## _cr07330 — FOREWORD / 1.1 POST-CONFLICT CONTEXT (PRGSP for the DRC)

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### Foreword — Purpose and strategic orientation
- PRGSP prepared three years after the I-PRSP to provide the post-2006 elections Government:
  - a framework for national reconciliation and consolidation of peace;
  - a frame of reference for government policy and cooperation with development partners to revitalize the economy and combat poverty.
- Time horizons and alignment:
  - Short- and medium-term objectives for 2006–2008; alignment with the Millennium Development Goals (MDGs); long-term Vision 26/25 with target horizon by 2030.
- Core aims:
  - upgrade State institutions and structures;
  - introduce appropriate sectoral policies defined by participatory processes;
  - build capacity toward reaching the completion point under the HIPC Initiative (targeted 2007).

### Executive-summary key findings (quantitative highlights preserved)
- Monetary poverty and inequality:
  - 71.34 percent of the poor (per 1-2-3 survey).
  - Gini index of 40 percent overall (document also reports Gini index 42 percent in inequality section; both figures preserved as reported in respective source locations).
  - Urban: P0 61.49 percent; rural: P0 75.72 percent; urban Gini 40 percent; rural Gini 36 percent (per executive-summary lines).
- Poverty distribution and human development:
  - Poorest provinces concentrated in the eastern part of the country.
  - Assessment: DRC would be hard pressed to achieve the MDGs by 2015 without double-digit growth and pro-poor budgets.
- Debt and external accounts:
  - External indebtedness estimated at US$10.822 billion as of December 31, 2005.
  - Debt service payments: US$154.1 million in 2005; US$251.6 million in 2006.
- Social indicators:
  - Proportion below the poverty line: 80 percent in 2001; 70.68 percent in 2005.
- Macroeconomic performance (selected series):
  - Inflation: 511 percent (2000); 135.1 percent (2001); 16.0 percent (2002); 4.4 percent (2003); 9.2 percent (2004); 22.6 percent (2005) (executive-summary lists 22.6 for 2005; other sections report 21.3 percent in 2005—both preserved as they appear in the source).
  - Real GDP growth: average annual drops of 5.5 percent between 1991 and 2000; -2.1 percent (2001); 3.5 percent (2002); 5.7 percent (2003); 6.8 percent (2004); 6.6 percent (2005).
  - Current account deficit: 3.4 percent of GDP in 2005 (before debt relief); 2.0 percent of GDP in 2004 (after debt relief).
  - Revenue: increased from 6.2 percent of GDP in 2001 to 11.0 percent in 2005.
  - Expenditure: increased from 7.9 percent of GDP in 2001 to 16.6 percent in 2005.
  - Overall deficit on a cash basis: 0.7 percent of GDP in 2005.

### Participatory preparation and institutional arrangements
- Launch: November 2003 by the Vice President responsible for the Economic and Financial Commission.
- Participants: members of Government; heads of territorial governments; civil society; private sector; development partners.
- Institutional framework:
  - CI-SNLCP (Interministerial Commission on Implementation of the National Poverty Reduction Strategy);
  - UPPE-SRP (Steering Unit for PRS Preparation and Implementation);
  - Technical Committee (CT) subdivided into 16 Sectoral and Thematic Groups (listed in source);
  - Consultative Committee of Partners (CCP);
  - Local Technical Committees (CTLs) in each province.
- Methods: sectoral and theme-based consultations; qualitative and quantitative surveys; systematic involvement of civil society and grassroots communities; capacity-building workshops.

---

### Poverty diagnosis — thresholds, indices, and spatial/social patterns
- Poverty lines (1-2-3 survey):
  - Food poverty line per person per year: CGF 123,070 (urban); CGF 82,755 (rural).
  - Nonfood poverty line per person per year: CGF 30,195 (urban); CGF 14,900 (rural).
  - Combined food + nonfood poverty lines: CGF 153,265 (urban); CGF 97,655 (rural).
- National Foster-Greer-Thorbecke indices:
  - P0 (incidence): 71.34 percent.
  - P1 (depth): 32.23 percent.
  - P2 (severity): 18.02 percent.
- Urban/rural split:
  - Population: Urban 30.76 percent; Rural 69.24 percent.
  - Urban: P0 61.49 percent; P1 26.21 percent; P2 14.10 percent.
  - Rural: P0 75.72 percent; P1 34.90 percent; P2 19.76 percent.
- Provincial incidences (selected exact figures):
  - Kinshasa: Population 10.67 percent; P0 41.60 percent; P1 13.43 percent; P2 5.89 percent.
  - Bas-Congo: Population 5.90 percent; P0 69.81 percent; P1 23.82 percent; P2 10.56 percent.
  - Bandundu: Population 11.50 percent; P0 89.08 percent; P1 44.80 percent; P2 26.62 percent.
  - Equateur: Population 10.43 percent; P0 93.56 percent; P1 50.75 percent; P2 31.38 percent.
  - Sud Kivu: Population 7.00 percent; P0 84.65 percent; P1 38.59 percent; P2 20.92 percent.
  - Three provinces with P0 ≥ 85 percent: Equateur, Bandundu, Sud Kivu.
- Socioprofessional groups (selected P0 figures):
  - Self-employed worker: Population 67.35 percent; P0 75.52 percent.
  - Apprentice: Population 0.17 percent; P0 80.25 percent.
  - Family worker: Population 11.54 percent; P0 69.40 percent.
  - Management personnel: Population 2.05 percent; P0 48.62 percent.
- Sociodemographic patterns (selected figures):
  - Household size 10+ members: Population 12.11 percent; P0 83.04 percent; P1 44.74 percent; P2 27.77 percent.
  - Education of head — University/postgraduate: Population 5.80 percent; P0 34.05 percent; P1 11.98 percent; P2 5.64 percent.
- Inequality:
  - Gini index reported as 42 percent in inequality section (executive summary also references 40 percent); provincial inequality: Kasai provinces and Katanga >40 percent; Kinshasa reported 39 percent in inequality subsection.

### Poverty trends and simulation scenarios (2006–2030)
- Simulation inputs and assumptions:
  - Based on 2005 per capita GDP, incidence, and Gini.
  - Growth scenarios: per capita GDP growth rates of 5 percent; 8 percent; 10 percent; 12 percent.
  - Income redistribution scenarios: gradual decline in the Gini index for the poor of 1 percent, 5 percent, and 10 percent; population Gini index beginning in 2009: 5 percent (per text).
- Scenario outcomes (first scenario: Gini held constant):
  - 5 percent growth: incidence falls from 71 percent to about 45 percent by 2015 — DRC will not halve poverty by 2015.
  - 8 percent growth: could achieve first MDG in about 2015–2016.
  - 10 percent growth: could achieve that goal in about 2011–2013.
  - 12 percent growth: could achieve that goal in about 2011.
- Second scenario (5 percent growth with redistribution):
  - Incidence remains stable until 1978, rises to slightly over 80 percent in early 2000s, then downtrend from 2004 reaching 60 percent in 2022.
- Overall conclusion: halving poverty by 2015 requires double-digit growth accompanied by distributive justice.

### Determinants of poverty (econometric findings)
- Methods: multiple regression (logarithm of assets score dependent variable) and probit regression (likelihood of one meal a day).
- Key determinants:
  - Family structure, level of education, type of employment, and province of residence.
  - Urban: one additional adult → asset score gain ≈ 8 percent to 13 percent.
  - Rural: one additional adult → asset score gain ≈ 2 percent to 3 percent.
- Categorical analysis on meals:
  - Rural: one additional child (5–14) increases likelihood of one meal/day by ≈ 2 percentage points.
  - Urban: one additional adult decreases likelihood of one meal/day by ≈ 4 percentage points.
  - Households headed by women are less susceptible to having only one meal per day.
  - Self-employed heads reduce probability of single-meal households by 6 to 7 percentage points relative to farmer-headed households.

---

### Sectoral and thematic diagnoses — growth potential and constraints (selected)
- Agriculture and rural development:
  - 97 percent of arable land has a crop season > eight months; 135 million hectares of agricultural land (34 percent of national territory), only 10 percent improved.
  - 16 million people suffering from hunger; FAO estimates almost 73 percent living with food insecurity.
  - Agricultural exports ≈ 10 percent of GDP (versus 40 percent in 1960).
  - Rural access and infrastructure: 17 percent access to safe drinking water; 1 percent access to electricity; 64 percent live in rammed earth houses; 70 percent of roads accessing agricultural areas in advanced state of deterioration.
- Forestry:
  - DRC ranks first in Africa by forest size; forests essential to 40 million Congolese.
  - Biodiversity: 480 mammals; 565 birds; 1,000 fish; 350 reptiles; 220 batrachians; >10,000 angiosperms (3,000 endemic).
  - Sector problems: weak institutions, nonapplication of Forestry Code, speculative freezing of concessions, exclusion of local communities.
- Transport infrastructure:
  - Network: 16,238 km navigable waterways; 5,033 km railways; 145,000 km national/regional/secondary roads; 7,400 km urban thoroughfares; 270 airports (5 international).
  - Matadi seaport: TEU handling cost US$984.20; containers take over 22 days to reach Kinshasa; vessels remain six days on average; transport sector accounts for 24.3 percent of total cost of goods imported via Matadi.
  - SNCC/ONATRA locomotive availability: 42 percent; productivity per employee: 34,000 TU (vs. 487,000 TU in Cameroon).
  - Average economy-class DRC–Europe air ticket: US$1,218 (vs. US$824 in neighboring countries).
- Mining:
  - Second largest global reserves of copper and cobalt; GECAMINES’ cobalt reserves represent 80 percent of global total.
  - Historical collapse: GECAMINES copper production fell from 465,000 metric tons (1990) to 19,000 metric tons (2002).
  - Sector reforms since 2004 have led to restructuring, accompanied by issues (land expropriation, fraud, one-sided contracts); vast mineral potential remains (copper, cobalt, zinc, cadmium, diamonds, gold, tin, tungsten, manganese).
- Electricity:
  - Hydroelectric potential: 100,000 MW (13.0 percent of global hydro potential); installed capacity 2,516 MW (2.5 percent of potential).
  - Possible average production: 14,500 GWh; actual production: 6,000–7,000 GWh.
  - Inga plants total capacity: 1,775 MW (Inga 1: 351 MW; Inga 2: 1,424 MW); operating at 40 percent of capacity.
  - Access to electricity: 1.0 percent rural; 30.0 percent urban; 6.0 percent national average; Sub-Saharan Africa average 24.6 percent.

### Social sectors — education, health, water, housing, social protection
- Education (selected indicators and targets):
  - Gross primary enrollment ratio: 64 (2002 baseline); PRGSP targets: 64.1 (2006); 70.8 (2007); 80 (2008); 100 by 2015 (universal primary education objective).
  - Gender and residence disparities: boys 72.0 percent; girls 56.0 percent; urban admission 71.6 percent; rural 43.6 percent.
  - Primary system performance: internal efficiency coefficient 36 percent; survival rate 25 percent; completion rate 29 percent.
- Health (selected indicators):
  - Infant mortality: ~126 per 1,000 live births (under-1); under-5 mortality 213 per 1,000 (MICS 2, 2001).
  - Maternal mortality: 1,289 per 100,000 live births (MICS 2, 2001).
  - Malaria exposure: 97 percent of population; estimated malaria deaths among children under 5: 150,000 to 250,000 per year.
  - Use of health services: average 0.15 consultations per person per year (sample ~54.0 percent of population).
  - Targeted PRGSP health outcomes: infant mortality 111 (2006); 104 (2007); 89 (2008). Maternal mortality: 1,276.2 (2006); 1,079.1 (2007); 944.2 (2008). Assisted births: 61.6 percent (2006) → 75.2 percent (2008).
- Water and sanitation:
  - Access to drinking water: 22.0 percent overall (12.0 percent rural; 37.0 percent urban).
  - Target: 22 (2006); 24 (2007); 26.9 (2008); 49 percent by 2014.
  - Access to sanitation: 9.0 percent (2005); targets 9 (2006); 11.5 (2007); 15 (2008); 45 percent by 2015.
- Urban poverty and housing:
  - Annual housing shortfall: 240,000 units.
  - 1999: 396,620 substandard structures (94.6 percent dangerously built).
  - Projection: 5,211,288 shanties by 2010 if trends persist.
  - 81.0 percent households dissatisfied with housing (perception survey).
- Social protection:
  - No clear national policy at time of writing; activities fragmented and cover a very small proportion of vulnerable populations.
  - Vulnerable-group figures: nearly 40,000 street children; 10.7 percent of children are orphans (34 percent orphaned by AIDS); 2 percent of children with disability; 15,000 children conscripted into armed forces before age 18; 26 percent of girls are adolescent mothers.
  - Emergency Standard of Living Project (PUACV) financing: US$82 million (World Bank) — objectives and components preserved.

