The Democratic Republic of Congo: Fighting in the Katanga Region

We, the West, may like to hide our past and pretend that we have moved on from it all. As though we have matured from a ‘naughty’ stage in our development to reach the heights of human welfare, economic prosperity and become the guardians of global peace. I mean we banned the slave trade, defeated communism and attempt to secure peace at every turn. Yet, though we like to promote this side we often forget that we accelerated the slave trade into a global business, wrecked countless states so its people could not express themselves, and often provide weapons for profit without considering the implications they may have. The repercussions of our abuses during the time of the colonies and the slave trade are still felt across the developing world.

Of course, we should not be too hard on ourselves. The slave trade has been a constant feature throughout the world for countless centuries and the fact that we got powerful… well other empires have existed before us that committed terrible acts of brutality. This is not a justification, rather the necessary context for this discussion.

The issue is that we, at least on the outside, now fight against most of our previous qualities. However, the developing world does not easily forget what we did. The signs of our presence are everywhere from the language they speak, the borders they guard and the political systems they use.

(Side note: There is a good film coming out called '12 Years A Slave', the interview of Chiwetel Ejiofor in the Culture was interesting and he has really taken his role a step further by campaigning strongly for an awareness of the slavery that still occurs to this present day.)

We should not forget the past.

It is not front page news, but the Democratic Republic of Congo (DRC) has been having some problems in the eastern and southern part of the state. It is easy to see why.

Throughout the research for my dissertation I have been focusing on the sources of conflict. Of course across the world these sources vary in their prominence but a unifying factor is the economy. Everything appears to be based around it. 

When we look at our own lives it seems obvious. Why do we attend school? To get a job (Yes, I know the government forces us to but they do have a reason). Why do we attend university? To get a better job (hopefully). Most of our lives are revolved around the economy and it consequently has an influence on our lives.

What the people of the developing world want before democracy and any other fancy initiatives is the ability to survive. Thinking about this I am reminded of an article I read about Morocco. It stated that though the people took some interest in politics their main focus was how they were going to feed themselves the next day. They do not care unless they can see the benefits in their everyday life. That is why aid is so focused on building a basis so that people can begin to consider democracy and other projects. Makes sense.

The DRC is a resource rich state, in fact that is an understatement... it is one of the richest in the world. Most of it based in the east and south of its territory (see below). Starting to get where I am going with this one?

The location of resources in the DRC

That is right. For a state repeatedly rated poorly in the UN Human Index this should not be the case. Furthermore, the people of the DRC are not blind to their natural wealth and understand it creates vast amounts of money. They observe truck after truck go by with the resources they have mined to be sold for huge profits which will rarely reach their way back to them. I can understand why they are angry.

Here enters another factor I witness in every conflict - leadership. The people can be angry but often will not do anything about it until a strong leader unites them together, works out a plan and tells them why they are fighting. 

For the one of the richest regions in the DRC, Katanga, it took the leadership of Gedeon Kyungu Mutanga to kickstart another conflict in the region. He was freed in September 2011 after gunmen attacked the prison he was in.

It did not take long for this former militia leader to draw men to his banner with promises of a 'better life'. A man who fled a rebel base told a BBC reporter that:

"Gedeon came to our village in August 2012," he said.

"We did not see him with our eyes; he hid in a hut to talk to us.

He told us that if we joined the Kata Katanga, we would have a better life. He told us that if Katanga became independent, it would put an end to the harassment by the soldiers, and would give us access to the resources that belong to us.

"Katanga is very rich, but we don't benefit at all. He told us that would change."

For men of this region this is an attractive offer as the Congolese law that 40% of the taxes on companies who operate in the area should be spent in this region have never materialized. In the face of regular mistreatment by government forces an armed struggle was inevitable.

Yet, what has limited support for the rebels is the brutish way in which they treat the local people too. The rebels, drawn from communities similar to the ones they are abusing, often rape, pillage and loot villages to support their army and in desperation against the overwhelming government and UN forces.

Indeed, the Congolese Prime Minister Matata Ponyo stated that "For me there is no rebellion".

With an 8-hour battle between rebels and government troops yesterday the President's statement seems unfounded...

It is not more violence that will cure this desperate situation but a united effort by the West to understand the havoc we wrecked here and encourage the government to improve the humanitarian conditions of these resource rich states. They need to have the bread of tomorrow to consider the politics of today.

If you are interested in the Congo, the Dutch settlment and all things historical you should check out "This World: Dan Snow's History of Congo".

