Resilience of an African Giant

Johannes Herderschee, Kai-Alexander Kaiser, Daniel Mukoko Samba

Description

The development of an effective state, a reliable infrastructure, and a dynamic private sector has long been hampered by political economy obstacles in the Democratic Republic of Congo. Resilience of an African Giant identifies these obstacles, which prevent the country from realizing its economic potential as the second-largest country in Sub-Saharan Africa, and outlines how they can be-and in some cases have been-overcome.
Four instruments that have been used to boost economic development in the past and that can contribute to more development in the future are explored in the book: coordination among those who control or influence policy, application of new technologies, leveraging of external anchors, and development of social accountability networks.
This book pulls together an impressive body of research on the exemplary transition of a country from a state of conflict to a post-conflict situation, and from there toward becoming a country with legitimate institutions created by free, democratic, and transparent elections.… I therefore wholeheartedly recommend it to all who are interested in development, particularly to policy makers in my country, as well as its partners.

Sujets

• Economic development
• Economic growth
• Aid
• Human development
• Inequality
• Judicial Reform
• Per capita income
• Private sector development
• Poverty reduction

Informations

• Publié par: world-bank-publications
• Publié le: 06 octobre 2011
• Nombre de lectures: 24
• EAN13: 9780821389102
• Langue: English
• Poids de l'ouvrage: 2 Mo