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### Poverty reduction strategy — vision, pillars, and quantitative targets (2006–2008)
- Long-term vision: Vision 26/25 — "Society of Hope" with cardinal principles: rule of law; decentralized governance; pluralist democracy; egalitarian democracy supported by liberating education; target of double-digit growth by 2030 with equitable redistribution aimed at achieving MDGs.
- Five strategic pillars:
  - PILLAR 1. PROMOTE GOOD GOVERNANCE AND CONSOLIDATE PEACE THROUGH STRENGTHENED INSTITUTIONS.
  - PILLAR 2. CONSOLIDATE MACROECONOMIC STABILITY AND GROWTH.
  - PILLAR 3. IMPROVE ACCESS TO SOCIAL SERVICES AND REDUCE VULNERABILITY.
  - PILLAR 4. COMBAT HIV/AIDS.
  - PILLAR 5. PROMOTE LOCAL INITIATIVES (DYNAMIQUE COMMUNAUTAIRE).
- Quantitative objectives (selected targets, expressed exactly as in source):
  - Real GDP growth rate: Current 6.5; 2006 7; 2007 7.7; 2008 8.4
  - End-of-period inflation rate (CPI): Current 21.3; 2006 8; 2007 6; 2008 6
  - Infant-child mortality rate (children under age 5 per 1,000 live births): Current 126; 2006 111; 2007 104; 2008 89
  - Maternal mortality rate (per 100,000 live births): Current 1,289; 2006 1,276.2; 2007 1,079.1; 2008 944.2
  - Gross primary school enrollment ratio: Current 64; 2006 64.1; 2007 70.8; 2008 80
  - Rate of HIV/AIDS prevalence: Current 4.5; 2006 <4.5; 2007 <4.5; 2008 <4.5
  - Rate of access to safe drinking water: Current 22; 2006 22; 2007 24; 2008 26.9
  - Rate of access to sanitation: Current 9; 2006 9; 2007 11.5; 2008 15
  - Incidence of poverty: Current 70.68; 2006 < 70; 2007 < 70; 2008 < 70

### Selected policy commitments and reforms (high-level)
- Public administration reforms: civil service census; early retirement program for ≈ 100,000 civil servants; PTS (Procedure) short-term payroll mechanism; SIG (Integrated Financial and Administrative Management System) medium/long-term.
- Governance and anti-corruption measures: publish anticorruption law information campaigns; audits of public enterprises; creation of Financial Intelligence Unit (CENAREF); reform public procurement via COREMAP; adopt new public procurement code.
- Revenue mobilization measures:
  - Customs: OFIDA transformation, computerization, preshipment inspection, one-stop shops, excise adjustments.
  - Taxes: generalization of taxpayer numbers, introduction of the VAT, updated taxpayer files, limit discretionary exemptions, tax center openings in Matadi, Lubumbashi, and Goma.
  - Nontax: law on nomenclature for nontax revenue; collection of forestry and mining revenues; transfer to Treasury.
- Public finance management measures (selected):
  - Limit wage bill to 4.7 percent of GDP (CGF 180 billion) by granting no increase in wages and benefits in 2006.
  - Execute at least 95 percent of expenditures through computerized payment orders (OPIs).
  - Monthly reporting and reconciliation procedures; completion of financial audit of HIPC savings by September 2006.

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### Macroeconomic framework — baseline and alternative scenarios (2006–2008) — selected exact figures
- Summary macro targets (Table 5 / Baseline):
  - Real GDP growth rate: 2005 Est. 6.5; 2006 Proj. 7.0; 2007 Proj. 7.7; 2008 Proj. 8.4
  - Inflation rate (end-of-period): 2005 Est. 21.3; 2006 Proj. 8.0; 2007 Proj. 6.0; 2008 Proj. 6.0
  - Growth in M2: 2005 Est. 24.6; 2006 Proj. 14.0; 2007 Proj. 14.7; 2008 Proj. 15.5
  - Current balance, excluding grants (percent of GDP): 2005 Est. -8.4; 2006 Proj. -10.1; 2007 Proj. -14.9; 2008 Proj. -16.6
  - Tax ratio: 2005 Est. 11.6; 2006 Proj. 12.3; 2007 Proj. 13.2; 2008 Proj. 14.0
  - Total expenditure: 2005 Est. 15.8; 2006 Proj. 24.3; 2007 Proj. 26.9; 2008 Proj. 29.0
  - Gross investment: 2005 Est. 14.1; 2006 Proj. 18.1; 2007 Proj. 23.7; 2008 Proj. 26.1
- Baseline fiscal flows (selected):
  - Fiscal and nonfiscal revenue: 2005: 374.8 (CDF billion); 2006: 389.0; 2007: 581.2; 2008: 711.7.
  - Total expenditure: 2005: 549.0; 2006: 514.9; 2007: 1,174.3; 2008: 1,463.8.
  - Consolidated general balance (including grants): 2005: -22.6; 2006: -89.2; 2007: -119.2; 2008: -142.4.
  - Consolidated general balance (excluding grants): 2005: -190.2; 2006: -141.4; 2007: -601.2; 2008: -760.1.
- Balance of payments (baseline, US$ millions:
  - Balance of trade: 2005: -165; 2006 Est.: -389; 2007 Proj.: -700; 2008 Proj.: -876.
  - FOB exports: 2005: 2,069; 2006 Est.: 2,350; 2007 Proj.: 2,585; 2008 Proj.: 2,973.
  - FOB imports: 2005: 2,234; 2006 Est.: 2,740; 2007 Proj.: 3,285; 2008 Proj.: 3,849.
  - Current balance (excluding grants): 2005: -600; 2006 Est.: -840; 2007 Proj.: -1,355; 2008 Proj.: -1,722.
- Alternative scenario (selected deviations and aggregates):
  - Real GDP alternative path shows modest deviations: 2006 Proj. Base 7.0; Alt. 7.1; 2008 Base 8.4; Alt. 7.3.
  - Alternative projections include higher gross domestic savings and different trade balances; example: Current balance (excluding grants) Alt. 2007: -1,103; 2008: -1,310 (US$ millions).

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### Implementation, monitoring, evaluation, institutional responsibilities, and risks
- Institutional roles (national level, exact responsibilities preserved):
  - Prime Minister: overall authority; chairs CI-SNLCP; assisted by Ministers of Planning, Budget, Finance, and Interior; presides over quarterly implementation reviews.
  - Ministry of Planning: coordinates physical execution, sectoral policies, NGO participation.
  - Ministry of Budget: budget programming and execution under MTEF.
  - Ministry of Finance: financial execution, revenue mobilization, compliance with macro framework.
  - Ministry of Interior: responsibility for Decentralized Administrative Entities.
  - CI-SNLCP: validate programs and action plans; prepare semiannual PRGSP progress reports.
- National coordination structure (missions preserved):
  - Monitor reforms and PRGSP action plans; harmonize partner strategies; promote stakeholder coordination; capacity-building for civil society; produce quarterly/semiannual/annual reports.
- Statistical and monitoring bodies:
  - INS: conduct national census and regular surveys (EDS, MICS, 1-2-3), create databank, publish poverty analyses.
  - OCPI (Poverty Observatory): independent structure to evaluate poverty evolution, develop methodologies, assess PRGSP impact and MDG progress.
- Monitoring system components:
  - Execution monitoring (resource and operational indicators).
  - Impact monitoring (outcome and impact indicators; MDG indicators as basis).
  - Participatory Monitoring and Evaluation (SEP): stakeholder-selected indicators, MIS, periodic SEP workshops, decentralized SEP coordination unit.
- Implementation risks and constraints (endogenous and exogenous; selected items preserved exactly):
  - Critical prerequisites/constraints: (i) peace; (ii) political, institutional, and economic stability; (iii) deregulation and external openness; (iv) capacities to absorb external resources and service loans; (v) observance of commitments.
  - Economic risks: inadequacy of budgetary resources; failure to execute capital budgets; limited capacity to absorb external resources (HIPC resources); resort to monetary financing if external disbursements delayed.
  - Political risks: continued insecurity, fragmentation, centralization of power, weak institutions, clientelism.
  - Data risks: lack of reliable statistics undermining monitoring and evaluation.
  - External dependence: DRC’s dependence on external assistance identified as "one of the major constraints on its development at present."

### Implementation safeguards and planned analyses
- Government to carry out analysis of absorptive capacity and debt sustainability in context of anticipated increase in external financing and HIPC completion point.
- Tax and customs reform accelerated to offset regional duty elimination obligations.

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### Annex III — Subjective poverty profiles (urban and rural) — selected characterizations
- Urban poverty profile (three household categories with exact descriptive distinctions):
  - Very poor: little or no support; eats haphazardly (once a day or almost nothing); housing adobe with + two rooms; uses well water; uses oil lamp; absolutely no security.
  - Poor and fragile: small-scale income activities or casual labor; eats regularly but once a day; uses REGIDESO water at neighbor’s; illicit electrical hook-up; little security.
  - Poor but stable: works in private enterprises/banks/Government; eats more than once a day; durable-material house; REGIDESO faucets on lot; electric power and pays bills; security acceptable while family healthy.
- Rural poverty profile (parallel three-category structure preserved):
  - Very poor: no income source, living by begging; no regular meal; travel five kilometers to water; uses matchsticks/lanterns; minimal security; childbirth at home.
  - Poor and fragile: wages by working for others; forced daily fast; travels by foot or bicycle; seeks treatment at medical centers but cannot pay.
  - Poor but stable: owns fields/livestock; at least two meals/day; bicycle for transport; radio and mattress; pays for medical treatment.
- Annex emphasizes multidimensional subjective criteria: family circumstances, income sources, diet, transport, living environment, water, energy, security, health, school enrollment.

_Italic: Content derived exclusively from IMF document _cr07330 — FOREWORD and 1.1 POST-CONFLICT CONTEXT (selected excerpts and tables as provided)._

### FOREWORD ...............................................................................................................

### FOREWORD

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- EXECUTIVE SUMMARY................................................................................................. 10
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*Source: _cr07330 - FOREWORD (pages and section headings as provided in the source content)*

### 1.1 POST-CONFLICT CONTEXT ...................................................................................... 13

### 1.1 POST-CONFLICT CONTEXT

### Scope and organization of the content unit
- Chapter and section headings indicate a comprehensive Poverty Reduction and Growth Strategy Paper (PRGSP) structure covering post-conflict context, poverty diagnostics, strategy, and implementation, monitoring, and evaluation.
- Time horizons and data coverage referenced repeatedly: 2006-2008, and longer-run poverty trends noted 2006-2030 and 1960-2022.
- Annexes present two macroeconomic framework scenarios: "BASELINE SCENARIO" and "ALTERNATIVE SCENARIO" with detailed tabulations for 2006–2008.