For the purposes of keeping this post shorter I have not explored the rebel group, how the borders with other countries helps their struggle and other conflicts in the state so I would simply google Katanga, Gedeon Kyungu Mutanga or the DRC if you want to know more. Further, I may follow up with more articles on this or feel free to post below and I will attempt to answer your questions.

Trust in Aid

It's certainly been a while since I last posted a blog on aid but it has not been off my mind. Lack of a computer, internet and Wifi have prevented me from posting sooner but I've been having some interesting discussions with many aid workers and other notables about the issue of trust.

Simply, those in developing countries rarely trust organisations to deliver what they need. Also, we unanimously agreed that trust is the most prevalent issue facing the implementation of Western aid. I'll look at why it is such an issue and how we can begin to resolve it.

Trust forms the basis of most relationships in aid, business and everyday life. If you look in the news today (that being the 25th August 2013) you'll notice an article focusing on Lord Sacks criticism of society. He states that when 'trust breaks down, you see institutions break down'. Well if we are having an issue in this Western and apparently 'developed' world it is not surprising that the developing world is thinking 'hold on, why are they telling me what to do? Our sense of community is stronger then theirs and maybe individualism just is not for us'.

So, firstly we can hardly preach down to developing countries when we are so guilty of different but still challenging issues.

In a different way I think our generation has become too fixated on the short term. The 'I want, I need this now' attitude then replaced the next day by wanting something different is atypical (I must add I'm not a saint on this issue I'm just as guilty as the next person).This issue of short-term projects affects aid in a similar way. These projects look great on paper, often are great in their implementation but as soon as the project finishes often people slowly return to their old way of life. Watch this video with Paul Kagame, president of Rwanda, in which he explores this issue, the economy and you may infer that the shielding aspect of aid is devaluing individuals:

'There is bad aid and there is good aid. The bad aid is that one which creates dependencies, but good aid is that which is targeted to create capacities in people so that they are able to live on their own activities.'

Furthermore, focusing on food aid developing countries are starting to question why food aid is always offered at every turn. Why is the technology required to feed themselves held back? This is all to do with the developed world's strategic interests. If you read Chris Barrett and Dan Maxwell's book entitled Food Aid After Fifty Years: Recasting It's Role they argue that aid is:

• It is a donor-driven system

• It promotes domestic interests of donor countries

• It is a foreign policy tool

• International institutions are driven by exporters

• Development is not necessarily the objective

If these reasons are analysed alone then food aid seems to be solely for the benefit of Western powers. Of course there is food aid out there that is driven by a need to serve others and often it does save lives. It's just the dependency culture that it creates that I take issue with.

What can we do? It's simple. We should stop getting involved in economies where we stylise this as helping but in reality we are exploiting developing countries (Shell in the Niger delta comes to mind). Moreover, we should implement projects that encourage long-term aims and if the going gets tough we should stick it out. If we fail to control the issue of trust then in the future it will become much harder to get involved in the developing world. We need to be in it for the whole ride not just the way up and we need leave developing countries wanting more aid not being forced to receive it.

Child Soldiers - Who, What and Why?

I am taking a break from finance because the developing world is not, strangely, all about finance… gasp! In fact though we tend to measure everything and anything using a monetary value countless travellers return from the developing world with a different view on what ‘life’ is and what to value after experiencing the child choirs of Africa, the hospitality of a poor shopkeeper in Thailand or the lively street parties of South America.

With that in mind I’m centring this article on understanding who are child soldiers, what happens to them after conflict and why the KONY 2012 campaign totally missed the point.These child soldiers are the emaciated generation ravaged by war in a world of finance which often neglects them.

What or who are child soldiers?

Children taught to kill before they can write

Child soldiers are children mostly taken from their communities by warlords to fight, or if female act as ‘wives’, in their armies and are coerced by fear, death and regulation.

The Lord’s Resistance Army, which was the focus of the Kony 2012 campaign, is led by Joseph Kony who forces children to kill other children that attempt to escape, commit atrocities and bans whispering. Whispering may seem a strange rule compared to the others but it is often the only way that children can plan their escape! Notably, some argue that Kony’s ability(?) to control spirits, an important part of the Acholi tribe’s belief system, contributed to his grip on his followers.

Children are taken because they are easier to mould into devoted followers unlike adults who have normally built up a resilient set of morals... hopefully?

In many war-torn areas children make up the majority of the population, are easier to feed and do not have a developed sense of danger.

What happens after the war when the children are freed?

