Democratic Republic of the Congo: Poverty Reduction Strategy Paper-Progress Report

International Monetary Fund

doi:10.5089/9781455208401.002.A001

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Democratic Republic of the Congo

Poverty Reduction Strategy Paper-Progress Report

Author: International Monetary Fund

Publication Date:: 26 Oct 2010

eISBN:: 9781455208401

Language:: English

Keywords:: ISCR; CR; execution rate; government action; growth policy; decentralization policy; government program; Congolese authorities; government transfer; real GDP; private sector

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The Growth and Poverty Reduction Strategy was implemented in an extremely challenging environment, adversely affecting the conduct of macroeconomic and sector policies. The accomplishments in regard to sector policies are highly encouraging. There was notable progress in the administration of justice and police reform efforts. However, there were no significant developments in public administration reform. Congo recognizes that continued, sustainable growth in a stable macroeconomic climate is essential to reducing poverty, and this requires consolidating peace and security, and promoting administrative and economic governance.

Abstract

Chapter 1: ANALYSIS OF MACROECONOMIC PERFORMANCE AND EXPENDITURE

Introduction

One of the pillars of the war on poverty identified in the participatory consultations was the consolidation of macroeconomic stability and growth. It is important, then, to evaluate the results of the economic and financial policies implemented in the context of the GPRS. To that end, two macroeconomic stabilization programs were executed.

The first program covered the period from 2006 to November 2009 (independent IMF staff monitoring program), and was instituted in April 2006 following suspension of the PRGF program. The second program, supported by the Extended Credit Facility, was concluded in December 2009. Sector reforms were implemented in support of that program. The evaluation focuses on the results of macroeconomic policies conducted in 2009 and early 2010. The first part of this chapter examines macroeconomic performance, and the second reviews budget allocations by category and by GPRSP pillar and component.

1.1. Recent developments in the Congolese economy

The effects of the financial crisis continued to weigh heavily on the Congolese economy during 2009. The decline of mining exports, primarily in the first half, and their effects on the rest of the economy considerably dampened economic activity.

1.1.1. Economic activity and prices

In 2009, economic growth slowed in comparison with the previous year (6 percent) but was slightly above the established target. According to central bank (BCC) estimates based on end-December 2009 business surveys, real GDP growth was 2.8 percent compared to an objective of 2.7 percent, the result of a third-quarter recovery in the mining sector and spillover effects on the tertiary sector.

Inflation reached 53.4 percent, corresponding to an annual average of 46.1 percent, compared to a target of 48.7 percent. The indicative US dollar-Congolese franc exchange rate was 902.7 at end-December, representing a depreciation of 29.2 percent compared to the same period of 2008.

1.1.2. Public sector

The overall public sector financial situation improved from 2008 to 2009 despite the fact that not all external resources programmed were disbursed. Domestic revenue excluding [concession-related] bonuses fell, reflecting a drop in customs and petroleum receipts as a result of the international financial crisis. The government remained determined to control spending to maintain macroeconomic stability, despite increased security expenditures due to the worsened security situation in the eastern provinces and recently in the west. As a result, the domestic budget deficit (cash basis) was -3.1 percent of GDP, compared to a projected surplus of 3.3 percent.

1.1.3. External sector

The Congolese economy withstood the effects of the international financial crisis in 2009, with a better overall external position in comparison to the previous year. The current account deficit, which increased sharply in 2008 to nearly 15.9 percent of GDP due to increased imports and the drop in prices of key commodity exports (particularly copper and cobalt during the second half of 2009), declined to about 12.9 percent of GDP in 2009. This reflects a substantial increase in emergency international aid, which enabled Congolese authorities to limit the impact of the financial crisis on the economy. Disbursement of the first tranche of funds under the Sino-Congolese arrangement also helped cushion the exogenous shock.

These positive developments and increased balance-of-payment support from the IMF, especially the general and special allocations of special drawing rights (SDR) totaling SDR 424.5 million (approximately US$662.3 million) and disbursements under the Exogenous Shocks Facility and Extended Credit Facility, significantly increased international reserves in 2009, despite low levels observed in first quarter 2009. International reserves, which stood at US$27.16 million on March 11, increased to US$999.4 million, representing 9.1 weeks of nonaid imports.

1.1.4. Monetary sector

The money supply expanded, due essentially to external contributions despite improvement of public finances. Of the 50.5 percent increase in comparison to the previous year, 66.1 percent was contributed by net domestic assets, despite a 26.3 percent decline in net credit to the government. The share of internal assets contributing to growth was also significant, at 33.4 percent including external financing disbursed in 2009, and allowed the BCC to execute currency market interventions totaling US$124 million to control volatility. In addition, under its restrictive policy to limit deviations of inflation from the targeted 31.2 percent, the BCC modified the official rate three times in 2009 (in January and October) raising it from 40 percent at end-2008 to 55 percent, 65 percent, and 70 percent, and increase the required reserve ratio from 5 to 7 percent between January 2008 and October 2009.

1.1.5. Economic situation at end-March 2010

Macroeconomic developments at end-March 2010 were encouraging. Year-to-year inflation declined from close to 47.6 percent in February to 34.3 percent in March, and annualized inflation stood at 19.6 percent in March compared to 50.9 percent in February and an annual target of 15 percent. The Congolese franc (CDF) appreciated 1.6 percent against the US dollar, from CDF 921.1 at end-February to 906.3 at end-March. The lull in currency and goods and services markets allowed management of the treasury plan on a cash basis, resulting in a budget surplus at end-March 2010. Amid the relative stability, the BCC lowered the base rate on March 23 to 52 percent from 70 percent (in February) to reduce the positive spread.

1.2. Expenditure analysis

1.2.1. Analysis of budget expenditure by category

Overall, the government budget execution rate was 63.2%. This under-execution represents an increase of 13 percent in comparison with the previous year. Compared to GDP, however, it represents a decrease of roughly 4 percentage points, largely explained by the decline in revenue produced by the international financial crisis, described in the above paragraph on macroeconomic performance, particularly in the public sector. The under-execution conceals the overrun in the “defense” function representing 0.6 percent of GDP, which was more than offset by under-consumption in all other functions except “religion, culture, sports, and recreation,” for which the impact of the global overrun was deemed minor. Note that the “Central public administration” and “national defense” functions alone absorb more than one-half of credit, compared to the two-fifths provided in the budget.

Personnel expense in proportion to total primary expenditure decreased from 35.2 percent to 32.9 percent between 2008 and 2009. This demonstrates the government’s close attention to this item in economic programming, given that it can be a potential source of inflationary pressures in a context of limited capacity to mobilize domestic resources.

Current non-salary primary expenditure remained the largest item of public expenditure. This was due primarily to government transfers and interventions, which increased from 22.7 percent to 33.0 percent of primary expenditure between 2008 and 2009 following decentralization and transfers to revenue-collecting agencies. In contrast, the proportion of spending for goods and services declined sharply over the period, from 6.6 percent of primary expenditure in 2008 to 3.9 percent in 2009, well below the level needed to support effective functioning of public administrations.

Public investment expenditure declined from 4.7 percent of GDP in 2008 to 4.3 percent in 2009. The overall share of these items in proportion to total primary expenditure remained stable at roughly 21 percent between 2008 and 2009. However, this ratio is clearly inadequate to meet the reconstruction objectives fixed by the government. At the same time, much of this investment is financed by external resources, which are not fully captured in the national budget. In other words, the above analysis underestimates public investment.

In 2009, repayment of principal represented 4.7 percent of total public expenditure, compared to 3.6 percent in 2008. Interest payments on the debt represented 3.1 percent of public expenditure in 2009, compared to 3.8 percent in 2008 and 9.8 percent in 2004. Total debtrelated public expenditure represented 7.9 percent of GDP in 2009 compared to 7.4 percent in 2008. Public debt remains a significant burden for the government, representing 7 percent of total public expenditure in 2009, more than all health-related spending for the same year. It is essential, then, that the DRC achieve the HIPC Initiative completion point in order to free up additional fiscal headroom needed for a more active development policy.

1.2.2. Public expenditure in relation to GPRSP priorities¹

The analysis of expenditure by pillar following Figure 4. below highlights the importance of the strategic pillar “Promoting good governance and peace.” Spending for this pillar represented roughly 60 percent of primary expenditure in 2009. This spending was bloated by increasing sovereignty and security expenditure relating to the conflict in eastern Congo, and recently in the West, and above all by transfers to the provinces and revenue-collecting agencies. The predominance of this spending reflects the post-conflict context and the need to strengthen institutions and administrations and consolidate peace.

The second most important pillar is Pillar 3, “Promote access to basic social services,” which declined slightly in proportion to total primary expenditure, from 24.9 percent in 2008 to 23.6 percent in 2009. Pillar 2, “Supporting sectors with growth potential,” increased from 16.2 percent in 2008 to 16.5 percent in 2009.

The above graphs confirm the substantial expenditures devoted to political, security, and administrative governance, totaling roughly two-thirds of primary expenditure for all of 2009. This increase could be explained by significant over-execution in 2009, close to 180 percent, relating to emergency security measures. Spending on economic governance (excluding debt) is also substantial in proportion to total primary expenditure following an execution rate of only 191.7 percent.

The sector-specific analyses clearly show that transportation, particularly road infrastructure, accounts for over one-half of spending for this pillar. However, the execution rate for this sector appears particularly low, with less than 30 percent of Pillar 2 expenditure executed in 2009. The next largest sector for this pillar is agriculture, although it represents only onethird the amount of transportation spending. Finally, the extractive industries, manufacturing, and building and public works (excluding roads) represent a small proportion of Pillar 2 expenditure.

Social expenditure (Pillar 3) declined relative to GDP, from 5.8 percent of GDP in 2008 to 4.6 percent of GDP in 2009, and its relative share in proportion to total primary expenditure declined over 2008-09. The largest sector of the pillar in terms of expenditure was education, which declined in proportion to total primary expenditure from 13.7 percent in 2008 to 12.4 percent in 2009. Despite a high execution rate, close to 74 percent, spending in this sector relative to GDP declined from 3.2 percent of GDP in 2008 to 2.4 percent in 2009. The second-largest social sector, health, was more stable relative to total primary expenditure, increasing 0.2 percentage points between 2008 and 2009. The execution rate in this sector was relatively weak, at 61.6 percent in 2009. The share of spending on other social sectors (social protection, environment, urban poverty and housing, and culture) was relatively marginal in terms of both GDP and total primary expenditure, remaining flat or declining slightly over the period. Given the crisis context, execution rates for these sectors varied widely and were generally low, particularly for social protection, the environment, and water.

1.3. Medium-term macroeconomic prospects

The government recognizes that continued, sustainable growth in a stable macroeconomic climate is essential to reducing poverty. The medium-term macroeconomic objectives remain in line with those agreed in the recent PRGF arrangement. Stated in quantitative terms, the objectives are: (i) reduce year-to-year inflation to 9 percent by end-2012; (ii) increase international reserves to 10 weeks of nonaid imports by end-2012; and (iii) achieve real GDP growth in the range of 6 percent per annum. To achieve these objectives, the government intends to reduce the domestic balance and refrain from central bank financing while increasing fiscal headroom to provide essential public goods. It will achieve this by implementing reforms to increase revenue and rationalizing and prioritizing public expenditure. Progress in the consolidation effort will strengthen the central bank’s capacity to meet inflation objectives. The government will continue economic reforms to promote the private sector, the driver of the Congolese economy. These policy options were among the principal recommendations of the 2007 Article IV consultations. The government will also adjust the composition of expenditure to better serve the objective of reducing poverty.

Chapter 2. ACTIONS IMPLEMENTED

Introduction

We review below the record of reforms and projects implemented in an attempt to explain the decline of property. We should note, however, that it was not possible to undertake the task of establishing cause-and-effect relationships during implementation of the GPRS, for the following reasons:

– The sector ministries included a number of actions in the priority action plan (PAP) despite insufficient visibility in terms of feasibility studies and identification of confirmed sources of financing. Several actions reflected intentions expressed by partners or ministers for which the costs and execution time tables had not been determined;
– Certain TFPs preferred to execute the projects or activities they financed directly, with support from sector ministries or NGOs;
– The PAP and the budget were not reconciled in regard to executing the actions identified in the PAP. However, in order to provide a comprehensive view of the efforts undertaken to achieve the GPRS objectives, the report includes both PAP activities and non-PAP activities aligned with GPRS priorities.

2.1. Promoting good governance and consolidating peace through strengthened institutions

2.1.1. Security and judicial governance

a. Security

The government set itself the objective of consolidating national reunification and territorial administration; accelerating integration of the army, police, and security services; and ensuring the return and reintegration of displaced persons within and outside the country. Actions were taken to reestablish peace and the government’s authority in the eastern and western provinces. The Goma peace accord (Amani Programme) signed on January 23, 2008 resulted in the cessation of hostilities with armed groups, assimilation of militiamen into the regular forces (brassage), and the gradual disengagement of various armed groups.

The government launched the joint Umoja Wetu (Our Unity) operation with Rwanda, which put down the CNDP rebellion and ended hostilities in the eastern part of the country. The Congolese army, with support from the UN peacekeeping mission (MONUC), initiated the Kimia I and II peace operations targeting the remaining pockets of armed groups. The effort continues today with Amani Leo. The assimilation, disarmament, demobilization, and integration of former CNDP combatants and other armed groups (Mayi Mayi, PARECO, etc.) continued under several government programs, including the program supported by several partners to pay ex-combatants US$100 to surrender their arms. In parallel, several units were established and equipped at the Kisangani, Kamina, and Ruberizi assimilation centers.

b. The judicial system

The government’s policies in the administration of justice are based on reform, improving access to justice, promoting and protecting human rights, modernizing the legal framework, combating corruption and impunity, and strengthening human and institutional capacities.

