The economy of the democratic republic of the congo has declined drastically since the. Political instability has been the main challenge to a successful economic development strategy. Oil gdp will keep growing, despite continued low oil prices. The concerns raised echo structural problems expressed by other congobased businesses contacted by crisis group during the past year in. No claims are made regarding the accuracy of congo, democratic republic of the economy 2020 information contained here. While the name of the country surely lends itself to an assumption of regime type, in actuality, this area has experienced great civil unrest. More than 2,200 have died in the countrys worstever outbreak of the virus just two days before the outbreak of ebola in the democratic republic of congo was to be declared over, the world health. Topics index democratic republic of congo democratic republic of congo. Production in the allimportant mining sector took a downturn last year, as external headwinds stemming from the u. Fall in cobalt prices, the democratic republic of congo is faced with the challenge of diversifying its economy, which is highly dependent on.
Decades of war, violence, and poverty have claimed the lives of over five million people. Democratic republic of the congo democratic republic of the congo economy. Causes, impact and implications for the great lakes region the democratic republic of congo is recovering from conflicts, posting substantial improvement in overall macroeconomic performance since the cessation of the war, on the back of robust copper and cobalt exports. With 80 million hectares of arable land and over 1,100 listed minerals and precious metals, the drc has the potential to become. The democratic republic of the congo pronunciation help info french. Despite its potential wealth, however, the congos economy has drastically declined since the 1950s.
The state of democracy in the democratic republic of congo. Infectious diseases, like malaria, divert intentions for economic investments, threaten public health and contribute to child mortality rates. One of the main causes of poverty in the democratic republic of the congo is health threats, specifically a malaria outbreak, which resulted in approximately 6. The democratic republic of congo drc has one of the highest incidences of poverty in the world. Democratic republic of congo to resolve outstanding problems in less than four months before critical elections.
Artisanal mining in the democratic republic of congo the. The sheer human toll of violence, displacement, disease, and seemingly endless extreme poverty seen over the last two decades in the democratic republic of congo drc is as shocking as anything we have seen in recent times. Democratic republic of congo economic outlook african. This article is more than 9 years old celebrations marking 50th anniversary of congos independence reignite debate over. Deforestation in the democratic republic of the congo. Social issues in the democratic republic of congo wikipedia. The economy of the democratic republic of the congo a nation endowed with vast natural resource wealth continues to perform poorly. Mobutu came to power as an agent for creating stability amongst the political chaos of the congo democratic republic.
Is colonialism still to blame for the democratic republic. Security council urges democratic republic of congo to. The social situation is marked by persistent poverty. The largest francophone country in africa, the democratic republic of congo drc, endowed with vast natural resources, has nearly 80 million inhabitants, fewer than 40% of whom live in urban areas. Because of unrest and economic instability, the democratic republic of the congo has mostly escaped the industrialscale deforestation that has taken place in other tropical countries such as brazil and indonesia. Economy of the democratic republic of the congo wikipedia. Dr congo economy gdp, inflation, cpi and interest rate.
In 2008, at the request of the government of the democratic republic of congo dr congo, the united nations environment programme unep established a country programme and a project office in the capital, kinshasa. The conflict in the east map created by the council on foreign relations, click for interactive version the map above shows the location of armed groups in green and the areas with the number of internally displaced people in purple in the eas. Democratic republic of the congo, country located in central africa. Congolese growth accelerated significantly in 2019, mainly thanks to a surge in oil production more than 60% of gdp, making the country the thirdlargest producer in subsaharan africa, but also to a positive contribution from the nonoil sector. Since then, corruption, war and political instability have been a severe detriment. Drc faces economic challenges business africa africanews. Congo economic outlook african development bank building. The problems associated with democratic reform in the democratic republic of the congo drc are manifold. Economic activity shifted into a lower gear in 2019, with gdp expanding 4. In power he supported the notion of a corporatist state economy. Major problems facing dr congo today democratic republic of congo or dr congo for short, is a central african country bordering the central african republic and the republic of south sudan to the north, the republics of uganda, burundi, tanzania and rwanda to the east, the republics of zambia and angola to the south, the republic of the. Democratic republic of the congo economy britannica. The world bank is helping to fight poverty and improve living standards for the people of the democratic republic of congo, through education, energy, health and other social services. For decades, one of the worlds deadliest, longestrunning crises has been unfolding in the democratic republic of congo.
