This presentation is produced in the frame of the MOOC related to the GVC in the age of globalization

1. Problematic of Trees GVC Management in DRC

2. 1. Context
• The following presentation is produced in the framework of the
MOOC relating to the Global Value Chains in the Ager of
Globalisation.
• It concerns the problematic denoted in the process of producing and
exporting the tree logs of DRC in the context of globalization and
referring to the GVC fundamentals.
• So, we’re going to examin shortly the origin and the types of the
exported trees of DRC, the channels used to export them and the
reasons why this process matters for the economic development of
the country.

3. 2. Origin and types of exported trees of DRC
 Globally, the massive forets of DRC cover around 135 207 000 hectares of the national
area and 6% of the World. Thanks to that, Equatorial foret of DRC is ranked as the second
global lung after Amazonia in Brazil.
Many types of trees exist in the Equatorial foret like: okoumé (Aucoumea klaineana),
sapelli (Entandrophragma cylindricum), Ayous (Triplochiton scleroxylon), Limba
(Terminalia superba), Moabi (Baillonella toxisperma), and so on.

4. • Since the colonial period (1885-
1960), it was developped the
international trade of trees from
DRC to Europ and the rest of the
world.
• According to FAO, Document de travail
FGR/56F, August 2003, it’s argued that
DRC produced more than
500.000 m3 of trees for trade
exportation.

5. 3. Channels
• To export the tree logs 3 channels are
generally used : Congo River, road or train
and Ocean from Equatorian region to
Europ via the Capital of Kinshasa and the
Central Congo region:

6. 4. Why does the GVC of tree trade in DRC matter ?
• Since August 2002, DRC has published its new Forest Code (Loi
n°011/2002) to regulate this sector which escapped the government
control for long time.
• Many efforts have been and still being done in order to bring the
sector becoming more productive to the national and international
economy.
• However, many political, economic and social challenges don’t allow
the sector of tree trade to enjoy the benefit of GVC in the context of
globalization.
• The following arguments are more expressive:

7. A. Political Instability and Insecurity
After 32 years of dictaroriship DRC has crossed over the political
instability caracterized by the rebellions, civil unrests and the external
aggression wars.
This situation favored the looting of many resources of DRC
especially the precious trees.
Despite the existing of the Forest Code, the application measures and
punishment regimes are not applied.
Even if the fiscal regime is existing the mecanism of collecting taxes is
efficient to allow the government raising money from the sector.
Despite the huge resources in the sector, DRC has not occupied yet
the leadership place and started playing its role.

8. B. Economically and Ecologically
 All tree logs are exported in the raw state and no transformation
process is done locally.
The trade of trees is mainly done by Multinational firms which decide
the selling prices.
No transfer of technology from the Multinational firms to locals.
Weak intensity of labor
Desertification of the forest as nothing is done after exploring the
resources.
The pollution of the environment
Lack of the added-values at the internal and regional levels

9. C. Socially
Global unemployment especially for women and youth.
Recrutemnt of youth in the group army
Lack of basic infrastructures,
And so on

10. Suggestions
• To allow DRC enjoying the benefits of GVC in the frame of
globalization, we need to:
1. Stop the traditional barriers, such as high tariffs and long delays
2. Create the good business climate to attract foreign investors
3. Improving the political and security context
4. Stabilize the macroeconomic parameters
5. Improve the regional and international cooperation
6. Open the internal market and stop the protectionism
7. Capitalize the main factor endowments like natural resources, labor.
And the comparative advantages.
8. Favor the gender participation in the process of GVC.