About
Democratic
Republic of Congo
Belgian Congo wins independence on June 30, 1960
and is renamed the Federal Republic of Congo. Joseph Kasavubu became the country’s
President, Patrice Lumumba the Prime Minister, and Joseph-Désiré
Mobutu (Mobutu Sese Seko) the State Secretary. The Federal Republic of Congo is
renamed the Democratic Republic of Congo...more
DRC
at a Glance - 2000
WTO: non-member
Status:
Least Developed Country
ACP: member
Population: 51.4 million Population growth rate 3%
GDP growth rate (2000): 4.3%
Surface area (1997): 2,344.9 thousand sq. km
Population per sq. km (1997): 23
DRC at a glance (in detail)
History
Belgian Congo wins independence on June 30, 1960 and is renamed the Federal
Republic of Congo. Joseph Kasavubu became the country’s President, Patrice
Lumumba the Prime Minister, and Joseph-Désiré Mobutu (Mobutu Sese
Seko) the State Secretary. The Federal Republic of Congo is renamed the Democratic
Republic of Congo. In January 1961, Mr. Lumumba is assassinated, and in 1965,
after years of rebellion, Mr. Mobutu seizes power. His dictatorial rule would
last 32 years. On October 27, 1971, Congo changed its name to Zaïre. Zaire's
cities and citizens take African names and the capital's name is changed from
Leopoldville to Kinshasa. In 1992, Zaire is gripped by economic collapse.
In
1996, the Zairian government threatens to expel the Zairian Tutsis, who had engaged
in low-level clashes with government troops for years. Rebel leader Laurent Kabila's
anti-Mobutu party merges with Zairian Tutsis and other groups to form the Alliance
of Democratic Forces for the Liberation of Congo-Zaire (AFDL).
In April
1997, Zairian rebels push into Lubumbashi, and President Mobutu Sese Seko turns
to the military in an attempt to maintain his slipping hold on power. In May,
Kabila and Mobutu meet as rebel forces move toward Kinshasa. Mobutu cedes power
and flees Kinshasa. Rebels enter Kinshasa with little resistance and Kabila takes
power in May 1997. Kabila's forces consolidate power and some Mobutu supporters
are killed. Kabila's alliance changes Zaire's name to the Democratic Republic
of Congo. Kabila declares himself president and bans all politics, but promises
elections in 1999. On June 1, 1998 the cabinet was expanded to over 30 ministries,
with a broad ideological spectrum from Maoists to moderates. Ministerial decisions
require Presidential clearance.
In June 1998, the Congolese franc is launched
to replace Mobutu-era New Zaire as part of currency reform. In August 1998, a
rebellion by ethnic Tutsis in collaboration with ex-Mobutu army elements, and
backed by Rwanda and Uganda, gains controls of much of eastern Congo; other rebel
groups control much of the North; their advance on Kinshasa from a Western Front
was reversed by armed assistance from Angola, Zimbabwe, and Namibia. Peace talks
led to a peace accord signed in Lusaka in July 1999 between the Government and
the neighboring countries involved in the conflict. In August, both rebels movements
signed the peace accord in turn. In August, the armies of allies Rwanda and Uganda
fought a fierce battle for control of Kisangani, a city they had held jointly
for a year.
Economy
The DRC has
the third largest population, and the second largest land area in Sub-Saharan
Africa. It is rich in natural and human resources, including the second largest
rain forest in the world, fertile soils, ample rainfall, and considerable and
varied mineral resources. Historically, mining of copper, cobalt, diamonds, gold
and other base metals, zinc, and petroleum extraction accounted for about 75 percent
of total export revenues, and about 25 percent of the country’s GDP. The
country’s formal economy has virtually collapsed in the last few decades
due to mismanagement and instability. Per capita GDP in the 1980s was only a third
of that in 1962, and it declined even further in the 1990s. Much of Congo's economic
activity is hard to calibrate as the informal sector has expanded dramatically
in the last decade. Serious reconstruction challenges lie ahead, and some early
progress has been made. Government stabilization measures were successful in breaking
the spiral of hyperinflation and currency depreciation. Inflation dropped from
659 percent in 1996 to about 13.7 percent in 1997 and 15.3 percent in 1998. A
new currency, the Franc Congolais, was introduced on June 30, 1998, and the payment
of civil service salaries resumed. These positive changes have proved to be fragile,
however. There was a resurgence of inflation in 1998, to surpass 70 percent by
November. Revenue collections also declined, and Government began running arrears,
even before the recent increase in military outlays. The Franc Congolais depreciated
66 percent in the 90 days following its introduction. Officially, it has depreciated
by 300% since its introduction. The Government has implemented tax reforms and
has imposed penalties for non-payment of Mobutu-era taxes, including payments
made but subsequently diverted by corrupt officials.DRC will require significant
financial assistance for financial and monetary reform, rehabilitation of infrastructure
and social sectors, "jump-starting" the economy (credit lines, import-financing),
capacity building, return of expatriate Congolese, and political and judicial
reform, and when there is an end to hostilities, for budget support, and demobilization
and reintegration of the army.
