## _cr04223 - 1. The government of the Democratic Republic of the Congo (DRC) has been

## Source details

**Canonical URL:** [_cr04223 - 1. The government of the Democratic Republic of the Congo (DRC) has been](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr04223.pdf)

## Other formats

- [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr04223.pdf.md)
- [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr04223.pdf.json)

---

### I-PRSP implementation and progress — overview
- I-PRSP implemented since June 2002; first PRSP progress report submitted in June 2003.
- Report covers the second year of implementation, presenting background, progress, constraints, and revised timetable and budget for preparing the full PRSP.
- I-PRSP pillars:
  - Pillar 1: peace and good governance.
  - Pillar 2: stabilization and pro-poor growth.
  - Pillar 3: support for grassroots initiatives.
- I-PRSP phases:
  - Stabilization: 2001-02.
  - Reconstruction: 2002-05.
  - Sustained development: starting in 2005.
- Implementation in 2003-2004 occurred against a more favorable political and economic backdrop than 2002-2003.

### Political aspects (pillar 1) — key developments
- Global and Inclusive Agreement led to Government of National Unity inaugurated on June 30, 2003.
- Results attributed to the Government of National Unity:
  - Reunification of the DRC and consolidation of the peace process despite recent eastern events.
  - Withdrawal of almost all foreign troops.
  - Progress on creation of provincial political/administrative institutions, security services, police force, and an integrated army.
  - Draft laws targeting corruption, predatory practices, and money laundering submitted to Parliament (scheduled vote in July 2004).
  - Development of a Disarmament, Demobilization, and Reintegration (DDR) program.
- Parliament resulting from the Agreement meets regularly and is establishing laws for governance; parallel provincial administrations slow but do not halt progress.
- Electoral roadmap published for 2005 elections, including promulgation of census law and establishment of an independent electoral commission; legal provisions on political parties are being drawn up.

### Economic aspects (pillar 2) — macroeconomic performance and reforms
- Policy context:
  - Government pursued economic, financial, and structural adjustment policies under the government economic program (PEG) with World Bank and IMF support.
  - Performance under the PEG described as broadly satisfactory; improved economic management and business climate restored confidence and investment attractiveness.
- Key macroeconomic figures:
  - Real GDP growth: "3.5 percent" in 2002; "5.6 percent" in 2003; forecast "6.3 percent" for 2004.
  - Inflation: "135 percent" in 2001; "15.8 percent" in 2002; "4.4 percent" in 2003.
- Fiscal and public financial management reforms:
  - New expenditure procedures (commitment to payment) and harmonized functional budget classifications to track expenditure and pro-poor spending.
  - Adoption of double-entry accounting framework by Ministries of Finance and the Budget.
  - Reorganization of civil servant payment procedures per external payroll audit recommendations.
  - Comprehensive civil service reform initiated.
- Public enterprise, sectoral legal and institutional reforms:
  - Modernization of legal framework for public enterprises and institutions; strategic audit of the Public Enterprise Council (Conseil Supérieur du Portefeuille) underway.
  - Restructuring of COHYDRO and GECAMINES initiated.
  - Publication of new Mining, Forestry, Investment and Labor Codes.
  - Establishment of commercial courts; plans completed for restructuring the DRC’s banking system; restructuring of public enterprises initiated.
- Pro-poor spending and monitoring:
  - Pro-poor spending reached "1.5 percent of GDP" in 2003; Government target is to raise this to "over 6.5 percent in 2004".
  - Pro-poor Spending Monitoring Committee established as of June 2003; beginning identification of projects and procurement to use the balance in the HIPC resources account of approximately "US$75 million" as at April 30, 2004.
- External sector and debt relief:
  - External current account improved in 2003 due to higher exports (wood and diamonds) and net transfers; diamond exports benefited from the Kimberley process.
  - Positive assessments from World Bank, IMF, Paris Club, London Club, Kinshasa Club.
  - Reached the enhanced HIPC initiative decision point on July 23, 2003.
  - Bilateral talks following Paris Club debt consolidation (signed September 13, 2002) were finalized; DRC requested World Bank resources to settle London Club arrears.
- Reconstruction and investment:
  - Multisectoral Rehabilitation and Reconstruction Program (PMURR) projects launched; implemented through UCOP project coordination unit; expected positive impact on the poor.

