Income inequality is one of the significant legacies of colonialism. During the era of colonialism, colonies were perceived to be a major source of raw materials and for the industries of the developed nations. As a result, developing countries were deprived of their resources, making it difficult for their local industries to thrive. Although colonialism was abolished, many colonized people still feel its economic impact today. One country that has significantly suffered economically due to colonialism is the Democratic Republic of Congo (DRC). Belgium under King Leopold II was the first foreign power to occupy DRC to provide raw materials for the rubber industry (Loffman & Henriet, 2020). While Belgium is a major player in the global economy, DRC remains one of the world’s poorest nations. Belgium and DRC continue to share trade ties through globalization and free trade agreements.
DRC is considered the largest resource country in the world. The country’s untapped mineral resources are estimated to be more than $24 trillion. Ironically, it is considered to be among the five poorest nations (Ojewale, 2022). The misfortunes of DRC can be traced back to the Belgium occupation of the country. Under the leadership of King Leopold II, Belgium established itself as an industrialized country having easier access to raw materials such as rubber from DRC. It is estimated that Leopold made more than $1 billion in profits from trading DRC resources (Loffman & Henriet, 2020). In addition to raw materials, Belgium perceived DRC as a source of cheap labor. Many Congolese people were subjected to forced labor, including women and children (Loffman & Henriet, 2020). Slavery was a common practice that saw the locals offer free labor. Free and cheap labor made it difficult for the colonized people to establish any economic development since the wages they acquired from the colonial administration.
The occupation of DRC by Belgium created a hostile environment for the local communities to engage in meaningful economic activities. The colonial administration subjected the people to mistreatment that sparked an uprising among the people seeking political freedom (Belgium’s brutal colonialism: Riches that came from Congolese blood, 2020). The emergence of freedom movements led to political instability that scared investors that would bring economic development to the country. Conversely, Belgium has been enjoying political stability that has been vital for the thriving of the country’s economy. The country lacks vital equipment and policies to help it explore its resources. Belgian and other European companies have been exploiting the nation’s poverty and lack of technical know-how to explore the minerals without benefiting the local communities.
Many of the industries operating in DRC belong to its former colonies, including Belgium. Globalization has been a link that has exposed the potential of DRC to the international market. Some companies have been using the country’s challenges for their benefit. These companies are often disguised as DRC companies to foster good relations with the locals. However, most of the revenue collected does not benefit the locals but is sent abroad. For instance, Tradelink Company has been put in the spotlight for owning half land the size of Belgium (Bwasa, 2022). Although the company is listed as a local firm, its largest shareholder is a Belgian billionaire, Aleksandar Voukovitch, who has been the biggest beneficiary of the company’s activities in DRC (Bwasa, 2022). Despite owning such a large portion of land, many people in DRC are considered landless.
Despite the challenges DRC is experiencing, the country has maintained significant relations with Belgium and other international players through globalization. Globalization has enhanced economic relations between DRC and its former colonizer. DRC and Belgium have signed several free trade agreements, including the Common Market for Eastern and Southern Africa (COMESA) agreements that increased trading activities between the trading block and other international economies, including Belgium (Ndungo & Mugano, 2020). However, these agreements pose a significant threat to developing the local industries in DRC. Importing goods without tariffs under free trade agreements makes foreign goods cheaper than locally manufactured goods. As a result, the local industries have been finding it difficult to make sales due to the stiff competition from the imported goods. Many industries have been forced to close or reduce their workforce to cut operational costs. Multinational companies operating in DRC have been recruiting the unemployed population at cheaper rates (Ndungo & Mugano, 2020). Furthermore, the lack of development and employment opportunities in local industries due to free trade makes the local population desperate for employment in foreign companies under low wages.
Free trade has significantly reduced revenue collection in the Democratic Republic of Congo. The nation depends highly on taxes collected from imports and the revenue generated by the local industries (Ndungo & Mugano, 2020). Removing tariffs on imports due to free trade has reduced its revenue collection on imports, thus affecting the country’s overall income. Additionally, the stiff competition between locally manufactured and imported goods often leads to underperformance by local companies, thus reducing their revenue hence affecting their ability to pay taxes (Ndungo & Mugano, 2020). Moreover, DRC lacks enough environmental protection laws to protect its natural resources from overexploitation. This makes it easier for the degradation of natural resources by multinational companies as they source raw materials in the country. Some of the most affected natural resources include minerals and forests (Di Makungu et al., 2020). Overexploitation of these resources has led to their depletion and degradation of land.
While colonialism has often been associated with adverse outcomes, there are some benefits that DRC enjoyed from Belgium. One of the major positive impacts of colonialism is the introduction of infrastructural development in DRC. Belgium has been a leading financial aid lender to DRC for economic development. In addition, colonialism has led to the development of social amenities such as schools and hospitals that address the people’s basic needs and improve their lives. For instance, in 2018, Belgium offered DRC more than 25 million euros as humanitarian aid for the ongoing conflict (Belgium humanitarian budget for DRC, 2018). Moreover, colonialization has been essential for creating employment opportunities by enabling the establishment of industries that employ the local communities. Globalization has equally had a positive impact on DRC. For instance, through globalization, DRC has easily accessed the international market, thus easily selling its products (Bhambra, 2020). Furthermore, globalization has facilitated the flow of ideas between DRC and Belgium, thus leading to more inventions and innovations. Global cooperation and collaboration between the two countries have been enhanced through globalization leading to more development projects in DRC.
In conclusion, colonization has contributed significantly to the income inequalities between developed and developing nations. Through colonization, the Democratic Republic of Congo has been exploited by Belgium, making them weak to compete in the global market. Globalization has impacted DRC equally by making it a hub for cheap labor and economic exploitation by rich countries. Globalization has negatively affected local industries and favored the interests of foreign companies. As a result, many local industries have struggled to compete favorably with companies from developed countries. On the positive side, colonization and globalization have been significant factors in developing poor nations such as DRC by giving them a platform to trade their products.
References
Bwasa, J., 2022. Green Gold: The Billion Dollar Question for the Congo Rainforest – Greenpeace Africa. [online] Greenpeace Africa.
Di Makungu, U. L., Valentin, B. I., Ular, A. B., Bolimia, D. B., Ntekenge, J. M., Akemane, R. M.,. & Tshimpanga, I. (2020). Hydrocarbon Governance and Environmental Protection in the Democratic Republic of Congo.
Loffman, R., & Henriet, B. (2020). ‘We are left with barely anything’: Colonial rule, dependency, and the Lever Brothers in the Belgian Congo, 1911–1960. The Journal of Imperial and Commonwealth History, 48(1), 71-100.
Ndungo, P. L., & Mugano, G. (2020). Revenue, Trade and Welfare Effects Of the Comesa Free Trade Agreement on the Democratic Republic Of Congo.
Ojewale, O., 2022. What coltan mining in the DRC costs people and the environment. [online] The Conversation.
Reliefweb. 2018. Belgium humanitarian budget for DRC. [online]
Sky News. 2020. Belgium’s brutal colonialism: Riches that came from Congolese blood. [online]