mouths to feed in a county where significant percentages of the population do not have enough to eat already (DRC people, 2022).

Stretching the Congos ability to feed its own population even further, the country is also a source and destination for more than 4.5 million refugees who have been internally displaced due to violent conflicts between government and rebel military forces (DRC people, 2022). In response to these and the other issues described above, the UN Panel of Experts on Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of the Congo released its report to the UN Secretary-General on 8 October 2002, (Asimwe, 2004). A summary of the Reports findings is provided in Table 1 below.

Table 1

Summary of Findings from the UN Panel of Experts on Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of the Congo

Finding

Summary/Comments

Illegal exploitation of the mineral and forest resources of the DRC is taking place at an alarming rate

Two phases can be distinguished: 1) mass-scale looting and 2) the systematic and systemic exploitation of natural resources.

Mass-scale looting

During this first phase, stockpiles of minerals, coffee, wood, livestock and money that were available in territories conquered by the armies of Burundi, Rwanda and Uganda were taken, and either transferred to those countries or exported to international markets by their forces and nationals.

Systematic and systemic exploitation

Planning and organization were required for this phase. The systematic exploitation flourished because of the pre-existing structures developed during the conquest of power of the Alliance of Democratic Forces for the Liberation of Congo-Zaire. These pre-existing structures were improved over time and new networks for channeling extracted resources were put in place; however, the systemic exploitation used the existing systems of control established by Rwanda and Uganda.

In both cases, exploitation was often carried out in violation of the sovereignty of the DRC, the national legislation and sometimes international law, and it led to illicit activities.

Key individual actors including top army commanders and businessmen on the one hand, and government structures on the other, have been the engines of this systematic and systemic exploitation.

Implications of illegal exploitation of the Congos natural resources

The consequence of illegal exploitation has been twofold: (a) massive availability of financial resources for the Rwandan Patriotic Army, and the individual enrichment of top Ugandan military commanders and civilians; (b) the emergence of illegal networks headed either by top military officers or businessmen. These two elements form the basis of the link between the exploitation of natural resources and the continuation of the conflict.

Other contributing factors however exist - the roles played by some entities and institutions, and the opportunistic behavior of some private companies and influential individuals, including some decision makers in the DRC and Zimbabwe. Some leaders in the region bear a direct responsibility. The UN report concludes that tough measures must be taken to bring to an end the cycle of exploitation of the natural resources and the continuation of the conflict in the DRC.

Source: Adapted from Report of the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of...

…outright coup. Nevertheless, dozens of armed militia groups continue to operate with virtual impunity in many regions of the Congo and the United Nations has been compelled to maintain the worlds most expensive peacekeeping force since 1999.

It is tempting to place all of the blame for the DRCs current miserable economic and social plight on its historical legacy as a former Belgian colony that suffered at the hands of its evil European overlords so long that it still struggles to overcome the multiple challenges it faces in providing even basic services to its citizens. This temptation must be resisted, however, since the research made it clear that it is the Congolese political and military leaders themselves who have been responsible for committing these crimes against their own people, unjustly enriching themselves while ordinary Congolese people suffer. In fact, many other former European colonies in Africa such as Botswana have managed to shake off this legacy and become successful, meaningful partners in the international community, observing the rule of law and achieving gradual but sustained progress in economic and social development.

Conclusion

The seemingly dismal future of the Democratic Republic of the Congo is not carved in stone, and it is not too late to reverse the ugly trends that have characterized the nation since its independence from Belgium. Indeed, the DRC has the opportunity to leverage its vast natural resources in ways that will contribute to the country becoming a regional economic powerhouse in the foreseeable future. This outcome, however, is conditioned on its ability to install a democratic government that is free of corruption with a commitment to these illicit practices throughout the country and to eliminate the violence that continues to keep the population terrified and unwilling or unable to do anything about it.

Certainly, the international community cannot force the people of the DRC to make the changes in their political system and society that are needed to eliminate corruption and establish a stable government, but it can help them if they want it to. The fact that the UN already maintains the largest and most expensive peacekeeping force in the world in the Congo, however, suggests that half measures will not work and wholesale changes are required in order to assist this struggling sub-Saharan nation realize its full economic and social development potential.

The case study methodology that was used to develop the findings that emerged from this study made it clear that the DRC is confronted with multiple challenges besides political instability and corruption, though, but effecting truly meaningful and lasting improvements in the nations economic development will not be possible unless and until the rule of law is restored and legislation is passed that has the teeth to make it stick. Countless opportunities exist for the Congolese people to take advantage of its existing extractive practices to add value along the entire supply chain rather than simply exporting its valuable natural resources to more affluent nations that are currently able to reap these benefits.

The research was consistent in showing, however, that even the extractive industries that continue to operate in the DRC are hampered by corrupt practices at every turn, and it is little wonder that the country is widely regarded as the least developed nation in the world. This is a remarkable outcome given the amount of time that has elapsed since its independence and the recognition by the international community that political instability and corruption have only intensified in recent years. It is reasonable to posit that incremental improvements in the countrys standard of living and quality of life for its citizens will facilitate the eradication of corruption in both the public and private sectors, but time is running out for the people of the DRC and its potential future as a failed state looms large at present.

The primary contributions of studies of this nature are to provide a benchmark of the current challenges that confront the Democratic Republic of the Congo and to identify potential ways going forward that can address these issues. The studys main limitation was its reliance on secondary resources to develop these findings, and future studies should incorporate primary research to determine what the impoverished citizens of the DRC regard as the most needed steps to address the myriad of well-entrenched constraints that keep them from earning more than a subsistence level income, if they are fortunate enough to even earn that much each day. When law enforcement authorities and top political leaders collude to enrich themselves at the expense of ordinary citizens, no real progress can be achieved even if a Manhattan Project-level initiative was launched today to improve the quality of life for these tens of millions of downtrodden people.

Finally, the fact that none of the authorities and studies reviewed or otherwie available concerning corruption in the Democratic Republic of the Congo includes specific recommendations on how to combat corruption underscores just how challenging the situation is today. The DRC is a sovereign nation that enjoys all of the rights and privileges that are afforded all nations by the international community today. This means that even the most egregious practices cannot be stopped by outsiders but must be eliminated by the Congolese people themselves. Of course, the international community can support them when and where necessary in forging new paths forward, but the fact remains that when virtually everyone in a given society is engaged in illicit activities, nothing will change until this accepting attitude is replaced with one of moral outrage to the point where political leaders are elected who are committed to making…