### Administrative aspects and grassroots initiatives (pillar 3)
- Donor coordination and capacity support:
  - World Bank, AfDB, EU, UNDP, and bilateral donors (Belgium, Canada, France, United Kingdom) support administrative governance reforms, capacity-building, voluntary retirement, and social security.
- Agriculture and rural sector:
  - Over "80 percent" of the population employed in agriculture.
  - PARSAR developed under PMURR with AfDB support to promote food security and poverty reduction.
- Shortfalls and delays in grassroots institutionalization:
  - Establishment of the National Poverty Observatory and the National Poverty Reduction Charter delayed.
  - AfDB-financed studies on planning, organization, and orientation of grassroots initiatives have just started.
- Social sector programs:
  - Health: Multisectoral Anti-AIDS program started; national malaria program continued (treated mosquito nets distribution); tuberculosis and other pandemic responses continued; SANRU rural health center rehabilitation continued with USAID support.
  - Health coverage: National health improvement plan adopted, increasing health areas from "312 to 515".
  - Social protection: World Bank completed social protection strategy paper; execution started to reduce vulnerability of the poorest.
  - Education: National "Education for all by 2015" plan approved; UNICEF and UNDP supported social program improvements and MDG monitoring program establishment.
  - Gender: Program set up to promote the role of women and address the gender gap.

### Preparation of the full PRSP — timetable and strategic importance
- Government target: produce the full PRSP in "August 2005".
- Deadline critical to reach HIPC initiative completion point in "August 2006".
- Government recognizes timetable is very tight and risks affecting PRSP quality but aims to keep the deadline for expected benefits of reaching the HIPC completion point.

### Strengthening the institutional framework for PRSP preparation
- Decree 03/047 dated December 18, 2003 (amending Decree 055/2002 of April 12, 2002):
  - Defined composition of the Interministerial Commission on Implementation of the National Poverty Reduction Strategy.
  - Created the Steering Committee for the Poverty Reduction Strategy Preparation and Implementation Process (UPPE-SRP) and national and provincial technical committees.
- Actions under Decree 03/047:
  - Appointment of national coordinator and deputy coordinator of the Steering Committee for the PRSP process.
  - Increase of technical committee membership from "10 to 25" to ensure broad representation.
  - Appointment of coordinators and deputy coordinators of provincial technical committees.
  - Recruitment of entities to execute participatory consultations through public notices.
  - Recruitment of four permanent national experts to strengthen UPPE technical work, plus an administrative and financial manager.
- Donor coordination:
  - DFID and UNDP designated as interface between donors/lenders and the UPPE.
  - Donor group provided the Steering Committee with an international social analysis expert to support the participatory consultation process.

### Participatory consultations — status and methodology
- Preparatory work:
  - Training manuals prepared for provincial committees, consultation bodies, technical committee members (national and provincial), and sectoral/thematic groups.
- Methodology:
  - Participatory Poverty Assessment (PPA) selected at international workshop in Kinshasa in January 2004; partners acknowledged PPA’s superiority over alternatives (including GRET methodology).
- Implementation delays:
  - Training and participatory consultations behind schedule due to administrative weakness and delays in donor funding.
  - Delays affected first payment to the "10 entities" responsible for participatory consultations and created a significant lag in the roadmap’s execution.
- Assignment of the 10 entities per province:
  - (1) Caritas Développement — Equateur and Orientale.
  - (2) CNONGD — Katanga.
  - (3) BERCI — Kinshasa.
  - (4) Antenne de Formation à Distance — Bandundu.
  - (5) Amis de la Santé — Bas-Congo.
  - (6) Copemeco — Kasaï Oriental.
  - (7) Facilitas Consulting — Kasaï Occidental.
  - (8) SERACOB — Sud-Kivu.
  - (9) B.E.E.D. — Nord-Kivu.
  - (10) ICG — Maniema.