### Major themes and analytical components (as structured in the source)
- Post-conflict context and PRGSP preparation process (sections 1.1, 1.2).
  - Institutional framework for PRGSP preparation (1.2.1).
  - Preparation process (1.2.2).
- Poverty diagnosis (CHAPTER 2)
  - Perceptions of poverty and multidimensionality (2.1, 2.1.1).
    - Subtopics: Basic needs unmet; Deterioration of production factors: labor and capital; Absence of peace; Impunity, corruption, injustice, and exclusion; Poor access to basic social services (2.1.1.1–2.1.1.5).
    - Perceptions by area of residence, province, and specific social group (2.1.2–2.1.4).
  - Poverty profile (2.2)
    - Subjective profile (2.2.1).
    - Profile of absolute poverty in the DRC: Poverty threshold; Poverty indexes and characteristics; Inequality indexes and characteristics (2.2.2.1–2.2.2.3).
    - Poverty trends in the DRC, 2006-2030 (2.2.3).
    - Determinants of poverty: Multiple regression analysis; Categorical analysis (2.2.4.1–2.2.4.2).
  - Sectoral and thematic diagnosis (2.3)
    - Governance (2.3.1): Political governance; Administrative governance; Economic governance (2.3.1.1–2.3.1.3).
    - Sectors with growth potential (2.3.2): Rural development and agriculture; Forestry; Transport infrastructure; Mining; Electricity; Private sector (2.3.2.1–2.3.2.6).
    - Social sectors (2.3.3): Education; Health; Water and sanitation; Urban poverty and housing; Social protection; Gender (2.3.3.1–2.3.3.6).
    - HIV/AIDS (2.3.4) and Community-level dynamics (2.3.5).
- Poverty reduction strategy (CHAPTER 3)
  - I. VISION AND OBJECTIVES and QUANTITATIVE OBJECTIVES OF POVERTY REDUCTION (table referenced as "Tableau 4").
  - Five pillars of the strategy (full headings preserved):
    - PILLAR 1. PROMOTE GOOD GOVERNANCE AND CONSOLIDATE PEACE THROUGH STRENGTHENED INSTITUTIONS
      - 1.1 Promoting good governance: Administrative governance; Political governance; Economic governance; Improve the quality of statistics (1.1.1–1.1.4).
      - 1.2 Consolidate peace and security: Demobilization, Disarmament, and Reintegration; Integration and administration of the Army and the Police; Security of persons and property; Promotion of “good neighbor” relations in the subregion (1.2.1–1.2.4).
    - PILLAR 2. CONSOLIDATE MACROECONOMIC STABILITY AND GROWTH
      - 2.1 Macroeconomic framework and policies: Fiscal policy; Monetary policy; External policy (2.1.1–2.1.3).
      - 2.2 Boost economic activity and growth: Consolidate the sectors with growth potential; Promote the private sector (2.2.1–2.2.2).
    - PILLAR 3: IMPROVE ACCESS TO SOCIAL SERVICES AND REDUCE VULNERABILITY
      - 3.1 Education (including Universal primary education; Secondary education; Higher and university-level education; Non-formal education) (3.1.1–3.1.4).
      - 3.2 Health (Development of health zones; Strengthening at the intermediate level; Streamlining at the central level) (3.2.1–3.2.3).
      - 3.3 Water supply and sanitation; 3.4 Urban poverty (improve living conditions; town planning; housing); 3.5 Social protection; 3.6 Culture, science, and access to universal technology.
    - PILLAR 4. COMBAT HIV/AIDS (4.1–4.4 covering prevention, treatment, socioeconomic impact mitigation, coordination and M&E capacity).
    - PILLAR 5: PROMOTE LOCAL INITIATIVES (DYNAMIQUE COMMUNAUTAIRE)
- Implementation, monitoring, and evaluation of the PRGSP (CHAPTER 4)
  - Basic principles, implementation arrangements, monitoring and evaluation, institutional framework and bodies, partnerships (civil society, NGOs, donors), monitoring and evaluation indicators, execution and impact monitoring, participatory monitoring and evaluation (SEP), implementation constraints and risks (endogenous and exogenous) (4.1–4.6, including 4.6.1.1–4.6.2).

### Quantitative and tabular resources listed
- Annex I: MACROECONOMIC FRAMEWORK TABLES, BASELINE SCENARIO (Tables 8–15) covering:
  - Table 8. Democratic Republic of Congo: Principal socioeconomic indicators, 2006-2008.
  - Table 9. Democratic Republic of Congo: Sectoral breakdown of Gross Domestic Product at constant prices, 2006-2008.
  - Table 10. Democratic Republic of Congo: Resource-employment balance at current prices, 2006-2008.
  - Table 11. Democratic Republic of Congo: Government flow of funds, 2006-2008.
  - Table 12. Democratic Republic of Congo: Government flow of funds, 2006-2008.
  - Table 13. Democratic Republic of Congo: Breakdown of primary expenditures by government department, 2006-2008.
  - Table 14. Democratic Republic of Congo: Balance of payments, 2006-2008.
  - Table 15. Democratic Republic of Congo: Integrated monetary survey, 2006 – 2008.
- Annex II: MACROECONOMIC FRAMEWORK TABLES, ALTERNATIVE SCENARIO (Tables 16–21) with parallel coverage for 2006-2008 and additional scenario-specific sectoral and balance tables (Tables 16–21 and 17–21 referenced).
- Additional tables and profiles:
  - Table 1. Spatial poverty indexes and characteristics.
  - Table 2. Indexes and characteristics of socioprofessional groups.
  - Table 3. Sociodemographic characteristics.
  - Tableau 4. Objectifs quantitatifs de réduction de la pauvreté (en %, sauf indications contraires).
  - Tableau 5. Synthèse du Cadre macroéconomique, 2006–2008.
  - Tableau 6. Allocations aux Ministères prioritaires (en pourcentage des dépenses primaires).
  - Tableau 7. Evolution des croissances sectorielles et contribution des secteurs à la croissance du PIB réel, 2006–2008.
  - Tables 22–23. Profile of urban poverty; Profile of rural poverty.
- Charts and graphs referenced:
  - Chart 1. Trend of poverty in the DRC.
  - Chart 2. Poverty and inequality simulation for the DRC, 1960-2022.
  - Graphique 3. Public Finances in % of GDP, 2005-2008.

### Methodological and topical boxes (selected list titles as in source)
- Methodology.
- Psychological impact of conflict on well-being.
- Perception of insecurity owing to war.
- Perception of problems linked to isolation of the rural world.
- Perception of the consequences of conflict.
- Perception of inaccesibility of healthcare.
- Perception of problems accessing safe drinking water.
- Perception of problems linked to living conditions.
- Perception of the precariousness of life as a widow.
- Perception of women’s problems in rural areas.
- Perception of vulnerability associated with HIV/AIDS.
- Survival strategies in the DRC.
- Actions and reforms targeting public administration reform.
- Actions and reforms undertaken in the judicial system.
- Actions and reforms undertaken in respect of corruption.
- Actions and reforms undertaken with customs administration modernization since 2002.
- Actions and reforms undertaken in respect of tax administration modernization.
- Measures and reforms regarding controlling the management of public expenditure.
- Actions carried out in the context of public procurement reform.
- Actions taken in the area of political governance.
- Actions in the area of integration and improved administration of the Army and Police.
- Actions taken in the area of public debt management.
- Programs and projects underway in the area of agriculture and rural development.
- Actions taken in the forestry sector.
- Programs and projects currently underway in the transport sector.
- Actions taken in the mining sector.
- Actions carried out in the electricity sector.
- Actions and reforms undertaken in the private sector.
- Actions taken in the employment sector.
- Actions taken in the education sector.
- Actions taken in the health sector.
- Main donors involved in the water supply and sanitation sector.
- Actions in the social protection area.
- Actions taken in the fight against HIV/AIDS.
- Mechanisms in place during PEG implementation.

### Acronyms and abbreviations (selection preserving exact forms)
- ADQ : Association de Développement de Quartier [neighborhood development association]
- ADV : Association de Développement de Village [village development association]
- AfDB : African Development Bank
- AIDS/HIV : Acquired Immune Deficiency Syndrome/Human Immunodeficiency Virus
- APRM : Accelerated Participatory Research Method
- BCC : Central Bank of the Congo
- BUNADER : Bureau National de Démobilisation et de Réinsertion [National Office for the Demobilization and Reintegration of Combatants]
- CGF : Congolese franc
- DFID : Department for International Development
- DRC : Democratic Republic of the Congo
- EFA : Education For All Program
- FNRP : National Poverty Reduction Fund
- GDP : Gross Domestic Product
- HPI-1 : Human Poverty Index for developing countries
- IMF : International Monetary Fund
- MDGs : Millennium Development Goals
- MTEF : Medium-Term Expenditure Framework
- PRGF : Poverty Reduction and Growth Facility
- PRGSP : Poverty Reduction and Growth Strategy Paper
- PRS : Poverty Reduction Strategy
- SNEL : Société Nationale d’Electricité [national electric power company]
- UNDP : United Nations Development Programme
- WB : World Bank
- WHO : World Health Organization
- (Full acronyms and abbreviations list appears in the source.)

*Source: _cr07330 - 1.1 POST-CONFLICT CONTEXT (table of contents, acronyms, boxes, tables, and charts list) — content unit as supplied.*

### FOREWORD

### _cr07330 - FOREWORD

### Foreword — Context and Purpose
- The final Poverty Reduction and Growth Strategy Paper (PRGSP) for the Democratic Republic of the Congo (DRC) is prepared three years after the Interim PRSP (I-PRSP) amid emergence from a long conflict and political transition.
- The PRGSP provides the new Government (post-2006 elections) with:
  - a framework for national reconciliation and consolidation of peace;
  - a frame of reference for government policy and cooperation with development partners to revitalize the economy and combat poverty.
- The PRGSP is deliberately modest in scope, aligned with short- and medium-term objectives for 2006–2008 and the Millennium Development Goals (MDGs), and aims to:
  - upgrade State institutions and structures;
  - introduce appropriate sectoral policies consistent with program objectives defined by the people;
  - build capacity toward reaching the completion point under the HIPC Initiative.

### Executive summary — Key findings and strategic orientation
- Political and reform progress
  - Democratic process advancements: constitutional referendum in December 2005; promulgation of the constitution and election law in February 2006; legislative and presidential elections scheduled for 2006.
  - Government reforms since 2001: fiscal and monetary reforms; reforms in key economic sectors.
  - Objective to reach the HIPC Initiative completion point in 2007.

- Participation and methodology in PRGSP preparation
  - Process combined qualitative and quantitative methods to: (i) conduct a poverty diagnosis; (ii) define a long-term vision; (iii) formulate the strategy; and (iv) develop implementation, monitoring, and evaluation frameworks.
  - Participation methods included: sectoral and theme-based consultations; systematic involvement of civil society and grassroots communities; qualitative and quantitative surveys; involvement of national experts and sectoral ministries; capacity building workshops at central and provincial levels; participation of development partners.

- Poverty diagnosis — quantitative highlights
  - Monetary poverty and inequality:
    - 71.34 percent of the poor (per 1-2-3 survey).
    - Gini index of 40 percent overall.
    - Urban: 61.49 percent of the urban poor have a Gini index of 40 percent.
    - Rural: 75.72 percent of the rural poor have a Gini index of 36 percent.
  - Poverty distribution:
    - Poorest provinces are in the eastern part of the country.
    - Greater poverty among informal sector workers, young couples, and the elderly.
  - Human development, living conditions, HIV/AIDS prevalence, and social protection indicators confirm poverty is generalized, chronic, and mass.
  - Assessment: DRC would be hard pressed to achieve the MDGs by 2015.

- Long-term vision: Vision 26/25
  - Vision emerged from participatory process as strategy foundation.
  - Builds a "Society of Hope" based on: (i) national unity and territorial integrity; (ii) security, justice, equality, and the rule of law; (iii) work, wealth, prosperity, and sustainable development; and (iv) peace and national solidarity.
  - Target: by 2030 move toward double digit growth rates with equitable redistribution aimed at achieving the MDGs.
  - Four cardinal principles: the rule of law; a decentralized governance system; a pluralist democracy; and an egalitarian democracy supported by liberating education.

- Strategic pillars (five)
  - (i) promoting good governance and consolidating peace through institution building;
  - (ii) consolidating macroeconomic stability and growth;
  - (iii) improving access to social services and reducing vulnerability;
  - (iv) combating HIV/AIDS;
  - (v) supporting dynamism at the community level.
  - Emphasis: strong and equitable growth dependent on peaceful and secure conditions and good governance; equitable redistribution via political, institutional, and sectoral reforms, increased transparency, decentralization, improving access to basic social services, reducing vulnerability, and combating HIV/AIDS.

- Implementation, monitoring, and evaluation
  - Short-term emphasis on capacity building for poverty analysis and planning, financing, and implementation of priority programs and projects.
  - Participatory monitoring and evaluation system organized as:
    - (i) monitoring of strategy execution;
    - (i) monitoring of the poverty indicators;
    - (iii) assessment of the impact of the strategy’s policies.
- Implementation constraints
  - Subject to endogenous and exogenous constraints: security, political, institutional, economic, and social factors.

### Chapter 1 context — Post-conflict macroeconomic and social context
- Political and institutional background
  - PRGSP prepared following National Peace and Reconciliation Agreement (December 16, 2002) and founding of transition institutions (Government of National Unity took office in July 2003; Parliament and Senate in 2004).
  - New Constitution adopted by referendum in December 2005 and promulgated on February 18, 2006; legislative and presidential elections scheduled for second half of 2006.

- Debt and external accounts
  - External indebtedness estimated at US$10.822 billion as of December 31, 2005 (following debt relief).
  - Debt service payments:
    - US$154.1 million in 2005;
    - US$251.6 million in 2006.

- Social indicators
  - Proportion of persons living below the poverty line:
    - 80 percent in 2001;
    - 70.68 percent in 2005.
  - Deterioration in quality of and access to basic social services; high prevalence of HIV/AIDS; destruction and lack of maintenance of social infrastructures; many conflict-injured persons, displaced individuals, refugees, orphans, and street children.

