This case study examines the political, historical, and economic factors contributing to the resource curse in the Democratic Republic of Congo (DRC), and compares its situation with neighboring countries Botswana and Nigeria.

The Democratic Republic of Congo, or DRC, is a country located in Central Africa with a small coastline that touches the Atlantic Ocean. The country is roughly the size of Western Europe and is home to over 105 million people; it is one of the most populous countries in the world. The capital of the DRC, Kinshasa, has a population of over 17 million people and is the largest (in terms of population) city in Africa. There are over 359 known ethnic groups and over 400 languages and dialects spoken in the country (Ediger.) It is a majestic place with dense jungles, rivers, mountains, plains, and lakes and is home to an abundance of wildlife including the silverback mountain gorilla. The DRC is not only rich in culture and people, but also rich in mineral and natural resources. It is laden with large deposits of crude oil, rich fields of natural gas and methane, and significant amounts of minerals like uranium, cobalt, and tin.  Despite having an abundance of cultural, people, natural, and mineral resources, however, the DRC is an example of the “Resource Curse.” It has experienced decades of violent conflict, political instability, and economic stagnation despite having an abundance of resources that would suggest forthcoming prosperity.

The resource curse refers to a phenomenon in which countries that are rich in natural or mineral resources paradoxically are often stricken with slow or stagnant economic growth, political instability and corruption, civil wars, and high rates of poverty. From an economic perspective, economic growth and poverty are telltale signs of the resource curse. According to Collier, a report by the World Bank found that countries with medium to large mining sectors saw their Gross Domestic Product (GDP) fall 1.15 percent per year in the 1990s (20). This amounted to over 11 percent over a decade. Economic growth, or in this case economic shrinkage, is usually a precursor to the eruption of civil war. In the case of the DRC, economic shrinkage occurred at -5.56 percent for three years which eventually led to civil war and the years of instability that resulted. Similarly, a heavier reliance on nonmineral exports results in atypically higher rates of poverty (Collier 20). When economic stagnation and poverty are compounded together, the condition for civil war is high.

From a political perspective, natural resource dependence tends to influence governments themselves (Collier 24). While a strong government can help curb the negative effects of the resource curse, often it is the other way around – the resource curse negatively affects the government. Collier states that governments in resource abundant states are less likely to resolve internal conflict and more likely to make things worse. This occurs through corruption, state weakness, and reduced accountability (Collier 25). Because of the rapid nature of the cash flow generated by resource wealth, as well as the sheer magnitude of that flow, management of revenue and expenditures becomes too difficult of a task to perform, and mismanagement ensues. Additionally, income due to resource wealth typically is not taxed. Income that is not generated by taxation can be used for all sorts of expenditures and unfortunately is no longer transparent to the governed body, resulting in a lack of accountability.

The damage caused by the ill effects of the resource curse can be suffocating to a country rich in mineral and natural resources. Indeed, Rapanyane says that “resource-rich African countries are often outstripped when it comes to long-term economic growth, economic development, and the reduction in poverty by those countries that are not obviously rich in mineral resources (121).” The DRC is an example of an economy that is experiencing never-ending resource conflict and weak government because of resource curse.

The DRC is one of the most abundant, if not the most abundant African country in natural and mineral resources (Rapanyane 121). It is rich in oil and gas – the crude oil reserves alone are the 2nd largest on the African continent. Experts suggest that beneath the soil in the DRC, there is enough oil reserves to produce over 5 billion petroleum barrels (Rapanyane 121). In addition to oil, the DRC is widely known around the world for its mining industry. In the southeast region of the country there are numerous mines for minerals such as copper, tin, silver, diamonds, coltan, uranium, and coal (Rapanyane 122). One mineral of value is cobalt, and the DRC is home to large deposits of it. Cobalt is an essential mineral in modern technology applications. According to Nkulu, more than 50% of the world’s current production of cobalt goes to rechargeable batteries for smartphones, laptops, and electric vehicles (1). Furthermore, because cobalt is an essential component of lithium-ion batteries, the increasing demand for electric vehicles worldwide has resulted in an increase in the market for cobalt and an increase in price (Nkulu 1). The DRC happens to dominate the supply of cobalt, responsible for about 60% of the global supply, with no other country responsible for more than 6% (Nkulu 1). The paradox of the DRC example, however, is that despite having an abundance of resources - the DRC is one of the poorest countries in the world. It ranks 176 out of 189 countries in the Human Development Index (HDI), a measure of life expectancy, education, and per capita income indicators (Rapanyane 122). The DRC has a GDP per capita of $562, which is one of the lowest in the world. The country has a high poverty rate, with over 70% of the population living below the poverty line. The DRC also has one of the highest rates of child mortality in the world, with 106 deaths per 1,000 live births (Rapanyane 122).

The DRC's resource curse is further exacerbated by the role of multinational corporations (MNCs). These corporations often exploit the country's resources without adequately compensating the local population or investing in the country's development. This has led to widespread environmental degradation, social unrest, and economic inequality. Additional evidence or sources could further strengthen this argument.

In contrast, neighboring countries like Botswana and Nigeria have managed to avoid the resource curse to some extent. Botswana, for example, has used its diamond wealth to invest in education, healthcare, and infrastructure, leading to significant improvements in its HDI ranking. Nigeria, while still grappling with issues of corruption and inequality, has managed to leverage its oil wealth to become one of Africa's largest economies.

In conclusion, the resource curse in the DRC is a complex issue that requires a multifaceted approach to resolve. Addressing the political, historical, and economic factors contributing to the resource curse is crucial for the country's future development. Furthermore, the experiences of neighboring countries like Botswana and Nigeria provide valuable lessons on how to manage resource wealth effectively. With the right policies and strategies, the DRC has the potential to transform its resource curse into a blessing.

Case Study on the Resource Curse in the Democratic Republic of Congo