### Preparation of sectoral and thematic strategies — organization and process
- Creation of 16 sectoral/thematic groups including experts from member ministries, civil society, private sector, unions, universities, and research centers.
- Thematic groups cover:
  - (1) Peace, political governance, administrative and judiciary reforms.
  - (2) Macro-economic framework and program harmonization.
  - (3) Fiscal and economic reforms.
  - (4) Private sector, wealth creation, employment, micro finance and the banking sector.
  - (5) Agriculture and rural development.
  - (6) Education.
  - (7) HIV/AIDS and malaria.
  - (8) Urban poverty.
  - (9) Gender, vulnerable groups and social security.
  - (10) Environment.
  - (11) Grassroots initiatives and basic services.
  - (12) Community, culture and new technologies.
  - (13) Transport and communication infrastructure.
  - (14) Mines.
  - (15) Energy.
  - (16) Methodology.
- Process for finalization:
  - Sectoral/thematic inventories under discussion in the technical committee; after finalization by a sectoral analysis consultant, they will be sent to the Interministerial Commission for Monitoring the National Poverty Reduction Strategy.
  - Proposed strategies will undergo sectoral/thematic participatory consultations and use results of related studies from bilateral and multilateral partners.

### Statistical analyses and survey — consumption budget survey (1-2-3) and timetable
- UPPE awarded the consumption budget survey (1-2-3) to the National Statistics Institute (INS) to collect data on employment, household consumption, and the informal sector.
- Questionnaire and methodology finalized with financing from CAPNAT; survey under way in Kinshasa; national expansion partially funded by AfDB.
- UPPE involvement through the statistics expert and three methodological group members.
- Planned timetable (assuming planned human and financial resources available):
  - Kinshasa consumption budget survey: April through September 2004.
  - Data processing for Kinshasa: June through December 2004.
  - Survey of other provinces: June-December 2004.
  - Data processing for all provinces: January through March 2005.
    - Note: "The time needed for data processing will be shorter as experience will have been gained with the Kinshasa exercise."
  - Final report on all surveys (qualitative and quantitative) expected in "May 2005".
  - Incorporation of participatory consultation data (qualitative) and household budget survey data (quantitative) into the PRSP in "June-July 2005".

### Training and human resources
- Training program prepared for:
  - Technical committees at national and provincial levels.
  - Thematic and sectoral groups.
  - Bodies responsible for participatory consultations.
- Training scheduled in June 2004.
- Financing expected from DFID, UNDP, AfDB, and EU and "will have to be made available promptly".
- Additional planned activities:
  - Training missions for UPPE experts in poverty analysis, sectoral strategies, and data processing.
  - Hiring of international experts envisaged.

### Strengthening the internal partnership and dissemination
- Internal partnership proceeding as planned; CT-SRP membership increased to strengthen involvement.
- Increased participation from:
  - National Council of Development NGOs (CNONGD).
  - CARITAS-Développement.
  - Fédération des Entreprises du Congo (FEC).
- Dissemination activities since July 2003:
  - Campaign using posters and media.
  - Printing and distribution of the I-PRSP.
  - UPPE hired a consultant for dissemination and monitoring of the roadmap.
  - Preparation of a monthly information bulletin on the PRSP to be distributed to all partners.
- Government internalization measures:
  - Integration of poverty reduction objective into the President’s program speech to the Transitional Parliament in July 2003.
  - President and his team's participation in the PRSP process.
  - Parliament appointed a parliamentary working group to monitor PRSP preparation and participate in participatory activities.
- Cross-participation example:
  - A member of Parliament participated in the AfDB-organized training workshop-seminar on the participatory approach to PRSP preparation in Dakar from January 26 through 29, 2004.

### Budget process — overall and functional breakdown
- Overall budget for preparing the full PRSP revised from US$5,820,910 to US$8,325,137 due primarily to expansion of the Commission for Implementing the National Poverty Reduction Strategy and reunification of the country.
- Functional breakdown (exact figures):
  - Support for institutional framework: 1,321,160
  - Participatory consultations: 2,376,897
  - Household budget survey: 1,850,000
  - Provincial committees: 480,800
  - Thematic groups: 339,240
  - Sector studies: 113,390
  - Drawing up of the PRSP: 343,650
  - Final evaluation: 1,500,000

### Challenges and constraints (major risks identified)
- (i) Risk of resurgence of conflict, particularly in the eastern part of the country, and interruptions in the peace process could compromise the agreed implementation timetable.
- (ii) Delay in providing the UPPE-SRP with needed resources, human and financial, could cause slippages in the timetable.
- (iii) Lack of coherent synergy between the PRSP preparation process and other government sectoral programs, and between those programs and partners’ intervention strategies, poses a major risk to the efficacy and quality of the full PRSP and could affect implementation efficiency.
- (iv) Political pressures inherent in the pre-electoral period could affect the process, including attempts to influence its course, direct its content, or use it as an instrument of political propaganda.