- Macroeconomic performance and trends
  - Inflation:
    - 511 percent in 2000;
    - 135.1 percent in 2001;
    - 16.0 percent in 2002;
    - 4.4 percent in 2003;
    - 9.2 percent in 2004;
    - 22.6 percent in 2005.
  - National currency depreciation:
    - depreciated by only 10.7 percent between 2001 and 2004.
  - Real GDP growth:
    - average annual drops of 5.5 percent between 1991 and 2000;
    - -2.1 percent in 2001;
    - 3.5 percent in 2002;
    - 5.7 percent in 2003;
    - 6.8 percent in 2004;
    - 6.6 percent in 2005.
  - Current account deficit:
    - represented 3.4 percent of GDP in 2005 (before debt relief);
    - 2.0 percent of GDP in 2004 (after debt relief).
  - Gross external reserves (excluding aid) increased from 4.7 to 6.2 weeks of imports and goods and services between 2001 and 2004.

- Public finance outcomes
  - Revenue:
    - increased from 6.2 percent of GDP in 2001 to 11.0 percent in 2005.
  - Expenditure:
    - increased from 7.9 percent of GDP in 2001 to 16.6 percent in 2005.
  - Overall deficit on a cash basis:
    - 0.7 percent of GDP in 2005.

- Assessment and outlook
  - Recent macroeconomic improvements are encouraging but insufficient and precarious relative to poverty-reduction needs and rigidities of the Congolese economy.
  - Conclusion: extraordinarily difficult, if not impossible, to achieve the MDGs by 2015 without double-digit growth rates for the next ten years, pro-poor budgets, and continuation of economic and structural reforms.

### PRGSP preparation process — Institutions and participation
- Launch and participants
  - Process launched in November 2003 by the Vice President responsible for the Economic and Financial Commission.
  - Participants: members of Government, heads of territorial governments, civil society organizations, the private sector, other national actors, and development partners.

- Institutional framework (updated from Interim PRSP)
  - Interministerial Commission on Implementation of the National Poverty Reduction Strategy (CI-SNLCP): decision-making on process issues.
  - Steering Unit for the Poverty Reduction Strategy Preparation and Implementation Process (UPPE-SRP): day-to-day management and questions relating to combating poverty.
  - Technical Committee (CT): heads of Research and Planning Directorates of sectoral ministries and representatives of civil society and NGOs; supports UPPE-SRP and analyzes sectoral and thematic issues.
    - The Technical Committee is subdivided into Sectoral and Thematic Groups: (i) Peace, political governance, and administrative and judicial reforms; (ii) Macroeconomic framework and harmonization of government programs; (iii) Fiscal and economic reforms, Education; (iv) Private sector, wealth creation, jobs, microfinance, and banking sector; (v) Rural development and agriculture; (vi) Education; (vii) Health and HIV/AIDS; (viii) Urban poverty; (ix) Gender, vulnerable groups, and security; (x) Environment; (xi) Community-level dynamics and basic services; (xii) Culture, communications, and new technologies; (xiii) Transport infrastructure; (xiv) Mines; (xv) Energy; and (xvi) Methodology.
  - Consultative Committee of Partners (CCP): bipartite Government and donors structure for evaluating the PRGSP process and mobilizing resources.
  - Local Technical Committees (CTLs): established to work on preparation and implementation at each province level.

- Preparation modalities
  - PRGSP based on consensual conclusions and recommendations from participatory consultations with grassroots communities, civil society, private sector, and technical services of sectoral ministries.

*Source: _cr07330 - FOREWORD*

### 25.      As   distinguished   from   the   case   of   the   Interim   PRSP,   the   participatory

### Chapter 2: DRC Poverty Diagnosis

### Participatory consultations and inputs to the PRGSP
- Consultations took place in every province of the country, including the city/province of Kinshasa.
- Participants included representatives of civil society, NGOs, religious denominations, various women’s and children’s associations, sectoral technical ministries, the private sector, community development organizations at the province and territorial levels, the Province Governors, and political and technical leaders.
- More than 34,995 persons took part in these consultations.
- The PRGSP also took into account the main lines of the general reconstruction program of the State and the provisions of the Sun City Peace Accord, particularly regarding governance and recommendations on reconstruction and the revitalization of socioeconomic development.

### Introduction and methodological basis
- The poverty diagnosis confronts challenges of lack of security, difficult access to provinces, and mobilization of entities covered by the survey.
- The diagnosis emphasizes the complex and multidimensional nature of poverty: cultural, economic, political, social, legal, and human rights facets.
- Methodological trade-offs: broad scope enhances realism but reduces robustness due to methodological and conceptual simplifications and numerical approximations.
- Data sources used:
  - Quantitative data: 1-2-3 survey.
  - Qualitative data: SOPPPOC and the APP.
  - Partial data from other sources such as the MICS 2 survey of 2001 and sectoral consultations.
- Box 1 (Methodology) highlights:
  - A grid of 14 groups of reference variables derived from participatory analysis.
  - Opinion poll on perceptions of poverty to capture views on each variable.
  - Complementarity of qualitative methods (participatory analysis and opinion poll) yielding a subjective profile of poverty.
  - The 1-2-3 survey refines the subjective profile by: (1) defining the poverty line (food line and nonfood line); (2) calculating indices in the Foster-Greer-Thorbecke (FGT) family; (3) quantitative analysis of characteristics of the poor (spatial, socioeconomic, demographic, etc.); and (4) projection of spatial and temporal trends using MDG (2015) and Vision 26/25 (2030) horizons.
  - Use of other surveys and studies for social profile and sector performance (MICS II Survey, RESEN, BERCI Survey, site inventory of the health sector, Report on governance in the DRC, Central Bank of the Congo, etc.).
  - Short-term filling of national statistics gaps and a government commitment to devise and implement a National Strategy for the Development of Statistics (SNDS).

### Perceptions of poverty (overview)
- The profile of poverty from community-level consultations and opinion polls is multidimensional, varies by place of residence, province, and social group.
- Main dimensions around which perceptions revolve:
  - (i) unmet basic needs;
  - (ii) deterioration in production factors;
  - (iii) the absence of peace;
  - (iv) the culture of impunity boosting corruption, injustice, and exclusion;
  - (v) poor access to basic social services.

### Basic needs unmet
- Core concerns: having enough to eat, adequate clothing, housing, and the capacity to consult a physician when illness strikes.
- Field quotations illustrating living conditions:
  - “In Bokude where I live, we eat once a day, and have a meal consisting basically of manioc leaves, chikwangue, or corn meal. I spend CGF 200 a day, and there are 12 of us.”
  - “We wear Tombola-Buaka (used clothing),” (Musangu, Mont-Ngafula, Kinshasa).
  - “We have to go 6 kilometers to get water, and it isn’t potable because it isn’t protected.” (Bandundu)
- SOPPPOC opinion poll results:
  - 79 percent of the population is not satisfied with food consumption levels.
  - 81 percent is not satisfied with its housing.
  - 82 percent indicates the lack of ability to pay for health care.
  - 84 percent of those polled say they have problems obtaining adequate clothing.

### Deterioration of production factors: labor and capital
- Poverty perceived as low production, absence of buyers, and nonexistence of marketing channels.
- Farmer testimony (Hehu, Nyiragongo, Nord-Kivu):
  - “Before the 1996 war, I was producing 45 metric tons of potatoes, while now (after the war) I can produce only 4 metric tons, so I have to buy the stock I need from other farmers and then go resell it in Goma.”
- Poverty perceived as lack of jobs, initiatives, and long-term vision due to absence of enterprises able to create jobs.
- Unemployed Kinshasa resident:
  - “I’m unemployed. I spend my time on the street corner talking about music and soccer, and if I’ve got a little luck, a buddy will give me CGF 50 so I can go get something to eat in the evening.”
- Lack of capital and access to credit is a brake on human development; agronomist from Kinshasa:
  - “I have a degree in agronomy, but I can’t find a job. To survive, I get by by raising small market garden crops, although the shortage of capital keeps me from growing. So I design projects for other people. I have cinderblocks made and resell them.”

### Absence of peace and conflict-related impacts
- Forty years of conflict have had negative impacts on well-being, especially psychological effects.
- Field testimonies of violence and displacement:
  - Residents of Karangara, Nord-Kivu: displacement, loss since 1994 refugee influx and subsequent wars.
  - A woman from Nord-Kivu: “In 1996, when the AFDL war started, my husband fled and the rebels arrested me. I was raped in the presence of my children. My female grandchildren were also raped in my presence, and finally, they took everything from us.”
  - A 15-year-old girl from Orientale Province describing abduction and sexual violence.
  - Kitshanga, Masisi, Nord-Kivu: “The people are on the move all the time, unable to return to their villages because of the lack of security. As a result, the women have become agricultural workers making CGF 150 a day, or about US$0.33. Just to survive, the men from this village became bearers between the city and the surrounding markets.”
- Box 2 — Psychological impact of conflict on well-being (selected statistics):
  - “I have nightmares” (63.4 percent of the population).
  - “I feel sad” (70.4 percent).
  - “I’m afraid” (53.1 percent).
  - “I’m angry” (41.8 percent).
  - Poor suffer more stress than non-poor (example: 70.9 percent of people in the lowest quartile of wealth suffer from nightmares, vs. 54.6 percent in the highest quartile).
  - Nationwide, 91.8 percent consider themselves to be of value and 77.1 percent consider themselves strong enough to improve their living conditions.
  - Forward-looking projects by quintile: first quintile 82 percent; fifth quintile 95.9 percent.

### Impunity, corruption, injustice, and exclusion
- The culture of impunity encourages corruption, injustice, and exclusion and is regarded as a major factor behind suffering.
- Merchant from Dimbelenge, Kasai Occidental Province:
  - “Unlawful taxes are created to fleece merchants. They are never told the nomenclature of the taxes. Consequently, tax collectors take advantage of this situation to impose lump-sum charges.”
- Kamina, Katanga: prevalence of influence peddling; Peace Tribunal dubbed the “Tribunal of Misfortune” characterized by rampant corruption and arbitrary arrests and convictions.
- Kinshasa young man on insecurity:
  - “The Plateau universitaire neighborhood has always been an insecure place. Nicknamed ‘Chad,’ it is the site of murders, rapes, banditry, and so on.”

### Poor access to basic social services
- Inability to consult a physician and reliance on self-medication and traditional medicine.
- SOPPPOC opinion poll results:
  - 76 percent of households are not satisfied with the education of their children.
  - 82 percent are dissatisfied with their health care.
- Consequences for education access and quality:
  - Parents often send only one or two children to school (often boys); some send children long distances.
  - Schools are poorly equipped and lack qualified teachers; some parents do not educate their children at all.
- Field examples:
  - “So my child can study in the third year of primary school, I pay the fees of CGF 500 (US$1) by agreeing to cultivate five ares (20 by 25 meters) of the teacher’s fields.” (Mrs. K, a farmer in Katanga)
  - In one community of Orientale Province, parents send their children to a school located more than 15 kilometers from their place of residence.

### Perception by area of residence
- Rural areas: poverty perceived as lack of production factors (money, agricultural inputs, technical support), compounded by insecurity, difficult access to drinking water, lack of transport infrastructure, and poor road conditions.
- Urban areas: poverty perceived as lack of money, jobs, electricity, easy-to-use transportation, decent housing, drinking water, and sanitation.

### Perception by province (selected highlights)
- Sud-Kivu, Nord-Kivu, Katanga, Equateur, Maniema: characterized by (i) absence of peace and security; (ii) loss of jobs, herds, and cultivated crops; (iii) difficult access to basic social services; (iv) unhealthy housing; (v) inadequacy or dilapidation of school and health infrastructures; (vi) injustice and lack of freedoms.
- Bas-Congo: lack of children, lack of education, and lack of a spirit of initiative.
- Kasai Oriental and Kasai Occidental: lack of electricity, inadequately balanced diets, lack of means of transport, presence of erosion.
- Equateur Province: inability to access agricultural inputs and technical support; inadequacy and lack of drinking water; isolation; poor agricultural production; difficulty accessing markets; annoyances from administration and police; failed marriages; polygamy; heavy work demands on women; lack of roads.
- Bandundu: lack of sufficient and balanced nutrition, poor agricultural production, problems accessing markets for agricultural products, and erosion.
- Katanga: bankruptcy of GECAMINES; annoyances from administration and police; isolation of villages; absence, dilapidation, and inadequacy of school infrastructure; lack of peace and security; land conflicts; cyclical community conflicts.
- Orientale Province: lack of socioeconomic infrastructures.
- Kinshasa: lack of jobs, absence of a spirit of initiative, lack of sufficient and balanced nutrition, and lack of capital for engaging in productive activity.

