Sources: NRC, Le Soir, Reuters, World Bank Briefing Note, Communication from the government of the DRC
Some remarks beforehand: For lack of time we translate from our dutch chronicle only the most important issue: The MEETING of the DONORS on december 3 and 4 in Brussels. During this meeting, the Congolese ministers presented a very important and interesting document: "Economic Stability and Recovery Program". (containing 48 pages)
Below, we will highlight some elements from this document and give some quotations, but if you are interested, please order the whole document by giving your post adress. There you may find all propositions of the Congolese Government about the social and economic reconstruction for the next few years with a detailed elaboration, the budget, the results obtained up to now, etc.
Set-up of the meeting and results. At the meeting a number of 17 countries and 9 international organisations were present. Among these countries some were newcomers like Danmark, Finland, Japan, Sweden and Russia . Among the organisations were the UN, the EU and the IMF.
On Wednesday, december 3, a briefing was held by the Worldbank. The note of the Worldbank reflects clearly the economic, monetary and national bankruptcy the new Congolese government inherited from the Mobutu regime. The Worldbank demonstrated a positive appreciation for the measures taken up to now by the Kabila government to trigger the reconstruction of the country, like controlling of the inflation, institution of an Executive Committee for the coordination of the government's strategies, adjustment in the field of the education, etc. The three-year Investment Program of the government involves the development of seven priority areas for the rehabilitation and investment: transport, agriculture, energy, mining and industry, health and education, security and justice. As a conclusion the Worldbank stressed that it is a challenge to the international community to work with the Congolese government for the reconstruction of the country, like before for Bosnia, and the West Bank and Gaza.
On Tuesday december 4, the Congoese ministers Bizima Karaha of Foreign Affairs and Mawapanga of Finance, together with the Governor of Congolese Central Bank, Masangu, gave a clarification to their request for aid and to the three-year program. According to several journalists this performance was quit impressive. By means of video they sketched a picture of the total decline of roads and the emergency in health care. In a very expert way the Congolese delegation explained the program for financial and economic recovery. For this emergency program an amount of $ 1.29 bilion is needed in the coming one-and-a half year. The ministers asked the donors to put $ 728 milion at the disposal of Congo, the government itself will furnish the remainder.
In the discussion of course questions were posed about human rights and about the UN investigation team. Bizima said that the UN team has to complete its probe, because the Congolese people wants to know the truth. He pointed out that since some time a Constitutional Commission is working on a draft for a nem Constitution, and that after two years there will be free elections.
As a result of the conference the donors decided unanimously to give financial aid to Congo. Even France did not oppose.
The EU will release a fund that had formerly been reserved for Mobutu. What exactly is the volume of this fund does not become clear from different sources. According to Reuters it concerns a total amount of 150 milion Ecu ($ 168 milion). 45 milion Ecu will be destinated for healthprograms in the Kivu and Kasai provinces and in the Kinshasa region. And 32 milion Ecu will be for plans to improve the infrastructure, especially the roads from Kinshasa to the port of Matadi and from Kinshasa tot Kikwit.
A second important result is that the donors decided to establish a Trust Fund under the administration of the World Bank. The participating countries and organisations will decided themselves hom much they will deposit in the fund. In the first place the fund is meant to pay salaries in health care and education. A so- called donor consortium will elaborate the plan of the fund.
The succes of the conference is a great gratification for the
Congolese government as well as for the Congolese people. It
implies not only that their will come financial aid, but it also
means that one feels positively about the policy of the Congolese
government.
End.
(...)
2. This document is one of a series of policy and strategy
documents, all of which have the common objective of rebuilding
the DRC, but covering different perspectives and instruments. The
first of these is the minimum tree-year program for 1997-1999,
which presents an inventory of the country's reconstruction needs
and proposes the "social market economy" as the basic philosophy
for meeting these needs, while at the same time setting out the
government's priorities.(...)
A third document, now in preparation, will provide a basis for
discussion at the National Conference on Reconstruction that will
be held in December, and which is intended to formulate
reconstruction strategies and policies from the longer-term
perspective, within a participatory approach that consists of
mobilizing the different segments of Congolese society around the
ideal of national reconstruction.
A further study, also in preparation, will identify private
investment opportunities in the DRC, and measures for attracting
private domestic and foreign capital in ways that will serve the
interests both of the national community and of the investor.
pg. 9, 19. The government's economic philosophy.
One of the government's priority tasks is to re-build the
Congolese State, while being careful not to turn it into an
ineffective and clumsy octopus. The government has therefore
opted for the social market economy model as a means of ensuring
the judicious distribution of roles among the State and other
players in the society: businesses, associations, NGOs and local
authorities.
The government is committed to respecting and enforcing the
principle of subsidiarity that must govern the State's role
within the social market economy. As a general rule the central
government will not intervene in economic and social activity
except where it can clearly act more effectively than can
business, associations, NGOs, churches or local authorities.
In applying this principle the government will ensure that its
primary missions relate to the following areas ans sectors:
regulation, macroeconomic management, equity and justice, public
safety and national defense, basic infrastructure, public health
an primary education.
20. Private sector development. The government's objective is to make the private sector the engine of growth for the Congolese economy, by encouraging private investment, domestic and foreign aid. To this end the government will rely on four basic strategies: (...)
pg. 13, 26. Democratization. Macroeconomic stability will remain a pious hope unless a stable political and social environment can be established. The government is working decisively to create a democratic society where human rights and liberties are guaranteed, particularly those of the press. The point of departure for the democratization process will be the institution of a Constituent Assemby that will also serve as a provisional parliament until electorally consecrated institutions can be established. The structure of government will be heavily decentralized, to give local and provincial institutions real powers and the attendant financial means. The provinces are already receiving 30% of the tax revenues generated within their territory.
pg.31, 60 The challenge of reconstruction demands analytic capabilities and the development of new policies in every sector of national life. Government policies must also be better coordinated and economic and social policies must be formulated through a participatory process to ensure their consistency and to enlist the broad committment of the government's domestic and foreign partners. The government hopes to work in cooperation with the "Friends of Congo" to implement a capacity-building action plan that will:(i) enhance macroeconomic policy making, budget preparation and execution,monetary policy formulation, and (ii) involve civil society in formulating economic and social policies. This plan will focus on the following actions: (...)
Economic Stabilization and Recovery Program contains also many practical elaborations! You can order it by Email, mentioning your postal address.
See also chronicle 12