### Conclusion — implementation environment and risks
- Implementation environment for I-PRSP in 2003-2004 improved considerably compared with the first year.
- Following installation of the transitional government, noted political weaknesses are being gradually overcome.
- Government continues to carry out the PEG, including structural reform agenda, with noticeable positive effects on the macroeconomic environment.
- Reforms undertaken to enhance governance quality and access by the poor to basic social services.
- Involvement of development partners, civil society, and the private sector has been strengthened, resulting in better participation.
- Process delays due to slowness in provision of human and financial resources led to adjustment of the timetable and the budget; persistence of these delays may cause slippage in execution of programmed activities.

### Key schedule highlights (selected dates and timing)
- Workshop for official launch of full PRSP preparation process: December 08-11, 03
- International workshop for exchanging methodologies and data collection tools: January 04
- Recruitment of entities tasked with participatory consultations on poverty: February 04
- Recruitment of experts (economist, statistician, sociologist, participation expert) and the manager: February 04
- Preparation of framework for full PRSP, sectoral/thematic PRSPs, provincial PRSPs: February – March 04
- Restructuring of PRSP technical committee: April 04
- Social mobilization plan for the PRSP: April 04 – August 05
- Creation of the DRC PRSP website: June 04
- Planning of four training sessions for facilitators: April – May 04
- Training of members of Provincial Committees in Kinshasa, Kisangani, and Mbuji-Mayi: May 04
- Training of entities responsible for the consultations: June 04
- Participatory consultations in the field: July – August 04
- Workshop to validate results of participatory consultations (provinces): August 23 – 28, 04
- Production of the 2nd draft of the full PRSP: June-05
- Production of the definitive version of the full PRSP: July – August 05
- Submission of the full PRSP to the government and approval: August 05
- Forward the full PRSP to the Bretton Woods institutions for approval: August 05

### Total Budget Table — financing situation as of June 1, 2004 (selected figures)
- Total Financing needs (A): 1,321,160; 2,376,897; 1,850,000; 480,800; 339,240; 113,390; 343,650; 1,500,000; TOTAL 8,325,137
- Available financing (B) (firm commitments listed across columns): 1,617,400; 201,300; 1,350,600; 0; 0; 0; 232,700; 1,383,400; 2,800,000; TOTAL 7,585,400
- Gap (A-B) by line (as presented):
  - +296,240
  - -2,175,597
  - -                   499,400
  - -480,800
  - -339,240
  - -113,390
  - -110,950
  - -116,600
  - +2,800,000
  - -739,737
- Partner contributions and commitments (selected entries):
  - Government: 600,000 (institutional framework) — TOTAL 600,000
  - France: 300,000 (Quantitative Surveys) and 1,200,000 (Drafting Provincial PRSP) — TOTAL 1,500,000
  - EU: 432,400 (Institutional Framework) — TOTAL 432,400
  - BAD (AfDB): 877,000 (Participatory Consultations) — TOTAL 877,000
  - DFID: 1,800,000 (Resources not earmarked) — TOTAL 1,800,000
  - UNDP: 250,000 (Institutional Framework); 180,000 (Quantitative Surveys); 100,000 (Drafting Provincial PRSP) — TOTAL 530,000
  - World Bank (incl. Netherlands and Belgium): 335,000; 201,300; 173,600; 52,700; 83,400; 1,000,000 — TOTAL 1,846,000

*IMF staff report: second-year implementation assessment of the DRC I-PRSP and preparation process for the full PRSP. Steering Committee for the Poverty Reduction Strategy Preparation Process (UPPE-SRP), Kinshasa, June 2004*

### 1. The government of the Democratic Republic of the Congo (DRC) has been

### _cr04223 - 1. The government of the Democratic Republic of the Congo (DRC) has been

### I-PRSP implementation and progress — overview
- The I-PRSP has been implemented since June 2002; the first PRSP progress report was submitted in June 2003.
- The report covers the second year of implementation and presents background, progress, constraints, and a revised timetable and budget for preparing the full PRSP.
- The I-PRSP rests on three pillars: peace and good governance (pillar 1); stabilization and pro-poor growth (pillar 2); and support for grassroots initiatives (pillar 3).
- The I-PRSP distinguishes three phases: stabilization (2001-02), reconstruction (2002-05), and sustained development (starting in 2005).
- Implementation in 2003-2004 took place against a more favorable political and economic backdrop than 2002-2003.