### Perception by specific social group
- Children in difficult situations: poverty characterized by the death or absence of one parent or the other.
- Persons living with HIV/AIDS: poverty manifests in being rejected by society.
- Persons with disabilities: poverty manifests in a physical, mental, or social handicap.
- Women: particular concern about lack of access to financing sources despite an increasingly important role in production and household survival.

_Italic: Content derived from the provided IMF chapter text._

### 52.      The  results  of  the  participatory  consultations  reveal  a  poverty  profile  based  on  the  five

### _cr07330 - 52.      The  results  of  the  participatory  consultations  reveal  a  poverty  profile  based  on  the  five

### Participatory consultations — poverty profile
- Poverty profile based on five groupings:
  - (i) basic needs;
  - (ii) productive activities;
  - (iii) basic services;
  - (iv) security and vulnerability;
  - (v) culture and family.
- Households subdivided into three categories by seriousness:
  - (i) extremely poor;
  - (ii) poor and fragile;
  - (iii) poor but stable.
- Urban and rural poverty profiles are similar for:
  - (i) basic needs;
  - (ii) security and vulnerability;
  - (iii) culture and family.
- Urban and rural profiles differ somewhat for:
  - productive activities; and
  - basic services.
- Note: specific traits identified by the provinces.

### Poverty threshold (food and nonfood poverty lines)
- Food poverty line (based on 1-2-3 survey, household basket representing approximately 90 percent of total household spending on food):
  - CGF 123,070 per person per year in urban areas;
  - CGF 82,755 per person per year in rural areas.
- Nonfood poverty line (average nonfood expenditure of households in the selected interval):
  - CGF 30,195 per person per year in urban areas;
  - CGF 14,900 per person per year in rural areas.
- Combined food + nonfood poverty lines:
  - CGF 153,265 per person per year in urban areas;
  - CGF 97,655 per person per year in rural areas.

### Poverty indexes and characteristics — overall and spatial
- Overall national poverty (Foster-Greer-Thorbecke indices):
  - Incidence of poverty (P0): 71.34 percent;
  - Depth of poverty (P1): 32.23 percent;
  - Severity of poverty (P2): 18.02 percent.
- Area of residence:
  - Population: Urban 30.76 percent, Rural 69.24 percent.
  - Urban: P0 61.49 percent; P1 26.21 percent; P2 14.10 percent.
  - Rural: P0 75.72 percent; P1 34.90 percent; P2 19.76 percent.
  - Observation: incidence, depth, severity, and vulnerability higher in rural areas; urban residents better off; evidence tends to favor urban migration in the DRC.
- Provincial disparities (selected figures):
  - Kinshasa: Population 10.67 percent; P0 41.60 percent; P1 13.43 percent; P2 5.89 percent.
  - Bas-Congo: Population 5.90 percent; P0 69.81 percent; P1 23.82 percent; P2 10.56 percent.
  - Bandundu: Population 11.50 percent; P0 89.08 percent; P1 44.80 percent; P2 26.62 percent.
  - Equateur: Population 10.43 percent; P0 93.56 percent; P1 50.75 percent; P2 31.38 percent.
  - Province Orientale: Population 12.07 percent; P0 75.53 percent; P1 33.96 percent; P2 18.99 percent.
  - Nord Kivu: Population 7.98 percent; P0 72.88 percent; P1 32.23 percent; P2 18.37 percent.
  - Maniema: Population 2.85 percent; P0 58.52 percent; P1 20.98 percent; P2 9.83 percent.
  - Sud Kivu: Population 7.00 percent; P0 84.65 percent; P1 38.59 percent; P2 20.92 percent.
  - Katanga: Population 15.54 percent; P0 69.12 percent; P1 32.54 percent; P2 18.42 percent.
  - Kasai Oriental: Population 8.49 percent; P0 62.31 percent; P1 26.94 percent; P2 14.84 percent.
  - Kasai Occidental: Population 7.58 percent; P0 55.83 percent; P1 21.51 percent; P2 10.73 percent.
- Three provinces with poverty incidence of 85 percent or more:
  - Equateur, Bandundu, and Sud Kivu.
- Least poor: Kinshasa (42 percent poor) followed by Kasai Occidental and Maniema (where incidence is less than 60 percent).
- Katanga Province (69 percent) poorer than both Kasai provinces and Maniema.

### Disparities among socioprofessional groups
- Poverty incidence by socioprofessional category (selected figures):
  - Management personnel: Population 2.05 percent; P0 48.62 percent; P1 18.72 percent; P2 10.42 percent.
  - Collaborative personnel: Population 2.86 percent; P0 48.53 percent; P1 18.95 percent; P2 9.65 percent.
  - Line supervisor: Population 2.00 percent; P0 60.34 percent; P1 22.83 percent; P2 11.31 percent.
  - Skilled worker or employee: Population 6.32 percent; P0 62.83 percent; P1 25.70 percent; P2 13.41 percent.
  - Semi-skilled worker or employee: Population 2.80 percent; P0 71.47 percent; P1 30.62 percent; P2 16.50 percent.
  - Laborer: Population 2.32 percent; P0 67.66 percent; P1 31.98 percent; P2 18.54 percent.
  - Owner: Population 2.61 percent; P0 46.39 percent; P1 17.60 percent; P2 8.66 percent.
  - Self-employed worker: Population 67.35 percent; P0 75.52 percent; P1 34.75 percent; P2 19.62 percent.
  - Apprentice: Population 0.17 percent; P0 80.25 percent; P1 43.03 percent; P2 24.95 percent.
  - Family worker: Population 11.54 percent; P0 69.40 percent; P1 31.96 percent; P2 18.11 percent.
- Key observations:
  - Self-employed workers and apprentices are the poorest (77 percent mentioned in text; detailed table shows self-employed P0 75.52 percent, apprentice P0 80.25 percent).
  - Manual laborers P0 68 percent (table: 67.66 percent).
  - Semi-skilled employees and workers P0 71.5 percent (table: 71.47 percent).
  - Poverty exceeds 48 percent among management and collaborative personnel.
- Correlation: poverty characteristics closely correlated with depth and severity; risk and vulnerability high across groups.

### Sociodemographic disparities
- Poverty by age of head of household (selected figures):
  - <=20 years: Population 0.75 percent; P0 56.48 percent; P1 21.07 percent; P2 10.84 percent.
  - 20-30 years: Population 13.30 percent; P0 62.28 percent; P1 25.29 percent; P2 13.16 percent.
  - 30-40 years: Population 26.31 percent; P0 71.07 percent; P1 31.10 percent; P2 16.93 percent.
  - 40-65 years: Population 53.27 percent; P0 74.18 percent; P1 34.99 percent; P2 20.11 percent.
  - 65 + years: Population 6.36 percent; P0 69.39 percent; P1 29.51 percent; P2 16.09 percent.
- Gender of head of household:
  - Male: Population 86.19 percent; P0 71.57 percent; P1 32.54 percent; P2 18.27 percent.
  - Female: Population 13.81 percent; P0 69.89 percent; P1 30.29 percent; P2 16.51 percent.
  - Observation: No disparity in incidence between male- and female-headed households; depth and severity somewhat more favorable in male-headed cases.
- Household size:
  - 1-3 members: Population 13.26 percent; P0 44.02 percent; P1 16.10 percent; P2 8.08 percent.
  - 3-5 members: Population 24.69 percent; P0 65.86 percent; P1 26.41 percent; P2 13.79 percent.
  - 5-10 members: Population 49.94 percent; P0 78.46 percent; P1 36.35 percent; P2 20.39 percent.
  - 10 + members: Population 12.11 percent; P0 83.04 percent; P1 44.74 percent; P2 27.77 percent.
  - Observation: larger households tend to be poorer; households with 10 or more members have incidence over 80 percent; households with three members show 44 percent poverty.
- Education of head of household:
  - Primary school: Population 25.91 percent; P0 76.34 percent; P1 35.37 percent; P2 20.17 percent.
  - Secondary school: Population 54.12 percent; P0 71.86 percent; P1 32.17 percent; P2 17.85 percent.
  - Non-formal program: Population 1.02 percent; P0 56.33 percent; P1 22.45 percent; P2 11.49 percent.
  - University/postgraduate: Population 5.80 percent; P0 34.05 percent; P1 11.98 percent; P2 5.64 percent.
  - Not specified: Population 13.14 percent; P0 76.98 percent; P1 35.94 percent; P2 20.46 percent.
  - Observation: education improves household living conditions; majority of poor (76 percent in text) live in households headed by individual with primary school education; incidence less than 35 percent in households headed by individual with university degree (table: P0 34.05 percent).
- Marital status of head of household (selected figures):
  - Single (never married): Population 2.35 percent; P0 53.36 percent; P1 20.33 percent; P2 10.54 percent.
  - Married, monogamous: Population 69.32 percent; P0 72.03 percent; P1 32.82 percent; P2 18.45 percent.
  - Married, polygamous: Population 11.11 percent; P0 74.70 percent; P1 34.84 percent; P2 19.57 percent.
  - Unmarried partner: Population 5.83 percent; P0 72.10 percent; P1 30.39 percent; P2 16.38 percent.
  - Divorced, Separated: Population 3.66 percent; P0 61.93 percent; P1 27.46 percent; P2 15.25 percent.
  - Widow/widower and other: Population 7.73 percent; P0 69.67 percent; P1 30.38 percent; P2 16.81 percent.
  - Observation: greater poverty where head is polygamist (75 percent in text; table P0 74.70 percent) than monogamist (72 percent); single-headed households less subject to poverty (53 percent).

### Inequality indexes and characteristics
- Gini index of inequality: 42 percent (described as quite high).
- Provincial inequality patterns:
  - Kasai provinces and Katanga: Gini coefficients in excess of 40 percent.
  - Bas-Congo and Sud-Kivu: relatively low inequality rates.
  - Kinshasa: high inequality (39 percent).
- Inequality by category:
  - Highest inequality index 45 percent in categories at the extreme (households headed by a manager and/or by a family worker).
  - Lowest inequality among apprentices (27 percent) and manual laborers (37 percent).
- Other inequality observations:
  - Inequalities more pronounced among young households (53 percent) and less high in older households.
  - No significant difference between inequality in urban areas (40 percent) and rural areas (39 percent).
  - No apparent correlation between inequality and increasing household size, level of education of head of household, or marital status.

### Poverty trends in the DRC, 2006-2030 (simulations and scenarios)
- Simulation inputs:
  - Based on incidence of poverty, the Gini index, and per capita GDP for 2005.
  - Simulations for 2006-2025 with varying assumptions:
    - per capita GDP growth: 5 percent, 8 percent, 10 percent, and 12 percent;
    - gradual decline in the Gini index for the poor: 1 percent, 5 percent, and 10 percent;
    - Gini index for the population as a whole beginning in 2009: 5 percent.
- First scenario (Gini index for 2005 held constant; Chart 1 outcomes):
  - With growth rate of 5 percent a year:
    - DRC will not be able to reduce poverty by half by 2015;
    - incidence of poverty would decline from 71 percent to about 45 percent.
  - With growth rate of 8 percent a year:
    - DRC could achieve the first MDG in about 2015-2016.
  - With growth rate on the order of 10 percent a year:
    - DRC could achieve that goal in about 2011-2013.
  - With growth rate on the order of 12 percent a year:
    - DRC could achieve that goal in about 2011.
- Second scenario (Chart 2: growth rate 5 percent a year with income redistribution reducing Gini for the poor):
  - Results:
    - (i) incidence of poverty remains stable from independence to the oil shock of 1978;
    - (ii) beginning in the 1980s, incidence of poverty rises to slightly over 80 percent in the early 2000s;
    - (iii) a downward trend observed beginning in 2004 could continue, reaching the 60 percent level in 2022.
- Overall conclusion from trends:
  - It is possible to reduce the incidence of poverty by half by 2015 by adopting a macroeconomic strategy hinging around double digit growth rates if growth is accompanied by a distributive justice strategy.

### Determinants of poverty (econometric analysis)
- Methods used:
  - Multiple regression (linear regression using logarithm of assets score as dependent variable).
  - Categorical analysis (probit regression to explain having only one meal a day).
- Variables considered (explanatory):
  - Household size and composition (number of children, adolescents, adults; marital status; type of union; gender of head; age of head and spouse/partner);
  - Characteristics of head and spouse/partner regarding education and employment;
  - Locality of residence and migratory status of head of household;
  - Land holding (variable not included in assets score dependent variable).
- Key regression results:
  - Family structure, level of education, type of employment, and province of residence are key determinants of the logarithm of the household assets score.
  - Family structure detail:
    - In urban areas, one additional adult brings about a gain of approximately 8 percent to 13 percent in the assets score;
    - In rural areas, one additional adult brings about a gain of approximately 2 percent to 3 percent in the assets score.
  - Note: household size likely inversely correlated with consumption per capita.

