G10 - Poverty in DRC

Which statement accurately describes the current economic situation in the Democratic Republic of Congo?

• It has the highest GDP per person in Africa.

• It is the poorest country globally, with a high percentage of its population in absolute poverty.

• It has a nominal GDP per person of $5,000 USD per annum.

• Only a small fraction of its population lives in absolute poverty.

Answer explanation

The Democratic Republic of Congo is often cited as the poorest country in the world, with a significant portion of its population living in absolute poverty, making this statement the most accurate.

Before 1960, what was the economic standing of the Congo as a Belgian colony?

• It was the most industrialized nation in Africa.

• It was making progress towards becoming a developing economy and was the second most industrialized nation in Africa.

• It was already a fully developed economy.

• It was experiencing severe economic decline.

Answer explanation

Before 1960, the Congo was making progress towards becoming a developing economy and was the second most industrialized nation in Africa, reflecting its significant economic activity under Belgian colonial rule.

What types of natural resources are abundant in the Democratic Republic of Congo?

• Only agricultural land and timber.

• Precious metals, diamonds, oil, and natural gas.

• Primarily coal and iron ore.

• Limited natural resources, mostly dependent on imports.

Answer explanation

The Democratic Republic of Congo is rich in natural resources, including precious metals, diamonds, oil, and natural gas, making this the correct choice. Other options underestimate the country's resource wealth.

In Maslow's Hierarchy of Needs, which needs are considered the most crucial and form the base of the hierarchy?

• Love and belonging.

• Self-actualization.

• Safety.

• Food, water, and shelter.

Answer explanation

In Maslow's Hierarchy of Needs, the most crucial needs are physiological needs, which include food, water, and shelter. These form the base of the hierarchy, as they are essential for survival before higher-level needs can be addressed.

What is the official definition of absolute poverty, according to the World Bank's 2018 standard?

• Living on less than $1.00 USD per day.

• Living on less than $2.12 USD per day.

• Having no access to education.

• Having an income below the national average.

Answer explanation

According to the World Bank's 2018 standard, absolute poverty is defined as living on less than $2.12 USD per day, which reflects the minimum income needed to meet basic needs.

How does the poverty line for an individual in the United States compare to the income standard for absolute poverty?

• The U.S. poverty line is significantly lower than the absolute poverty standard.

• The U.S. poverty line for an individual is an annual income of $11,770 USD or less, which is much higher than the absolute poverty standard.

• Poverty in the U.S. is identical to abject poverty.

• The U.S. does not have a defined poverty line.

Answer explanation

The correct choice states that the U.S. poverty line for an individual is $11,770 or less, which is indeed higher than the absolute poverty standard, indicating that the U.S. poverty line is more lenient than the absolute poverty measure.

What are considered the most fundamental needs for an economy to thrive, similar to the base of Maslow's Hierarchy for individuals?

• Natural resources and enterprise.

• Liquid currency and stable inflation.

• Stability and confidence.

• Business regulation and high employment.

Answer explanation

Stability and confidence are essential for an economy to thrive, as they foster investment and growth. Without these foundational elements, other factors like resources or currency lose their effectiveness.

Why is resource extraction in the Democratic Republic of Congo (DRC) inefficient despite abundant resources?

• The lack of advanced machinery and industrial mining practices.

• The prevalence of military powers controlling the mines.

• The widespread use of child labor in mining operations.

• The limited demand for the extracted resources on the global market.

Answer explanation

Resource extraction in the DRC is inefficient due to the lack of advanced machinery and industrial practices, which hampers productivity and leads to lower yields despite the country's rich resource base.

What is the primary use of revenue generated from crudely extracted resources in the Democratic Republic of Congo (DRC)?

• To fund the construction of schools and essential infrastructure.

• To purchase military equipment like guns and tanks.

• To invest in healthcare and social welfare programs.

• To support local businesses and economic development.

Answer explanation

In the DRC, revenue from crudely extracted resources is primarily used to purchase military equipment, including guns and tanks, which often supports ongoing conflicts rather than funding social programs or infrastructure.

How is foreign aid described in relation to the Congolese economy?

• A vital kickstart that will lead to rapid economic growth.

• A long-term solution for sustainable development.

• A form of life support that keeps things ticking along but doesn't cure underlying issues.

• A direct investment meant to cure all economic problems.

Answer explanation

Foreign aid is seen as a form of life support for the Congolese economy, helping to maintain basic functions but failing to address deeper, systemic issues that hinder true economic progress.