### Political aspects (pillar 1) — key developments
- Global and Inclusive Agreement led to formation of a Government of National Unity, inaugurated on June 30, 2003.
- Results attributed to the Government of National Unity:
  - Reunification of the DRC and consolidation of the peace process despite recent eastern events.
  - Withdrawal of almost all foreign troops.
  - Progress on creation of provincial political/administrative institutions, security services, police force, and an integrated army.
  - Draft laws targeting corruption, predatory practices, and money laundering submitted to Parliament (scheduled vote in July 2004).
  - Development of a Disarmament, Demobilization, and Reintegration (DDR) program.
- Parliament resulting from the Agreement meets regularly and is establishing laws for governance; parallel provincial administrations slow but do not halt progress.
- Electoral roadmap published for 2005 elections, including promulgation of census law and establishment of an independent electoral commission; legal provisions on political parties are being drawn up.

### Economic aspects (pillar 2) — macroeconomic performance and reforms
- Policy context:
  - Government pursued economic, financial, and structural adjustment policies under the government economic program (PEG) with World Bank and IMF support.
  - Performance under the PEG described as broadly satisfactory; improved economic management and business climate restored confidence and investment attractiveness.
- Key macroeconomic figures:
  - Real GDP growth: "3.5 percent" in 2002; "5.6 percent" in 2003; forecast "6.3 percent" for 2004.
  - Inflation: "135 percent" in 2001; "15.8 percent" in 2002; "4.4 percent" in 2003.
- Fiscal and public financial management reforms:
  - New expenditure procedures (commitment to payment) and harmonized functional budget classifications to track expenditure and pro-poor spending.
  - Adoption of double-entry accounting framework by Ministries of Finance and the Budget.
  - Reorganization of civil servant payment procedures per external payroll audit recommendations.
  - Comprehensive civil service reform initiated.
- Public enterprise, sectoral legal and institutional reforms:
  - Modernization of legal framework for public enterprises and institutions; strategic audit of the Public Enterprise Council (Conseil Supérieur du Portefeuille) underway.
  - Restructuring of COHYDRO and GECAMINES initiated.
  - Publication of new Mining, Forestry, Investment and Labor Codes.
  - Establishment of commercial courts; plans completed for restructuring the DRC’s banking system; restructuring of public enterprises initiated.
- Pro-poor spending and monitoring:
  - Pro-poor spending reached "1.5 percent of GDP" in 2003; Government target is to raise this to "over 6.5 percent in 2004".
  - Pro-poor Spending Monitoring Committee established as of June 2003; beginning identification of projects and procurement to use the balance in the HIPC resources account of approximately "US$75 million" as at April 30, 2004.
- External sector and debt relief:
  - External current account improved in 2003 due to higher exports (wood and diamonds) and net transfers; diamond exports benefited from the Kimberley process.
  - Positive assessments from World Bank, IMF, Paris Club, London Club, Kinshasa Club.
  - Reached the enhanced HIPC initiative decision point on July 23, 2003.
  - Bilateral talks following Paris Club debt consolidation (signed September 13, 2002) were finalized; DRC requested World Bank resources to settle London Club arrears.
- Reconstruction and investment:
  - Multisectoral Rehabilitation and Reconstruction Program (PMURR) projects launched; implemented through UCOP project coordination unit; expected positive impact on the poor.

