The chaotic nature of the Republic of the Congo has produced an even more unsettling economy. The economy that has developed is an interesting mix between the primal mixture of village handicrafts and agriculture and the more modern developments of industry largely based on oil (petroleum) extraction, all of which stem from a government characterized by widespread hatred, budget problems, and severe overstaffing. Recently the boom in demand for petroleum has become substantially the countries most profitable revenue source since the late 1980s. The exponential growing oil revenue stream enabled the government to finance a large scale development project, one that was able to produce a 5% increase in GDP of the Congo per year. This was a substantial increase, but it also came with government shortages in revenues as they mortgaged a good portion of the earnings. Recently, new oil fields were discovered under various oil fields, which has lead to the Congo's oil production being projected to continue to grow significantly in the next few years.
The rest of the Congo's economy is centered around the sale of the other natural resources such as the countries abundant rain forests serving as a source of timber. The forest industry was prevalent and prosperous until recent years where high transport costs, high wages, and poor productivity have lead to the decline of the timber industry.
Sources:
http://en.wikipedia.org/wiki/Economy_of_the_Republic_of_the_Congo
http://www.africaneconomicoutlook.org/en/countries/central-africa/congo-republic/
I'm glad for the economy of the Congo to have an increase when they needed it but thinking about how they have gotten the increase is what scares me most. I do not want to say that they are doing a bad thing by making an increase in GDP but with exhausting the natural resources lead to nothing left. I understand that the Congo has other means of increasing the economy but if they keep on using natural resources such timber, it would cause no homes for the animals and less oxygen for the people of the Congo. Sorry if I sound like an Environmentalist or something, I just wonder if there is another way they can succeed in increase in the economy without the natural resources. Only time would tell us, I guess!
ReplyDeleteMy first response to this was joyful as it is good to hear their GDP has increased over the last year. Although it is good their economic situation is getting better, it is sort of sad to see this growth has come from use and sale of their natural resources. This is sad to see because I know how dependent on the land many of the natives of the Congo. Many of the praise and warship the land and it is kind of depressing to see them sell it away for money and power. I guess desperate times call for desperate measures. I wonder if there is another way for the people of Congo to make money in a more environmentally friendly way. This blog was well written and had good examples. Keep it up!
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