The following actions were implemented or are in progress: (i) an organizational and institutional audit of the Ministry of Justice, resulting in modification of the ministry’s structural framework; (ii) the drafting of the Constitutional Court act, which is pending adoption by the Parliament; (iii) construction in progress on a new courthouse in the context of the Governance Support Project (PAG); (iv) the organization of awareness-raising campaigns for hundreds of citizens and users of public services in the provinces of Kinshasa, South Kivu, Maniema, and Equateur; and (v) restructuring of the Conseil Supérieur de la Magistrature, the administrative body of the judicial branch.

Box 3.

Strengthened judicial system infrastructures

To promote the sound administration of justice, infrastructures supporting the courts, prosecutors’ offices, and penitentiary institutions were constructed or rehabilitated in the provinces of Kinshasa (the the Ndolo military prison and the commercial courts of Kinshasa/Gombe and Kinshasa Matete), Bas-Congo, Bandundu (the Prison du Cinquantenaire), North Kivu (the Beni magistrate’s court and Goma military courthouse), South Kivu (Kalehe and Uvira magistrate’s courts, the Uvira and Bukavu military courthouses), West Kasai, East Kasai, Orientale (the Aru, Mombasa, and Mahagi magistrate’s courts), and Katanga (the Katanga commercial court). A number of them were equipped for operation.

c.Army

In February 2008, a roundtable on security reform was held in Kinshasa and attended by a number of bilateral partners. The roundtable produced the following recommendations:

- In the context of a new master plan, implementation of a Congolese coordinating unit to review contributions to army deterrence programs, MONUC retraining efforts, and the formation and equipping of general-purpose combat units;
- Rigorous control of personnel through biometric identification;
- Establishment of a rapid-response force capable of relieving the MONUC, securing the eastern part of the country, and performing the constitutional responsibilities incumbent on the army (implemented with financing from the Netherlands). This effort was undertaken in 2008, implementing the second phase of the strategic plan for reform of the army.

Regarding the military component of the master plan, the partners agreed to support the DRC in implementing a human resources management tool.

d. Police

With support from the TFPs, the Government continued the work of modernizing the Congolese National Police undertaken by the Joint Discussion Group on Reform and Reorganization of the Congolese National Police (GMRRR). These reforms resulted in: (i) the preliminary draft of a framework law, which has been submitted to the Parliament for adoption, and establishment of the Police Reform Monitoring Committee (CSRP); (ii) construction and equipping of an office building for the finance, budget, data processing, and human resources departments; and (iii) collection of police force staffing data.

e. Sexual violence

The government is committed to eradicating sexual violence. The following actions were implemented: validation of the communication and prevention strategy document on sexual violence, meetings and advocacy actions among stakeholders in the fight against sexual violence, implementation of a sexual violence hotline, informational activities in regard to the law on sexual violence, and comprehensive care for victims of sexual violence.

2.1.2. Political and administrative governance

a. Public administration

The government’s objective in this sector is to reorganize and modernize public services at all levels of the public administration by strengthening the institutional framework and human capacities and controlling staffing levels in the central and provincial governments. A draft legal framework for the public administration was prepared in 2009 and is awaiting adoption by the Council of Ministers. Also, in the interest of controlling civil service staffing, actions were implemented to compile a comprehensive register and ensure the conformity of employees and officials. Also, to reduce the average age and increase the efficiency of government agencies, the government processed the retirements of 3,741 government employees and officials nationwide during the period 2009-2010.

b. Local governance

The government’s decentralization policy aims to: (i) allow citizens to participate in the public sphere and formulate development policies in the areas that concern them; (ii) refocus the central government mission on establishing major policy objectives; (iii) promote rapprochement between government and the governed; (iv) simplify administrative procedures and promote a participatory, inclusive culture to strengthen the development of decentralized administrative entities.

To further the process of decentralization, a single, consensus-based frame of reference, the Strategic Decentralization Implementation Framework (CSMOD), was established in June 2009. A gradual approach was adopted with respect to the principle of transferring 40 percent of national revenue and authority to the provinces. In particular regard to the transfer of authority, the functional institutions at this time are the provincial governments and assemblies.

With support from the TFPs, the government also took action to promote local leadership, accountability and skills in basic tools in the central and provincial administrations and decentralized agencies. The program to train provincial deputies, decentralized agency personnel, and civil society stakeholders in provincial and local planning processes continued in the provinces of Bandundu, Katanga, Maniema, and South Kivu. The government also conducted missions through the planning and budget ministries in 2009 to support the development of planning and programming tools (the PAP, macroeconomic framework, and medium-term sector expenditure frameworks) in all provinces, in cooperation with the World Bank and the United Nations Development Program (UNDP).

c. Elections

The proposed law establishing the organization and operations of the Independent National Electoral Commission and the proposed annexed to the electoral law establishing the distribution of seats were adopted.

2.1.3. Economic governance

a. Tax and customs revenue policies

Tax policy and tax and customs administrations. The government is committed to implementing an efficient, modern fiscal and customs policy. The proposed VAT law was approved by the government and submitted to the Parliament for adoption. At the same time, the government continued establishing tax centers in certain provinces. To improve security in the collection of customs revenue, the Customs and Excise Directorate (DGDA) improved information systems based on Asycuda++ by completing the migration from Asycuda 2.7 to Asycuda++ at the Eastern Kinshasa and Kinshasa airport offices. The results of the first signal test were conclusive. The Asycuda++ software was presented to all service providers at the inspection certification offices (BIVAC) on Friday, January 22, 2010, and the DGDA information center was officially launched on Tuesday, January 27, 2010. In addition, to strengthen the supervision and implementation of reforms, the Customs and Excise Office (OFIDA) was elevated by Executive Order (Décret) 09/43 of December 3, 2009 to an executive agency under the Ministry of Finance to become the DGDA. The proposed new customs code was also approved by the government on January 8, 2010 and submitted to the Parliament for review and adoption.

Taxation of the mining sector and streamlining of exemptions. The government intends to increase revenue by increasing mining sector contributions to domestic revenue and rationalizing exemptions. Strategic, specialized sector units, including a mining tax unit, were established within the DGDA Large Enterprise Department (DGE) on April 27, 2009. In regard to rationalizing exemptions, the government adopted the report of the commission charged with evaluating the tax incentives and exemptions provided under the Mining Code, the Investment Code and special agreements in March 2010. The report includes an action plan for implementing its recommendations.

b. Public financial management

Modernization of the public financial management system. The government recognizes the need to modernize public finances to ensure effective budget preparation and execution. To this end, a Strategic Plan for Public Finance Reform (PSRFP) was adopted by the government in March 2010. The plan includes three components: (i) the strategy framework document, which presents the government’s strategic options in this area and serves as a convenient reference for the various stakeholders in order to better coordinate actions; (ii) a three-year action plan for reforms to be implemented in five areas: (a) budget planning and preparation, (b) the fiscal system, (c) expenditure management, (d) accounting and cash management, and (e) the system of controls, and (iii) indicative cost tables. The government strengthened the mechanism for coordinating and implementing public finance reforms by establishing the Steering Committee on Public Finance Reform (COREF) in August 2009.

Legal framework governing public financial management. The government adopted a proposed law on public finance in March 2010. The proposed public procurement code was adopted by the Parliament in April 2010 and is pending official publication; the implementing regulations have also been prepared and will be promulgated following publication of the code. Efforts are under way to revise the general public accounting regulations. The government has also begun to rationalize revenue nomenclature used by the Directorate of Administrative and State Revenue (DGRAD), anticipating forthcoming efforts to prepare and adopt a proposed law on revenue nomenclature recognized by the provinces in accordance with constitutional provisions.

Budgetary transparency, traceability of State financial operations, and control of wages and salaries. In February 2010, the manual on the budget process and public expenditure cycle was revised. The revision reflects the integration of emergency spending procedures in the expenditure cycle. For the provinces, the March 2010 validation of the provincial expenditure cycle manual established the standard for executing public expenditure. In regard to the accounting system, the Treasury Management and Payment Authorization Office (DTO) produced account balances through end-December 2009. The government improved the reliability of the Simplified Transitional Procedure implemented in July 2007. A roadmap was adopted to extend this automated procedure to all payroll items in all the provinces. Budget monitoring reports were produced on a regular basis, despite certain weaknesses in terms of reliability and completeness of information. The government is endeavoring to correct malfunctions that persist in the budget monitoring system. Similarly, the expenditure cycle was strengthened through the inclusion of payroll and public debt expenditure. In parallel, the government undertook actions to modernize the cycle by acquiring new hardware and more robust software. The government also intends to strengthen public financial control through the support of oversight entities. In this regard, plans are under way to establish a financial inspector’s office and court of accounts.

c. Public debt management

The government is committed to pursuing a prudent borrowing policy to ensure that public debt is sustainable. Government actions focused on strengthening institutional and human capacities to manage debt and settling domestic debt. In this context, Executive Order 08/04 strengthening the central role of the Directorate of Public Debt (DGDP, the former Public Debt Management Office, OGEDEP) in managing public debt, was signed on February 28, 2008, and implementation of the related action plan adopted in May 2008 began with the launch of data collection efforts and informational activities. The DGDP also collected data on public debt in Kinshasa and the provinces for the purpose of centralization.

In October 9, the government amended the cooperation agreement with a consortium of Chinese enterprises to ensure that its terms were compatible with the imperatives of debt sustainability. The accord provided sovereign guaranteed financing for project infrastructures totaling US$3 billion. The debt contracted to finance the project will be repaid from profits of the joint venture formed by Congolese public enterprise GECAMINES and the Chinese enterprises. The sovereign guarantee would be executed only if the joint venture fails to repay the full amount of the debt within the first 25 years of the joint venture, or 2034. In this context, the government believes that the cooperative agreement contributes to the objective of debt sustainability and incorporates the level of concessionality required to ensure debt sustainability.

The government is normalizing relationships with all its creditors. On February 25, 2010, the government concluded the eleventh rescheduling arrangements with Paris Club creditors following approval of the new PRGF arrangement on December 11, 2009. Once the HIPC Initiative completion point is reached, the authorities will open bilateral negotiations with each of the Paris Club, non-Paris Club and Kinshasa Club creditors. The Paris Club secretariat will provide the DRC with an ex ante valuation of the amount owed to each creditor prior to the conclusion of bilateral negotiations. In addition, the World Bank has provided a grant to the DRC to support repayment of its London Club commercial debt.

d. Restructuring the national statistics apparatus

The government identified statistics as a priority area of strengthening to improve policy formulation and monitoring. To this end, the government strengthened the capacity of the National Institute of Statistics (INS) by converting it to a public institution with separate legal status. Currently, the production and use of statistics in the DRC are governed by Executive Order 10/05 of February 11, 2010 on the National Statistics System (SSN). In addition, the INS has made its DEVINFO human development database available online through its website.

e. Promoting the private sector

Actions to promote the public sector proceeded in [four] directions, reforming public enterprises, reviving the business climate, employment, and reforming the financial system.

Reform of public enterprises

The actions taken in 2009 consisted of: (i) implementation of four laws reforming public enterprises² enacted in July 2008; (ii) the implementation of management contracts to stabilize the technical and financial activities of the National Transportation Office (ONATRA), the Congolese national railroad company (SNCC), and the National Aviation Administration (RVA); and (iii) transfer of customs-related activities from the Ministry of Trade Inspection Office (Office Congolais de Contrôle) to OFIDA (now the DGDA).

Business climate

Actions in regard to the business climate included establishing commercial courts in Kinshasa and Lubumbashi, ratifying the OHADA Treaty, and equipping the national arbitration center and national mediation center with computer hardware and furnishings. Measures were also implemented to streamline the process of creating enterprises.

To protect the financial sector from instability in regard to funds of doubtful origin, a financial reporting and anti-money laundering and terrorism financing unit was created and put in operation in October 2009.

Employment

The 2009-2010 PAP identified two programs to stimulate employment: (i) support for formulation of the national policy on employment and professional training and jobs for youths; and (ii) strengthened institutional capacities and human resources development. In regard to the first program, a proposed national policy on employment and professional training was drawn up in 2009 with support from the International Labor Organization. The document was validated in March 2010 by committees formed in connection with the thematic group.

In regard to strengthening the capacities of ministry and legislative secretariats and the Office of the Labor Inspector (IGT), an information requirements questionnaire was drawn up and administered in February 2010. In order to improve the quality of employment-related information in the DRC, the National Employment Office (ONEM) implemented a registration system for the jobless. The database includes 60,000 individuals seeking employment at this date. In March 2010, ONEM began issuing biometric cards to registrants. In the same vein, the Better Job Market Management through Effective Data Processing (PIEGMA) program was implemented in February 2010, and the Employment and Professional Training Observatory was also created.

Box 4.