Topically, we are beginning to discuss the effects of Post-Traumatic Stress Disorder (PTSD) on UK soldiers returning from Afghanistan and the consequences it has for the soldier’s family, mental health and lives (watch the recent Panorama documentary for more on the issue).

However, PTSD is already an issue rife among child soldiers, presenting a divide between him/her and their community due to a lack of understanding and the atrocities committed. Taking the LRA example above, if the ex-child soldier cannot sleep or screams throughout the night the villagers believe the child is still possessed by the evil spirit of Kony whereas the child is simply reliving the experience of battle or murder which is common among those who suffer from PTSD. Watch this video on Joesph, a former child soldier and Sergeant in the LRA, for a more detailed account.

A child soldier armed with a rifle and a teddy bear rucksack.

What is worrying is that child soldiers are taken before basic education is completed and therefore return knowing only one trade – the trade of death. In a post-conflict state the priority is to rebuild the damage done by the warlord or civil-war and therefore those with skills are prioritized in the effort. Ex child soldiers have no skills and consequently are left out of decision-making and employment. Children attempt to find any source of income and in some cases children have been known to dig up graves, selling the wood from the coffin and any trinkets from the dead.

This lack of employment forces many children on to the street, with no voice and nothing to occupy their minds. As a child soldier they were respected simply because of the fear, power they controlled and atrocities they committed – disarming the children was and is a priority for governments. It is when the children are disarmed and gain no form of employment I worry that they will be forced back into violence to re-claim their lost power. It seems that it is only when these children present a threat to a government will they gain the recognition they deserve. Indeed, the UN identifies youth alienation as a major factor in the 1991-2002 civil war that consumed Sierra Leone.

What are the governments doing?

It would be unjust to argue that governments have not attempted to remedy the plight of ex child soldiers. Below are just some of the schemes utilised:

• Most governments or non-governmental organisations (NGOs) have offered cash for weapons to remove them from the hands of child soldiers.

• Providing education.

• Offering courses in Vocational Skills Training for Enterprise Capacities (VSTEC) in trades such as electronics, catering and mechanical engineering.

These schemes have worked in some parts of the developing world. Substantially, I know from my intern that VSTEC courses in Sierra Leone are helping the youth create businesses that are relevant and needed within the market. In Bo, Pujehun, Moyamba, Bonthe, Kenema and Tonkolili districts some 1,800 trainees are studying in selected vocational training centres (VTCs).

Yet, within Liberia under a similar scheme, Tim Dokie, a 28-year-old former combatant, stated that, 'I was only praying for the teachers to hand me the tool kits promised at the end of the training, which I readily sold for $15'.

Evidently these programmes have varying levels of success…

Furthermore, offering cash for weapons presents problems due to its individualistic approach which fails to address why so many cheap weapons can be found within Africa. Arms traders, developed states and other African states are often behind the arms trade because conflict is simply a source of immense wealth for some. If you have the time reading this article by the Integrated Regional Information Network entitled 'Analysis: How best to remove guns from post-conflict zones' sheds more light on the issue.

In one such case the UK enacted a food embargo on Sierra Leone in 1997 yet Sandline, a UK Arms dealer, supplied arms to the Economic Community Cease-Fire Monitoring Group (ECOMOG) during the troubles. Initially, ECOMOG was a peace-keeping force which helped restore order but in the following years many human rights abuses have been levelled against the organisation including Nigerian Alpha Jets strafing unarmed civilians. The food embargo largely affected the civilian population and not the intended target, the junta, even though weapons still found their way from the UK into Sierra Leone.

ECOMOG defended Sierra Leone's government

To conclude, children who are taken at night, cast into lives of murder, rape and atrocities and mostly forgotten by the governments who should have protected them in first place deserve to have a right to education or a means of providing for their basic needs. Nonetheless, looking beyond the ex child soldiers the state needs to occupy the minds of these children to safeguard the fragile peace that now exists. Investment from foreign powers will provide employment but the involvement of these alienated youth is paramount. Finally, removing weapons from Africa should become an agenda in the developed world instead of covertly supplying them.

Oh and the Kony 2012 campaign was a bit late as Kony had moved to the Central African Republic by last year so it didn't do much... apart from making the Ugandans think Kony was coming back to Uganda! I know I'm just as guilty for sharing it but it has made me realise how quickly our generation mobilises our support on an issue we don't understand because of a flashy video... opps.

If you want to find out more about child soldiers and their plight visit WarChild

ROSCAs - The Advantages, Disadvantages and Everything in Between.

Following the previous blog about loans and savings this blog will focus on what financial options are available to those in rural areas where finance is in the hands of the villagers. The advantages, disadvantages and everything in between. 