### Administrative aspects and grassroots initiatives (pillar 3)
- Donor coordination and capacity support:
  - World Bank, AfDB, EU, UNDP, and bilateral donors (Belgium, Canada, France, United Kingdom) support administrative governance reforms, capacity-building, voluntary retirement, and social security.
- Agriculture and rural sector:
  - With over "80 percent" of the population employed in agriculture, PARSAR (project to support rehabilitation of the agricultural sector) developed under PMURR with AfDB support to promote food security and poverty reduction.
- Shortfalls and delays in grassroots institutionalization:
  - Establishment of the National Poverty Observatory and the National Poverty Reduction Charter delayed.
  - AfDB-financed studies on planning, organization, and orientation of grassroots initiatives have just started.
- Social sector programs:
  - Health: Multisectoral Anti-AIDS program started; national malaria program continued (treated mosquito nets distribution); tuberculosis and other pandemic responses continued; SANRU rural health center rehabilitation continued with USAID support.
  - Health coverage: National health improvement plan adopted, increasing health areas from "312 to 515".
  - Social protection: World Bank completed social protection strategy paper; execution started to reduce vulnerability of the poorest.
  - Education: National "Education for all by 2015" plan approved; UNICEF and UNDP supported social program improvements and MDG monitoring program establishment.
  - Gender: Program set up to promote the role of women and address the gender gap.

### Preparation of the full PRSP — timetable and strategic importance
- Timetable:
  - Government adheres to target of producing the full PRSP in "August 2005".
  - This deadline is critical to reach the HIPC initiative completion point in "August 2006".
  - Government recognizes the timetable is very tight and risks affecting PRSP quality but aims to keep the deadline for the expected benefits of reaching the HIPC completion point.

### Strengthening the institutional framework for PRSP preparation
- Decree 03/047 dated December 18, 2003 (amending Decree 055/2002 of April 12, 2002) actions:
  - Defined composition of the Interministerial Commission on Implementation of the National Poverty Reduction Strategy.
  - Created the Steering Committee for the Poverty Reduction Strategy Preparation and Implementation Process (UPPE-SRP) and national and provincial technical committees.
- Actions taken under Decree 03/047:
  - Appointment of national coordinator and deputy coordinator of the Steering Committee for the PRSP process.
  - Increase of technical committee membership from "10 to 25" to ensure broad representation.
  - Appointment of coordinators and deputy coordinators of provincial technical committees.
  - Recruitment of entities to execute participatory consultations through public notices.
  - Recruitment of four permanent national experts to strengthen UPPE technical work, plus an administrative and financial manager.
- Donor coordination:
  - Donor/lender group designated focal points: DFID and UNDP as interface between donors/lenders and the UPPE.
  - Donor group provided the Steering Committee with an international social analysis expert to support the participatory consultation process.

### Participatory consultations — status and methodology
- Preparatory work:
  - Training manuals prepared for provincial committees, consultation bodies, technical committee members (national and provincial), and sectoral/thematic groups.
- Methodology selection:
  - Participatory Poverty Assessment (PPA) methodology selected at an international workshop in Kinshasa in January 2004; partners acknowledged PPA’s superiority over alternatives (including GRET methodology).
- Implementation delays:
  - Training and participatory consultations behind schedule due to administrative weakness and delays in donor funding.
  - Delays affected first payment to the "10 entities" responsible for participatory consultations and created a significant lag in the roadmap’s execution.
- Assignment of the 10 entities per province (listed in source footnote 1):
  - (1) Caritas Développement — Equateur and Orientale; (2) CNONGD — Katanga; (3) BERCI — Kinshasa; (4) Antenne de Formation à Distance — Bandundu; (5) Amis de la Santé — Bas-Congo; (6) Copemeco — Kasaï Oriental; (7) Facilitas Consulting — Kasaï Occidental; (8) SERACOB — Sud-Kivu; (9) B.E.E.D. — Nord-Kivu; (10) ICG — Maniema.

### Preparation of sectoral and thematic strategies — organization and process
- Creation of 16 sectoral/thematic groups to improve full PRSP strategies; groups include experts from member ministries, civil society, private sector, unions, universities, and research centers.
- Thematic groups (from source footnote 2) cover:
  - (1) Peace, political governance, administrative and judiciary reforms; (2) Macro-economic framework and program harmonization; (3) Fiscal and economic reforms; (4) Private sector, wealth creation, employment, micro finance and the banking sector; (5) Agriculture and rural development; (6) Education; (7) HIV/AIDS and malaria; (8) Urban poverty; (9) Gender, vulnerable groups and social security; (10) Environment; (11) Grassroots initiatives and basic services; (12) Community, culture and new technologies; (13) Transport and communication infrastructure; (14) Mines; (15) Energy; and (16) Methodology.
- Process for finalization:
  - Sectoral/thematic inventories under discussion in the technical committee; after finalization by a sectoral analysis consultant, they will be sent to the Interministerial Commission for Monitoring the National Poverty Reduction Strategy.
  - Proposed strategies will undergo sectoral/thematic participatory consultations and use results of related studies from bilateral and multilateral partners.