The PIEGMA Program

The Better Job Market Management through Effective Data Processing (PIEGMA) program is charged with: (i) producing indicators on job opportunities and training by implementing a mechanism to monitor graduates and other categories of job seekers in the labor market; (ii) publishing key market indicators; (iii) periodically conducting surveys by compiling censuses, lists of occupations and similar tools to determine labor needs by qualification in the national economy; and (iv) preparing job descriptions that specify the required skills, conditions of access, and other terms relevant to each position to provide the job market with adequate information on job opportunities.

Financial system reform

To improve access to financing and strengthen the financial sector’s role in reviving the national economy, the standards and criteria for supervision of commercial banks were strengthened. In July 2009, the BCC published statements of financial affairs for the two public banks in liquidation (Nouvelle Banque de Kinshasa and Banque de Crédit Agricole). In 2008 and 2009, the government approved charters of private banks and micro-finance institutions, thereby increasing the number of banks in the country and the level of financial intermediation. In June 2009, a strategy was adopted to reorganize the BCC, streamline its operations, and reduce its operating deficit. Actions to modernize the BCC and introduced new liquidity management instruments are continuing.

2.2. Policies supporting economic growth

2.2.1. Agriculture and rural development

The government’s objective in this sector is to restore a level of agricultural production to meet the nutritional needs of the entire population, and restore the bases of social cohesion so as to ensure sustainable peace and stability in the country. To this end, the Government undertook institutional reforms of the Ministry of Agriculture and conducted a preliminary institutional assessment; and developed a proposal for restructuring the Ministry of Rural Development; and adopted a harmonized strategy for the agriculture and rural development sector.

To support agricultural production,³ improved seeds were distributed and rural producers were provided with training; these actions served to improve crop production and stabilize prices. The physical achievements during implementation of the GPRSP include: (i) 10,317 kilometers of rural roads rehabilitated and 7,500 kilometers of rural roads being maintained with financing from the Kingdom of Belgium; (ii) 120 kilometers of rivers and streams improved; (iii) buoys installed in 40 kilometers of waterways with government financing; (iv) three National Seed Service (SENASEM) laboratories rehabilitated; (v) 32 sources of drinking water provided; (vi) four animal containment areas with paddocks and water troughs; and (vii) 94 markets and storage facilities are being constructed with financing from the African Development Bank in the provinces of Katanga, East Kasai, West Kasai, Bandundo, and Bas-Congo.

In addition, 702 tractors and 30 cultivators were acquired and sent to all provinces and selected National Institute for Agronomy Research (INERA) stations. Also noteworthy are the purchase of 85 pair of draught animals and training of 125 pair of show animals and 410 pair of farm animals. These actions served to maintain the agriculture and rural development sector share in GDP at roughly 3 percent.

Despite the above outcomes, the agriculture and rural development sector continues to face significant challenges in terms of access to markets and credit, particularly for investments; access to technology and quality plant products; access to land and land management; and labor availability and productivity.

2.2.2. Forest and the environment

The government’s policy in regard to forests is to rehabilitate the sector and promote sustainable management of flora and fauna to increase their contribution to the economic, social, and cultural development of present and future generations.

To this end, the Government established the following objectives: (i) combat desertification through sustainable management of lands and forests, (ii) promote awareness of forest laws; (iii) reduce emissions due to deforestation and degradation, (iv) improve the forest management information system, (v) strengthen the capacities of the ministry and its agencies, and (vi) administer a national action plan to adapt to climate change.

The government finalized the majority (some 30 of 42) of the implementing regulations under the forest code in 2009. At the same time, it strengthened commercial services and support to the Sustainable Land and Forest Management Board by establishing a national committee on forest and land degradation. Civil society stakeholders supported a number of local communities in concluding terms of reference for monitoring of forest management plans. To support implementation of the forest code, seminars and consultations were arranged as part of the participatory zoning process in the provinces of Equateur, Bandundu, and Orientale. Informational campaigns about the forest code were also conducted through the provincial administrative centers, with support from the United Nations Food and Agriculture Organization (FAO).

Monitoring to reduce emissions due to deforestation and degradation commenced in 2009 and continues, and the report on country preparation for this effort was finalized. A statistical forest information database was also created to strengthen the forest management information system.

In regard to strengthening the institutional capacities of the ministry and its agencies, selected staff were trained in data collection and monitoring activities concerning protected areas under the National Forest and Nature Conservation Project (PNFOCO).⁴ Additional technical office staff received training in forest oversight and management, land management, and biodiversity in the DRC and abroad (in China, Sweden, France, and Spain). Also noteworthy in connection with the World Bank Forest and Nature Conservation Project (PFCN) is a project being executed with funding from the German Agency for Technical Cooperation (GTZ) to provide institutional strengthening for the Congolese Nature Conservation Institute (ICCN).

In the area of adaptation to climate change, the government developed profiles of projects supporting recovery of the agricultural and rural sector in the context of its initiative on “environmental awareness for the agricultural and rural population.” The project, an effort to raise awareness of cultural practices found harmful to biodiversity, is being carried out in the Bas-Congo and Bandundu provinces.

2.2.3. Mines and hydrocarbons

In the mining subsector, the strategy adopted by the government during implementation of the GPRSP sought to increase the subsector contribution to economic growth. The government’s growth policy was built upon three pillars, promoting private capital, restoring production, and improving management.

To promote private capital, the government conducted informational and awareness-raising activities relating to the Mining Code and regulations and finalized the organizational and financial audits of the mining rights administrator (Cadastre Minier, CAMI). Workshops were organized in 2009, and the resultant recommendations are being incorporated into the Mining Code in connection with the mining promotion project (PROMINES). To support mining production, the Small-Scale Mining Support Department (SAESSCAM) was strengthened in its support and oversight role vis-à-vis small-scale operators, resulting in the deployment of provincial offices in the East and West Kasai, Katanga, and North and South Kivu.

To strengthen the capacities of sector enterprises, mining companies and related services were restructured, including (i) the state-owned mining company, GECAMINES, (ii) the Kilo Moto Gold Mining Office (OKIMO), and (iii) the Expertise, Evaluation, and Certification Center (CEEC). Additional entities are in the reorganization process. In addition, most of the mining contracts revisited were renegotiated. Also, in regard to implementing the principles of the Extractive Industries Transparency Initiative (ITIE), the first report for 2007 was produced in 2009 and is pending validation by an independent consultant.

Nevertheless, the sector continues to face major challenges: (i) lack of funds to finalize the deployment of SAESSCAN and CAMI, (ii) encouraging and promoting microcredit for artisanal operators and continuing informational activities in connection with the Mining Code, (iii) infrequent payment of agreed bonuses to ministry agencies, and (iv) lack of transparency on the part of certain companies in reporting revenues and payments to the government.

In the hydrocarbon subsector, the government intends to leverage petroleum and gas reserves to make the DRC one of the largest African producers. This effort will rely on: (i) reducing the risk of gas production, (ii) reducing the energy deficit in the eastern sub-region, and (iii) drafting the petroleum code.

In connection with reducing gas production risks, the government implemented an experimental, artificial lake degassing mechanism at the Gulf of Kabuno during 2009, pending complete degassing of the lake.

To offset the energy deficit in the eastern sub-region, the government signed a memorandum of understanding with private partners to produce methane gas. A joint Congolese-Rwandan entity was created to exploit the gas and produce electricity in North and South Kivu. The government also prepared a proposed hydrocarbon code and presented it to the Parliament in 2009 for adoption.

2.2.4. Energy

The initiatives in this sector primarily concerned the production and distribution of electricity. The government’s aim is to increase access to reliable energy for all communities in all segments of society to increase coverage from 6 percent to 12.5 percent by 2015, in line with the MDGs, 60 percent by 2025, and ultimately to the entire national territory.

To this end, the government’s actions focused on (i) improving the sector institutional and regulatory framework, (ii) investments to improve reliability, (iii) rehabilitation of existing infrastructures, (iv) development of new infrastructures, and (v) construction of distribution networks associated with the production centers.

The African Development Bank has arranged US$15 million in financing to conduct reliability studies for development of the Inga site and related interconnections. A new electricity code was validated by stakeholders in 2009. An Energy Information System (SIE) was created to publish up to date information on the DRC’s energy situation by June 2010.

Also, in connection with the PMEDE and SAPMP projects,⁵ the government undertook a large-scale investment program enabling it to implement and complete the following actions in 2009: (i) rehabilitation of the Inga plant, including Group 3, (ii) acquiring a Francis turbine runner for Inga 2B, (iii) completing a rehabilitation study for the Zongo plant, and (iv) installing a 500 KVA floating hydropower plant at Kananga.

2.2.5. Transportation infrastructure

With support from the development partners,⁶ 22,900.60 kilometers of roads were completed of a planned 20,352.05, representing 113 percent of the objective. The principal actions related to modernization, rehabilitation, re-opening of unpaved and rural roads, and large scale infrastructure maintenance.

Box 5.

Selected highway infrastructure actions

A number of roads were rehabilitated during the last 12 months or are in the process of construction. These include the Kenge-Kikwit, Lubumbashi-Kasumbalesa, Beni-Kisangani, and Mbandaka-Bikoro segments. Rehabilitation work was also begun on the Bukavu-Kavumu, Kamituga-Kasongo, Kisangani-Banalia-Buta-Bunduki and Lisala-Bumba-Bunduki segments and is well under way at this time. Work is beginning on the Ilebo-Kananga, Kikwit-Tshikapa-Kananga-MbujiMayi-Kabinda-Kasongo, Uvira-Fizi-Kalemie-Pweto-Kasomeno, Beni-Lubero-Rutshuru-Goma, and Niania-Isiro roads. Travel times and costs of road transportation have declined significantly. Also, to complement the rehabilitation efforts on agricultural feeder roads, 20 ferries were built or rehabilitated and deployed in Bandundu, Equateur, and East and West Kasai.

In the railroad sector, repairs were completed on a number of arteries in the city and province of Kinshasa. Additional projects under way aim to rehabilitate 300 kilometers of railroad track in the capital. The National Highway Maintenance Fund (FONER) also began operations.

In regard to airport infrastructures, work began on the runway and main pavilion of the N’djili Airport.

The following table summarizes achievements in the highway sector.

Table 1.

Summary of highway sector outcomes

Source: Calculations based on information obtained from the Agricultural Feeder Roads Department (DVDA), the Highway Authority (ODR), the Road Network and Drainage Authority (OVD), and the Large-Scale Works Agency (AGT).

^{^*}includes the Sino-Congolese program.

Table 1.

Summary of highway sector outcomes

Description		Planned (in Km)	Completed (in Km)	%
General-purpose roads		10,793.6	5,000	46
	- Paid from own funds	438	158	36
	- Paid with external funds ^*	10,355.6	4,842	47
Urban railways		158.45	83.9	53
	- Paid from own funds	107.25	58	54
	- Paid with external funds^*	51.20	25.9	51
Rural roads		9,400	17,817	190
	- Paid from own funds	-	-	-
	- Paid with external funds	9,400	17,817	190
	TOTAL	20,352.05	22,900.9	113

^{^*}includes the Sino-Congolese program.

Table 1.

Summary of highway sector outcomes

Description		Planned (in Km)	Completed (in Km)	%
General-purpose roads		10,793.6	5,000	46
	- Paid from own funds	438	158	36
	- Paid with external funds ^*	10,355.6	4,842	47
Urban railways		158.45	83.9	53
	- Paid from own funds	107.25	58	54
	- Paid with external funds^*	51.20	25.9	51
Rural roads		9,400	17,817	190
	- Paid from own funds	-	-	-
	- Paid with external funds	9,400	17,817	190
	TOTAL	20,352.05	22,900.9	113

^{^*}includes the Sino-Congolese program.

Box 6.

Social and economic impacts of highway infrastructure works

Since the completion of rehabilitation work on State Route 4 (RN4) between Kisangani and Beni (in north Kivu), the resumption highway traffic has eclipsed the airplanes which until then had transported most goods in this part of the area, located in the eastern part of the Democratic Republic of Congo (DRC). In the center of Butembo, mattresses wrapped in plastic, baskets full of onions, garlic, and assorted commodities are strewn along the stadium avenue. Amid the chaos, warehouse workers load sacks of beans onto heavy vehicles, each labeled “Kisangani Express.”

“There is always a vehicle to be loaded. That’s how we earn a living here,” said Bamimbi Vumi, a loader, straining to catch his breath. A makeshift parking lot was set up in late 2008, just beside the branch office of the largest ground transport company that transports passengers and goods between Butembo and Kisangani. Just months ago, only a few passengers would jostle one another to board vehicles and travel the 900 km that separates the two cities.

Air carriers losing market share

Before the road was rehabilitated, most passengers and goods travelled by air. Air carriers ruled. But demand for air transport has been in freefall since the completion of the road, for which the World Bank provided US$55 million in financing through the Emergency Economic and Social Reunification Support Project (PUSPRES). A visit to the empty hangars of the few airline companies that still resist the arrival of vehicles reveals the effects of the competition. “Vehicle operators in Kisangani are really killing our business,” complained Dominique Mbavumoja, branch manager for Mango Airlines, a local operator. “We are on the verge of folding, but are thinking up strategies to retain our clients.”

Of the 13 airline companies operating between 2000 and 2005, only three are still trying to stay afloat. “What do you expect? Clients see where their interests lie. And besides, our government banned Antonov flights some time ago,” said Pascal Karungu, vice-president of the Drivers’ Association of Congo (ACCO). In his view, air transport “benefited foreign pilots more than anyone, but now it’s our drivers who are profiting.” “We used to charge US$1.4 per kilo, but the truck drivers came along and lowered the price to US$0.5 per kilo. Some even go as low as US$0.25,” said Muyisa Kambine, head of marketing for Galaxie Kavatsi airline. “Before the truckers came along, we handled between 150 and 200 tons of goods per month through Kisangani. Now it’s around 29 metric tons,” said Dominique Mbafumoya, bitterly.