Let's start with ROSCAs or Rotating Saving and Credit Associations.

Individuals meet at pre-defined intervals of perhaps a week or a month and contribute small amounts of money into a 'pot'. Notably, ROSCAs have been used by those with high incomes in the developed world and therefore income is exogenous to ROSCAs. They are simply common  in rural parts of the developing world, 50 to 95% of Adults engage in them in the Congo, Cameroon, Gambia, and villages of Liberia, Ivory Coast, Togo, and Nigeria (Bouman [1995] for references),due to the advantages discussed later. ROSCAs operate by either:

• Each interval giving the total to one individual. You can only receive the contents of the 'pot' once.
• Conducting a lottery, with those members who have already received their payouts being excluded from the lottery.
• Bidding, in which members who want the money most bid an additional sum to that which they have contributed. When the winner is known his or her contribution is then shared out equally. This is a relatively unknown in Africa.

The advantages of ROSCAs: 

• Social capital getting to know contacts or information within the ROSCAs.
• A range of different ROSCAs exist - religious, market, ethnic, office or neighborhood.
• Women tend to utilise them more then men the due to social and financial (normally lower income) reasons. For instance, in Kibera the probability that a woman is involved in a ROSCA is 40% compared to a man at 10.1%. Further, a study in Nairobi by Anderson and Baland (2002) showed that a women's bargaining position in the household is directly related to her contribution to household income.
• ROSCAs offer a personal source of income for women, particularly in Africa. Men in Africa are seen as 'deserving' personal spending money whereas a woman's income is collective. The work of Hoddinott and Haddad (1995) empirically verifies this claim for African households where, relative to women, men spend a greater portion of their income on goods such as alcohol and cigarettes,whereas women are more likely to purchase goods for children and for general household consumption.
• Transparency due to group regulation.
• Efficiency - money is put in the 'pot', the meeting occurs and the money distributed in the chosen way. 
• Can be tailored to the income of the group.
• The savings of many are transformed into a lump sum for one person. This is often used to improve household livelihoods, to invest in a new business or to pay school fees.
• Protect an individuals savings against immediate consumption - identified as particularly beneficial for women (Anderson and Baland, 2002)
• Offers a protection against theft as savings are not left within houses

The disadvantages of ROSCAs: 

• If the ROSCA distributes money by prior agreement or by lottery it is unlikely to be available at the time in a business cycle when it is most useful. These types of ROSCA are often then used in order to save up for household durables such as utensils or roofing sheets. They are an effective savings instrument, but relatively ineffective as a means of capitalising productive investment 
• The amount of money is fixed and may be inadequately matched to a person’s investment plans 
• There is no return on people’s investment in a ROSCA, except a marginal time-value of-money benefit of receiving a lump sum at no interest cost before reimbursement 

Further findings:

• ROSCAs are not a substitute for credit but rather complement it. But, are often the sole saving and credit institutions in many rural areas.
• While, ex ante, all individuals are better off by saving through a ROSCA, the member who receives the pot last is ex post worse off. Particularly if investment is set. For instance:

1. The purchasing power of a pound is slowly decreasing due to inflation. 
2. If ten individuals put ten pounds into a ROSCA then each week an individual at random is given one hundred pounds. 
3. At the beginning of the ROSCA one hundred pounds will have the equivalent purchasing power.
4. However, after ten weeks one hundred pounds may equate to less purchasing power, say ninety eights pounds, then at the beginning of the ROSCA.

Simply if a ROSCA 'pot' was ten pounds and could buy you ten apples at the beginning you may only be able to buy nine apples at the end of the ROSCA due to the price of apples inflating. Yet, orders of ROSCAs change every cycle? Not really... Anderson and Baland (2002) contend that ROSCA orders rarely change and often follow the first pattern which does not explain why the last recipient would stay and by backwards induction why the ROSCA does not break down.

Last in the ROSCA queue means less apples for you! Fair?

In conclusion, the rationale proposed by Besley, Coate, and Loury (1993) concerning the financial detriment the last member to receive the pot suffers is not debatable. However, ROSCA must benefit the members in many other ways, apart from financially, to explain the high usage in developing states. These benefits are listed in the advantages section and include social capital, self-sufficiency for women who argue that they 'should not rely on their husbands' and the ability to tailor the individual investment per pre-defined interval to the level of income of the members.

I'll cover other financial options available to those in rural areas in the next blog.

