Global Connections (OCR GCSE Geography B)
Revision Note
Written by: Bridgette Barrett
Reviewed by: Jenna Quinn
International Trade and the DRC
The DRC has trade agreements with over 50 countries
The main trading partners of the DRC are:
China - almost 60% of exports from the DRC are to China
India
Belgium
Italy
France
Australia
The DRC belongs to a number of trade organisations including the World Trade Organisation (WTO)
Mining exports are crucial for DRC's exports making up 30% of the GDP
The dependence on mineral exports means the DRC is vulnerable to rapid changes in price
Many years of corruption, war, and political instability have had a negative impact on development
The DRC has one of the lowest HDI ratings in the world
Transnational Corporations and the DRC
There are a number of transnational corporations (TNCs) operating in the DRC
These include:
Mining companies such as Banro (Canada), Glencore (Swiss company) and Eurasian Natural Resources Corporation (UK)
Telecommunications companies such as Vodacom, Orange DRC and Africell
Banro
A gold mining company
Owns over 7500km2 mining prospects in the DRC
Operates two gold mines in South Kivu and Maniema provinces
Advantages and Disadvantages of Banro Mining Company in DRC
Advantages | Disadvantages |
|---|---|
Provides 4,000 direct and 20,000 indirect jobs Economic benefits for over 240,000 Congolese people Investment in development projects Over US$31 million in infrastructure, education, housing, and public facilities in the two areas - South Kivu and Maniema Creation of the Banro Foundation which has built ten new schools and refurbished two others | Indirect displacement of people due to the redirection of water sources Direct displacement of people - a community in Katombwe was forced to move to make way for mining activities Much of the profit leaves the DRC and goes to Canada The large mines have caused smaller independent mines to close Deforestation The country becomes dependent on the TNC The use of mercury in the process can be harmful to workers and water supply |
Orange RDC
A French telecommunication's company
It is the largest telecommunications operator in the DRC
Advantages and Disadvantages of Orange DRC
Advantages | Disadvantages |
|---|---|
Provides homes, businesses, and governments with telecommunications Investment of US$95 million in the communication network Orange shops employ over 600 people, Headquarters in Kinshasa Introduction of modern technology - 5G Better communications attract other businesses - the positive multiplier effect Investment of US$500,000 in social projects Phone networks are now accessed by 30% of the urban population | Most of the profits go to France Orange pays little tax to the government The headquarters only employs 100 people Rural areas have limited access The government controls the internet speeds Between 2015 - 2017 the government ordered internet speeds to be slowed down or reduced to limit people's access to social media |
International Aid and the DRC
The DRC receives aid from a variety of sources
The aid is usually given from ACs to LIDCs
The EU allocated €80 million in funding to the DRC in 2023
Aid may include:
Food assistance
Shelter
Healthcare
Water
Sanitation
Types of aid
From 2003 to 2010 the DRC was part of the Heavily Indebted Poor Countries (HIPC) - during this time the country paid 20% of its revenue in debt repayments
Through the HIPC initiative, the DRC received debt relief which enabled them to spend money on education and healthcare
Debt repayments are currently 5% of the country's revenue
Advantages and Disadvantages of Aid in DRC
Advantages | Disadvantages |
|---|---|
Aid helps to reduce inequality Helps to meet the UN's Sustainable Development Goals Supports countries with increasing independence Helps to reduce disease | Aid leads to dependence Corruption may mean that the aid does not reach the people it is intended for The aid may not be appropriate for the situation |
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