Source:World Bank document

2.2.6. Industry

The government’s objective is to make the industrial sector competitive, create jobs, and fully integrate the sector in regional and international trade.

To date, the Ministry of Industry has issued the first draft of the Industrial Policy and Strategy Document (DPSI), which is pending adoption and implementation, and prepared action plans for agro-industry and construction materials, the priority segments.

In regard to management and oversight of legal standards of measurement in the DRC, 217 standards were adopted in agrifood (134 standards), units of measurement (13 standards), common cements (11 standards), wood (13 standards), steel (54 standards), and compliance assessment (one standard). A preliminary proposed law on standards of measurement was validated by an inter-ministerial commission and is pending adoption by the Council of Ministers. The government began construction of the Orientale Province cement plant, completed a study on pilot agrifood plants in Kalemie, North Kivu and Bas-Congo, and established a representational office for the Bas-Congo - Kinshasa development corridor. It also presented and defended before Parliament a proposed law to preserve national industry; promulgation of the law, establishment of the regulatory authority, and the choice of N’sele as the initial site for the proposed Special Economic Zones.

2.2.7. Trade

The government contracted a trade integration assessment with support from the World Bank in order to compile the information on which to base its trade policy and global strategy to support trade. The preliminary conclusions of the study were made public at a conference in February 2010.

2.3. Improved access to basic social services and reduced vulnerability

2.3.1. Education

The government’s policy for this sector is to develop an inclusive, effective educational system to promote economic growth, combat poverty, and promote peace and active, democratic citizenship. The government’s objective was to raise the primary school enrollment rate from 64.1 percent to 80 percent during 2006-2008. This policy was implemented by strengthening leadership in the educational system, expanding access, and improving equity and quality at all educational levels.

A strategic framework for tuition-free primary, secondary, and professional education was developed, and the primary, secondary, and professional education strategy was adopted. Under the social component of the PMURR, financed by the World Bank, 140 schools were rehabilitated. As part of the Emergency Social Action Project (PASU) funded by the Social Fund of the Democratic Republic of the Congo (FSRDC) and TFPs, the government issued educational kits to primary school teachers and students and provided teacher guides to supplement reading and mathematics textbooks during 2006-2009. Also, with financing from the World Bank and the Belgian Technical Cooperation (BTC), textbooks were provided for primary school students.

As a result of these actions, the gross primary school enrollment rate increased from 64.1 percent in 2006 to 84.3 percent in 2008, compared to 80 percent projected in 2005. However, enormous challenges remain in regard to meeting the constitutional standard of universal, tuition-free primary education and achieving the MDGs.

2.3.2. Health

The government’s policy in this sector is to provide access to quality healthcare for all citizens, particularly vulnerable groups, and combat major epidemics and communicable diseases. The expected outcome of this objective is a reduction in the infant mortality rate from 126 per 1,000 live births in 2001 to 89 in 2008, and reduction of the maternal mortality rate from 1,289 to 944 per 100,000 births over the same period.

To achieve these outcomes, the government took the following actions:⁷ (i) adopted transitional measures to support the decentralization process, (ii) prepared health sector facility inventories, a demographic and health survey (EDS), and a survey of the capacity of training establishments nationwide to generate data for the national policy review, rolled out the National Health Development Program (PNDS), and updated the Health System Strengthening Strategy (SRSS) and national health map (carte sanitaire), (iii) in connection with reform of the public administration, conducted an institutional audit with support from the WHO, and (iv) revised and disseminated health standards and directives.

In addition to regulatory actions, several initiatives targeted illnesses and disease: (i) the polio vaccination campaign and distribution of vitamin A and mebendazole to improve child health; (ii) a campaign to distribute insecticide-treated mosquito nets; and (iii) the vaccination of 2 million infants under age one with financial support from GAVI and UNICEF.

In December 2009, the government began construction work on a large 500-bed hospital in Kinshasa.

Several additional actions produced the following outcomes: (i) the under-five mortality rate declined over the reporting period from 172 to 165 per thousand, and thereafter to 148 per thousand; (ii) the neonatal mortality rate stabilized at roughly 38 per thousand; and (iii) the BCG vaccination coverage rate increased from 53 to 72 percent, DTP3 from 30 to 45 percent, Polio 3 from 42 to 46 percent, and the proportion of children who have completed the recommended vaccines increased from 23 to 31 percent.

2.3.3. Water and sanitation

The government’s objective is to increase drinking water coverage from 22 percent in 2005 to 26.9 percent in 2008, with the aim of reaching 40 percent by 2015. The efforts to reach this objective will include: (i) strengthening and developing drinking water supply systems and restoring the capacities of the Water Distribution Authority (REGIDESO); (ii) rehabilitating existing infrastructures; (iii) drilling wells and collecting water from rural sources; (iv) improving management of water supply facilities; and (v) rehabilitating sewage lines in large cities.

The following actions⁸ were taken in regard to urban and rural drinking water supplies: (i) delivery of drinking water to several neighborhoods bordering East Kinshasa; (ii) construction of 19 wells, 14 in Kabalo and five in neighborhoods outside East Kinshasa; (iii) rehabilitation of a water collection facility at the Lukaya water treatment plant; (iv) rehabilitation of N’djili water collection facilities; (v) construction of a second module at the Boma collection plant and rehabilitation of the Kinshasa training center, maintenance shop, and central lab; and (vi) rehabilitation of secondary and tertiary networks in 10 communes of Kinshasa. Out of 32 projects identified, seven were completed for a cost evaluated at US$423 million compared to US$428 million, representing a financial execution rate of 99 percent.

The government actions served to increase access to drinking water to a rate currently estimated at 27 percent.

However, a number of difficulties were encountered in implementing actions in this sector:

- lack of a water and sanitation sector development strategy;
- weak progress in legal and institutional sector reforms;
- nonalignment of several actions planned in the government budget;
- insufficient financial resources to make use of investments (government counterpart for implementation of projects financed by external partners);
- weak alignment of external financing with government priorities; and
- weak technical and financial capacities of local enterprises to carry out works.

2.3.4. Social protection

The government’s objective in this sector is to improve living conditions for vulnerable groups, women and children in difficulty, persons living with handicaps, the elderly, and displaced persons and/or refugees. To achieve its objectives, the government conducted informational and awareness campaigns regarding the social protection strategy, community development, and creation of wealth adapted to the situation of target groups.

The principal actions implemented were: (i) adoption and publication of the child protection law; (ii) provincial consultations and development of a document on child protection in case of divorce or family separation; (iii) the removal of 12,000 children working in mines; (iv) reintegration of 570 youths affected by the war; (v) the adoption of policies and a national action plan on orphans and vulnerable children; (vi) a census of street children in Kinshasa, estimated to number 14,000; and (vii) the development of training modules for social workers and capacity-strengthening activities for 130 social workers in four provinces (Kinshasa, East Kasai, Katanga, and Bandundu).

2.4. The fight against HIV/AIDS (one of the GPRS pillars)

The government’s policy is to: (i) prevent the transmission of HIV; (ii) improve the quality of life for persons living with HIV; (iii) mitigate the impact of AIDS on the community; and (iv) strengthen coordination, monitoring, and evaluation at all levels.

The actions taken to achieve these results concerned preventing and treating HIV/AIDS, attenuating the socioeconomic impact of HIV/AIDS, and strengthening coordination and monitoring-evaluation actions in the fight against HIV/AIDS.

2.4.1. Preventing and stabilizing HIV and STI transmission

This component was central to the government’s efforts. Awareness and mobilization campaigns were conducted to encourage communities to change behaviors relating to vulnerability factors. These included informal educational talks and activities to promote STI services, voluntary counseling and screening, and the use of condoms by specific vulnerable populations (sex workers, persons living with HIV, men in uniform, transport workers, miners, truck farmers, etc.).

Fifty million condoms were distributed per year in recent years, and 220 million were ordered in 2009. The rate of use remains low, however, and the estimated rate of use among teenagers is estimated at 21 percent. A number of initiatives targeting the young were also conducted, including efforts to delay the start of sexual activity, promote monogamous relationships, and promote proper use of condoms. In addition, approximately 4,098,750 individuals received comprehensive services between 2007 and 2009, including test results, voluntary counseling and screening to raise awareness of individual vulnerability, and early treatment of persons living with HIV.

During the same period, 642,096 out of 1,674,330 IST cases were treated in accordance with national directives, representing 38 percent coverage of requirements (National Multi-Sector Program against HIV/AIDS (PNMLS) annual reports, 2007-2009) as illustrated in the graph below.

As the following graph shows, there was a slight change in terms of coverage, although the gap persists. In total, from 2007 to 2009, 98.7 percent of pregnant women did not receive prophylactic antiretroviral (ARV) therapy to prevent mother-to-child transmission.

The proportion of infants born to HIV-positive mothers who were also infected by HIV was 25 percent (National Multi-Sector Program against HIV/AIDS (PNMLS), United Nations General Assembly Special Session on HIV/AIDS (UNGASS), 2007).

In addition, to reduce the risk of HIV transmission, the government distributed post-exposure prophylactic kits to female victims of sexual violence, and continued regular programming and distribution of condoms to vulnerable groups. In 2008, over 18,407 incidents of sexual violence were recorded in the DRC, and only 2,254, or 14 percent, had access to postexposure kits,⁹ revealing an 86 percent gap in terms of victims of sexual violence with access to post-exposure kits to prevent HIV. Also, several million condoms were distributed throughout the DRC.

In regard to safety of transfusions, the government’s intent remains to expand coverage to populations in need while ensuring the quality of transfused blood. In regard to the figure below, only 686,379 blood transfusions of the stated need (1,136,000) occurred in three years, representing 60.42 percent coverage. When quality screening aspects are taken into account, including compliance with the national protocol, training of transfusion service providers, and quality control, the 2007 UNGASS report indicates that only 46.8 percent of transfused blood units underwent quality screening.

2.4.2. Speeding treatment and improving the quality of life of persons living with HIV/AIDS

In order to improve the quality of life of persons living with HIV, the government provided ARV treatment to eligible persons living with HIV as well as treatment for opportunistic infections (OI). In 2009, 34,947 patients from Kinshasa (11,701), Kisangani (4,751), and Katanga (3,041) received ARV treatment, compared to only 15,561 persons treated in 2006.

Until 2008, treatment of OIs was provided in only 33.6 percent of health zones, representing a coverage gap of 64.4 percent. To date, 15 percent of health zones, or 80 out of a total of 515, provide care for HIV-tuberculosis co-infection. Out of 100,000 cases detected each year, 97 percent did not have access to HIV screening, and over 60 percent of those infected did not receive ARV therapy. In 2009, 56,563 new OI cases were recorded. Tuberculosis, with 5,161 cases (PNMLS annual report, 2009), is the most widespread opportunistic infection. The estimated percentage of persons with HIV/TB co-infection who received both TB and [HIV] therapy was 0.1 percent (PNMLS, UNGASS Report 2007).

2.4.3. Mitigating the socioeconomic impact of HIV/AIDS on the community

To prepare a strategy to support orphans and vulnerable children (OVCs) data collection workshops were organized in connection with the Rapid Country Assessment, Analysis, and Action Planning Initiative on Behalf of Orphans and other Vulnerable Children in Sub-Sahara Africa (RAAAP). As a result, 135,708 OVCs identified were enrolled in school, 53,418 received nutritional assistance, and 87,124 received legal assistance. Also, in the public sector, the HIV/AIDS offices 17 ministries and the national assembly prepared and implemented national and provincial operational plans to combat HIV/AIDS.

In the private sector, the following services were offered: (i) treatment of STIs; (ii) distribution of condoms; and (iii) ARV treatment. Regarding educational efforts, HIV education was included in the primary school curriculum.

Also, to strengthen the legal framework for persons living with HIV, a law on protection of persons living with HIV and other affected persons was published on July 14, 2008. The law requires the government to make available medicines for the treatment of AIDS and HIV screening tests free of charge, and expands the government’s responsibilities in combating expansion of the pandemic through a more coherent policy for treatment of affected persons and sanctions for discrimination against them.

2.4.4. Building coordination, monitoring and evaluation capacities at all levels

In 2009, the National Multi-Sector Commission to Combat AIDS (CNMLS) adopted the 2010-2014 National Strategy to Combat AIDS. In order to speed implementation of the strategy, two sector plans to combat AIDS were developed for the health and education sector.

2.5. Support for local initiatives

In connection with the PASU program, the government rehabilitated public infrastructures in selected communities using the high labor intensive (HLI) approach, and strengthened social security. In the same context, selected communities in 11 provinces received micro-grants, information, education, and communication campaigns, training sessions, and technical advisory services for project monitoring and evaluation.

2.6. Strengthening capacities

No integrated capacity-strengthening programs were carried out during the GPRS implementation period. To remedy this situation, the National Capacity Strengthening Secretariat (SENAREC) was directed to implement a National Capacity Strengthening Program (PRONAREC). The program is to be included in the 2011-2015 Five-Year Development Plan.

