+ congo river basin the role of international money

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+ Congo River Basin The Role of International Money

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Page 1: + Congo River Basin The Role of International Money

+

Congo River Basin

The Role of International Money

Page 2: + Congo River Basin The Role of International Money

+Outline

Hydrology of the basin

Resources within the basin

Geopolitical background

Role of international parties

Page 3: + Congo River Basin The Role of International Money
Page 4: + Congo River Basin The Role of International Money

+Hydrology

Catchment area: 3.7 M km2

Democratic Republic of Congo, the Central African Republic, the Republic of Congo, Angola, Cameroon, Burundi, Rwanda, Tanzania, and Zambia

2nd largest in world

Length: 3,100 km

Discharge: 40,000 m3/s

Highest potential for hydropower development

Page 5: + Congo River Basin The Role of International Money

+Area and Precipitation

Area of Country within Basin (km2)

AngolaBu-

rundi

Cameroo

n

Cen-tral African Re-pub-lic

DR Congo

Re-pub-lic of Cong

o

Rwanda

Tanza-nia

Zambia

Area of Country within Basin (km2)

Angola

Burundi

Cameroon

Central African Repub-lic

DR Congo

Republic of Congo

Rwanda

Tanzania

Zambia

Angola

Burundi

Cameroon

Central African Repub-

lic

DR CongoRepub-lic of

Congo

Rwanda

Tan-zania

Zambia

Avg. Annual Rainfall (mm)

Page 6: + Congo River Basin The Role of International Money

+Congo Forest

1.6 M km2

3 million people

400 species of mammals Gorillas Bonobos Elephants

1000 species of birds

>10,000 species of plants 3000 found only in this

forest

8 World Heritage Sites

Page 7: + Congo River Basin The Role of International Money

+Resources

Timber, copper, cobalt, coltan, gold, manganese, uranium, oil, and diamonds

64-80% of world’s reserves in coltan, but only 10% of world’s production

Page 8: + Congo River Basin The Role of International Money

+Geopolitical Background in DRC

1908: established as a Belgian colony

1960: gained independence

Mobutu in power for 32 years

1994: start of civil war

1997: Laurent Kabila came into power

1999: ceasefire signed

2001: Laurent Kabila assassinated

Joseph Kabila (son) became the head of state

2002: Pretoria Accord signed

Elections in 2006 and 2011

J Kabila won reelection (49%)

Carter Center – election lacked credibility

>24 people killed and 100,000 people displaced since election

Page 9: + Congo River Basin The Role of International Money

+Democratic Republic of Congo

Poorest country in the world 71% of population below the poverty line $13.5 B in external debt (86th in world)

1.4 M internally displaced people (IDP) (2007)

Longest deployment of UN Peacekeeping Forces (since 1999)

International land disputes with the Republic of the Congo, Uganda, Zambia, and Angola

Export partners: China 46.9%, Zambia 23.3%, US 10.4%, Belgium 4.2%

Import partners: South Africa 19.2%, China 12.5%, Belgium 9.2%, Zambia 8.8%, Zimbabwe 6.9%, France 5.8%, Kenya 5.8%

Page 10: + Congo River Basin The Role of International Money

+Congo River Basin

Southern African Development Community (SADC) Water Sector Working to improve data and communication in the region

Commission of the Congo-Oubangui-Sangha Basin (CICOS) DRC, Cameroon, the Republic of the Congo, the Central African

Republic 2003: ratified the accord creating the organization Emphasis on navigation, then water resource management

Interest in diverting water to Chad, but not enough data in Congo

Lake Tanganyika Authority (LTA) Burundi, DRC, Tanzania, Zambia Created in 2008 Regional oversight and management of the lake and its resources

Agreements among Member States

Page 11: + Congo River Basin The Role of International Money

+International Involvement

Finland: EUR 100 M SADC Regional Meteorology Project

Food and Agriculture Organization of UN AQUASTAT

Germany: EUR 2.5 M CICOS

Netherlands: EUR 4.7 M WaterNet Trust

Sweden: EUR 3 M Water Demand in Southern Africa

United Nations Development Program: USD 52.5 M LTA

Page 12: + Congo River Basin The Role of International Money

+Role of International Parties

“Economic structures favored foreign investment, particularly in the extractive industry, and little had been achieved to empower and build the capacity of citizens.” – WWF report on Cameroon

Page 13: + Congo River Basin The Role of International Money

+International Aid to DRC from IMF5 year average of aid given in US$ M

Action relating to debt

Administrative costs

Economic in-frastructure and services

Education

Health and populationHumanitarian aid

Multisector/cross-cutting

Other social sectors

Production sectors

Program assistanceunallocated/unspeci-

fied

Aid by Sector

Page 14: + Congo River Basin The Role of International Money

+Type of Financing by IMF

2000200120022003200420052006200720082009-1000

0

1000

2000

3000

4000

5000

6000

7000

8000Type of Financing (US$ M)

Net Debt Relief Grants

Repayments

Gross Loans

Other Grants

Page 15: + Congo River Basin The Role of International Money

+DRC and China

Relationship began in 1972

China offers aid through education, hospitals, agriculture, infrastructure

Exponential increase in trade since 2004

Sicomines Barter deal arranged in 2008 $9 B in infrastructure for mining concessions in Katanga province

(~$50 B) Controversial and opposed by some within DRC and internationally

Not enough transparency Favors China too much Worries regarding debt sustainability

Page 16: + Congo River Basin The Role of International Money

+Discussion Questions

What are some potential issues with different types of foreign aid?

How can foreign involvement be beneficial for the people of the DRC?

What are some competing interests with development and how can they be resolved?

What are some similarities and differences between the Congo and the Amazon?

Page 17: + Congo River Basin The Role of International Money

+

Not well regulated or enforced

Disrupts gorilla habitats

Roads allow militants to move more easily

More poaching and brushmeat trade from militants and IDPs

Can affect carbon cycle and contribute to climate change

UNESCO and WWF trying to stop the exploitation of timber but it is a significant export for the region

Logging