### Statistical analyses and survey — consumption budget survey (1-2-3) and timetable
- Outsourcing and scope:
  - UPPE awarded the consumption budget survey (1-2-3) to the National Statistics Institute (INS) to collect data on employment, household consumption, and the informal sector.
  - Questionnaire and methodology finalized with financing from CAPNAT; survey under way in Kinshasa; national expansion partially funded by AfDB.
  - UPPE closely involved through the statistics expert and three methodological group members.
- Planned timetable (assuming planned human and financial resources available):
  - Kinshasa consumption budget survey: April through September 2004.
  - Data processing for Kinshasa: June through December 2004.
  - Survey of other provinces: June-December 2004.
  - Data processing for all provinces: January through March 2005.
    - Note: "The time needed for data processing will be shorter as experience will have been gained with the Kinshasa exercise."
  - Final report on all surveys (qualitative and quantitative) expected in "May 2005".
  - Incorporation of participatory consultation data (qualitative) and household budget survey data (quantitative) into the PRSP in "June-July 2005" to improve the poverty profile and selection of full PRSP strategies.

*IMF staff report: second-year implementation assessment of the DRC I-PRSP and preparation process for the full PRSP.*

### 31.  The process as a whole requires highly qualified domestic and international human

### _cr04223 - 31.  The process as a whole requires highly qualified domestic and international human

### Training and human resources
- A training program for the main bodies of the UPPE has been prepared for:
  - technical committees at the national and provincial levels,
  - thematic and sectoral groups,
  - bodies responsible for the participatory consultations.
- The training will take place in June 2004.
- Financing for this activity is expected from DFID, the UNDP, the AfDB, and the EU and "will have to be made available promptly" to ensure timely delivery.
- Additional planned activities:
  - various training missions for UPPE experts in poverty analysis, sectoral strategies, and data processing,
  - hiring of international experts is envisaged.

### Strengthening the internal partnership
- The internal partnership set up by the government is proceeding as planned.
- The number of civil society and private enterprise organizations in the CT-SRP (Poverty Reduction Strategy Technical Committee) has been increased to strengthen involvement.
- Specifically increased participation from:
  - National Council of Development NGOs (CNONGD),
  - CARITAS-Développement,
  - Federation of Enterprises in the Congo (Fédération des Entreprises du Congo - FEC).
- Many of these organizations were selected to hold sectoral and thematic participatory consultations in Kinshasa and in the provinces.

### Dissemination and internalization of the process
- Dissemination activities since July 2003:
  - campaign using posters and media,
  - printing and distribution of the I-PRSP,
  - UPPE hired a consultant responsible for disseminating the I-PRSP and monitoring and assessing the roadmap,
  - preparation of a monthly information bulletin on the PRSP to be distributed to all partners.
- Government internalization measures:
  - integration of poverty reduction objective into the President’s program speech to the Transitional Parliament in July 2003,
  - participation of the President and his team in the PRSP process,
  - Parliament appointed a parliamentary working group to monitor PRSP preparation and participate in participatory activities.
- Cross-participation example:
  - A member of Parliament participated in the AfDB-organized training workshop-seminar on the participatory approach to PRSP preparation in Dakar from January 26 through 29, 2004.

### Budget process — overall and functional breakdown
- The overall budget for preparing the full PRSP was revised upwards from US$5,820,910 to US$8,325,137 due primarily to:
  - expansion of the Commission for Implementing the National Poverty Reduction Strategy,
  - reunification of the country.
- Functional breakdown (exact figures preserved):
  - Support for institutional framework: 1,321,160
  - Participatory consultations: 2,376,897
  - Household budget survey: 1,850,000
  - Provincial committees: 480,800
  - Thematic groups: 339,240
  - Sector studies: 113,390
  - Drawing up of the PRSP: 343,650
  - Final evaluation: 1,500,000