Chapter 3. MONITORING AND EVALUATION

The GPRS provides for an institutional mechanism to coordinate implementation and tools to provide monitoring and evaluation.

3.1. Institutional framework

The institutional coordinating structure for the GPRS includes the Inter-Ministerial Commission on the National Poverty Reduction Strategy (CI-SNLCP) and its technical arm, the National Poverty Reduction Strategy Coordinating Unit (UPPE-SRP); and the Inter-Ministerial Monitoring Commission for Financial Institution Programs (CISPI) and its Technical Monitoring Committee (CTR). In addition to these bodies are institutions such as the INS, the Congolese Poverty and Inequality Observatory (OCPI) and the Aid and Investment Management Platform (PGAI).

Thematic groups were instituted in 2008 to serve as framework for consultations between the government, the TFPs, and civil society organizations in implementing the actions provided in the GPRS.

In the provinces, implementation of the GPRS was coordinated by the provincial executive, with technical support from provincial and local committees and cooperation from the TFPs.

All of the coordination structures supporting GPRS implementation were placed under the authority of the prime minister. The strategic coordination proved less than satisfactory at the central and provincial levels. However, the implementation, monitoring, and evaluation activities of sector structures performed well with support from the TFPs. In mid-2009, the government promoted corrective action by instituting weekly meetings to monitor progress on HIPC Initiative completion point triggers.

3.2. Monitoring and evaluation tools

For the purpose of monitoring and evaluating the GPRS, appropriate indicators were defined in the sectors identified as priorities under the first-generation GPRSP. These were the education, health (including HIV/AIDS), agriculture, rural development, transportation infrastructure, and water and sanitation sectors.

The indicators were derived from the 1-2-3 surveys (2004-2005), the Multiple Indicator Cluster Survey II (MICS 2) (2001), and participatory consultations (2004-2005). No other major surveys have been conducted since 2006 other than the Demographic and Health Surveys (EDS) to measure comparative progress in regard to the MDGs.

With respect to macroeconomic performance, the indicators were established in the context of the IMF staff monitoring program and the program currently being supported by the Poverty Reduction and Growth Facility (PRGF). Other indicators were defined as projects or sector programs were being designed.

It should be noted that weaknesses in the Congolese statistical apparatus precluded the monitoring of most indicators during execution of the GPRS, which would have enabled the necessary adjustments to be made during implementation of the GPRS.

However, midterm reviews of portfolio performance conducted, inter alia, by the World Bank, the African Development Bank Group, agencies of the United Nations and European Union, and several bilateral partners provided the DRC with indications on progress in the sectors benefiting from their interventions.

CONCLUSION

Closing remarks

The Congolese government is pleased to have initiated an effort, with the support of its technical and financial partners, to systematize its medium-term development planning, and to have resolutely done so in a very hostile internal and external context. The results achieved are less important than the ultimate adherence to an approach that represents a clear break with ad hoc practices that marked years of poor governance.

Having reviewed the implementation of the GPRS, the government believes it has done so satisfactorily and has therefore accomplished Trigger No. 1 of the Completion Point under the HIPC Initiative. The first-generation GPRSP would have produced more successful results were it not for the constraints faced over the entire implementation period, chief among which were:

– Limited internal resources to finance the GPRS, due to government revenue remaining low despite a relatively high rate of growth. This situation was exacerbated by a contraction of budgetary support following suspension of the program supported by the PRGF, which slowed the pace of reforms;
– De-linking of the priority action plan (PAP), a key tool in implementing the GPRS, from the national budget, preventing it from being executed through the expenditure cycle. This situation is the result of lack of cohesion between the Budget Preparation and Monitoring Department, the Planning Department, and the sector ministries;
– Lack of communication between the government and the Bretton Woods institutions, which initiated the planning approach through the GPRSP, in regard to a tool being attempted for the first time in a country emerging from conflict. This situation did not advance the purpose of developing an understanding of the approach and adapting it;
– Burdensome administrative procedures imposed on project execution by both TFPs and the government, impacting project cost evaluations in most cases;
– Social and political uncertainties created by the tensions of the 2006 elections, exacerbated by the climate of insecurity in the eastern part of the country, and their repercussions for public financial management and macroeconomic stability;
– The international food and financial crises followed by the collapse of commodities prices, which had devastating effects on economic activity and the management of public finances and currency.

Despite the constraints identified above, implementation of the GPRS produced encouraging results, as summarized below:

- Social sector indicators (health, HIV/AIDS, education, water and sanitation) improved. The greatest gains were made in the education sector, where the various indicators are on par with those of sub-Saharan African countries.
- The macroeconomic programs implemented during the period under review restored macroeconomic stability, as demonstrated by the conclusion of the IMF program known as PEG II, supported by the PRGF, in December 2009. However, the modest performance observed in regard to budgetary and monetary policies could have been strengthened if the reform program had not slowed, in which case the macroeconomic policies would have made a significant contribution toward reducing poverty.
- The emergency sector programs, projects, and actions in the areas of planning, security, transportation infrastructure, health, education, and water have restored peace and security and improved socioeconomic conditions, albeit slightly, for the Congolese people. They had a genuine impact on poverty reduction, primarily in terms of improved economic and social infrastructures and access to basic social services. The results described represent the execution of only half of the actions planned.
- The government recognizes that the strategic coordination of the GPRS was not commensurate with the importance of the issues at stake. It notes, however, that the weekly meetings instituted in the second half of 2009 to monitor progress on the HIPC Initiative completion point triggers signal a new direction in adapting government programs. In this regard, the government expects to intensify and rationalize its efforts in the context of the second-generation GPRSP.

Recommendations

The recommendations draw on the lessons learned from implementation of the first-generation GPRSP. They shed light on the options that could emerge from the participatory consultations on the second-generation GPRSP. Certain GPRSP pillars, noted below form the basis of tomorrow’s challenges:

Consolidating peace and security, through continued actions to complete the pacification of national territory and end the humanitarian crisis, and by accelerating reform of the security sector;
Expanding the government’s capacity to deliver quality social services by creating consensus as to the government’s role and the need to better focus that role on its sovereign missions, and adapt the central and provincial administrations accordingly;
Promoting administrative and economic governance by continuing the decentralization process, adjusting it to our means; through a relationship of accountability between government and the governed; through continued financial reforms and reforms of public enterprises; and through a genuine commitment to transparent mechanisms in managing natural resources (EITI++);
Strengthening the conditions for sustainable growth, through an improved business climate and implementation of a roadmap to raise the country’s standing in the “Doing Business” category; intensified support for sectors with growth potential and the road, energy, and transportation infrastructures; and implementation of an aggressive commercial policy;
Giving serious consideration to the effects of climate change and issues pertaining to nature conservation; and
Mobilizing the private sector (including through public-private partnerships) to address the problems of financing development programs.

In reference to the important task of monitoring and evaluation, the government will face six major challenges: (i) reviewing and formalizing the monitoring-evaluation framework; (ii) securing the production of statistical data; (iii) renewing the operational and budgetary programming framework; (iv) implementing reporting tools: (v) developing a minimal framework for evaluating public policies; and (vi) increasing participation and communication.

ANNEXES

Summary budget by function, 2008-09
Summary budget by category of expenditure, 2008-09
Summary budget by GPRSP pillar, 2008-09
Tables on macroeconomic framework
Millennium Development Goal Indicators
Priority actions: 2009 outcomes and 2010 programming

Table 1.1.

Democratic Republic of the Congo - Summary budget by function, 2008-09

(CGF billions)

Source: Budget monitoring reports, printed April 7, 2010

Table 1.1.

Democratic Republic of the Congo - Summary budget by function, 2008-09

(CGF billions)

		2008		2009
		Actual	Budget	Actual	Execution rate

Grand total primary expenditure		1,514,680	2,552,880	1,701,365	66.6
Central public administration (excluding public debt)		624,754	904,352	682,060	75.4
Defense		141,016	156,168	224,585	143.8
Order and public security		125,276	120,812	107,375	88.9
Economic affairs		254,098	763,497	288,521	37.8
Protection of environment, flora and fauna		8,091	50,728	7,824	15.4
Social protection, social affairs		26,162	38,748	22,990	59.3
Lodging and utilities		41,975	57,417	35,082	61.1
Health		69,635	161,580	99,517	61.6
Religions, culture, sports and recreation		16,910	15,170	22,208	146.4
Education		206,765	284,409	211,205	74.3

		(Percentage of GDP)

Grand total primary expenditure		23.2	32.9	19.5	…
	Central public administration (excluding public debt)	9.6	11.7	7.8	…
	Defense	2.2	2.0	2.6	…
	Order and public security	1.9	1.6	1.2	…
	Economic affairs	3.9	9.8	3.3	…
	Protection of environment, flora and fauna	0.1	0.7	0.1	…
	Social protection, social affairs	0.4	0.5	0.3	…
	Lodging and utilities
		0.6	0.7	0.4	…
	Health	1.1	2.1	1.1	…
	Religions, culture, sports and recreation	0.3	0.2	0.3	…
	Education	3.2	3.7	2.4	…

		(Percentage of total primary expenditure, unless otherwise indicated

Grand total primary expenditure		100.0	100.0	100.0	…
	Central public administration (excluding public debt)	41.2	35.4	40.1	…
	Defense	9.3	6.1	13.2	…
	Order and public security	8.3	4.7	6.3
	Economic affairs	16.8	29.9	17.0	…
	Protection of environment, flora and fauna	0.5	2.0	0.5	…
	Social protection, social affairs	1.7	1.5	1.4	…
	Lodging and utilities	2.8	2.2	2.1	…
	Health	4.6	6.3	5.8	…
	Religions, culture, sports and recreation	1.1	0.6	1.3
	Education	13.7	11.1	12.4	…

For reference:
Nominal GDP (CDF billions)		6,525,983	7,760,000	8,729,320	…
Total expenditure		1,635,292	2,922,394	1,846,675	…
Public debt (CDF billions)		120,612	369,513	145,310	…

Source: Budget monitoring reports, printed April 7, 2010

Table 1.1.

Democratic Republic of the Congo - Summary budget by function, 2008-09

(CGF billions)

		2008		2009
		Actual	Budget	Actual	Execution rate

Grand total primary expenditure		1,514,680	2,552,880	1,701,365	66.6
Central public administration (excluding public debt)		624,754	904,352	682,060	75.4
Defense		141,016	156,168	224,585	143.8
Order and public security		125,276	120,812	107,375	88.9
Economic affairs		254,098	763,497	288,521	37.8
Protection of environment, flora and fauna		8,091	50,728	7,824	15.4
Social protection, social affairs		26,162	38,748	22,990	59.3
Lodging and utilities		41,975	57,417	35,082	61.1
Health		69,635	161,580	99,517	61.6
Religions, culture, sports and recreation		16,910	15,170	22,208	146.4
Education		206,765	284,409	211,205	74.3

		(Percentage of GDP)

Grand total primary expenditure		23.2	32.9	19.5	…
	Central public administration (excluding public debt)	9.6	11.7	7.8	…
	Defense	2.2	2.0	2.6	…
	Order and public security	1.9	1.6	1.2	…
	Economic affairs	3.9	9.8	3.3	…
	Protection of environment, flora and fauna	0.1	0.7	0.1	…
	Social protection, social affairs	0.4	0.5	0.3	…
	Lodging and utilities
		0.6	0.7	0.4	…
	Health	1.1	2.1	1.1	…
	Religions, culture, sports and recreation	0.3	0.2	0.3	…
	Education	3.2	3.7	2.4	…

		(Percentage of total primary expenditure, unless otherwise indicated

Grand total primary expenditure		100.0	100.0	100.0	…
	Central public administration (excluding public debt)	41.2	35.4	40.1	…
	Defense	9.3	6.1	13.2	…
	Order and public security	8.3	4.7	6.3
	Economic affairs	16.8	29.9	17.0	…
	Protection of environment, flora and fauna	0.5	2.0	0.5	…
	Social protection, social affairs	1.7	1.5	1.4	…
	Lodging and utilities	2.8	2.2	2.1	…
	Health	4.6	6.3	5.8	…
	Religions, culture, sports and recreation	1.1	0.6	1.3
	Education	13.7	11.1	12.4	…

For reference:
Nominal GDP (CDF billions)		6,525,983	7,760,000	8,729,320	…
Total expenditure		1,635,292	2,922,394	1,846,675	…
Public debt (CDF billions)		120,612	369,513	145,310	…

Source: Budget monitoring reports, printed April 7, 2010

Table 1.2.

Democratic Republic of the Congo. Summary budget by category of expenditure, 2008-09

(CDF billions)

Source: Budget monitoring reports, printed April 7, 2010

Table 1.2.

