Wealth in Poverty: The 24 Trillion Dollar Poor Country

 DRC or Democratic Republic of Congo is rumored to be home to trillions of dolltransition The DRC or Democratic Republic of Congo is rumored to be home to trillions of dollars worth of rare earth minerals and untapped natural resources, but it is one of the poorest countries in the world. The Republic is so resource Rich that it has timber oil and gas iron ore gold diamonds and minerals critical to the energy transition such as cobalt and copper. It is one of the most biodiverse regions, but as of 2022, it ranked 96th out of 223 countries in terms of human development

largest country in sub-Saharan Africa

SSA consists of the Democratic Republic of Congo The DRC is endowed with extraordinary natural resources, such as the world's second-largest rainforest, cobalt and copper mines, hydroelectric potential, vast arable land, and abundant biodiversity, yet more than 70 percent of its people live in extreme poverty. The DRC remains one of the poorest countries on earth.

In 2022, approximately 60 million Congolese subsisted on less than $2.15 per day. Political unrest is a significant contributor to the nation's destitution. Decades of strife and violence have plagued the DRC, while a multitude of armed groups and militias are present. Compete for command of the country's resources A protracted history of conflict, political upheaval, instability, and authoritarian governance have resulted in a severe ongoing humanitarian crisis. In addition, population has been forcibly displaced since the end of the Congo Wars in 2003. These characteristics have not changed, and corruption continues to be a significant problem. The nation has a history of unscrupulous leaders who have stolen billions of dollars from the national treasury, leaving little money for social and development initiatives. This has led to a lack of funding for vital infrastructure projects that are required for the growth and development of the economy, such as roads, hospitals, and schools. Mining and other human activities that have caused soil degradation, erosion, and biodiversity loss have also caused severe environmental problems in the DRC.

With an estimated 24 trillion dollars' worth of undiscovered minerals, the DRC is one of the world's wealthiest nations in terms of natural resources.

Lithium and Cobalt are two of the many natural resources found in the Democratic Republic of the Congo, along with copper, gold, and coltan. The DRC is a significant player in the global economy because these minerals are essential for numerous industries, including aerospace, automotive, renewable energy, and electronics. Lithium is a highly reactive malleable silver-white metal used to produce batteries. Ceramics, glass, and medicines The nation's lithium reserves have not been thoroughly explored, but it is believed to contain significant unexplored quantities. Cobalt is another mineral believed to be abundant in the DRC, with experts estimating that as much as 60 percent of the world's Cobalt can be found there. While only a few grams of cobalt are required for a smartphone, tablet, or laptop, 22 pounds are required for an electric vehicle.

The DRC is the world's largest producer of cobalt, with estimated reserves of approximately 3.6 million metric tons. However, there have been numerous allegations of corruption, environmental damage, and human rights violations related to the mining of these minerals in the DRC. The mining industry has come under fire for allegedly exploiting child labor, with an estimated 40,000 children working in cobalt mines and other mines. Due to the growing demand for electric vehicles, the DRC has the potential to play a significant role in the production of lithium and cobalt across the country. Renewable energy storage systems and other high-tech goods, as well as the living standards of many Congolese, could be dramatically improved if the DRC's natural resources were harvested ethically. This would create jobs, generate revenue for the government, improve infrastructure, and fund investments in vital services such as health and education. However, for this to occur, the mining industry must be managed responsibly and sustainably. Investments and exports continue to be the primary drivers of development, but non-mining sector growth was moderate, especially in the services sector. A larger current account deficit resulted from the inability of rising food and fuel prices to be offset by higher export revenues. However, foreign direct investment helped to reduce the current account deficit. Investments and external financing helped to increase reserves in order to limit excessive currency rate volatility.

The prolonged conflict in Ukraine increased global food and energy prices, putting pressure on domestic inflation and causing it to rise from 2021 to 2022, as increased revenue mobilization was unable to counteract rising capital and current expenditure.

Due to favorable commodity prices, the revenue collection process has been digitized, resulting in a worsening budget deficit. As a consequence of each year's repayments of special security expenditures, domestic revenues reached their zenith in 2022, while expenditures rose. salary modifications and gasoline subsidies The DRC's growth is anticipated to reach 7.5% by 2025, which is a positive prognosis. However, the DRC's economy is still susceptible to fluctuations in commodity prices and the growth rates of its primary trading partners, both of which could be hampered by geopolitical unrest by driving up the global price of food and petroleum. The ongoing economic effects of the Ukraine conflict may exacerbate poverty and inequality by increasing the budget deficit, inflation, and household consumption.

[Music]

Due to the Democratic Republic of the Congo's (DRC) history of violence and instability, it is difficult for foreign investors to conduct business there. Ethnic tensions, political rivalry, and disagreements over land and natural resources have all contributed to the nation's conflicts. Mobutu sese Seco was deposed as a result of the conflict, which involved numerous armed groups, including the Rwandan patriotic army and the Ugandan people's defense force. Even more tragically, the second Congo War, which began in 1998 and lasted until 2003, claimed millions of lives and left countless people homeless and suffering.

The colonization of Belgium by King Leopold II continues to have an impact on the country, as evidenced by the country's ongoing violent conflicts. Although the battlefield has shrunk, the damage it causes has not diminished; for instance, in 2012, the country's leading political opposition party established a foothold in the southern Kasai region. although they are not political positions, Chiefs in the DRC have a great deal of power and administrative control over Gina. In the same year, Pierre Pandi assumed this role in Kasai. However, he was assassinated in 2016 following a conflict between his supporters and the military. As a result, a large-scale conflict erupted, resulting in the displacement of nearly 1.4 million people. The TRC faces a complex and difficult humanitarian situation as a result of sporadic waves of warfare in many areas of the country. The number of internally displaced people or IDPs in the Democratic Republic of the Congo exceeds 5 million, making it the third largest IDP population in the world. Peace building and effective governance must be a top priority for the government. As the world becomes more interconnected, the DRC will be able to establish itself internationally and contribute to prosperity. Despite its difficulties, there is optimism for Congo's future.

Continuing efforts are required to resolve the infrastructure conflict and corruption issues. The future of the DRC rests in the hands of its citizens and leaders, although the road ahead may be challenging.