Extrait

DIRECTIONS IN DEVELOPMENT
Countries and Regions
Resilience of an African Giant
Boosting Growth and Development in the
Democratic Republic of Congo
Johannes Herderschee, Kai-Alexander Kaiser,
and Daniel Mukoko Samba Resilience of an African GiantResilience of an African Giant
Boosting Growth and Development in
the Democratic Republic of Congo
Johannes Herderschee
Kai-Alexander Kaiser
Daniel Mukoko Samba© 2012 The International Bank for Reconstruction and Development / The World Bank
1818 H Street NW
Washington DC 20433
Telephone: [phone]
Internet: www.worldbank.org
All rights reserved
1 2 3 4 14 13 12 11
This volume is a product of the staff of the International Bank for Reconstruction and
Development / The World Bank. The findings, interpretations, and conclusions expressed in
this volume do not necessarily reflect the views of the Executive Directors of The World
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ISBN: 978-0-8213-8909-6
eISBN: 978-0-8213-8910-2
DOI: 10.1596/978-0-8213-8909-6
Library of Congress Cataloging-in-Publication Data
Herderschee, Han.
Resilience of an African giant : boosting growth and development in the Democratic
Republic of Congo / Johannes Herderschee, Kai-Alexander Kaiser, Daniel Mukoko Samba.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8213-8909-6 — ISBN 978-0-8213-8910-2 (electronic)
1. Congo (Democratic Republic)—Economic conditions—1960- 2. Congo
(Democratic Republic)—Economic policy. 3. Economic development—Congo atic Republic) I. Kaiser, Kai-Alexander. II. Mukoko Samba, Daniel. III. World
Bank. IV. Title.
HC955.H47 2011
338.96751—dc23
2011038070
Cover photograph: Macaire Tshiala Bongo / The World Bank
Cover illustration: Jeffrey Lecksell / The World Bank
Cover design: Naylor DesignContents
Foreword ix
Preface xi
Acknowledgments xv
Abbreviations xix
Executive Summary 1
A Fragile Recovery 1
Governance and the Evolution of Political
Institutions 4
Overcoming the Governance Challenges 5
Priority Setting for the New Government 7
Managing Political Consolidation and
Sustaining Growth 10
Notes 11
Chapter 1 Introduction 1322
Chapter 2 A Fragile Renaissance 23
A Growing, but Weak, Economy 24
v vi Contents
Improved Economic Growth and
Modest Poverty Reduction 27
Natural Resource Disparities and
Regional Inequality 29
Coexistence of Integrated and Isolated Sectors 32
Improved Macroeconomic Indicators,
but High Risks 35
Lack of Good Governance and the Functioning of
Economic Activities and Public Services 37
Priorities to Improve Economic Outcomes 40
Notes 41
Chapter 3 Government Effectiveness 43
Steps to an Improved Political Consensus 43
The State’s Economic Challenges 51
Building on the Macroeconomic and
Democratic Reforms: What Comes Next? 5556
Chapter 4 Unlocking the Infrastructure Challenge 57
Current Status of Major Infrastructure
Sectors 58
Investment Priorities 65
State-Owned Enterprises and Service Delivery 69
Notes 73
Chapter 5 Private Sector Development and
Employment Creation 75
Employment 76
Legal Protection for Economic Activities and 83
Technology and Financial Sector Development 88
Employment Growth through Natural
Resource Development 91
Prioritizing the Next Steps by Defining
Growth Poles 96
Notes 98
Chapter 6 How to Sequence Policy Interventions? 101
Progress and Direction 102
Challenges 103Contents vii
Identifying Instruments and Sequencing
Their Application 104
Opportunities to Experiment in a Large,
Diverse Country 107
Notes 111
References 113
Boxes
1.1 Main Points of the Background Papers 19
1.2 Recent Developments in the Economic Growth Literature 21
2.1 Foreign Aid, by Donor, Sector, and Region 34
3.1 Lack of Transparency in Public Finance Management 53
4.1 Lessons from Uganda’s Experience with Governance
in the Transport Sector 63
4.2 The Telecom Sector: Key Elements That
Supported Its Rapid Growth 70
4.3 Public-Private Partnership in the Education Sector 71
5.1 The 2010 Investment Climate Assessment Survey 77
5.2 Alternatives to Relieving Binding Constraints to
Trade, Investment, and Growth 84
5.3 Judicial Reform 88
5.4 Experience with Social Programs Implemented in the
Context of the 2008–09 Financial Crisis 92
6.1 Provincial Budget Management Peer Learning Event 109
6.2 A Growth Pole Pilot Program? 110
Figures
ES.1 GDP per Capita, 1960–2008 2
ES.2 Public Investment as a Percent of GDP 7
1.1 Long-Term Economic and Security Indicators 16
2.1 Economic Growth, 1960–2010 25
2.2 GDP Growth, by Sector, 1996–2010 26
2.3 Investment, Aid, and Trade, 2000–10 33
B2.1 Foreign Aid, by Creditor and Sector, 2006–09 34
2.4 Government Balance, Net Credit to the
Government, and Inflation 36
2.5 Governance Indicators, 2000–09 38
2.6 Percent Enrollment in Primary and Secondary
Education, 1984–2007 39
3.1 Gross Foreign Assets in the Central and
Commercial Banks, 2003–10 52viii Contents
B3.1 Budgets Allocated by Parliament and Budget
Execution, 2008–10 54
4.1 Public Investment in the Democratic Republic of
Congo and Select Countries 68
5.1 Indicators of Uncertainty in Cross-Border
Transactions in Select Regions 82
5.2 Copper Exports, 2002–18 95
Maps
1.1 Geographic Location of Violent Events, 2006–08 17
2.1 Per Capita Income and Average Annual Economic
Growth, by Province, 2006–10 31
4.1 Electric Power Generation and Transmission System 59
4.2 Transport Corridors 61
Tables
ES.1 Agricultural Growth, by Data Source, 2007–10 6
1.1 Poverty Indicators in the Democratic Republic of
Congo and Sub-Saharan Africa, 2007 14
1.2 Select Historical Events in the Democratic Republic of
Congo, 1960–2011 18
2.1 Human Development Indicators in the Democratic
Republic of Congo and Sub-Saharan Africa, 1980–2010 28
2.2 Sources of Economic Growth (Adjusting for
Human Capital), 1992–2010 29
2.3 Real Growth in Agricultural Production,
by Province, 2007–10 30
2.4 Fiscal Balance on a Commitment and
Cash Basis, 2001–10 37
B5.1 Results of the 2010 Investment Climate
Assessment Survey 77
5.1 Perceived Obstacles to Registration, 2006 and 2010 78
5.2 Estimated Impact of Improved Border Procedures
at the Kinshasa-Brazzaville Border 83
Matrixes
6.1 Policy Areas and Instruments: Examples of Successes
and Failures 105
6.2 Examples of Interdependencies among
Policy Interventions 108