### Challenges and constraints (major risks identified)
- (i) The risk of resurgence of conflict, particularly in the eastern part of the country, and interruptions in the peace process could compromise the agreed implementation timetable.
- (ii) Delay in providing the Steering Committee for the PRSP Preparation Process (UPPE-SRP) with needed resources, human and financial, could cause slippages in the timetable.
- (iii) Lack of coherent synergy between the PRSP preparation process and other government sectoral programs, and between those programs and partners’ intervention strategies, poses a major risk to the efficacy and quality of the full PRSP and could affect implementation efficiency.
- (iv) Political pressures inherent in the pre-electoral period could affect the process, including attempts to influence its course, direct its content, or use it as an instrument of political propaganda.

### Conclusion — implementation environment and risks
- The environment for implementing the I-PRSP in the 2003-2004 period improved considerably compared with the first year.
- Following installation of the transitional government, noted political weaknesses are being gradually overcome.
- The government continues to carry out the PEG, including the structural reform agenda, which has had noticeable positive effects on the macroeconomic environment.
- Reforms have been undertaken to enhance governance quality and access by the poor to basic social services.
- Involvement of development partners, civil society, and the private sector has been strengthened, resulting in better participation.
- Process delays due to slowness in provision of human and financial resources led to adjustment of the timetable and the budget; persistence of these delays may cause slippage in the execution of programmed activities.

### Key schedule highlights (selected dates and timing from the Annex)
- Workshop for official launch of full PRSP preparation process: December 08-11, 03
- International workshop for exchanging methodologies and data collection tools: January 04
- Recruitment of entities tasked with participatory consultations on poverty: February 04
- Recruitment of experts (economist, statistician, sociologist, participation expert) and the manager: February 04
- Preparation of framework for full PRSP, sectoral/thematic PRSPs, provincial PRSPs: February – March 04
- Restructuring of PRSP technical committee: April 04
- Social mobilization plan for the PRSP: April 04 – August 05
- Creation of the DRC PRSP website: June 04
- Planning of four training sessions for facilitators: April – May 04
- Training of members of Provincial Committees in Kinshasa, Kisangani, and Mbuji-Mayi: May 04
- Training of entities responsible for the consultations: June 04
- Participatory consultations in the field (villages, wards, territory and commune workshops): July – August 04
- Workshop to validate results of participatory consultations (provinces): August 23 – 28, 04
- Production of the 2nd draft of the full PRSP: June-05
- Production of the definitive version of the full PRSP: July – August 05
- Submission of the full PRSP to the government and approval: August 05
- Forward the full PRSP to the Bretton Woods institutions for approval: August 05

### Total Budget Table — financing situation as of June 1, 2004 (selected figures preserved)
- Total Financing needs (A): 1,321,160; 2,376,897; 1,850,000; 480,800; 339,240; 113,390; 343,650; 1,500,000; TOTAL 8,325,137
- Available financing (B) (firm commitments listed across columns): 1,617,400; 201,300; 1,350,600; 0; 0; 0; 232,700; 1,383,400; 2,800,000; TOTAL 7,585,400
- Gap (A-B) by line (as presented):
  - +296,240
  - -2,175,597
  - -                   499,400
  - -480,800
  - -339,240
  - -113,390
  - -110,950
  - -116,600
  - +2,800,000
  - -739,737
- Partner contributions and commitments (selected entries preserved):
  - Government: 600,000 (institutional framework) — TOTAL 600,000
  - France: 300,000 (Quantitative Surveys) and 1,200,000 (Drafting Provincial PRSP) — TOTAL 1,500,000
  - EU: 432,400 (Institutional Framework) — TOTAL 432,400
  - BAD (AfDB): 877,000 (Participatory Consultations) — TOTAL 877,000
  - DFID: 1,800,000 (Resources not earmarked) — TOTAL 1,800,000
  - UNDP: 250,000 (Institutional Framework); 180,000 (Quantitative Surveys); 100,000 (Drafting Provincial PRSP) — TOTAL 530,000
  - World Bank (incl. Netherlands and Belgium): 335,000; 201,300; 173,600; 52,700; 83,400; 1,000,000 — TOTAL 1,846,000

*Steering Committee for the Poverty Reduction Strategy Preparation Process (UPPE-SRP), Kinshasa, June 2004*

---


_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr04223.pdf_