Democratic Republic of the Congo. Summary budget by category of expenditure, 2008-09

(CDF billions)

				2008		2009
				Actual	Budget	Actual	Execution rate

Grand total primary expenditure				1,515,072	2,552,888	1,701365	67
	Operations			1,208,303	1,589,538	1,325330	83
		Personnel		533,641	590,116	559789	95
		Excluding personnel		674,662	999,422	765541	77
			Goods and materials	100,620	44,020	65724	149
			Service expenditures	153,897	58,677	137715	235
			Government transfers and interventions	420,145	896,725	562103	63
	Investment			306,769	963,350	376035	39

(Percentage of GDP)
Grand total primary expenditure				23.2	32.9	19.5	…
	Operations			18.5	20.5	15.2	…
		Personnel		8.2	7.6	6.4	…
		Excluding personnel		10.3	12.9	8.8	…
			Goods and materials	1.5	0.6	0.8	…
			Service expenditures	2.4	0.8	1.6	…
			Government transfers and interventions	6.4	11.6	6.4	…
	Investment			4.7	12.4	4.3	…

(Percentage of total primary expenditure)

Operations				79.8	62.3	77.9	…
		Personnel		35.2	23.1	32.9	…
		Excluding personnel		44.5	39.1	45.0	…
			Goods and materials	6.6	1.7	3.9	…
			Service expenditures	–10.2	2.3	8.1	…
			Government transfers and interventions	27.7	35.1	33.0	…
Investment				20	39	22	…
For reference:
Total expenditure				1,635,292	2,922,394	1,846675	63
Public debt, principal				120,612	369,513	145310	39
Nominal GDP (CDF billions)				6,525,983	7,760,000	8,729320	…

Source: Budget monitoring reports, printed April 7, 2010

Table 1.2.

Democratic Republic of the Congo. Summary budget by category of expenditure, 2008-09

(CDF billions)

				2008		2009
				Actual	Budget	Actual	Execution rate

Grand total primary expenditure				1,515,072	2,552,888	1,701365	67
	Operations			1,208,303	1,589,538	1,325330	83
		Personnel		533,641	590,116	559789	95
		Excluding personnel		674,662	999,422	765541	77
			Goods and materials	100,620	44,020	65724	149
			Service expenditures	153,897	58,677	137715	235
			Government transfers and interventions	420,145	896,725	562103	63
	Investment			306,769	963,350	376035	39

(Percentage of GDP)
Grand total primary expenditure				23.2	32.9	19.5	…
	Operations			18.5	20.5	15.2	…
		Personnel		8.2	7.6	6.4	…
		Excluding personnel		10.3	12.9	8.8	…
			Goods and materials	1.5	0.6	0.8	…
			Service expenditures	2.4	0.8	1.6	…
			Government transfers and interventions	6.4	11.6	6.4	…
	Investment			4.7	12.4	4.3	…

(Percentage of total primary expenditure)

Operations				79.8	62.3	77.9	…
		Personnel		35.2	23.1	32.9	…
		Excluding personnel		44.5	39.1	45.0	…
			Goods and materials	6.6	1.7	3.9	…
			Service expenditures	–10.2	2.3	8.1	…
			Government transfers and interventions	27.7	35.1	33.0	…
Investment				20	39	22	…
For reference:
Total expenditure				1,635,292	2,922,394	1,846675	63
Public debt, principal				120,612	369,513	145310	39
Nominal GDP (CDF billions)				6,525,983	7,760,000	8,729320	…

Source: Budget monitoring reports, printed April 7, 2010

Table 1.3.

Democratic Republic of the Congo. Summary budget by GPRSP pillar, 2008-09

(CDF billions)

Source: Budget monitoring reports, printed April 7, 2010

Table 1.3.

Democratic Republic of the Congo. Summary budget by GPRSP pillar, 2008-09

(CDF billions)

			2008		2009
			Actual	Budget	Actual	Execution rate

Grand total primary expenditure			1,514,680	2,552,880	1,701,365	66.6

Good governance and peace (excluding public debt)			891,563	1,157,332	1,018,361	88.0
		Political and administrative governance	359,279	728,150	338,952	46.5
		Security governance	260,353	247,103	330,400	133.7
		Economic governance (excluding public debt)	271,932	182,079	349,009	191.7

Support for sectors with economic growth potential			245,859	752,213	281,059	37.4
	Agriculture, forestry, hunting and fishing		31,216	48,189	59,331	123.1
		Buildings and public works	18,783	21,841	8,206	37.6
		Electricity	37,800	34,670	7,892	22.8
		Hydrocarbons	26,993	10,975	10,514	95.8
		Extractive industries	17,396	9,275	5,830	62.9
		Manufacturing industries	1,202	6,726	3,483	51.8
		Goods and services	1,591	3,534	2,293	64.9
		Telecommunications	9,488	14,226	9,256	65.1
		Transportation	101,389	602,776	174,254	28.9

Access to basic social services			377,258	643,335	401,944	62.5
		Education	206,765	284,499	211,205	74.2
		Health	69,635	161,580	99,517	61.6
		Social protection	33,883	73,942	26,109	35.3
		Environment	8,091	50,728	7,824	15.4
		Water	34,124	42,382	17,054	40.2
		Electricity	13	3,000	11,243	374.8
		Urban poverty and habitat	7,839	12,035	6,785	56.4
		Culture, science, and universal access to technology	16,910	15,170	22,208	146.4

				(Percentage of GDP)

Grand total primary expenditure			23.2	32.9	19.5	59.2

Good governance and peace (excluding public debt)			13.7	14.9	11.7	…
		Political and administrative governance	5.5	9.4	3.9	…
		Security governance	4.0	3.2	3.8	…
		Economic governance (excluding public debt)	4.2	2.3	4.0	…

Support sectors with economic growth potential			3.8	9.7	3.2	…
	Agriculture, forestry, hunting and fishing		0.5	0.6	0.7	…
		Buildings and public works	0.3	0.3	0.1	…
		Electricity	0.6	0.4	0.1	…
		Hydrocarbons	0.4	0.1	0.1	…
		Extractive industries	0.3	0.1	0.1	…
		Manufacturing industries	0.0	0.1	0.0	…
		Goods and services	0.0	0.0	0.0	…
		Telecommunications	0.1	0.2	0.1	…
		Transportation	1.6	7.8	2.0	…

Access to basic social services			5.8	8.3	4.6	…
		Education	3.2	3.7	2.4	…
		Health	1.1	2.1	1.1	…
		Social protection	0.5	1.0	0.3	…
		Environment	0.1	0.7	0.1	…
		Water	0.5	0.5	0.2	…
		Electricity	0.0	0.0	0.1	…
		Urban poverty and habitat	0.1	0.2	0.1	…
		Culture, science, and universal access to technology	0.3	0.2	0.3	…

(Percentage of total expenditure for pillar concerned, unless otherwise indicated)

Good governance and peace (excluding public debt)			100.0	100.0	100.0	…
		Political and administrative governance	40.3	62.9	33.3	…
		Security governance	29.2	21.4	32.4	…
		Economic governance (excluding public debt)	30.5	15.7	34.3	…

Support sectors with economic growth potential			100.0	100.0	100.0	…
Agriculture, forestry, hunting and fishing			12.7	6.4	21.1	…
		Buildings and public works	7.6	2.9	2.9	…
		Electricity	15.4	4.6	2.8	…
		Hydrocarbons	11.0	1.5	3.7	…
		Extractive industries	7.1	1.2	2.1	…
		Manufacturing industries	0.5	0.9	1.2	…
		Goods and services	0.6	0.5	0.8	…
		Telecommunications	3.9	1.9	3.3	…
		Transportation	41.2	80.1	62.0	…

Access to basic social services			100.0	100.0	100.0	…
		Education	54.8	44.2	52.5	…
		Health	18.5	25.1	24.8	…
		Social protection	9.0	11.5	6.5	…
		Environment	2.1	7.9	1.9	…
		Water	9.0	6.6	4.2	…
		Electricity	0.0	0.5	2.8	…
		Urban poverty and habitat	2.1	1.9	1.7	…
		Culture, science, and universal access to technology	4.5	2.4	5.5	…

For reference:
Public debt (CDF billions)			120612	369,513	145,310	39.3
Nominal GDP (CDF billions)			6,525983	7,760,000	8,729,320	…

Source: Budget monitoring reports, printed April 7, 2010

Table 1.3.

Democratic Republic of the Congo. Summary budget by GPRSP pillar, 2008-09

(CDF billions)

			2008		2009
			Actual	Budget	Actual	Execution rate

Grand total primary expenditure			1,514,680	2,552,880	1,701,365	66.6

Good governance and peace (excluding public debt)			891,563	1,157,332	1,018,361	88.0
		Political and administrative governance	359,279	728,150	338,952	46.5
		Security governance	260,353	247,103	330,400	133.7
		Economic governance (excluding public debt)	271,932	182,079	349,009	191.7

Support for sectors with economic growth potential			245,859	752,213	281,059	37.4
	Agriculture, forestry, hunting and fishing		31,216	48,189	59,331	123.1
		Buildings and public works	18,783	21,841	8,206	37.6
		Electricity	37,800	34,670	7,892	22.8
		Hydrocarbons	26,993	10,975	10,514	95.8
		Extractive industries	17,396	9,275	5,830	62.9
		Manufacturing industries	1,202	6,726	3,483	51.8
		Goods and services	1,591	3,534	2,293	64.9
		Telecommunications	9,488	14,226	9,256	65.1
		Transportation	101,389	602,776	174,254	28.9

Access to basic social services			377,258	643,335	401,944	62.5
		Education	206,765	284,499	211,205	74.2
		Health	69,635	161,580	99,517	61.6
		Social protection	33,883	73,942	26,109	35.3
		Environment	8,091	50,728	7,824	15.4
		Water	34,124	42,382	17,054	40.2
		Electricity	13	3,000	11,243	374.8
		Urban poverty and habitat	7,839	12,035	6,785	56.4
		Culture, science, and universal access to technology	16,910	15,170	22,208	146.4

				(Percentage of GDP)

Grand total primary expenditure			23.2	32.9	19.5	59.2

Good governance and peace (excluding public debt)			13.7	14.9	11.7	…
		Political and administrative governance	5.5	9.4	3.9	…
		Security governance	4.0	3.2	3.8	…
		Economic governance (excluding public debt)	4.2	2.3	4.0	…

Support sectors with economic growth potential			3.8	9.7	3.2	…
	Agriculture, forestry, hunting and fishing		0.5	0.6	0.7	…
		Buildings and public works	0.3	0.3	0.1	…
		Electricity	0.6	0.4	0.1	…
		Hydrocarbons	0.4	0.1	0.1	…
		Extractive industries	0.3	0.1	0.1	…
		Manufacturing industries	0.0	0.1	0.0	…
		Goods and services	0.0	0.0	0.0	…
		Telecommunications	0.1	0.2	0.1	…
		Transportation	1.6	7.8	2.0	…

Access to basic social services			5.8	8.3	4.6	…
		Education	3.2	3.7	2.4	…
		Health	1.1	2.1	1.1	…
		Social protection	0.5	1.0	0.3	…
		Environment	0.1	0.7	0.1	…
		Water	0.5	0.5	0.2	…
		Electricity	0.0	0.0	0.1	…
		Urban poverty and habitat	0.1	0.2	0.1	…
		Culture, science, and universal access to technology	0.3	0.2	0.3	…

(Percentage of total expenditure for pillar concerned, unless otherwise indicated)

Good governance and peace (excluding public debt)			100.0	100.0	100.0	…
		Political and administrative governance	40.3	62.9	33.3	…
		Security governance	29.2	21.4	32.4	…
		Economic governance (excluding public debt)	30.5	15.7	34.3	…

Support sectors with economic growth potential			100.0	100.0	100.0	…
Agriculture, forestry, hunting and fishing			12.7	6.4	21.1	…
		Buildings and public works	7.6	2.9	2.9	…
		Electricity	15.4	4.6	2.8	…
		Hydrocarbons	11.0	1.5	3.7	…
		Extractive industries	7.1	1.2	2.1	…
		Manufacturing industries	0.5	0.9	1.2	…
		Goods and services	0.6	0.5	0.8	…
		Telecommunications	3.9	1.9	3.3	…
		Transportation	41.2	80.1	62.0	…

Access to basic social services			100.0	100.0	100.0	…
		Education	54.8	44.2	52.5	…
		Health	18.5	25.1	24.8	…
		Social protection	9.0	11.5	6.5	…
		Environment	2.1	7.9	1.9	…
		Water	9.0	6.6	4.2	…
		Electricity	0.0	0.5	2.8	…
		Urban poverty and habitat	2.1	1.9	1.7	…
		Culture, science, and universal access to technology	4.5	2.4	5.5	…

For reference:
Public debt (CDF billions)			120612	369,513	145,310	39.3
Nominal GDP (CDF billions)			6,525983	7,760,000	8,729,320	…

Source: Budget monitoring reports, printed April 7, 2010

Table 1.

Democratic Republic of the Congo: GDP at constant prices by sector of activity, 2006-09

Source: Congolese authorities.

Table 1.

