How Corruption and Political Instability are Killing the Congo

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 DRC’s 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 nation’s 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 nation’s external debt (Democratic Republic of Congo Economy, 2022). The average per capita income for the nation’s 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 DRC’s 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 Congo’s 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 nation’s 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 DRC’s public sector. Furthermore, the cumulative adverse effects of these problems are disproportionately experienced by the country’s most disadvantaged citizens. Indeed, nearly one in three Congolese children aged 5 years or under suffer from malnourishment despite the nation’s potential for increased agricultural production (DRC people, 2022).

In fact, the DRC’s 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 Congo’s 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 Report’s 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 Congo’s 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 Wealth of DR Congo, 2001

Taken together, the issues that are described in Table 1 above underscore just how tenuous the economy of Congo is today as well as just how institutionalized corrupt practices are throughout the country. For instance, according to Chene (2010), “Petty and grand forms of corruption, as well as a complex web of political patronage permeate all sectors of the economy, undermining development prospects and compromising the fragile post-conflict equilibrium” (p. 1). In addition, Chene (2010) concurs with the vast body of scholarship that confirms the negative impact that entrenched corruption has on the DRC’s political stability, and argues that no real progress can be made in helping this struggling African nation overcome these constraints until the rule of law is established and the people of the Congo reject corruption as a way of life. In this regard, Chene (2010) concludes that, “Despite being endowed with considerable mineral wealth, extraction of natural resources continues to be combined with widespread corruption, including within the armed forces, fueling violence, insecurity and public discontent” (p. 1).

Certainly, the DRC is not alone in this situation and many other former European colonies in Africa face the same or similar circumstances (Geenen, 2013; Ijang & Ndikumagenge, 2013). The Congo, however, stands apart from all of these countries due to the enormity of the exploitive and corrupt practices that remain firmly in place throughout all segments of the public and private sectors (Diemel & Hilhorst, 2019). For example, according to Alexandre (2018), “Despite its countless natural resources, the DRC remains one of the poorest countries in the world. Between 2006 and 2011, the DRC dropped 20 places (from 167 to 187) in the Human Development Index, officially becoming the least developed country on earth, with corruption as a major contributing factor” (p. 38).

While precise figures are unavailable due to the very nature of corruption, current estimates make it clear that the DRC cannot move beyond its current status as the least developed country on earth unless and until corruption is eradicated from Congolese government and society. As Alexandre (2018) concludes, “The DRC is known as one of the most corrupt countries in the world, according to Transparency International, and loses more than US$15 billion in corruption annually” (p. 38). In fact, it is reasonable to posit that this figure is actually much higher since much of the DRC’s economy is informal in nature and petty graft, bribery and kickbacks are widely regarded as just the cost of doing business.

While politicians and pundits wring their hands about what can be done to address these problems, nearly two-thirds of the Congolese population remains impoverished, living below the poverty line in a country where potential exists but is thwarted at every turn by corrupt political and business leaders who siphon its very life blood. In this regard, Alexandre (2018) emphasizes that, “Due to a predatory mode of government, incredibly complicated bureaucracy, poverty and political anarchy and incompetence, corruption permeates all public and private institutions in the DRC” (p. 564). In other words, the DRC possesses abundant natural resources and a large workforce but lacks the ability to take advantage to grow its economy and address the multiple problems facing this struggling nation due to ubiquitous corruption.

In fact, the DRC police are ranked among the most corrupt in the entire world, and it is commonplace for taxi drivers to pay off law enforcement with bribes every day they operate their conveyances. In this regard, Alexandre (2018) reports that, “As most vehicles do not possess all the required driving documents, taxi drivers offer US$1 or half a dollar as bribe to each police station before driving. In so doing, they drive freely regardless of whether they have the required vehicle documents or not” (p. 564). While such petty corruption may appear insignificant, it is indicative of just how enmeshed such practices are throughout Congolese society, a reality that undermines any attempt to address this problem from the outset.

Moreover, the corruption of the DRC police actually begins at the top of the hierarchy and is a coordinated effort between top officials and police on the street. For instance, Alexandre (2018) adds that, “Traffic police corruption in the DRC is a well-organized arrangement between officers and their superiors. The size of the bribe required depends on the strategic and lucrative location of the police station” (p. 564). In those instances where police officers are unable to provide their higher-ups with the full amount of bribes expected from them, they may be forced to sell their own personal possessions to take care of the shortfall; otherwise, their jobs may be in jeopardy and their earning power for the future is severely diminished (Alexandre, 2018).

Complicating the problem for the DRC is the glaring lack of political wherewithal to make the changes that are needed, and even an ironclad legal framework that is designed to combat corruption is not worthy the paper it is written on unless political and business leaders voluntarily comply due to a general lack of enforcement capabilities (Chene, 2010). Unfortunately, these are just some of the steps that must be taken successfully in order to effect meaningful changes in the corrupt landscape that is the DRC today. In this regard, Chene (2010) concludes that:

Addressing corruption and governance challenges is a prerequisite to prevent the DRC from sliding back into conflict. Yet the country has weak legal and institutional mechanisms in place to ensure accountability, as well as limited capacity to respond to its governance challenges. High levels of patronage have undermined the establishment of transparent, accountable institutions, and rent-seeking elites generally lack the incentives and political will to build strong institutions to curb corruption. (p. 2)

Some additional indications concerning the true scope and magnitude of the problem with corruption in the DRC can be discerned from the growing body of scholarship that has been devoted to this single issue in recent years. The most recent report from Transparency International (2020) includes multiple references to illicit activities throughout the DRC, including corruption, money laundering and a paucity of governmental oversight. The report notes that the DRC is a signatory to the 2003 African Union Convention on Preventing and Combatting Corruption (AUCPCC) but has not yet finalized its accession, and includes both negative findings as well as recommendations for moving forward. Some of the salient findings from the 2020 report with special implications for the DRC include those set forth in Table 2 below.

