LIDC Development Flashcards
(35 cards)
What is the name of the LIDC country mentioned?
The DRC
What is Banro?
A mining TNC based in Canada which operates in the DRC
How many people does Banro employ in the DRC?
At least 1500 people
What development project has Banro completed in Luhwindia?
Banro finished building a marketplace
What is the purpose of the marketplace built by Banro in Luhwindia?
To provide jobs for local people and improve the local economy
How does Banro contribute to the DRC economy annually?
Almost US$120 million through local spending
What financial benefits do TNCs like Banro bring to the DRC?
Through taxes and spending on goods and services
What type of infrastructure do TNCs invest in that benefits local people?
Roads and bridges
What happens to some of the profits made by Banro?
They leave the DRC returning to Canada
What is a consequence of Banro’s profits leaving the DRC?
The government does not get as much money as they could
What accusations have been made against some mining companies?
Forcing small mines to close and people to leave their homes
What environmental problems can TNCs cause?
Deforestation due to construction of roads for mine access
What was the trade situation of the DRC until recently?
The DRC had a trade deficit, importing more than it exported.
What impact did the trade deficit have on the DRC’s economy?
It weakened the DRC’s economy as more money was sent to other countries than received.
How much does the DRC export annually now?
About US$12.4 billion of goods each year.
What types of products account for about 90% of the DRC’s exports?
Minerals and metals such as diamonds, gold, and copper.
Why were countries reluctant to trade with the DRC until recently?
Due to human rights violations, corruption, and conflict.
Which countries does the DRC mainly trade with now?
Belgium, China, and Australia.
What significant economic growth did the DRC experience from 2010-2012?
The economy grew by 7%.
What are some benefits of increased trade for the DRC?
- Improved standard of living
- Opportunities for investment in education and healthcare
What vulnerability does the DRC face due to reliance on primary goods?
Vulnerability to falling prices which hinders economic growth.
What led to uncontrolled exploitation of mineral ores like coltan?
Demand from richer countries.
What human rights abuses are often associated with the extraction of resources in the DRC?
Slavery and other human rights abuses.
What has the exploitation of resources helped to fund in the DRC?
Armed rebels.
