Sunday, September 25, 2011

Democratic Republic of the Congo: Digging for Victory

"Mining is Congo's best hope of prosperity but also its biggest worry."

The gap between the Democratic Republic of the Congo’s (DRC’s) economic potential and its citizen’s prosperity is extremely wide.

President Kabila wants to turn the DRC into an economic powerhouse by ramping up mining and oil production. He has made some progress, but the eastern region of the Congo remains chaotic. Kabila’s ability to affect change is limited by problems within the DRC.

Many Congolese blame American congressmen and “human rights people” for making a bad situation worse. An obscure provision in the 2010 Dodd-Frank bill passed by American congressmen and supported by human rights organizations has scared big metal buyers, such as Apple and Motorola, away from the Congo. As a result, local economies within the DRC that depend on mining have dropped off a cliff.

The eastern Congolese city of Goma exemplifies this problem. In the past year, Goma’s economy, which depends largely upon mining, has suffered a miserable decline.

According to The Economist, “It is crucial to get foreign firms, neighboring countries, and international organizations to help solve Congo’s problems.”

“President Kabila’s biggest test will be whether he will be able to get foreign companies to start buying Congolese minerals again.”

http://www.economist.com/node/21530110

By Andrew Elam

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