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Resource Curse

Coltan in the DRC

The resource curse is a theory that says countries with an abundance of natural resources lack the capacity to harness revenues to benefit their societies. This prevents developing countries from using resource revenue to progress into emerging market economies.

  • The DRC is home to 64% of the world's known coltan supply
  • Primarily mined in the Kivus region of the Eastern Congo
  • Has fueled war in the DRC since 1998 resulting in more than 5 million deaths

Resource Curse

The resource curse is a theory that says countries with an abundance of natural resources lack the capacity to harness revenues to benefit their societies.

The resource curse is a theory that says countries with an abundance of natural resources lack the capacity to harness revenues to benefit their societies. This prevents developing countries from using resource revenue to progress into emerging market economies.

Involvement of Armed Groups

  • Foreign and domestic armed groups fight for control over mines
  • Foreign competitors over mines: Burundi, Rwanda, and Uganda.
  • Mass rape, killing, and looting are used to terrorize citizens and gain control of mines.

Conflict Minerals in The Democratic Republic of Congo

What is coltan?

Coltan is a mineral from which tantalum can be extracted to use as capacitors in electronics. Its ability to retain high levels of heat makes it a crucial component in much technology from cell phones, to computers, to gaming consoles.

Limited Government Control

  • Absence of state control and regulation
  • Loss in potential tax revenue
  • Impossible to trace origin of mineral back to its mine

Works Cited

DRC

Ayres, Christopher J. "The International Trade in Conflict Minerals: Coltan." Critical Perspectives on International Business 8.2 (2012): 178-93. Emerald Insight. Web. 30 Sept. 2012. Bleischwitz, Raimund, Monika Dittrich, and Chiara Pierdicca. "Coltan from Central Africa, International Trade, and Implications for Any Certification." Resources Policy 37.1 (2012): 19-29. Science Direct. Web. 1 Oct. 2012. Geenen, Sara. "A Dangerous Bet: The Challenges of Formalizing Artisanal Mining in the Democratic Republic of Congo." Resources Policy 37.3 (2012): 322-30. Science Direct. Web. 1 Oct. 2012. Guglielmo, Connie. “iPhone 5.” Photo. Forbes.com 17 Sept. 2012. 1 Dec. 2012 <http://www.forbes.com/sites/connieguglielmo/2012/09/17/apple-says-iphone-5-demand-outstrips-supply-as-pre-orders-shatter-previous-record/>Montague, Dena. "Stolen Goods: Coltan and Conflict in the Democratic Republic of Congo." SAIS Review 22.1 (2002): 103-118. Project MUSE. Web. 2 Oct. 2012. Pascal, Andre. “Map of Coltan Mines DRC” grandslacs.net 30 July. 2004. 2 Dec. 2012 < http://www.grandslacs.net/doc/3325.pdf>Perry, Tom. “FDLR Troops” Photo. Mirror.co.uk 21 Jul. 2009. 1 Dec. 2012 < http://blogs.mirror.co.uk/developing-world-stories/2009/07/global-witness-names-british-f.html>Redmond, Ian. “Coltan Hands.” Photo. Gorilla.wildlifedirect.org 13 Aug. 2009. 1 Dec. 2012 < http://gorilla.wildlifedirect.org/2009/08/13/kahuzi-biega-national-park-coltan-and-militias/>Stevens, Paul, and Evelyn Dietsche. "Resource Curse: An Analysis of Causes, Experiences and Possible Ways Forward." Energy Policy 36.1 (2007): 56-65. Science Direct. Web. 5 Oct. 2012.

Intel Buys Altera

  • Intel's largest deal: $10.4 Billion
  • Altera's stock rose 28% with the news

Dodd-Frank Act

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