Development Picture/Donor Coordination
A "Friends of Congo" meeting in Brussels in December 1997, agreed
on a Trust Fund (TF) to support a program of reconstruction. Recently, a Steering
Committee meeting in Paris decided to withhold implementation of the Trust Fund
pending a cease fire agreement.
World Bank Role
The Bank Group
suspended processing of new operations in 1990 and disbursements in 1993. The
DRC is in non-accrual status. The International Finance Corporation, the private
sector arm of the World Bank Group, has financed several which are now about US$50
million in arrears. The Multilateral Investment Guarantee Agency, another Bank
affiliate, which provides investment insurance against non-commercial risks in
developing countries, has no operations in DRC as the country has yet to complete
the formalities of membership, in particular, meeting its capital contribution.
Bank support is being provided for capacity building and post-conflict reintegration
activities through the Development Grant Facility. Three grants from Institutional
Development Fund (IDF) to address capacity building issues in macroeconomic management,
mining and energy, and a post-conflict program grant have been approved. Due to
lack of disbursement action, the energy IDF fund has been cancelled and the post-conflict
reintegration grant has yet to be implemented due to difficulties needing resolution
on the government’s side of the activities. A fourth IDF grant for the Transport
sector is under consideration.
A Bank mission visited the DRC in October
1997 to assist in the preparation of an economic recovery strategy. A follow-up
mission in March 1998 worked to focus the strategy on achieving early successes
in strengthening: the rule of law, financial intermediation, public sector reform,
infrastructure, rural development, and natural resource management.
Contacts
Mr. Emmanuel Mbi,
Country Director
1818 H Street NW, Washington DC
20433 USA
Tel: (202) 473-4953
E-mail: embi@ worldbank.org
Mr.
Eric R. Nelson,
Country Economist
1818 H Street NW, Washington DC
20433 USA
Tel: (202) 473-6699
Fax: (202) 473-8466
E-mail: ernelson@worldbank.org
Useful
Links
Agence Congolaise de PresseCongo ‘2000
Integrated Regional
Information Network (IRIN)
c.c, www.worldbank.org
Main
Cash crops Sugar,
Cotton, Coffee (arabica), Tobacco, Palm oil, Palm Kernels, Rubber, Cocoa, Tea
Main
Food crops Maize,
Cassava, Groundnuts, Bananas and Plantains, Rice, Sweet potatoes, Yams, Beans,
Sorghum, Millet, Potatoes, Peas, Taro, Wheat
Added
value agricultural products Brewing,
textiles.
Agriculture
and Economy
The
Democratic Republic of the Congo has a high potential for achieving significant
economic success. Agricultural development is not restricted by land availability
or rainfall. The country is rich in minerals (copper, cobalt, tantalum, diamonds,
gold and petroleum). A succession of poor and corrupt governments, leading to
massive conflict involving several other African countries, has led to economic
collapse. The DRC now produces insufficient food to feed its population and food
imports amount to 125,000 tons per year.
Agriculture
has a big potential in DRC but production is constrained by civil war, transport
problems and inflexible pricing policies. Half of all agricultural production
comes from subsistence farming but most of its main export crops are grown on
plantations. The forestry sector is being developed with aid donations.
Rural development,
transport and natural resource management have been identified as development
priorities. Development agencies are undertaking capacity-building programmes
including public sector reform as a prerequisite for any further structural development.
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