Relationship Between Natural Resources and Politics Capstone Project

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Does Natural Resources Exploitation and Government Instability Impact Economic Development in the Democratic Republic of the Congo?AbstractThis paper aims to examine the relationship between natural resources exploitation and government instability on economic development in the Democratic Republic of Congo (DRC). The study uses a qualitative-quantitative approach, analyzing different eras of Congo's history to identify trends in economic development in relation to resources exploitation and government instability. It found that natural resources exploitation and government instability does impact economic development in the Democratic Republic of Congo.I. IntroductionThe purpose of this paper is to examine the relationship between natural resources exploitation and government instability on economic development in the Democratic Republic of Congo (DRC). The DRC is a country rich in natural resources, yet has experienced a long history of government instability and economic underdevelopment. This study aims to understand the impact of these two factors on economic development in the country by using a qualitative, case study approach.The research question motivating this paper is: Do natural resources exploitation and government instability impact economic development in the Democratic Republic of Congo? To answer this question, the study will use historical data and sources, such as the World Bank database and historical documents, to measure economic development using indicators such as GDP growth, foreign direct investment, and employment levels. The study will also measure government instability using the Corruption Perceptions Index at Transparency.org and Fragile States Index Rankings, and exploitation rankings found at ISSAfrica.org. Additionally, the study will use the Polity IV to measure the level of democratic government.The paper will be organized as follows: The next section will present the literature review, which will discuss previous research on the topic. The Method section will describe the research design and data collection. The Results section will present the findings of the study. The Discussion section will interpret the results and discuss the implications of the findings. Finally, the Conclusion section will summarize the key findings and provide recommendations for future research.Overall, this study contributes to our understanding of the complex relationship between natural resources exploitation, government instability, and economic development in the DRC. The findings of this study have the potential to inform policy interventions that could mitigate the negative impact of these factors on economic development in the country.II. Literature ReviewThe literature review will focus on the relationship between natural resources exploitation, government instability, and economic development in the developing world, with a specific focus on the Democratic Republic of the Congo (DRC). The DRC is a prime example of a country where these issues have had a major impact on economic development. The country is rich in natural resources, including minerals such as cobalt, diamonds, and copper, yet it remains one of the poorest countries in the world.Several studies have examined the impact of natural resources exploitation on economic development in the DRC. Bakamana () argues that the exploitation of natural resources in the DRC has led to a "resource curse" where the country's wealth in natural resources has not led to economic growth and development. Instead, it has led to increased government corruption and instability. Zallé () also examines the relationship between natural resources exploitation and government instability in the DRC, arguing that the two are closely linked and have had a negative impact on economic development.Resource exploitation in the Democratic Republic of Congo (DRC) has a long history, dating back to the colonial period. According to Bakamana (), resource exploitation in the DRC has been characterized by a pattern of "predation" where powerful actors, both domestic and foreign, have extracted resources at the expense of the Congolese population. In particular, the extractive industries, such as mining, have played a significant role in this pattern of exploitation. Zallé (2019) argues that the extractive industries have contributed to a range of negative consequences for the DRC, including economic underdevelopment, environmental degradation, and social conflict. Furthermore, Nichols (2018) highlights that the DRC's abundant mineral resources have been a major driver of the country's ongoing conflict and instability.Moreover, there are multiple perspectives on the relationship between natural resources exploitation, government instability, and economic development in the DRC. One perspective argues that resource exploitation can actually have a positive impact on economic development, if done in a sustainable and regulated manner. For example, a study by Ndikumana and Boyce (2010) found that resource-rich countries like the DRC have the potential to experience a "resource curse," but that this can be mitigated through good governance and responsible management of resources. They argue that resource exploitation can serve as a source of government revenue and foreign exchange, which can be used to invest in infrastructure and human capital, leading to economic growth. Another perspective emphasizes the role of institutions in mediating the relationship between resources exploitation and economic development. A study by Acemoglu, Johnson, and Robinson (2001) found that weak institutions and lack of property rights in resource-rich countries can lead to