Table 2

Findings from Transparency International Concerning Corruption in the DRC

Finding

Notes

The DRC money laundering law criminalizes all three aspects of the money laundering offence covered by Article 6 of the AUCPCC and applies to any offence which generates proceeds of crimes, even if committed abroad. The law applies to both individuals and legal entities. Furthermore, legislation recognizes a range of predicate offenses for the purpose of establishing money laundering, including active and passive bribery, undue

advantage, illicit enrichment, influence peddling, accomplishment or omission of an act, embezzlement and misappropriation of funds, and concealment.

The law is, however, silent on the autonomy of the money laundering offence and no prosecutions for this crime have been identified by Transparency International.

In DRC, illicit enrichment is defined as the substantial increase in assets of a public official (which includes elected representatives at all levels of state) or of any person who cannot reasonably justify such an

increase in light of his/her legitimate income.

Other elements of the offence include increase in assets and absence of justification.

There is no reference to the period of interest or intent in the DRC law. In addition, there are no known cases of illicit enrichment in practice. Most entities benefit from political immunity, and the investigative, prosecutorial and judicial powers lack independence. Data on illicit enrichment is not available to the public.

DRC suffers from an extremely unaccommodating environment for the media and civil society, whereby regulations and laws related to the media generally serve as a way for government to censor information. Given that DRC has yet to fully implement the AUCPCC, there is no direct engagement between government and civil society and media on implementation of the convention

There are frequent reports of harassment of civil society organizations, arrests of activists and cancellation of social gatherings by those in power, and several reports of harassment, violence and arrests of journalists under the auspices of defamation laws. Journalists are often afraid to publish reports of corruption and illicit enrichment for fear of reprisal from the ruling party

Source: Adapted from Implementing and Enforcing the African Union Convention on Preventing and Combating Corruption, 2020

Based on the foregoing findings, it is apparent that the problems that are currently faced by the DRC differ from studies of many other developing nations due to their intractability. Widespread, systematic and systemic corruption has consistently derailed virtually all of the modest progress that has been made since the Congo achieved independence, and it is clear that studying the problem from different theoretical perspectives is not going to change that unfortunate reality. In fact, in virtually all other situations that involve problems of some sort that face modern nations, the scholarship invariably offers some type of viable solutions. This is not the case with the DRC. Although a growing body of evidence indicates the source of corruption and its implications for the people of the Congo, there are no studies to date that provide any recommended solutions for this nation’s challenges. Transparency International did provide a few recommended modest changes to the wording of relevant legislation in the DRC that could have a positive effect in time, but this also assumes that the political and private sector leadership is willing to comply with the law and there are absolutely no signs that this is currently the case nor will this eventuality occur in the foreseeable future.

State hypotheses

As noted above, it was the hypothesis of this study that inefficient and suboptimal natural resources exploitation, government instability and widespread corruption of all types are the root causes of the lack of economic development progress in the DRC to date. This hypothesis is directly related to the study’s research question, “What strategies can be used to eradicate systemic and institutionalized corruption in the Congo’s public and private sectors once and for all?” Unfortunately, expectations for the results are low given the powerful self-interests that are involved which limit the ability of international and nongovernmental organizations to effect meaningful changes in the country. In sum, complex problems demand complex solutions, and the predicament faced by the people of the DRC is certainly no exception.

Research Design and Methodology

This study used an exploratory research design and a qualitative case study methodology to achieve the above-stated research purpose and to develop an informed and timely answer to the guiding research question. This research strategy was deemed optimal for the purposes of this study since it provides a useful framework in which to analyze a complex situation from different perspectives. In this regard, Rashid et al. (2019) report that, “Qualitative case study is a research methodology that helps in exploration of a phenomenon within some particular context through various data sources, and it undertakes the exploration through variety of lenses in order to reveal multiple facets of the phenomenon” (p. 38). Although case studies are qualitative in nature, it was also important to draw on quantitative data such as economic performance and social indicators as well since this research strategy can help identify findings that might otherwise go undetected (Neuman, 2018).

Findings and Discussion

The research was consistent in showing that the DRC has significant amounts of natural resources that are worth an estimated $25 trillion such as mineral deposits including gold, silver, coal, petroleum, diamonds, gold, silver, uranium and timber resources. In addition, the DRC possesses significant deposits of cobalt which is used in electric car batteries and is expected to increase in demand dramatically in the years to come. All of these resources are in high demand on the global market today and their scarcity will only increase in the future. Nevertheless, the Congo has failed to take advantage of these valuable resources to any substantive extent since its independence from Belgium in 1960. Indeed, during the three-quarters of a century since that time, the country has suffered inordinately high inflation rates and chronic unemployment with a large percentage of its population living at or below poverty levels.

Furthermore, the DRC is widely regarded as one of the least developed nations in the world today, and the situation largely continues to worsen year to year despite efforts by the international community to assist this struggling African nation overcome the multiple constraints to development that remain firmly in place (Wilkie et al., 2008). In fact, the peaceful transition of executive power following the election of January 2019 was the first such transfer of power in the DRC since its independence that was not marred by violence or an 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 world’s most expensive peacekeeping force since 1999.

It is tempting to place all of the blame for the DRC’s 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.