Democratic Republic of the Congo: GDP at constant prices by sector of activity, 2006-09

		2006	2007	2008	2009
		Est.	Est.	Est.	Est.
		(in constant CDF billions, base 100 = 2000)
Primary sector		204.3	210.5	221.3	226.1
	Agriculture, forestry, hunting and fishing	153.2	158.2	162.9	167.8
	Extractive industries	51.1	52.4	58.4	58.3
Secondary sector		50.8	53.3	54.9	55.9
	Manufacturing industries	16.2	17.0	17.5	17.8
	Buildings and public works	31.8	33.5	34.8	35.4
	Electricity, water	2.8	2.9	2.7	2.7
Tertiary sector		122.6	136.3	147.6	152.7
	Wholesale and retail trade	71.3	80.6	90.5	96.4
	Transportation and communications	22.3	24.7	26.8	27.8
	Goods and services	23.2	24.8	26.0	26.7
	Public services	7.7	8.2	8.5	6.2
	Imputed production of bank services	-1.8	-2.0	-4.3	-4.4
GDP at factor cost		377.7	400.1	423.8	434.7
	Import duties and fees	9.0	10.8	12.4	13.5
GDP at market price		386.7	410.9	436.2	448.2
		(Change in percentage from prior year)
Primary sector		2.6	3.1	5.1	2.2
	Agriculture, forestry, hunting and fishing	3.2	3.3	3.0	3.0
	Extractive industries	0.9	2.5	11.4	-0.2
Secondary sector		8.5	5.1	3.0	1.8
	Manufacturing industries	0.9	5.1	2.7	2.1
	Buildings and public works	13.2	5.4	3.8	2.0
	Electricity, water	4.3	1.8	-4.9	-1.6
Tertiary sector		9.0	11.1	8.3	3.5
	Wholesale and retail trade	8.9	13.1	12.3	6.5
	Transportation and communications	12.5	10.9	8.4	3.7
	Goods and services	7.5	6.9	4.8	2.7
	Public services	5.8	6.2	4.2	-26.6
	Imputed production of bank services	14.8	13.0	110.3	4.0
GDP at factor cost		5.4	6.0	5.9	2.6
	Import duties and fees	14.0	19.0	15.4	8.5
Real GDP		5.6	6.3	6.2	2.8

Source: Congolese authorities.

Table 1.

Democratic Republic of the Congo: GDP at constant prices by sector of activity, 2006-09

		2006	2007	2008	2009
		Est.	Est.	Est.	Est.
		(in constant CDF billions, base 100 = 2000)
Primary sector		204.3	210.5	221.3	226.1
	Agriculture, forestry, hunting and fishing	153.2	158.2	162.9	167.8
	Extractive industries	51.1	52.4	58.4	58.3
Secondary sector		50.8	53.3	54.9	55.9
	Manufacturing industries	16.2	17.0	17.5	17.8
	Buildings and public works	31.8	33.5	34.8	35.4
	Electricity, water	2.8	2.9	2.7	2.7
Tertiary sector		122.6	136.3	147.6	152.7
	Wholesale and retail trade	71.3	80.6	90.5	96.4
	Transportation and communications	22.3	24.7	26.8	27.8
	Goods and services	23.2	24.8	26.0	26.7
	Public services	7.7	8.2	8.5	6.2
	Imputed production of bank services	-1.8	-2.0	-4.3	-4.4
GDP at factor cost		377.7	400.1	423.8	434.7
	Import duties and fees	9.0	10.8	12.4	13.5
GDP at market price		386.7	410.9	436.2	448.2
		(Change in percentage from prior year)
Primary sector		2.6	3.1	5.1	2.2
	Agriculture, forestry, hunting and fishing	3.2	3.3	3.0	3.0
	Extractive industries	0.9	2.5	11.4	-0.2
Secondary sector		8.5	5.1	3.0	1.8
	Manufacturing industries	0.9	5.1	2.7	2.1
	Buildings and public works	13.2	5.4	3.8	2.0
	Electricity, water	4.3	1.8	-4.9	-1.6
Tertiary sector		9.0	11.1	8.3	3.5
	Wholesale and retail trade	8.9	13.1	12.3	6.5
	Transportation and communications	12.5	10.9	8.4	3.7
	Goods and services	7.5	6.9	4.8	2.7
	Public services	5.8	6.2	4.2	-26.6
	Imputed production of bank services	14.8	13.0	110.3	4.0
GDP at factor cost		5.4	6.0	5.9	2.6
	Import duties and fees	14.0	19.0	15.4	8.5
Real GDP		5.6	6.3	6.2	2.8

Source: Congolese authorities.

Table 2

Democratic Republic of the Congo, Public Sector Financial Operations, 2006-09

(CDF Millions)

Source: Congolese authorities.

Table 2

Democratic Republic of the Congo, Public Sector Financial Operations, 2006-09

(CDF Millions)

					2006	200	2008	2009
					Est.	Est.	Est.	Est.	Prog
					(Percentage of GDP; unless otherwise indicated
Total revenue and grants					18.8	16.3	23.4	27.3	21.3
	Total fiscal and non-fiscal revenue				12.8	14.7	18.5	18.0	16.8
	excludes Sino-Congolese arrangement							15.7	15.8
		Customs and excise (OFIDA)			4.7	5.4	6.5	6.3	6.2
		Direct and indirect contributions (DGI)			3.8	5.0	6.6	6.4	6.2
		Petroleum (royalties and taxes)			3.2	3.1	3.5	1.4	1.5
		Other			1.0	1.2	1.8	3.9	3.0
			Sino-Congolese arrangement		…	…	0.0	2.3	1.1
			Other					1.6	1.9
		Revenue from China Mining project
	Total grants				6.0	1.6	4.9	9.4	4.5
		Budgetary grants			1.0	0.0	0.0	2.7	1.7
		Project grants			4.0	0.6	1.1	4.2	2.0
		HIPC debt relief			1.0	0.9	3.8	2.5	0.8
Total expenditure					21.5	18.9	23.0	28.9	25.7
	Current expenditure				14.1	15.7	18.1	16.3	15.4
		Salaries			5.3	5.8	6.9	6.3	6.0
		Interest payable on debt			3.5	3.8	3.4	3.3	3.1
				Of which: interest on external debt	3.0	3.2	2.9	2.9	2.7
				Of which: interest on domestic debt		0.6	0.5	0.4	0.4
	Subsidies and transfers				2.1	2.2	3.5	3.0	2.8
				Economic interventions	0.0	0.2	0.2	0.2	0.2
				Auxiliary organizations	0.4	0.1	0.1	0.1	0.1
				Transfers to provinces	0.8	1.0	1.9	1.6	1.5
				Payments to revenue-collecting agencies	0.9	0.9	1.1	1.1	1.0
	Goods and services				3.2	3.9	4.3	3.7	3.6
				Of which: Institutions	0.5	0.9	1.2	0.9	0.8
				Ministries	1.5	2.8	2.5	2.1	2.1
				Centralized payment	0.6	0.3	0.5	0.7	0.7
					6.4				8.8
	Capital expenditures				3.2	2.3	3.7	9.2	7.8
		External financing			2.2	1.5	2.1	6.2	5.1
		Domestic financing			1.0	0.9	1.6	2.9	2.7
			Central government investment		1.0	0.9	1.6	1.6	1.6
			Provincial investment		0.0	0.0	0.0	1.3	1.1
		Exceptional expenditure 2/			4.2	0.9	1.2	3.4	2.5
			External financing		3.2	0.0	0.1	2.3	1.1
			Domestic financing		1.0	0.9	1.1	1.2	1.5
						0.0	0.0	0.1	0.0
	General balance (commitment basis)				-2.8	-2.6	0.4	-1.6	-4.4
	Domestic balance (commitment basis)				0.6	1.4	1.6	-0.7	0.3
					-0.4	0.5	0.5	-1.9	-1.2
	Variation in arrears				-0.2	-0.2	-0.2	-0.6	-0.5
	Central bank balance				-0.5	-0.4	-0.5	-0.9	-0.9
	Consolidated general balance				-2.9	-3.2	-0.4	-3.0	-5.9
	Domestic balance				0.5	0.8	0.9	0.1	-0.1
	Total financing				2.9	3.2	0.4	3.0	5.9
		Domestic financing			1.1	0.9	0.9	-0.8	0.0
				of which: Banking sector	1.2	0.9	1.1	-1.2	-0.7
		External financing			1.8	2.9	-0.9	3.3	5.6
				Amortization payable before debt relief	-3.7	-3.9	-3.8	-4.9	-4.3
				Project loans	1.3	1.2	0.8	4.6	4.4
				Debt relief	3.5	3.8	0.7	0.3	3.3
				Cumulative external arrears	0.7	1.8	1.4	-6.4	2.2
		Financing gap			0.1	-0.6	0.5	0.6	0.3

Source: Congolese authorities.

Table 2

Democratic Republic of the Congo, Public Sector Financial Operations, 2006-09

(CDF Millions)

					2006	200	2008	2009
					Est.	Est.	Est.	Est.	Prog
					(Percentage of GDP; unless otherwise indicated
Total revenue and grants					18.8	16.3	23.4	27.3	21.3
	Total fiscal and non-fiscal revenue				12.8	14.7	18.5	18.0	16.8
	excludes Sino-Congolese arrangement							15.7	15.8
		Customs and excise (OFIDA)			4.7	5.4	6.5	6.3	6.2
		Direct and indirect contributions (DGI)			3.8	5.0	6.6	6.4	6.2
		Petroleum (royalties and taxes)			3.2	3.1	3.5	1.4	1.5
		Other			1.0	1.2	1.8	3.9	3.0
			Sino-Congolese arrangement		…	…	0.0	2.3	1.1
			Other					1.6	1.9
		Revenue from China Mining project
	Total grants				6.0	1.6	4.9	9.4	4.5
		Budgetary grants			1.0	0.0	0.0	2.7	1.7
		Project grants			4.0	0.6	1.1	4.2	2.0
		HIPC debt relief			1.0	0.9	3.8	2.5	0.8
Total expenditure					21.5	18.9	23.0	28.9	25.7
	Current expenditure				14.1	15.7	18.1	16.3	15.4
		Salaries			5.3	5.8	6.9	6.3	6.0
		Interest payable on debt			3.5	3.8	3.4	3.3	3.1
				Of which: interest on external debt	3.0	3.2	2.9	2.9	2.7
				Of which: interest on domestic debt		0.6	0.5	0.4	0.4
	Subsidies and transfers				2.1	2.2	3.5	3.0	2.8
				Economic interventions	0.0	0.2	0.2	0.2	0.2
				Auxiliary organizations	0.4	0.1	0.1	0.1	0.1
				Transfers to provinces	0.8	1.0	1.9	1.6	1.5
				Payments to revenue-collecting agencies	0.9	0.9	1.1	1.1	1.0
	Goods and services				3.2	3.9	4.3	3.7	3.6
				Of which: Institutions	0.5	0.9	1.2	0.9	0.8
				Ministries	1.5	2.8	2.5	2.1	2.1
				Centralized payment	0.6	0.3	0.5	0.7	0.7
					6.4				8.8
	Capital expenditures				3.2	2.3	3.7	9.2	7.8
		External financing			2.2	1.5	2.1	6.2	5.1
		Domestic financing			1.0	0.9	1.6	2.9	2.7
			Central government investment		1.0	0.9	1.6	1.6	1.6
			Provincial investment		0.0	0.0	0.0	1.3	1.1
		Exceptional expenditure 2/			4.2	0.9	1.2	3.4	2.5
			External financing		3.2	0.0	0.1	2.3	1.1
			Domestic financing		1.0	0.9	1.1	1.2	1.5
						0.0	0.0	0.1	0.0
	General balance (commitment basis)				-2.8	-2.6	0.4	-1.6	-4.4
	Domestic balance (commitment basis)				0.6	1.4	1.6	-0.7	0.3
					-0.4	0.5	0.5	-1.9	-1.2
	Variation in arrears				-0.2	-0.2	-0.2	-0.6	-0.5
	Central bank balance				-0.5	-0.4	-0.5	-0.9	-0.9
	Consolidated general balance				-2.9	-3.2	-0.4	-3.0	-5.9
	Domestic balance				0.5	0.8	0.9	0.1	-0.1
	Total financing				2.9	3.2	0.4	3.0	5.9
		Domestic financing			1.1	0.9	0.9	-0.8	0.0
				of which: Banking sector	1.2	0.9	1.1	-1.2	-0.7
		External financing			1.8	2.9	-0.9	3.3	5.6
				Amortization payable before debt relief	-3.7	-3.9	-3.8	-4.9	-4.3
				Project loans	1.3	1.2	0.8	4.6	4.4
				Debt relief	3.5	3.8	0.7	0.3	3.3
				Cumulative external arrears	0.7	1.8	1.4	-6.4	2.2
		Financing gap			0.1	-0.6	0.5	0.6	0.3

Source: Congolese authorities.

Table No. 1.

Progress toward Millennium Development Goals in the DRC

Source: EDS 2007; MICS 1, 2, 3; 1-2-3 Survey Sector statistics, MDG Report 2004

Table No. 1.