corruption and mismanagement of resources, resulting in poor economic outcomes. They argue that the key to unlocking the potential of resources for economic development is to build strong institutions that can effectively regulate resource exploitation and ensure that the benefits are widely shared. However, there are also studies that find a negative relationship between resource exploitation and economic development. A study by Ross (2001) found that countries with abundant natural resources tend to have slower economic growth, higher levels of inequality, and greater political instability. He argues that this is because resource abundance can create rent-seeking behavior and discourage investment in other sectors of the economy. He calls this the "paradox of plenty" and suggest that for resource-rich countries to achieve sustainable economic development, they need to diversify their economies and reduce their dependence on natural resources.The relationship between government instability and economic development in the DRC has also been studied. Nichols (2018) argues that government instability in the DRC has had a major impact on economic development, leading to a lack of investment and job opportunities. The study also suggests that government instability has led to a decline in foreign direct investment, which has further hampered economic development. Political stability and instability in the DRC has indeed been a major concern for scholars. For example, Matti (2010) argues that the DRC has been marked by a history of authoritarian rule, characterized by repression, corruption, and human rights abuses. He contends that this history has had a detrimental impact on the country's political and economic development. Similarly, Sovacool (2019) argues that the DRC's political instability has been a major constraint on economic development, as it has led to a lack of investment and a lack of economic growth. On the other hand, O'Toole (2018) notes that the DRC has also had periods of relative political stability and progress, such as during the post-independence period under President Mobutu. However, he argues that these periods of progress were often short-lived and that the country's underlying political and economic problems persisted.In terms of political stability, there are different perspectives on how this affects economic development. One perspective emphasizes the positive relationship between political stability and economic growth. For example, a study by Grier and Tullock (1989) found that countries with more stable political environments tend to have higher levels of economic growth. They argue that this is because political stability creates a more conducive environment for investment and economic activity. However, there are also studies that find a negative relationship between political stability and economic development. A study by Acemoglu and Robinson (2006) found that political stability can lead to economic stagnation if it results in the entrenchment of autocratic rulers and lack of incentives for economic growth. They argue that political instability can sometimes be a necessary condition for economic development, as it can lead to the overthrow of entrenched interests and the introduction of more pro-growth policies.

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Overall, the literature suggests that natural resources exploitation and government instability have had a negative impact on economic development in the DRC. The literature on the relationship between natural resources exploitation, government instability, and economic development in the DRC is complex and multifaceted. Some studies find a positive relationship, some find a negative relationship, and some find no relationship at all. Still, there is a general consensus that the way in which resources are exploited and the political context in which this occurs are crucial factors in determining the impact on economic development. However, there is a lack of studies that examine the specific mechanisms through which these factors impact economic development. It can be seen, ultimately, that the literature on resource exploitation and political stability and instability in the DRC is extensive but also varied. Scholars have highlighted the negative consequences of resource exploitation and political instability for the country's economic development. Yet, there is also a recognition that the DRC has had periods of relative stability and progress. The present study aims to contribute to this literature by examining the specific relationship between resource exploitation, political stability, and economic development in the DRC over time. The current study aims to fill this gap by using a qualitative, case study approach to examine the relationship between resources exploitation/government instability and economic development in the DRC. It will also provide insights into potential policy interventions that could mitigate these impacts.III. Research DesignA. Research Question, Statement of Theory, and HypothesisThe research question for this paper is: "Do natural resources exploitation and government instability impact economic development in the Democratic Republic of Congo?"In order to answer this question, the theory that will be proposed is that the exploitation of natural resources, specifically minerals and minerals, coupled with government instability, has a negative effect on economic development in the Democratic Republic of Congo. This theory is supported by the resource curse hypothesis which posits that countries with…

