FREE DAILY EMAIL

A de legation of the government of the Democratic Republic of Congo (DRC), led by H.E. Matungulu Mbuyamu, Minister of Finance and Budget, met with development partners in Paris for a two-day Consultative Group (CG) this week. The meeting was the first CG meeting since DRC entered a period of political instability and conflict in the beginning of the 1990s. It was a recognition of the efforts made by the Government towards peace and economic reform, and a response to the current severe socio-economic and humanitarian crisis in the country. The meeting was chaired by Emmanuel Mbi, World Bank Country Director for South Central Africa and Great Lakes region. Representatives from 13 donor countries and 12 international organizations, including the International Monetary Fund (IMF), attended the meeting. Participants welcomed the progress made by the Government of DRC and recognized the international community's support as a key element for the success of the country's recovery. It was also confirmed that financial contributions exceeding $2.5 billion would be made.

Over the last two years, the DRC has been gradually emerging from a decade of political instability and conflict. War and civil disturbance, compounded by the sequels of a long period of mismanagement and corruption, have taken a heavy toll on the country and its 55 million people: about 3 million people are believed to have died, another 2.4 million are internally displaced, the physical damage is extensive, the institutions are in shambles, and the economy has collapsed.

Although much remains to be done, the recent period has been marked by important progress. The signing of key agreements with Rwanda and Uganda, in Pretoria (on July 30, 2002) and Luanda (on September 6, 2002) respectively, and the consecutive withdrawal of foreign armies from the DRC opened new opportunities. On the political side, negotiations are ongoing with the active involvement of all participants in the inter-Congolese dialogue, with the mediation of the United Nations, and the support of key bilateral partners, such as South Africa. On the economic front, the Government has launched and implemented in-depth economic reforms, within the context of an economic program supported by the World Bank through an Economic Recovery Program and by the IMF through a Poverty Reduction and Growth Facility. Most importantly, economic growth returned (3 percent in 2002) and is expected to accelerate in the years to come.

"The World Bank is very impressed by the achievements of the DRC Government to date." said Emmanuel Mbi, Country Director. "The Government's efforts are opening the way for an even more significant support of the international community."
Donors pledged additional resources to support the smooth and timely implementation of the priority Emergency Multi-sector Rehabilitation and Reconstruction Program (EMRRP). There is a strong consensus that this Program is critical to consolidate the peace and reconciliation process, and pave the way for economic recovery - and that it provides a solid framework for coordination of donor-funded activities. About 75 percent of the financing for the three-year program is already confirmed.

Donors also discussed the issue of external debt service. Today, the DRC is one of the world's most debt-laden countries. Donors agreed that a quick access of the DRC to the Enhanced HIPC initiative was necessary to reduce the country's debt burden. They encouraged the DRC to continue to implement steadfastly its economic programs. Participants to the Consultative Group Meeting expressed hope that the access can occur in early 2003. Donors also supported the establishment of a World-Bank administered multi-donor Trust Fund to complement the DRC's efforts in servicing the multilateral debt. A number of delegations indicated their readiness to contribute to this fund.

There was consensus on a conceptual framework for donor support to the economic and social reunification of DRC, within a broad national recovery program and with particular attention to preserving macroeconomic stability. Most donors emphasized that such support should closely parallel the broader context of political progress. Participants to the meeting encouraged the Bretton Woods Institutions to coordinate international efforts and to rapidly launch a technical fact-finding mission to prepare for a broader involvement by the international community, as political and security conditions allow.

Donors finally discussed a working plan aimed at reinforcing capacity building in the country, under the lead of the UNDP. The main purpose of this plan is to restore the basic capacity needed to launch policy and administrative reforms, and to manage key programs in areas such as governance, social sectors, infrastructure and economic recovery.

"The Government of the Democratic Republic of the Congo feels very encouraged by the donors' support in this difficult period our country has to face" said H.E. Matungulu Mbuyamu, Minister of Finance and Budget. "We are strongly determined to pursue our efforts on the social, economic and political levels to achieve the DRC's recovery." The Minister stressed the need for all recovery and reconstruction efforts to be implemented with a view to preserving the territorial integrity of the country.

Discussions continue today with a Business Forum for investors and a seminar on the poverty reduction process in the country with civil society and NGO participants - World Bank.

SPONSORED BY

Advanced