Detached Places EQ1 Flashcards
What Is the OPEC?
OPEC (Organisation of the Petroleum Exporting Countries) is a group of oil-producing countries that work together to control oil production and prices. It was founded in 1960 and includes countries like Saudi Arabia, Iran, and Venezuela.
Why does are so many African counties in debt?
-In the 1970s, OPEC raised oil prices, boosting earnings for its members, who deposited their money in Western banks.
-These banks then lent money to developing countries for large infrastructure projects. However, when global interest rates rose in the 1980s, these countries struggled to repay the loans, leading to a debt crisis.
-To avoid a banking collapse, the IMF introduced Structural Adjustment Packages (SAPs) to reschedule the loans but required cuts to government spending, affecting essential services like health and education, which impacted the poorest.
What are trade links and why does Africa have poor trade links ?
-Trade links refer to the connections and relationships between countries or regions that facilitate the exchange of goods, services, and resources.
-Africa has poor trade links because of issues like bad infrastructure, political instability, corruption, and health problems like AIDS, which affect the workforce. Rich countries often sell cheap goods in Africa, making it hard for local businesses to compete.
-While the WTO says it gives special treatment to poorer countries, critics argue that rich countries don’t lower their trade barriers, which makes it harder for Africa to trade globally.
Why is the DRC “switched off” form globalisation?
1.Poor Infrastructure: The DRC has limited transport and communication infrastructure, which makes it difficult to trade goods and connect with global markets. Poor roads, underdeveloped ports, and lack of reliable internet access hinder economic activities.
2)Political Instability: Decades of conflict, corruption, and weak governance have created a politically unstable environment. This has deterred foreign direct investment (FDI) and made it difficult to establish stable trade relationships with other countries.
3)Economic Dependence on Natural Resources: The DRC’s economy is heavily dependent on the extraction of raw materials, such as minerals. This lack of diversification limits its economic growth and ability to engage in a broader range of global trade. Additionally, reliance on mineral exports makes the country vulnerable to fluctuations in global commodity prices.
What is the war about in the DRC?
Who is fighting?
The conflict in the DRC started in 1994 when Hutu rebels from Rwanda crossed the border, many of them responsible for the Rwandan genocide. The main fighters are the Congolese army (FRDC) and the FDLR rebels, with other countries like Rwanda, Uganda, Zimbabwe, Namibia, and Angola also involved.
Why does the conflict continue?
Poverty, lawlessness, and lack of infrastructure create opportunities for warlords to exploit the population and mineral resources. Violence is widespread, and many young men, who lack education and job prospects, get involved in the fighting.
