A comparison of the effect of Chinese and U.S. investment policies on rentier state functionality in Congo (DRC)

Abstract

The shift from U.S. to Chinese foreign direct investment (FDI) in the Democratic Republic of the Congo (DRC) between 2013 and 2023 marked a critical turning point in the country's development outlook. By examining three distinct investment periods - pre-U.S. FDI, U.S. FDI, and the period of increased Chinese FDI - this thesis investigates how the DRC’s rentier state functionality evolved across political, societal, and economic dimensions. Using a comparative analysis of 15 V-Dem indicators, supported by complementary qualitative data, the study draws on rentier state theory to interpret measurable changes in governance and development outcomes. The results show that while U.S. investments coincided with modest improvements in institutional accountability and civic openness, Chinese investments, characterized by largescale, state-led infrastructure projects and a non-conditional approach, reinforced elite enrichment, weakened institutional constraints, and deepened the DRC’s dependence on its natural resources. This thesis highlights the importance of examining not only the presence of external rents within rentier states, but also the structure and conditionality of foreign investment in shaping rentier state trajectories. The findings contribute to a more nuanced understanding of how foreign economic engagement can either mitigate or exacerbate rentier dynamics, particularly in fragile, resource-rich countries like the DRC.