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1. ‘Children of the Forest’Photograph by Randy Olson National Geographic Children of the ForestPhotograph by Randy OlsonIn the heart of central Africa's Ituri forest, a Pygmy boy angles for lunch. Known as the Mbuti, these semi-nomadic hunter-gatherers might be the original inhabitants of the enormous central African rain forest—though no one knows exactly how long they have lived there. Just one of about several Pygmy groups, the Mbuti trap, trade, and hunt to ancient rhythms, their lives intimately tied to the forest.Children of the ForestPhotograph by Randy OlsonIn the heart of central Africa's Ituri forest, a Pygmy boy angles for lunch. Known as the Mbuti, these semi-nomadic hunter-gatherers might be the original inhabitants of the enormous central African rain forest—though no one knows exactly how long they have lived there. Just one of about several Pygmy groups, the Mbuti trap, trade, and hunt to ancient rhythms, their lives intimately tied to the forest.Children of the ForestPhotograph by Randy Olson
2. Tragedy of the Congo
3. Source: https://www.cia.gov/cia/publications/factbook/reference_maps/africa.htmlSource: https://www.cia.gov/cia/publications/factbook/reference_maps/africa.html
4. Workers outside KinshasaPhotograph by James P Blair National Geographic Southeast of Kinshasa, Democratic Republic of the Congo, 1980, 1981 or 1982Photograph by James P. Blair. Peasants carry wood from a rain forest 85 kilometers (53 miles) southeast of Kinshasa, the capital of the Democratic Republic of the Congo [then called Zaire], to a charcoal processing plant. (Photograph taken on assignment for, but not published in, "Rain Forests," January 1983, National Geographic magazine) RELATED
Maps and Geography Southeast of Kinshasa, Democratic Republic of the Congo, 1980, 1981 or 1982Photograph by James P. Blair. Peasants carry wood from a rain forest 85 kilometers (53 miles) southeast of Kinshasa, the capital of the Democratic Republic of the Congo [then called Zaire], to a charcoal processing plant.
5. Background I The Congo was a Belgian colony from 1908 to 1960
From 1960-1964 a UN peacekeeping mission supervised the transition to independence
In November 1965, after the UN’s withdrawal, Col. Joseph Mobutu seized power and declared himself president
He changed his name to Mobutu Sese Seko and the name of the country to Zaire
Mobutu ruled for three decades, from 1965 to 1997; his rule was characterized by civil unrest, the violent suppression of dissent, and a declining economy
6. Background II In May 1997, Laurent Kabila, with support from Rwanda and Uganda, overthrew Mobutu’s government
Country was renamed the Democratic Republic of the Congo
From 1997 to 2003, conflict engulfed the region, eventually involving armed rebel groups and soldiers from Angola, the Congo, Namibia, Rwanda, Uganda, and Zimbabwe
Laurent Kabila was assassinated in 2001, and succeeded by his son, Joseph Kabila
A cease-fire was signed in 2003
A constitution drafted in December 2005
National elections were held in December 2006 and Joseph Kabila was elected president
Provincial elections were held in 2007 Over 200 African ethnic groups of which the majority are Bantu; the four largest tribes - Mongo, Luba, Kongo (all Bantu), and the Mangbetu-Azande (Hamitic) make up about 45% of the population Over 200 African ethnic groups of which the majority are Bantu; the four largest tribes - Mongo, Luba, Kongo (all Bantu), and the Mangbetu-Azande (Hamitic) make up about 45% of the population
7. Economy Overview I Natural resources
petroleum, industrial and gem diamonds, gold, silver, copper, uranium, timber
Industries
mining (diamonds, copper), textiles, cement, commercial ship repair
During the 1970s and 1980s, despite international support, the economy remained stagnant
1967, IMF provided a $27 million line of credit, followed by additional loans from 1976 to 1981
1982, Zaire’s GDP was lower than in 1967, while Mobutu had amassed a personal fortune estimated at $4 billion cobalt, copper, niobium, tantalum, petroleum, industrial and gem diamonds, gold, silver, zinc, manganese, tin, uranium, coal, hydropower, timber
GDP - real growth rate: 6.5% (2005 est.)
GDP - per capita (PPP): $700 (2005 est.)
Unemployment rate: NA%
Debt - external: $10.6 billion (2003 est.)
Economic aid - recipient: $2.2 billion (FY03/04)
Exchange rates: Congolese francs per US dollar - 437.86 (2005), 401.04 (2004), 405.34 (2003), 346.49 (2002), 206.62 (2001) cobalt, copper, niobium, tantalum, petroleum, industrial and gem diamonds, gold, silver, zinc, manganese, tin, uranium, coal, hydropower, timber
GDP - real growth rate: 6.5% (2005 est.)
GDP - per capita (PPP): $700 (2005 est.)
Unemployment rate: NA%
Debt - external: $10.6 billion (2003 est.)
Economic aid - recipient: $2.2 billion (FY03/04)
Exchange rates: Congolese francs per US dollar - 437.86 (2005), 401.04 (2004), 405.34 (2003), 346.49 (2002), 206.62 (2001)
8. Economy Overview II Zaire’s foreign debt increased to $5 billion by the mid-1980s
In 1987, Zaire abandoned its IMF agreement due to food riots
In 1993, after new agreements were negotiated, Zaire was forced by declining balance of payments to suspend debt repayments
By 1997, when civil war broke out, Zaire’s external debt had increased to $14.6 billion
During the ensuing civil conflict,
National output and government revenue were dramatically reduced, further increasing external debt, and resulting in the deaths of more than 3.5 million people from violence, famine, and disease
Foreign businesses curtailed operations due to uncertainty about the outcome of the conflict, lack of infrastructure, and the difficult operating environment. cobalt, copper, niobium, tantalum, petroleum, industrial and gem diamonds, gold, silver, zinc, manganese, tin, uranium, coal, hydropower, timber
GDP - real growth rate: 6.5% (2005 est.)
GDP - per capita (PPP): $700 (2005 est.)
Unemployment rate: NA%
Debt - external: $10.6 billion (2003 est.)
Economic aid - recipient: $2.2 billion (FY03/04)
Exchange rates: Congolese francs per US dollar - 437.86 (2005), 401.04 (2004), 405.34 (2003), 346.49 (2002), 206.62 (2001) cobalt, copper, niobium, tantalum, petroleum, industrial and gem diamonds, gold, silver, zinc, manganese, tin, uranium, coal, hydropower, timber
GDP - real growth rate: 6.5% (2005 est.)
GDP - per capita (PPP): $700 (2005 est.)
Unemployment rate: NA%
Debt - external: $10.6 billion (2003 est.)
Economic aid - recipient: $2.2 billion (FY03/04)
Exchange rates: Congolese francs per US dollar - 437.86 (2005), 401.04 (2004), 405.34 (2003), 346.49 (2002), 206.62 (2001)
9. ‘Blood Diamonds’
10. Case Questions I Question #1
What was the goal of the policies that the IMF and World Bank adopted toward Zaire?
Do you think these policies were appropriate for an impoverished nation?
In what ways may IMF policies have contributed to economic problems in Zaire?
Question #2
Do you think the IMF and World Bank should lend money to countries such as Zaire where there is systematic evidence of widespread government corruption?
11. Case Questions II Question #2
Do you think the IMF and World Bank should lend money to countries such as Zaire where there is systematic evidence of widespread government corruption?
Question #3
What alternative policies could the IMF and World Bank have adopted in Zaire?
How might these policies have helped the country avert the economic and political chaos of the 1990s, which included a prolonged civil war and economic disintegration?