Resources used in article:

Allen, H. (2002) - CARE International’s Village Savings & Loan Programmes in Africa: Micro Finance for the Rural Poor that Works

Anderson, S. and Baland, J. (2002) - The Economics of ROSCAs and Intra Household Resource Allocation.

Besley, T. Coate, S. and Loury, G. (1993) - Rotating Savings and Credit Associations, Credit Markets and Efficiency
Varadharajan, S. (2004) - Explaining Participation in Rotating Savings and Credit Associations (RoSCAs): Evidence from Indonesia 

Building an Understanding of Loan and Savings Schemes for a Stronger Community

Taking out a loan in the UK is difficult at present and talking to my friend yesterday who has set up his own tree-surgery business just typifies this. He is working seven days a week to make ends meet and on the suggestion that he should take out a loan he just responds, 'What's the point in buying expensive machinery if the next week there are no jobs? I'll survive that week but what if there is no work the next week and the next?' He has a point.

Nonetheless, if he did take out a loan, grew his business and then paid it back with the higher income then he might be left with a more recession-proof business. Well that is the logic anyway. It is a complex game of determination, experience and fortune.

So what have loans got to do with aid?

Well, microfinance (money on a smaller scale) is a relatively new addition to the arsenal of aid. Since the introduction of microfinance in Bangladesh by Nobel Peace Prize winner Muhammad Yunus it has been one of strongest financial tools used to create sustainable projects, raise incomes and resolve conflict in communities. Alongside the realisation that women are better clients because they generally put the money towards development. Rather, the men often look towards the short-term, alcohol and themselves. A tad sexist but it’s a correlation that is shown in most aid programmes… sorry guys.

So what makes microfinance in the developing world different to the loans we get in the UK?

Within the UK we can be tracked due to the large amount of information we each output or is necessary to operate in the developed world. The government, banks and police know where we live, where we go and apparently now what we say in private (we all knew they did) so we cannot just simply default on a payment and slip away as we would be stopped at the border, frog-marched back and be forced to deal with the consequences. This traceability lessens the risk of the loan for the loaner which is reflected in the rates. Also, if the payments are matched to our incomes then we will be able to meet them unless we lose our job or overspend on other goods and services.

However, in the developing world the government, banks and police often have imperfect knowledge. Houses are not all aligned in pretty streets but rather everywhere and anywhere. Just imagine trying to find someone in the middle of a slum! Furthermore, unemployment is rife and even those with jobs have little security. The risk of loaning makes the loan’s interest rates higher and those with limited savings or income it is almost impossible to secure a loan.

That obvious theory aside, microfinance gets around these issues by tying a whole community into the loan and appeals to peer pressure to enforce repayments. A perfect solution.

Yet, I have been reading an essay entitled ‘What is the evidence of the impact of microfinance on the well-being of poor people?’ by Duvendack et al. which argues that micro-finance does not guarantee an improvement in the reduction of conflict. For instance, it states ‘access to credit for cash crop production controlled by men may result in reallocation of resources away from food crop production controlled by women, with adverse effects on their children's nutrition’ (pg. 10).

Nonetheless, I've heard and seen project statistics where communal loan schemes have been successively instrumental in securing the sustainability of a project. The need to repay keeps the beneficiaries focused and enables those without skills, particularly the youth, to learn, graduate and begin business. The argument that schemes which benefit one portion of the community over another does not dissuade me. An increase in income in Africa is directly coupled with a growth in that group’s rights and inequality is not solely sourced from microfinance schemes as a range of factors affect it including cultural norms, exploitation and livelihood choices.

This video is a testimony to the success of microfinance (if not a bit cheesy).

Microfinance unmistakably works. But, limitations occur in rural areas with poor infrastructure due to basic geography - they may be days away from the local(?) bank. Ergo, the microfinance schemes work more efficiently in semi-urban or urban settings as banking officials can cost-effectively monitor schemes.

So what schemes are available for those distant rural communities?  

A trend in savings rather than credit is identified in a Care report on ‘Village Savings and Loan Programmes in Africa’ as common practice in rural communities. A range of saving programmes exist under the Village Savings and Loan (VS&L) family including Rotating Savings and Credit Associations (ROSCAs) and Accumulating Savings and Credit Associations (ASCAs). ROSCAs operate by drawing together small contributions from all members and giving the total to one individual. ASCAs are similar but the total is not given to one individual but is applied to any project that the group chooses  These saving schemes enable those with a small income to gain access to a greater lump sum of money and further draws the community together due to regular meetings.

A more in-depth discussion of the advantages and disadvantages of these schemes shall be discussed in the next blog. 

Any thoughts? Anything captured your interest?