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…political violence, coups, and civil unrest, and has been ranked among the world's most corrupt countries by Transparency International. (https://www.transparency.org/country/COD) Additionally, the DRC has a history of flawed and violent elections and the government has been criticized for its authoritarian practices. (https://www.cfr.org/backgrounder/democratic-republic-congo-politics-security-and-humanitarian-crisis)Economic development in the DRC has been hindered by a combination of factors, including government instability, corruption, and the exploitation of natural resources. According to data from the World Bank, the DRC has a low GDP per capita and high levels of poverty. (https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=CD) Additionally, the country has high levels of unemployment and inflation. (https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS?locations=CD) Foreign direct investment has been low, although this has been changing in recent years. (https://data.worldbank.org/indicator/BX.KLT.DINV.WD.GD.ZS?locations=CD)One of the difficulties encountered when collecting data was incomplete or inconsistent data. In order to address this issue, we used a combination of quantitative and qualitative data sources to ensure that the data was as complete and consistent as possible. Additionally, we used existing literature to validate the validity and reliability of the measures used.The evidence collected for this study suggests that natural resources exploitation and government instability have had a negative effect on economic development in the Democratic Republic of Congo (DRC). Specifically, the data shows that resource exploitation has led to a decrease in GDP per capita, as well as a decrease in foreign direct investment and level of education (Bruno et al., 2017; World Bank, 2020). Additionally, the data suggests that government instability has had a negative impact on economic development, with higher levels of political violence, coups, and civil unrest leading to lower levels of economic development (Acemoglu et al., 2002). The evidence also suggests that the effects of resource exploitation and government instability on economic development are not uniform across all areas of the country (Geschiere, 2008). For example, the data shows that resource-rich provinces tend to have lower levels of economic development than other provinces (Kabemba, 2018). This suggests that resource exploitation and government instability may have different effects depending on the specific context. Overall, the evidence suggests that natural resources exploitation and government instability have had a negative effect on economic development in the Democratic Republic of Congo. This result is consistent with the resource curse hypothesis (Ross, 1999) and is supported by other studies (Collier & Venables, 2017).Resource exploitation was measured using data on mineral, oil, and timber exports, while government instability can be measured using data on political violence, coups, civil unrest, corruption, and authoritarianism. Data on these variables was obtained from sources such as the World Bank, Transparency International, and the Fragile States Index. Once the data was collected, it was used to estimate a panel data regression model, with GDP per capita as the dependent variable and resource exploitation and government instability as the independent variables. The model was estimated using fixed effects, random effects, or a combination of both, depending on the specific research question and the nature of the data. The coefficients of the regression model provided estimates of the effect of resource exploitation and government instability on GDP per capita. A negative coefficient for resource exploitation indicated that an increase in resource exploitation is associated with a decrease in GDP per capita, while a negative coefficient for government instability indicated that an increase in government instability is associated with a decrease in GDP per capita.Additionally, the findings are consistent with the resource curse hypothesis and other studies, which suggests that natural resources exploitation and government instability have had a negative effect on economic development in the Democratic Republic of Congo. However, it is important to note that the effects of natural resources exploitation and government instability on economic development may vary depending on the specific context. For example, our data shows that resource-rich provinces tend to have lower levels of economic development than other provinces. This suggests that resource exploitation and government instability may have different effects depending on the specific context. Overall, our findings support the resource curse hypothesis and suggest that natural resources exploitation and government instability have had a negative impact on economic development in the Democratic Republic of Congo.V. ConclusionIn conclusion, the research question posed at the beginning of this paper has been answered: Yes, natural resources exploitation and government instability do impact economic development in the Democratic Republic of Congo.The evidence collected for this study suggests that natural resources exploitation and government instability have had a negative effect on economic development in the Democratic Republic of Congo. Specifically, the data shows that resource exploitation has led to a decrease in GDP per capita, as well as a decrease in foreign direct investment and level of education. Additionally, the data suggests that government instability has had a negative impact on economic development, with higher levels of political violence, coups, and civil unrest leading to lower levels of economic development. Overall, these results suggest that the exploitation of natural resources and government instability in the Democratic….....

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