Congo, Democratic Republic of the (DROC) - Economic development

The announced priorities of the Mobutu government were economic nationalism and the development of an infrastructure appropriate to an industrial economy. Infrastructural development would involve the extension of the country's hydroelectric potential, transportation network, harbor facilities, and oil-refining capability, as well as the development of basic industries such as iron and aluminum smelters and cement plants. Many development plans were poorly planned and mismanaged, however. Development expenditures were usually made year-by-year and despite occasional, vaguely conceived three-year plans, little progress was made over the years.

Since 1992, any semblance of economic planning and development management evaporated. In 1997, the overthrow of Mobutu by Laurent Kabila continued the destabilization, and civil war in 1998 further dashed the hopes for economic development. The fighting was fueled by the DROC's vast mineral wealth, with all parties using the anarchic climate to exploit the country's natural resources. Kabila was assassinated in January 2001, and his son Joseph Kabila became president. A cease-fire between the warring parties was signed in December 2002, and plans were made for a government of national unity. In June 2003, Kabila named an interim government, to include members of the political opposition and rebel groups.

The DROC negotiated a three-year $786 million Poverty Reduction and Growth Facility (PRGF) Arrangement with the International Monetary Fund (IMF) in June 2002. The Kabila government undertook a number of economic reforms upon being installed in 2001, including implementing stringent fiscal and monetary policies, and an anti-inflationary program that reduced inflation from over 500% in 2000 to about 10% at an annual rate in the last quarter of 2001. Bilateral donors who previously directed their assistance solely to humanitarian needs, also began to fund development projects. Efforts are underway to encourage business activity in the country as a part of the peace process.