Monday, July 11, 2011

50 years after the independence (further Analysis ) …

In order to have a better understanding of the DRC situation 50 years after its independence, it  worth comparing it with the situation of some of its ‘neighbors’. I have included in the analysis an emerging country, South-Africa; to show how long will be the road to ‘prosperity’ for the DRC. As stated in my previous article, the DRC has one of the lower GDP per capita in the world.


I acknowledge the fact that the GDP per capita is far from being a perfect indicator as it assumes that the revenue produced in a country is equally divided among all its inhabitants. We know that this is a flawed assumption in the World in general and in developing countries in particular. This inequality in revenue repartition is measured by the GINI coefficient (we’ll talk about it in a future article).

However, the GDP per capita is one of the only indicators that allow us to compare countries with different population size and based on the latter, the DRC is in a very bad situation even when compared to other ‘poor’ countries such Rwanda and Zambia…












Source: World Bank

Most of the countries used for comparison have had a quasi-flat growth of their GDP per capita, except for Angola that have seen a substantial growth since the end of the war and thanks to the revenues generated by the oil industry (the graph was distorted by South Africa presence, therefore, I have decided to leave it out). 












Source: World Bank

When we look at the GDP in absolute term, the Congolese figure is really weak for a country with such a potential. Years of war, mismanagement from the authorities, low level of investments, the difficulty to do business in the DRC, the high level of corruption are some of the reasons to explain these poor performances…  












Source: World Bank

(GDP per capita is gross domestic product divided by midyear population. GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars (World Bank).)


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