*Source: 1-2-3 Survey, 2004-2005 (joint analysis by World Bank—Afristat—UPPE) and related analyses presented in the content unit.*

### 76.      Level   of   education.   The   status   of   the   head   of   household   and   his/her

### _cr07330 - 76.      Level   of   education.   The   status   of   the   head   of   household   and   his/her

### Education and household well-being
- Households headed by an illiterate individual have 15 percent gains in wealth in urban areas.
- In urban areas, the corresponding gain for the spouse/partner is 8.5 percent.
- In rural areas, gains from literacy are small and statistically significant only for the spouse/partner.
- In respect of literacy, the higher the level of education, the better the living conditions of the household.
- Returns on schooling are low in the DRC in comparison with other similar countries; possible explanation: disappearance of the formal private sector and decline in real wages in the public sector, leading to poor gains from education.

### Employment and living conditions
- Urban households in which the head of household is unemployed or has left the labor market are better off than households in which the head is employed.
- Possible interpretations:
  - Only households with significant capital accumulation can afford to forgo work.
  - Well-off heads may declare themselves unemployed while engaging in clandestine and highly remunerative activities.
- Among households where the head is working, farmers tend to have poorer living conditions than wage earners and self-employed individuals; holds for both head and spouse/partner.

### Province of residence (living standards)
- Among urban areas, households in the provinces of Bas-Congo and Kinshasa tend to have higher living standards.
- Bas-Congo households are also more likely to have good living standards among rural households.

### Categorical analysis — likelihood of eating just one meal a day
- Family structure:
  - In rural areas, one additional child (age 5–14) increases by about 2 percentage points the likelihood of having only one meal per day.
  - In urban areas, for each additional adult, the likelihood of eating once a day declines by 4 percentage points.
  - Households headed by women are less susceptible to having only one meal per day.
- Level of education and employment:
  - The level of education of the head of household has no significant impact on the number of meals consumed daily.
  - In urban areas, the level of education of the wife has a positive correlation with the number of daily meals.
  - Households in which the head is self-employed are less prone to have just one meal (6 to 7 percentage points) compared with households headed by a farmer; conclusion also holds when the spouse/partner is self-employed.
- Province of residence:
  - Kinshasa households have a better situation with respect to food than households in other provinces.
  - Majority of rural households have a high propensity to have only one meal per day (exceptions: Bandundu and Maniema).
- Assets score:
  - Strong positive correlation between the assets score and the number of meals per day.
  - Households in the first quintile (by assets or wealth score) have an extremely great probability of having a single meal per day.

### Governance — overview
- The DRC faces fragile peace, insecurity, and increased poverty as consequences of conflicts.
- Participatory consultations identified multiple governance issues—political, administrative, and economic—as major determinants of poverty.

### Political governance
- Past decade marked by armed political conflicts undermining domestic and external stability, dysfunction of the State apparatus, negative economic growth, deterioration in social conditions, massive internal and external displacement.
- Presence of militias and foreign armies exacerbated security, creating risk of Balkanization.
- Humanitarian impact in 2004:
  - Estimated 200,000 refugees on Congolese soil and 380,000 Congolese refugees abroad in 2004.
  - Estimated 2.4 million displaced persons internally.
  - Between 1.5 million and 3.0 million people lost their lives.
- Policy makers and Government: limited democratic culture, weak attachment to general interest, limited ability to resist external and clientist pressures.
- State lacks efficient institutions for peaceful dispute settlement and mechanisms to prevent political crises and armed conflicts.
- Centralization of power and development planning with little beneficiary involvement leads to inefficient program implementation.
- Transition objectives inadequately achieved: reunification, security, integrated army, demobilization and reintegration of combatants, consolidation of national unity, rebuilding community capacities (notably women, girls, children).

### Administrative governance
- Public administration image among users is extremely negative; provision of basic public services fails quality standards and has become a source of corruption.
- Access to services (e.g., issuance of birth or death certificates) is not guaranteed, especially in remote areas or for those lacking resources.
- Civil servants and State employees neglected for decades: paltry wages, clientism in career management, poor physical working conditions, poorly defined job descriptions and duties.
- Labor organizations have limited capability to effect positive change and are often subservient to public authorities; nontransparent leader selection.
- Reforms intended to manage staffing, redefine jobs, and improve civil servant status have not rectified the situation.
- Judicial system recognized as inefficient; increase in extrajudicial settlements, unenforced court decisions, mistrust of the judicial system.
- Flaws include massive violations of equality before the law, poor HR management in courts, absence of training programs and public awareness on judicial operation.
- Vulnerable groups—conflict victims, women and children in conflict areas, persons without resources or education—are particularly affected and unable to enforce rights or obtain compensation.

### Economic governance
- Rehabilitation needs of the macroeconomic framework face dysfunctional economic structures that impede consolidation of macroeconomic stability and growth, limiting poverty reduction.
- Shortcomings manifest in high inflation rates and deterioration in the current balance of payments.

A. Fiscal and monetary policies
- Macroeconomic situation relatively stable during 2002-2005 due to improved prudent fiscal and monetary policies but remains precarious.
- Year-on-year inflation: 511 percent in 2000; 135.1 percent in 2001; 16 percent in 2002; 4.4 percent in 2003; 9.2 percent in 2004; 21.3 percent in 2005.
- Macroeconomic stability fragile and dependent on security conditions; 2004 additional military spending in third quarter led to problems controlling other current expenditure, rapid increase in base money, sharp depreciation of the national currency, and resurgence of inflation in 2005.

A.1. Fiscal policy
- Overall deficit (cash basis, including grants) contained at 1.6 percent of GDP between 2001 and 2005.
- Advances from the Central Bank increased from -0.1 percent of GDP in 2001 to 1.6 percent of GDP in 2005.
- Total revenue (including grants) increased from 6.5 percent of GDP in 2001 to 13.1 percent in 2005.
- Average tax ratio of 5.2 percent between 1997 and 2000.
- Expenditure increased from 8.2 percent of GDP in 2001 to 15.3 percent of GDP in 2005 (average 11.0 percent of GDP between 1997 and 2000).
- Capital expenditure and poverty reduction expenditure remained insignificant.

A.2. Monetary and exchange policy
- Since 2002, monetary policy prudent but heavily dependent on fiscal policy; monetary policy accommodative throughout the past decade.
- Central Bank faced problems containing money supply growth: 42.5 percent a year on average between 2001 and 2005.
- Monetary financing of the fiscal deficit increased base money and led to loss of confidence, driving agents to foreign currencies and continuous pressures on the exchange rate.

B. External policy
- Since 2002, Government pursued a cautious borrowing policy; DRC remains among the most heavily indebted countries.
- Decision point under the HIPC Initiative reached in July 2003 due to reform performance.
- Public debt burden in 2005:
  - Outstanding external debt: US$10.882 billion.
  - Debt service represented 6.9 percent of exports and 12.9 percent of tax receipts.
- Public debt continues to pose an onerous burden on public finances and the balance of payments.

### Sectors with growth potential and performance
- Over a decade of negative growth rates largely due to scant contribution of sectors with growth potential.
- Real GDP growth after declines averaging -5.5 percent a year between 1991 and 2000:
  - -2.1 percent in 2001
  - 3.5 percent in 2002
  - 5.7 percent in 2003
  - 6.6 percent in 2004
  - 6.5 percent in 2005
- Growth driven by structural reforms, but results remain insufficient and precarious given poverty reduction needs and sectoral dysfunctions.

### Rural development and agriculture
- Nearly 80 percent of the people live in rural areas and are principally engaged in agriculture, fishing, and stockfarming.
- Rural population lives in precarious situations and absolute poverty despite sector potentials.
- Access and infrastructure statistics:
  - 17 percent of the population has access to safe drinking water.
  - 1 percent has access to electricity.
  - 64 percent live in rammed earth houses.
  - 70 percent of roads and trails accessing agricultural areas are in an advanced state of deterioration.
- Rural sector handicapped by conflict: abandonment of farm operations, massive population displacements, persistent lack of security.
- Productivity suffered due to advanced soil deterioration in absence of ecosystems, aggravating food security problems.
- Rural development synonymous with isolation and destruction of basic social services, principally due to absence of specialized State structures.

*Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2007/_cr07330.pdf*

### 109.      Agriculture.   The   agricultural   sector   is   currently   suffering   from   low   productivity

### _cr07330 - 109.      Agriculture.   The   agricultural   sector   is   currently   suffering   from   low   productivity

### Agriculture: current status and impacts
- The agricultural sector is currently suffering from low productivity resulting in food insecurity, increased imports of primary commodities, and a decline in exports of cash crops.
- Despite favorable natural conditions, the agricultural sector has for a number of years been reduced to subsistence farming.
- Approximately 97 percent of the arable land has a crop season spanning more than eight months of the year.
- The country has about 135 million hectares of agricultural land, or 34 percent of the national territory, of which only 10 percent have been improved.
- As a result, 16 million people are suffering from hunger.
- The FAO estimates that almost 73 percent of the Congolese people are living with food insecurity.
- Agricultural exports now represent only about 10 percent of GDP, as compared to 40 percent in 1960.
- For some twenty years the sector has faced problems including market access, moving products from the field, conservation, and the production of quality seeds, preventing efficient contribution to economic growth.
- Over the same period, there has been a reduction of the agricultural labor force because of the conflicts and endemic disease.

### Perceptions from rural areas (Box 4)
- Entire populations are living in isolation from the rest of the country owing to the inaccessibility of their area of residence following the extreme deterioration of roads and the absence of communications media [Bas-Congo].
- The isolation contributes to perpetuating poverty and prevents exporting or importing products.
- In Lusambo: “The only small means of transport are the extremely overloaded cycles that sometimes end up killing their drivers because of the poor condition of the roads” [Kasaï Oriental].
- In Djugu: poor roads and permanent lack of security prevent support structures from reaching vulnerable population groups (widows, orphans, and persons with disabilities) [Orientale Province].

### Consequences of conflict on agriculture (Box 5)
- Testimony from Nyirongongo Territory (Nord-Kivu): “Before the 1996 war, I was producing 45 metric tons of potatoes, and now (after the war) I can only produce 4 metric tons; this means I have to buy from other small farmers in order to supplement my stock which I take to Goma for sale.”
- Source: APP Report, 2005.

### Forestry
- The forestry sector is characterized by:
  - haphazard exploitation of biodiversity, owing to the weakness of the institutions in charge of the forests, conservation, and the protection of nature;
  - failure to apply the Forestry Code and the Law on the Conservation of Nature;
  - the freezing of forestry concessions for speculative purposes owing to political clientism, and the low level of the area-based royalty;
  - failure to comply with the regulations in force for the commercial exploitation of forests and protected areas;
  - exclusion of local communities from the management and sharing of the resources generated by the forest.
- The DRC ranks first in Africa from the standpoint of the size of its forests and, more importantly, in preservation of the global environment.
- The forests are essential to the survival and development of at least 40 million Congolese.
- Indigenous peoples at the edge of the forest depend principally on natural forest products for food, housing, health, and for wood-based energy (80 percent of all the energy consumed in the country).
- The DRC is among the ten countries with the greatest megabiodiversity in the world, with:
  - 480 species of mammals,
  - 565 species of birds,
  - 1,000 species of fish,
  - 350 species of reptiles,
  - 220 species of batrachians,
  - and over 10,000 angiosperms, of which 3,000 are endemic.
- Conflicts have degraded thousands of hectares of forests, resulting in loss of biodiversity; protected areas have been subject to thievery, smuggling, and poaching.