Progress toward Millennium Development Goals in the DRC

Objectives	Indicators used in DRC	Value in 1990	Value in 2001	Value in 2007
1. Reduce extreme poverty and hunger	Incidence of poverty	60.0%	73.0%	71.34%
	Proportion of persons living on less than US$1 per day	60.0%	73.0%	71.3%
	Human development index			41.1%
	Proportion of underweight children	28.0%	34.0%	25.1%
	Proportion of population consuming less than the minimum caloric intake	31.0%	73.0%
2. Universal primary education	Net primary school enrollment rate	56.0%	52.0%	62.0%
	Gross primary school enrollment rate		64.0%	83.4%
	Primary school completion rate	51.0%	25.0%	50.0%
	Literacy rate			75.0%
3. Promote equality of the sexes and empowerment of women	Ratio of girls/boys in elementary school	74.0%	90.0%	78.0%
	Ratio of girls/boys in secondary school	45.0%	54.0%
	Percent elected by gender (% of women)	6.0%	10.3%	8.4%
4. Reduce infant mortality	Infant mortality rate	148 of 1,000	126 of 1,000	98 of 1000
4. Reduce infant mortality	Proportion of children under age 2 vaccinated against measles			62.9%
5. Improve maternal health	Maternal mortality rate	870	1289	549
5. Improve maternal health	Proportion of attended births		60.7%	74.0%
	Prenatal care coverage (1995)	56.0%	68.2%	85.3%
6. Combat HIV/AIDS, malaria, and other disease	Prevalence of HIV AIDS	nd	4.2% (2003)	3.4% (2009)
	Use of contraceptives (all methods)		31.4%	21.0%
	Use of contraceptives (modern method)	15.0%	4.4%	5.7%
	Under-5 malaria mortality rate per 100,000	…	1000.0%
	Number of children orphaned by AIDS		nd	7000
	Children under 5 protected by insecticide-treated mosquito nets		0.7%	6.0%
	Incidence of tuberculosis			160 of 100,000
7. Ensure environmental sustainability	Proportion of urban population with access to potable water		-	38.0%
	Proportion of rural population with access to potable water	25.7%	28.5%	16.7%
	Proportion of urban population living in a clean environment		-	9.0%
	Proportion of population with reliable access to better-quality water	41.5%	45.7%	22.1%
	Proportion of population with access to sanitation services	12.6%	8.8%	10.0%
	Proportion of rural population living in a clean environment	6.3%	39.4%	11.0%
8. Implement a global partnership for development	Completion rate for seven triggers		-	Low
8. Implement a global partnership for development	Proportion of APD in relation to GDP		Extremely low	Very low

Source: EDS 2007; MICS 1, 2, 3; 1-2-3 Survey Sector statistics, MDG Report 2004

Table No. 1.

Progress toward Millennium Development Goals in the DRC

Objectives	Indicators used in DRC	Value in 1990	Value in 2001	Value in 2007
1. Reduce extreme poverty and hunger	Incidence of poverty	60.0%	73.0%	71.34%
	Proportion of persons living on less than US$1 per day	60.0%	73.0%	71.3%
	Human development index			41.1%
	Proportion of underweight children	28.0%	34.0%	25.1%
	Proportion of population consuming less than the minimum caloric intake	31.0%	73.0%
2. Universal primary education	Net primary school enrollment rate	56.0%	52.0%	62.0%
	Gross primary school enrollment rate		64.0%	83.4%
	Primary school completion rate	51.0%	25.0%	50.0%
	Literacy rate			75.0%
3. Promote equality of the sexes and empowerment of women	Ratio of girls/boys in elementary school	74.0%	90.0%	78.0%
	Ratio of girls/boys in secondary school	45.0%	54.0%
	Percent elected by gender (% of women)	6.0%	10.3%	8.4%
4. Reduce infant mortality	Infant mortality rate	148 of 1,000	126 of 1,000	98 of 1000
4. Reduce infant mortality	Proportion of children under age 2 vaccinated against measles			62.9%
5. Improve maternal health	Maternal mortality rate	870	1289	549
5. Improve maternal health	Proportion of attended births		60.7%	74.0%
	Prenatal care coverage (1995)	56.0%	68.2%	85.3%
6. Combat HIV/AIDS, malaria, and other disease	Prevalence of HIV AIDS	nd	4.2% (2003)	3.4% (2009)
	Use of contraceptives (all methods)		31.4%	21.0%
	Use of contraceptives (modern method)	15.0%	4.4%	5.7%
	Under-5 malaria mortality rate per 100,000	…	1000.0%
	Number of children orphaned by AIDS		nd	7000
	Children under 5 protected by insecticide-treated mosquito nets		0.7%	6.0%
	Incidence of tuberculosis			160 of 100,000
7. Ensure environmental sustainability	Proportion of urban population with access to potable water		-	38.0%
	Proportion of rural population with access to potable water	25.7%	28.5%	16.7%
	Proportion of urban population living in a clean environment		-	9.0%
	Proportion of population with reliable access to better-quality water	41.5%	45.7%	22.1%
	Proportion of population with access to sanitation services	12.6%	8.8%	10.0%
	Proportion of rural population living in a clean environment	6.3%	39.4%	11.0%
8. Implement a global partnership for development	Completion rate for seven triggers		-	Low
8. Implement a global partnership for development	Proportion of APD in relation to GDP		Extremely low	Very low

Source: EDS 2007; MICS 1, 2, 3; 1-2-3 Survey Sector statistics, MDG Report 2004

Summary of actions implemented under the 2008-2009 Priority Action Plan

No.	PILLARS		COMPLETED	IN PROGRESS	NOT COMPLETED (as of April 2009)	Actions planned
I	PROMOTING GOOD GOVERNANCE AND CONSOLIDATING PEACE THROUGH INSTITUTIONAL STRENGTHENING
	JUDICIAL AND SECURITY GOVERNANCE
		Security	0	1	6	7
		Justice	12	7	11	30
		Police	17	31	40	88
		Army				0
		Sexual violence	10	1	0	11
	POLITICAL AND ADMINISTRATIVE GOVERNANCE
		Public administration	3	2	4	9
		Local governance	2	1	6	9
		Election	2	0	6	8
	ECONOMIC GOVERNANCE					0
		Transparency in public financial management	0	0	15	15
		Debt management	0	0	10	10
		Restructuring of statistical apparatus	0	2	2	4
		Reform of public enterprises	4	0	1	5
		Business climate	0	0	0	0
		Jobs	0	2	23	25
		Financial system reform	6	7	4	17
	Subtotal (1)		56	54	128	238
II	POLICIES SUPPORTING ECONOMIC GROWTH					238
		Agriculture and rural development	0	0	0	0
		Forest and environment	10	9	6	25
		Minds and Hydrocarbons	2	5	11	18
		Energy	18	27	14	59
		Transportation infrastructure	14	22	17	53
		Industry	10	6	26	42
	Subtotal (2)		54	69	74	197
III	ACCESS TO SOCIAL SERVICES AND REDUCING VULNERABILITY
		Education	10	4	64	78
		Health	51	18	49	118
		Water and sanitation	3	4	32	39
		Social protection	0	0	0	0
		Gender	6	1	1	8
	Subtotal (3)		70	27	146	243
IV.	Combating HIV/AIDS		17	5	3	25
	Subtotal (4)					0
V	SUPPORT LOCAL INITIATIVES		1	3	4	8
	Subtotal (5)		1	3	4	8
	TOTAL (1)+(2)+(3)+(4)+(5)		198	158	355	711

Summary of actions implemented under the 2008-2009 Priority Action Plan

No.	PILLARS		COMPLETED	IN PROGRESS	NOT COMPLETED (as of April 2009)	Actions planned
I	PROMOTING GOOD GOVERNANCE AND CONSOLIDATING PEACE THROUGH INSTITUTIONAL STRENGTHENING
	JUDICIAL AND SECURITY GOVERNANCE
		Security	0	1	6	7
		Justice	12	7	11	30
		Police	17	31	40	88
		Army				0
		Sexual violence	10	1	0	11
	POLITICAL AND ADMINISTRATIVE GOVERNANCE
		Public administration	3	2	4	9
		Local governance	2	1	6	9
		Election	2	0	6	8
	ECONOMIC GOVERNANCE					0
		Transparency in public financial management	0	0	15	15
		Debt management	0	0	10	10
		Restructuring of statistical apparatus	0	2	2	4
		Reform of public enterprises	4	0	1	5
		Business climate	0	0	0	0
		Jobs	0	2	23	25
		Financial system reform	6	7	4	17
	Subtotal (1)		56	54	128	238
II	POLICIES SUPPORTING ECONOMIC GROWTH					238
		Agriculture and rural development	0	0	0	0
		Forest and environment	10	9	6	25
		Minds and Hydrocarbons	2	5	11	18
		Energy	18	27	14	59
		Transportation infrastructure	14	22	17	53
		Industry	10	6	26	42
	Subtotal (2)		54	69	74	197
III	ACCESS TO SOCIAL SERVICES AND REDUCING VULNERABILITY
		Education	10	4	64	78
		Health	51	18	49	118
		Water and sanitation	3	4	32	39
		Social protection	0	0	0	0
		Gender	6	1	1	8
	Subtotal (3)		70	27	146	243
IV.	Combating HIV/AIDS		17	5	3	25
	Subtotal (4)					0
V	SUPPORT LOCAL INITIATIVES		1	3	4	8
	Subtotal (5)		1	3	4	8
	TOTAL (1)+(2)+(3)+(4)+(5)		198	158	355	711

The analysis of budget allocations to the various sectors of the national poverty reduction strategy required the preparation of a correspondence table to convert functional budget classifications to the thematic classifications used in the GPRSP. The table shows primary public expenditure for the period broken down by strategy pillar and sector. Certain approximations were unavoidable in re-classifying the functional categories by pillars and sectors. Also, since it was not possible to segregate expenditures for Pillar 4, “Combat HIV/AIDS,” from Pillar 5, “Local initiatives,” they are not presented in the analysis but are included in Pillar 2, “Support sectors with growth potential” and Pillar 3, “Promoting access to basic social services.”

The laws concerned the conversion of public enterprises, the organization and operation of public institutions, privatization of government-owned enterprises, and the organization and management of public enterprises.

Plans implemented in the context of restoring agricultural production and integrating and organizing rural production areas: the Emergency Multi-Sector Infrastructure Rehabilitation and Reconstruction Program (PMURR), the Agriculture and Rural Sector Rehabilitation Project in Katanga, West Kasai and East Kasai Provinces (PRESAR), the Agriculture and Rural Sector Rehabilitation Support Project in Bandundu and Bas-Congo Provinces (PARSAR), the Lake Tanganyika Integrated Regional Development Program (PRODAP), the Program in Support of Community Development Initiatives (PAIDECO), the Orientale Province Agricultural Recovery Program (PRAPO), the Equateur Province Agricultural Recovery Program (PRAPE), and the Emergency Social Action Plan (PASU).

The PNFOCO budget of US$64 million is financed by the World Bank.

The Domestic Electricity Markets for Consumption and Export Project (PMEDE) and the Southern Africa Power Market Project (SAPMP) are jointly financed for US$900 million by the World Bank, the European Investment Bank, and the African Development Bank.

The main partners involved in this sector are the African Development Bank, through PARSAR; the Kingdom of Belgium; and the World Bank, through PMURR.

These actions were carried out with technical and/or financial support from the following development partners: the World Bank Health Sector Reform Project (PARSS), the World Health Organization (WHO), the Japan International Cooperation Agency, the United Nations Children’s Fund, the United Nations Population Fund, the Global Fund, the United States Agency for International Development (USAID) AXxes project, the 9th European Development Fund Health Program (PS9FED), GAVI, the GTZ, and the Belgian Intermediate and Central Health System Support (ASNIC) and Intermediate and Peripheral Health System Support (ASNIP) projects.

The following partners provided support in the water and sanitation sector: the World Bank, the African Development Bank, the European Union, UNICEF, the German Development Cooperation (KFW Development Bank), and Belgian Development Cooperation / Belgian Export Financing (FINEXPO), in connection with the Emergency Urban and Social Rehabilitation Project (PURUS), the Urban Water Supply Project (PEMU), the Multi-Sector Socioeconomic Infrastructure Rehabilitation Project (PMURIS), the Peri-Urban Water Supply and Sanitation Project (PEASU), PMURR, and others.

United Nations Population Fund (UNFPA), 2008 annual report.

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Democratic Republic of the Congo: Poverty Reduction Strategy Paper-Progress Report

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About

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Abstract

Chapter 1: ANALYSIS OF MACROECONOMIC PERFORMANCE AND EXPENDITURE

Introduction

1.1. Recent developments in the Congolese economy

1.1.1. Economic activity and prices

1.1.2. Public sector

1.1.3. External sector

1.1.4. Monetary sector

1.1.5. Economic situation at end-March 2010

1.2. Expenditure analysis

1.2.1. Analysis of budget expenditure by category

1.2.2. Public expenditure in relation to GPRSP priorities1

1.3. Medium-term macroeconomic prospects

Chapter 2. ACTIONS IMPLEMENTED

Introduction

2.1. Promoting good governance and consolidating peace through strengthened institutions

2.1.1. Security and judicial governance

a. Security

b. The judicial system

c.Army

d. Police

e. Sexual violence

2.1.2. Political and administrative governance

a. Public administration

b. Local governance

c. Elections

2.1.3. Economic governance

a. Tax and customs revenue policies

b. Public financial management

c. Public debt management

d. Restructuring the national statistics apparatus

e. Promoting the private sector

2.2. Policies supporting economic growth

2.2.1. Agriculture and rural development

2.2.2. Forest and the environment

2.2.3. Mines and hydrocarbons

2.2.4. Energy

2.2.5. Transportation infrastructure

2.2.6. Industry

2.2.7. Trade

2.3. Improved access to basic social services and reduced vulnerability

2.3.1. Education

2.3.2. Health

2.3.3. Water and sanitation

2.3.4. Social protection

2.4. The fight against HIV/AIDS (one of the GPRS pillars)

2.4.1. Preventing and stabilizing HIV and STI transmission

2.4.2. Speeding treatment and improving the quality of life of persons living with HIV/AIDS

2.4.3. Mitigating the socioeconomic impact of HIV/AIDS on the community

2.4.4. Building coordination, monitoring and evaluation capacities at all levels

2.5. Support for local initiatives

2.6. Strengthening capacities

Chapter 3. MONITORING AND EVALUATION

3.1. Institutional framework

3.2. Monitoring and evaluation tools

CONCLUSION

Closing remarks

Recommendations

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1.2.2. Public expenditure in relation to GPRSP priorities¹