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Abstract
As described in Chapter 2, by late 2000 the Democratic Republic of the Congo (DRC) was facing a situation of widespread conflict and war, which was compounding the negative effects of a decades-long decline in output resulting from economic mismanagement, corruption, and civil strife.1 To reverse that trend, in early 2001 the new government decided to make a U-turn in its economic policies, including by redefining the role of the state from predator to facilitator of private sector–led activity. To achieve its goal, the government designed a well-thought-out road map of comprehensive and far-reaching structural reforms with the help of the International Monetary Fund and the World Bank; the former concentrated on macroeconomic structural measures and the latter on most other areas.2 The IMF supported the government’s measures through a staff-monitored program (SMP) that covered the period June 1, 2001–March 31, 2002 and, since July 2002, through a three-year arrangement under the Poverty Reduction and Growth Facility (PRGF). World Bank support took the form of six credits/projects, as described in Sections III and IV.
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