### Transport infrastructure
- The qualitative and quantitative insufficiency of the supply of transport services, accentuated by the poor condition of transport infrastructure, is the DRC’s main priority problem and an obstacle to sustainable economic growth.
- Transport network composition:
  - 16,238 kilometers of navigable waterways,
  - 5,033 kilometers of railways dating for the most part from the colonial era,
  - 145,000 kilometers of national and regional roads and secondary rural roads,
  - 7,400 kilometers of urban thoroughfares,
  - and 270 airports throughout the country, including five international airports (in Kinshasa, Lubumbashi, Kasangani, Goma, and Gbadolité).
- The transport system no longer provides infrastructures and services conducive to trade or improved mobility of persons and goods.
- Urban transport: chronic failure to satisfy constantly growing demand because of operating conditions and condition of infrastructures.
- Rural transport: outside areas served by SNCC and ONATRA, services are provided by underequipped private operators; persistent gap between supply and demand due to impassibility/disappearance of secondary and tertiary roads, inadequate interconnections between transport networks, and absence of dredging and buoying on waterways.
- Public enterprises with monopolies are neither high-performance nor competitive due to insufficient financial resources for investment and maintenance.
- Productivity per employee and availability of railroad locomotives:
  - Productivity per employee: 34,000 traffic units (as against 487,000 TU in Cameroon).
  - Rate of availability of railroad locomotives (SNCC and ONATRA): 42 percent (as compared to 78 percent in Gabon and 80 percent in Cameroon).
- Average cost of an economy class air ticket between the DRC and cities in Europe: US$1,218, as compared to US$824 for the neighboring countries.
- At Matadi seaport:
  - A third of the dozen piers are no longer in use.
  - Vessels remain there for six days on average (as against three days in Douala) for port operations.
  - A twenty-foot-equivalent container unit (TEU) handled there costs US$984.20.
  - Containers unloaded at the port take over 22 days to reach Kinshasa because of poor functioning of the Matadi/Kinshasa railroad (CFMK).
  - The transport sector accounts for 24.3 percent of the total cost of goods imported via that port.
- The transport sector’s poor performance results from an environment lacking sensitivity to efficient management, an anachronistic regulatory framework, permanent lack of security of persons and goods, difficult access to financing markets, and the lack of a cohesive policy governing the sector.

### Mining
- The DRC has the second largest reserves worldwide of copper and cobalt (10 percent of the planet’s entire reserves).
- GECAMINES’ cobalt reserves represent 80 percent of the global total.
- The DRC is also the world’s largest producer of cobalt.
- In 1992, the DRC’s share of world production was:
  - copper: 2.5 percent,
  - cobalt: 45 percent,
  - zinc: 0.5 percent.
- Export proceeds in 1990 amounted to about US$1 billion.
- GECAMINES historical role:
  - In 1980 GECAMINES provided about 66 percent of the State’s budgetary revenue.
  - In 1990 it employed 35,000 people, of whom 91.8 percent were line personnel.
  - It provided the livelihood of over 258,000 persons.
- Industrial mining production has collapsed in its entirety except for expanded activities in artisanal gold and diamond mining.
- GECAMINES copper production dropped from 465,000 metric tons at a price of US$2,855 a ton (in 1990) to 19,000 metric tons at a price of US$1,800 a ton (in 2002).
- The bankruptcy of GECAMINES caused Katanga Province to undergo a profound socioeconomic transformation and plunged the region dependent on that enterprise into absolute poverty.
- The restructuring and deregulation of the mining sector initiated in 2004 have led to the expropriation of small farmer landholdings to the benefit of other mining sectors and mining concessions, to widespread fraud, and to unconscionably one-sided contracts.
- Note: The DRC has vast mining potential, including copper, cobalt, zinc, cadmium, diamonds, gold, tin, tungsten, and manganese.

### Electricity
- The DRC’s hydroelectric potential is estimated at 100,000 MW, or 13.0 percent of global hydroelectric potential.
- Total installed capacity is evaluated at present at 2,516 MW, or 2.5 percent of the total potential.
- Possible average production at present: 14,500 GWh.
- Actual production at present is only 6,000-7,000 GWh.
- Hydroelectric production accounts for almost all the capacity (96 percent).
- The remainder consists primarily of low-power thermal power plants, most of which are located in isolated areas.
- The Inga dam on the Congo River currently has two plants with a total capacity of 1,775 MW:
  - Inga 1, with six generators totaling 351 MW,
  - and Inga 2 with eight generators totaling 1,424 MW.
- The Inga power plants taken together are working at only 40 percent of capacity.
- A substantial proportion of production is intended for export, leaving local demand unmet.
- Rate of access to electrical power:
  - 1.0 percent in rural areas,
  - 30.0 percent in the cities,
  - and 6.0 percent nationally,
  - while the average for Sub-Saharan Africa is 24.6 percent.

### Private sector, labor, and financial intermediation
- The private sector remains the principal source of wealth and job creation despite weaknesses and a difficult environment over some three decades.
- Historical shocks: collapse of copper prices, oil crisis, Zairianization and radicalization policies, democratization-related disorder, strikes, plundering (1991 and 1993), wars (1996 and 1998), and armed conflicts discouraged foreign investment and dried up official development assistance.
- Investment declined from 13 percent in 1990 to 4.4 percent in 2000.
- In 2005, the labor force participation rate was:
  - 63.1 percent nationally,
  - 50.8 percent in urban areas,
  - and 68.1 percent in rural areas.
- Predominance of jobs in small family agricultural enterprises underscores fragility of the labor market and difficult living conditions.
- Formal SMEs face an unfavorable political and economic climate and a poorly adapted and poorly applied regulatory framework; their activities have declined considerably.
- The informal economy’s share is continually rising and now represents a dominant share of the Congolese economy.
- The secondary sector is underdeveloped and characterized by a substantial presence of the State; most companies are State-owned or mixed, often with majority equity holdings by the State.
- Despite ongoing privatization (PMPTR program), the State remains the major operator in energy, mining, forestry, communications, water supply, transport, and construction.
- Most SMEs and SMIs suffer from lack of competitiveness vis-à-vis foreign products due to supply difficulties and narrow national/local market; exports represent a minimal proportion of output.
- The financial sector has been unable to fulfill its intermediation function because of economic instability and dysfunction:
  - Insufficient mobilization of bank deposits attributed to unattractive deposit interest rates (negative in terms of inflation), the mandatory reserve requirement, credit ceilings, and uneven geographical distribution of banks.
  - Resulting effects: decline in the national currency, scaled-back real investment expenditure by private enterprises, and reduced accumulation of capital necessary for economic growth.
- Revitalization of the financial system of the DRC is thus identified as a necessity to reduce poverty.

### Social sectors: general state
- Development of social sectors is faced with structural difficulties associated with poor governance and repeated conflicts.
- Education, health, water supply, sanitation, and social security are in an advanced state of deterioration and loss.
- Demand for social services is considerable due to the increasing population, stagnation of the nonmonetarized productive sector, and the runaway increase in poverty.

### Education: indicators and deficiencies
- Gross enrollment ratio in primary school declined from 92 percent in 1972 to 64 percent in 2002.
- Secondary school gross enrollment ratio: estimated at 29 percent in 2001/2002 as compared to 26 percent in 1977-1978.
- Internal efficiency coefficient: 36 percent.
- Deterioration in the school survival rate: 25 percent.
- School completion rate: 29 percent.
- Inequalities in gross enrollment ratios by gender:
  - 72.0 percent for boys,
  - 56.0 percent for girls.
- Inequalities by place of residence:
  - school admission rate of 71.6 percent in urban areas,
  - and 43.6 percent in rural areas.
- Postponed schooling affects more than 16.0 percent of boys as compared to 12.0 percent of girls in 2001.
- RESEN (World Bank, 2002) identified four major problems undermining access and quality of education:
  - relatively poor coverage at the primary level, with sizable inequalities in terms of access and uncontrolled expansion at secondary and higher levels;
  - serious deterioration in the quality of education at all levels;
  - a cumbersome and outmoded system of school administration;
  - an extremely low spending level and an inefficient and inequitable financing system.

*Source: IMF content unit _cr07330 (excerpts provided).*

### 139.     Primary education. The primary education system is characterized by: (i) rapid

### _cr07330 - 139.     Primary education. The primary education system is characterized by: (i) rapid

### Primary education
- Systemic characteristics:
  - (i) rapid population growth
  - (ii) the large number of children not attending school
  - (iii) low population density, a large number of residences that are scattered and difficult to access, children living in forest areas, and disadvantaged groups
  - (iv) underqualified teachers and the shortage of instructional materials
  - (v) instruction in a foreign language and the high cost of private education

### Secondary education
- Identified shortcomings:
  - (i) social inequality as regards access
  - (ii) a large number of small schools
  - (iii) outdated curriculums
  - (iv) a lack of qualified teachers in some disciplines
  - (v) limited operating resources and resources for equipment, and the shortage of books
  - (vi) instructional materials and the high cost of private education

### Higher and university-level education and scientific research
- Noted dysfunctions:
  - (i) social inequalities in terms of access
  - (ii) outdated curriculums and the multiplicity of courses
  - (iii) the limited number of qualified teachers, laboratories, and libraries
  - (iv) the high cost of private education
- Context: research and development “is under an acute crisis as it has not been included among the DRC’s current priorities.”

### Health — summary of indicators and system weaknesses
- Child and maternal mortality and disease burden:
  - About 126 children out of 1,000 die before reaching their first birthday
  - 213 out of 1,000 fail to reach age 5 (MICS 2, 2001)
  - Maternal mortality: 1,289 deaths for every 100,000 live births (MICS 2, 2001)
  - Some 97 percent of the Congolese population is exposed to endemic malaria
  - Prevalence of fever among children under 5 is 42.0 percent, corresponding to a number of episodes ranging from 6 to 10 per child per year
  - Estimated malaria deaths among children under 5 each year: 150,000 to 250,000
  - Annual incidence of TPM+ tuberculosis: 160 cases per 100,000 inhabitants
  - About 23.6 million persons are exposed to onchocerciosis, of whom more than half (14 million) are infected
  - Geographic coverage of onchocerciosis interventions: 67.34 percent; therapeutic coverage: 50.12 percent
  - Of the 300,000 to 500,000 cases of trypanosomiasis in Africa, half are found in the DRC (150,000 to 250,000 cases)
- Nutrition and infant feeding:
  - Approximately 10 percent of children are underweight at birth
  - Acute malnutrition among children under 5 increased from 12 percent to 16 percent
  - Acute malnutrition affects 20 percent of children in the poorest quintile as compared to 8.0 percent in the wealthiest quintile
  - Rate of breast-feeding: 95.0 percent (MICS 2)
  - Proportion exclusively breast-fed: 29.0 percent of children under age 2 were exclusively breast-fed until age 4 months, and 24.0 percent until age 6 months
  - Number of children under age 5 suffering from malnutrition in the DRC: 4.2 million
- Epidemics and emerging diseases:
  - Resurgence of previously controlled/eradicated epidemics: measles, whooping cough, plague, poliomyelitis, bacterial dysentery, cholera, monkey pox
  - Emerging diseases: HIV/AIDS and Ebola hemorrhagic fever
- Use of health services:
  - Average rate of use of health services: approximately 0.15 consultations per person per year (measured using a sample representing about 54.0 percent of the country’s total population)
    - Note: this average rate (0.15 consultations/inhabitant/year) corresponds to less than one consultation per person every 6 years
  - Hospital admittances: 35 per 1,000 inhabitants in the 1980s; dropped to 15 per 1,000 inhabitants in 2001
  - Proportion of children age 12-23 months who had received all their vaccinations in 2001: 29 percent (MICS 2)
    - 41.0 percent of children who received the first dose of DTC vaccine did not receive the third
  - Prevalence of contraceptive use in 2001: 4.4 percent (MICS 2)
  - Prenatal care from trained medical personnel: 46.1 percent of pregnant women in 2001
  - Childbirth attended by trained medical personnel in 2001: 23.7 percent
  - Proportion of pregnant women assisted in childbirth by unqualified personnel (relatives, friends, or without assistance): close to 40 percent
  - Percentage of mothers excluded for financial reasons ranges from 7 percent to 30 percent, depending on the case
- Organization of health services:
  - Health system organized as a three-level pyramid: the Health Zone (HZ), the General Referral Hospital (GRH), and the Health Center (HC)
  - Number of HZs increased from 306 to 515 since 2003
  - Problems from new HZ map: (i) increased needs for human and infrastructure resources (GRHs and HZ Central Offices, HCs, etc.); (ii) decline in functionality of Zones resulting from the new distribution; (iii) mismatch between demand for quality health care services and proliferation of nonviable HZs
- Human resources and financing:
  - Fragmentary data indicate: (i) reduction in professional quality; (ii) proliferation of educational and university institutions offering medical training at a cut rate; (iii) lack of decent and motivating working conditions; (iv) inequitable distribution of scarce qualified personnel, the number of which is unstable
  - Share of the State budget devoted to health has dropped significantly, reaching a proportion of less than 1 percent
  - Tendency of development partners to withdraw from the sector observed
  - Since 2002, increase in financing of the health sector partially attributable to projects focused on AIDS, malaria, and tuberculosis
  - Need to improve capacity to absorb mobilized resources
- Household financial burden:
  - Nord-Kivu study: 24.0 percent of patients sold property and 18.0 percent went into debt to cover health care costs
  - Maniema NGO study: 30.0 percent of patients sold property and 15 percent went into debt to cover health care costs