Security council urges democratic republic of congo. Petroleum has supplanted forestry as the mainstay of the economy, providing a major share of government revenues and exports. Congos economic growth has remained on track despite a still weak domestic environment. Africa congo, democratic republic of the the world. The democratic republic of congo is widely considered to be the richest country in the world regarding natural resources. Systemic corruption since independence in 1960, combined with countrywide instability and intermittent conflict that began in the early90s, has reduced national output and government revenue, and increased external debt. Economic trivia the democratic republic of congo is widely considered to be the richest country in the world regarding natural resources. The capital, kinshasa, is located on the congo river about 320 miles 515. Poor economic management aggravated by repeated political crises has severely constrained domestic and foreign investment, trapping much of the population in. All are working toward promoting economic diversification, improving the business climate, developing the health and education sectors, and strengthening social protection.
Democratic republic of congo profile timeline bbc news. At independence in 1960, the formal economy of congo was based almost entirely on the extraction of minerals, primarily copper and diamonds. This part of the web site looks at the conflict in the democratic republic of congo. The area of the democratic republic of the congo is over 905,000 square miles 2. The political system in the democratic republic of congo drc has been paralyzed in recent years by the repeated postponement of elections, though highly problematic balloting was finally held at the end of 2018. At the time of its independence in 1960, the democratic republic of the congo was the second most industrialized country in africa after south africa. Visit the economist estore and youll find a range of. The country has poor transportation networks, which is still a major challenge to economic development. Facing problems servicing its debt, the country had arrears climb to 21% of gdp in 2019, from 8% in 2018. The government adopted new sectoral programs for health and education in connection with its national strategic development plan pnsd, which is currently being adopted. Yet the rich country leaders and their media drew everyones attention to 2000 ethnic albianians being killed in kosovo to gain. The democratic republic of congos economic freedom score is 50. The democratic republic of the congo is a country located in central africa poverty. Congo, democratic republic of the overview of economy.
Congo, democratic republic market overviewcongo dr market overview discusses key economic indicators and trade statistics, which countries are dominant in the market, the u. Despite a wealth of fertile soil, hydroelectric power potential, and. A major problem for people trying to start their own companies is that the minimum amount of capital needed to launch the company is 5 times the. The country faces a moderate risk of debt distress. Citizens are unable to freely exercise basic civil liberties, and corruption is endemic throughout the government. It is no doubt that the democratic republic of congo is an underdeveloped country despite its wealth in valuable resources. Emerging from this postconflict turmoil, these entrepreneurial farmers have always defied. Congo, democratic republic african economic outlook. The mining industry makes up a significant part of the countrys economy with over 90 percent of its revenue coming from the. What are the problems facing the democratic republic of.
Communities are working together to create economic opportunities, and leaders from. Democratic republic of congo overview world bank group. Economic indicators for republic of the congo including actual values, historical data charts, an economic calendar, timeseries statistics, business news, long term forecasts and shortterm predictions for republic of the congo economy. It boasted a thriving mining sector and its agriculture sector was relatively productive. Agriculture has suffered from low productivity while energy shortages. The democratic republic of congo drc did make some progress in the field of human development in 2016 despite the fragile politicosecurity context. Democratic republic of the congo economic indicators. In response to violence carried out by exiled rwandan hutu genocidaires, rwandan and ugandan forces invaded the democratic republic. While the democratic republic of congo has the natural and human. But to truly understand how drc has gotten to this point, you have to understand something of its history.
The economy of the democratic republic of the congo has declined drastically since the mid1980s, despite being home to vast potential in natural resources and mineral wealth. The democratic republic of congo has some of the most fertile land in the world, but for decades the small farming communities surrounding lake kivu in eastern congo have endured cycles of violence and postconflict poverty. The democratic republic of congo is both one of the worlds most mineralrich countries and consistently one of the poorest. The democratic republic of the congos economic freedom score is 49. The democratic republic of congo drc, or the congo is a nation rich in natural resources, including diamonds, cobalt, and copper. Media coverage is poor and yet there have been millions of refugees and over five million killed since the war began around august 1998. Democratic republic of the congo african economic outlook 2017 the growth rate of the congolese economy fell from 6. The democratic republic of congo formerly zaire has a long history of conflict, but its recent crises can be traced to the aftermath of the 1994 rwandan genocide. Report of the panel of experts on the illegal exploitation of natural resources and other forms of wealth of the democratic republic of the congo, from united nations security council, 12 april, 2001, which reveals a a massive level of illegal exploitation by corporations and countries alike. Congo, democratic republic of the economy 2020, cia world. The drc also has vast onshore oil reserves which it has yet to exploit. Despite a wealth of fertile soil, hydroelectric power potential, and mineral resources, the democratic republic of the congo 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.
Economic growth between 2005 and 2012 was associated with a moderate reduction in poverty in the drc. Major problems facing dr congo today africa and the. The democratic republic of the congo holds 65 percent of the worlds cobalt reserves and both countries rely on oil, sugar, and other natural resources. Officially known as the democratic republic of the congo, the country has a 25mile 40km coastline on the atlantic ocean but is otherwise landlocked.