Economy
Although citizens of the DRC are among the poorest in the world, having the second lowest nominal GDP per capita, the Democratic Republic of Congo is widely considered to be the richest country in the world regarding natural resources; its untapped deposits of raw minerals are estimated to be worth in excess of US$ 24 trillion.
The economy of the Democratic Republic of the Congo, a nation endowed with resources of vast potential wealth, has declined drastically since the mid-1980s. At the time of its independence in 1960, DRC was the second most industrialized country in Africa after South Africa, it boasted a thriving mining sector and its agriculture sector was relatively productive. The two recent conflicts (the First and Second Congo Wars), which began in 1996, have dramatically reduced national output and government revenue, have increased external debt, and have resulted in deaths of more than five million people from war, and associated famine and disease. Malnutrition affects approximately two thirds of the country's population.
Foreign businesses have curtailed operations due to uncertainty about the outcome of the conflict, lack of infrastructure, and the difficult operating environment. The war has intensified the impact of such basic problems as an uncertain legal framework, corruption, inflation, and lack of openness in government economic policy and financial operations.
Conditions improved in late 2002 with the withdrawal of a large portion of the invading foreign troops. A number of International Monetary Fund and World Bank missions have met with the government to help it develop a coherent economic plan, and President Joseph Kabila has begun implementing reforms. Much economic activity lies outside the GDP data. A United Nations Human Development Index report shows human development to be one of the worst in decades. Through 2011 the Democratic Republic of the Congo had the lowest Human Development Index of the 187 ranked countries, classified lower than Niger despite a higher margin of improvement than the latter country from 2010's numbers.
The economy of the second largest country in Africa relies heavily on mining. However, the smaller-scale economic activity occurs in the informal sector and is not reflected in GDP data. The largest mines in the Congo are located in the Shaba province, in the South. The Congo is the world's largest producer of cobalt ore, and a major producer of copper and industrial diamonds, the latter coming from the Kasai province in the West. The Congo has 70% of the world's coltan, and more than 30% of the world's diamond reserves. mostly in the form of small, industrial diamonds. The coltan is a major source of tantalum, which is used in the fabrication of electronic components in computers and mobile phones. In 2002, tin was discovered in the east of the country, but, to date, mining has been on a small scale. Smuggling of the conflict minerals, coltan and cassiterite (ores of tantalum and tin, respectively), has helped fuel the war in the Eastern Congo. Katanga Mining Limited, a Swiss-owned company, owns the Luilu Metallurgical Plant, which has a capacity of 175,000 tonnes of copper and 8,000 tonnes of cobalt per year, making it the largest cobalt refinery in the world. After a major rehabilitation program, the company restarted copper production in December 2007 and cobalt production in May 2008. The Democratic Republic of Congo also possesses 50 percent of Africa's forests and a river system that could provide hydro-electric power to the entire continent, according to a U.N. report on the country's strategic significance and its potential role as an economic power in central Africa. It is one of the twenty lowest ranked countries on the Corruption Perception Index.
In 2007, The World Bank decided to grant the Democratic Republic of Congo up to $1.3 billion in assistance funds over the next three years.
The Democratic Republic of Congo is in the process of becoming a member of the Organization for the Harmonization of Business Law in Africa (OHADA).
Read more about this topic: Democratic Republic Of The Congo
Famous quotes containing the word economy:
“I favor the policy of economy, not because I wish to save money, but because I wish to save people. The men and women of this country who toil are the ones who bear the cost of the Government. Every dollar that we carelessly waste means that their life will be so much the more meager. Every dollar that we prudently save means that their life will be so much the more abundant. Economy is idealism in its most practical terms.”
—Calvin Coolidge (1872–1933)
“Quidquid luce fuit tenebris agit: but also the other way around. What we experience in dreams, so long as we experience it frequently, is in the end just as much a part of the total economy of our soul as anything we “really” experience: because of it we are richer or poorer, are sensitive to one need more or less, and are eventually guided a little by our dream-habits in broad daylight and even in the most cheerful moments occupying our waking spirit.”
—Friedrich Nietzsche (1844–1900)
“The counting-room maxims liberally expounded are laws of the Universe. The merchant’s economy is a coarse symbol of the soul’s economy. It is, to spend for power, and not for pleasure.”
—Ralph Waldo Emerson (1803–1882)