Economic+Impact+-+Poverty+-+FA11


 * Congolese Economic Impact: **

Extreme poverty has stricken more than half the Congo’s people. According to a study, this “masks” the economic inequalities in the DRC. In the Congo’s past they have switched from a marxist government, which is when the economy is controlled by the government, to mixed economy. Overall, poor management of the government has really fueled the onset of poverty. The effects are almost the same as what started. The poverty also affects their jobs, which affects them because they won’t be able to earn money to help support their families. The poverty isn’t evenly distributed thought the Congo either. To help the poverty levels, the government tries to promote economic growth and they also have rebuilt many roads so people can get to their jobs, if they have one.

The foreign aid received in the Congo, as well as other countries, has affected their economy as well. Aside from the obvious short-term boost it would provide the economy, there could be some lasting effects. The economy in the long-term could be negatively affected if the aid continues to provide, not making the people of the Congo learn to do it themselves. Overall, poverty has caused the economy to decline in the Congo, as people are less willing to buy other things if they can’t even afford food.


 * Somalian Economic Impact: **

 There is no doubt that Somalia remains extremely poor today. However, as far as living standards can be assessed, they appear to be improving since the collapse of Somalia’s national government. In fact, standards are improving faster in Somalia than in most of sub-Saharan Africa. Along with the collapse of Somalia’s national government, the frequent famine and droughts play a major part in the economy. Since a good amount of the population of Somalia is farmers, the frequent droughts are about as bad as it can get for them. Although this is very bad for the farmers themselves, it also will effect everyone else down the line. This gives a limited amount of supply to sell to the people. It will also bring down the profits that are made in the marketing days. With less people to provide the goods to sell will again force move people into the poverty rate. Although the situation is already in bad shape, the unavailability of fertile soil has also had a impact in the farmers and marketers of Somalia. All in all, the unforgiving conditions that the Somalians have to face will end up bringing the farmers, for the most part, into poverty more and more until they can find a solution.