### Water and sanitation
- Access to drinking water:
  - Approximately 22.0 percent of the population have access to drinking water
    - 12.0 percent in rural areas
    - 37.0 percent in urban areas
  - Regional examples:
    - Banalia Health Zone (Orientale Province): only 3.0 percent of inhabitants have access to drinking water
    - Kindu (Maniema Province): 91.0 percent of the water supply sources for the people are not protected
    - Survey covering 36 health areas in Ituri (Orientale Province): 65.0 percent of springs and wells used by the people are not protected
- Institutional and operational constraints:
  - Poor access stems primarily from inappropriateness of institutional framework and inadequacy of financial resources allocated to the sector
  - Armed conflicts have destroyed existing facilities (example: 18 REGIDESO centers looted and completely destroyed in the eastern part of the country)
  - In rural areas, 60 percent of existing water works are no longer operational for lack of maintenance by users and due to ineffectiveness of participatory approach and replacement-parts distribution network
- Sanitation indicators and conditions:
  - 17.0 percent of households have hygienic latrines (Estates General on health, 1999)
  - 25.0 percent properly evacuate household waste (Estates General on health, 1999)
  - Rate of hygienic evacuation of waste water: 9.1 percent in 2001 (MICS 2)
  - Over 80.0 percent of instances of disease are attributable to poor environmental conditions (various surveys and epidemiological analyses)
  - Observed sanitation failures: garbage tossed into streets; natural needs met in nature; no landfills; drainage works not in use; no structured removal system for special waste (biomedical waste, plastics, scrap); no control of atmospheric pollution
  - Public agencies responsible for sanitation lack human, material, and technical resources
  - Government has undertaken to rank sanitation among the priorities of the strategy

### Urban poverty and housing
- Housing shortfall and substandard structures:
  - Annual housing shortfall estimated at 240,000 units
  - Based on 1999 surveys, there are 396,620 substandard structures throughout the country
    - 94.6 percent of these are dangerously built structures
    - 5.4 percent are buildings erected on sites that are at risk
  - Projection: Should current trends continue, there will be 5,211,288 such shanties throughout the country by 2010
- Housing satisfaction and overcrowding:
  - 81.0 percent of households reported dissatisfaction with their housing (survey on perception of poverty)
  - Katanga and the two Kasai provinces: 88 percent average dissatisfaction with housing conditions
  - Equateur, Bandundu, and Bas Congo provinces: 71 percent average dissatisfaction
  - Proportion of households living in extremely overcrowded conditions: 76 percent for the country as a whole
- Community and urban-management traits and failures:
  - Principal traits: (i) land usage on unimproved spaces with no assistance and lacking associated infrastructure; (ii) occurrence of disasters on sites at risk (floods, sand silting, erosion, landslides); (iii) insufficiency of resources for improving urban management; (iv) absence of public or private property improvements; (v) absence of frameworks/mechanisms for construction and maintenance of basic technical equipment and community infrastructures
  - Factors contributing to breakdown in living conditions: successive wars (particularly in eastern DRC) and ensuing population migrations; failure to observe existing regulations; insufficiency of associated measures; inadequacy of development and territorial improvement policies and programs; lack of development policies/programs for rural areas; ineffectiveness of education policy in rural areas; inadequacy of specific policies on use of open space; absence of policies for management and treatment of waste
- Infrastructure functioning:
  - Only 9 cities have water distribution networks in proper operating condition
  - Only 13 cities have a haphazardly functional electricity grid

### Social protection
- System status and coverage:
  - DRC does not have a clear national policy in the area of social protection at this writing
  - Activities targeting vulnerable groups are carried out by various stakeholders (the State, nongovernmental organizations, churches, grassroots communities, and associations of vulnerable groups) in a non-concerted framework and cover only a very small proportion of the vulnerable population, above all in urban areas
- Shortcomings and vulnerable-group statistics:
  - Shortcomings illustrated by:
    - (i) extreme fragility of vulnerable persons in respect of various risks
    - (ii) poor access to basic social services, especially for elderly persons who represent 3 percent of the population
    - (iii) an ever greater number of children in difficulty, including nearly 40,000 street children
    - 10.7 percent of all children are orphans (and 34 percent of these are orphaned by AIDS)
    - 2 percent of children are living with some form of disability
    - 15,000 children have been conscripted into various armed forces before the age of 18
    - 26 percent of girls are adolescent mothers
    - (iv) a large number of victims of sexual violence who have not been attended to
- Factors explaining weakness and inefficiency:
  - (i) low share of the State budget allocated to social protection
  - (ii) limited capacities of social assistance structures
  - (iii) limited involvement of families and grassroots communities in care of vulnerable persons
  - (iv) absence of social safety nets for the vulnerable
  - (v) ineffectiveness of the general and special social security systems in force, in particular the nonoperational status of social security systems in place

*Source: _cr07330 - 139.*

### 162.     The  sociopolitical  situation  prevailing  in  the  DRC  in  recent  decades  has  had  a

### _cr07330 - 162.     The  sociopolitical  situation  prevailing  in  the  DRC  in  recent  decades  has  had  a

### Gendered impacts and livelihoods
- Sociopolitical instability has produced family dislocations and precarious conditions for women at all levels.
- Role shifts for women:
  - Heads of household due to death of spouse from armed conflict or HIV/AIDS.
  - Forced enlistment in combat militias, service as comfort women for soldiers, or engagement in prostitution.
- Agricultural impact:
  - Women constitute 52 percent of the labor force in agriculture and account for 75 percent of food production.
- Employment structure:
  - Unstructured employment occupies a great majority of women engaged in survival activities due to low wages in formal employment and lack of monetary resources.

### Rights, discrimination, and education
- Participatory consultations indicate pervasive violations and discrimination in rights, education, health, and access to resources.
- Early school dropouts among girls caused by pregnancies, early marriages, and cultural traditions devaluing girls’ education.
- Women's minority representation in state institutions and structures:
  - Rate of representation of women in positions of power estimated at 10 percent for the country as a whole, and 5 percent in Kinshasa (MASF and UNICEF, 2002).

### Violence, economic dependence, and social consequences
- Economic dependence on husbands’ income underpins violence toward women.
- Physical abuse and spousal sexual violence are commonplace.
- Sexual violence has contributed to propagation of HIV/AIDS in conflict zones and continued post-conflict nationwide.
- Reported incidence (UNFPA, 2005): 3,810 cases of sexual violence recorded in eight provinces from January to July 2005.
- Perceptions from consultations:
  - Widowhood described as extreme precariousness (APP Report, 2005).

### HIV/AIDS: prevalence, trends, and socioeconomic burden
- Epidemic scale and growth:
  - Prevalence rate estimated at 4.5 percent (PNLS, 2004).
  - Number of infected persons: 2.6 million in 2004 versus about 700,000 in 1995.
  - Persons in advanced stage of disease: about 780,000 (2004).
  - Increase by a factor of 3 in 10 years in estimated seropositive individuals since 1995.
- Mortality and orphaning:
  - Number of deaths (children and adults) verging on 110,000, for an average of 305 deaths a day.
  - Children orphaned by AIDS currently estimated at about 700,000 countrywide.
- Age-specific concerns:
  - Prevalence in 14–19 year old age bracket: 3.6 percent (two percentage points above the WHO norm of 1.6 percent).
  - Estimated infection in 20–29 age bracket: males 8 percent; females 14 percent (PNLS, 2002).
- Geographic seroprevalence:
  - Areas not affected by armed conflicts (2003): 4.1 percent.
  - Eastern part affected by conflicts (2004): 4.7 percent.
- Mother-to-child transmission accounts for 8 percent of cases.
- Financial burdens on households:
  - Annual treatment cost: US$360 a year.
  - Annual incomes just shy of US$100 a year per capita; ARV cost of US$360 per person places care out of reach for most households.
  - Affected households devote 85 percent of their income to food.
  - 61 percent of affected households turn to traditional healers and sometimes to self-medication.
- Vulnerable groups and drivers of transmission:
  - Girls and women forced into prostitution by lack of income are among the most vulnerable.
  - Insufficient ownership of the fight against HIV/AIDS by high-risk groups (sex workers, youths, men in uniform, truck drivers, airmen, artisanal miners, displaced persons) limits prevention measures.
- Knowledge and prevention gaps:
  - Population awareness about STIs and HIV/AIDS reported as over 95 percent.
  - Genuine knowledge about transmission and prevention is uneven:
    - More educated women: 15.0 percent
    - Women with no education: 7.0 percent
    - Urban women: 13.0 percent
    - Rural women: 9.0 percent
  - Persistence of cultural practices (levirate, sororate, polygamy, loss of inheritance) influences transmission.

### Community-level dynamics and constraints
- Four decades of conflict, poor governance, and lack of decentralized State structures produced a void filled by grassroots organizations promoting income-generating activities, education financing, health associations, and solidarity groups.
- Limitations due to lack of State support:
  - Low participation of community-level organizations in planning and decision-making.
  - Absence of promotion and legal recognition of community development organizations.
  - Low intervention capacity of community development organizations.
  - Limited capacity to support initiatives of grassroots communities, especially women and youths.
- Low productivity of community-driven activities due to:
  - Poor organization of input and equipment supply.
  - Poor dissemination of improved techniques and modern production standards.
  - Lack of participatory action/research and dissemination of local know-how.
  - Poor access to savings and loan systems.
  - Inadequate training of leaders in project management.
  - Limited income and purchasing power.
  - Lack of investment in basic infrastructure and services.
- Reported survival strategies (APP Report, 2005) include market gardening, small-scale construction, photography, crafts, small livestock rearing, fish farming, roving medicine sales, and intermediary trading (“Djema”).

### Poverty reduction strategy: vision, objectives, and quantitative targets
- Strategic framing:
  - Threefold logic: emerging from conflict, a 26/25 vision for medium- and long-term development, and socioeconomic reconstruction.
  - Aimed at restoring peace and security, re-establishing rule of law, and revitalizing the economy consistent with the MDGs and Government Economic Program (PEG).
- Cardinal values and orientations include peace under restored rule of law; poverty eradication; access to essential social services; youth education and jobs; dynamic agricultural sector; competitive industrialized economy; controlled population growth; transparent and decentralized institutions.
- Ultimate goal: sustainable and effective improvement over a three-year span in living conditions for a 25-year generation (the 26/25 Vision) by targeting main causes of poverty.
- Main quantitative poverty reduction objectives (expressed as percentages unless otherwise indicated):
  - Real GDP growth rate: Current 6.5; 2006 7; 2007 7.7; 2008 8.4
  - End-of-period inflation rate (CPI): Current 21.3; 2006 8; 2007 6; 2008 6
  - Infant-child mortality rate (children under age 5 per 1,000 live births): Current 126; 2006 111; 2007 104; 2008 89
  - Maternal mortality rate (per 100,000 live births): Current 1,289; 2006 1,276.2; 2007 1,079.1; 2008 944.2
  - Gross primary school enrollment ratio: Current 64; 2006 64.1; 2007 70.8; 2008 80
  - Rate of HIV/AIDS prevalence: Current 4.5; 2006 <4.5; 2007 <4.5; 2008 <4.5
  - Rate of access to safe drinking water: Current 22; 2006 22; 2007 24; 2008 26.9
  - Rate of access to sanitation: Current 9; 2006 9; 2007 11.5; 2008 15
  - Incidence of poverty: Current 70.68; 2006 < 70; 2007 < 70; 2008 < 70
- Five strategic pillars (priority programs and projects):
  - Pillar 1: Promote good governance and consolidate peace (through strengthened institutions).
  - Pillar 2: Consolidate macroeconomic stability and growth.
  - Pillar 3: Improve access to social services and reduce vulnerability.
  - Pillar 4: Combat HIV/AIDS.
  - Pillar 5: Promote local initiatives (dynamique communautaire).

### Institutional and administrative reforms (selected commitments)
- National Program to Improve Governance (PNAG) structured around three axes:
  - Promotion of administrative, political, and economic good governance.
  - Consolidation of peace and security.
  - Improvement of the statistical system.
- Public administration reform objectives:
  - Control the wage bill and staffing levels.
  - Gradually improve quality of public services and capacity of ministries and public agencies.
- Planned measures:
  - Complete the ongoing census of the civil service and the army.
  - Finalize the early retirement program.
  - Implement the Simplified Transitional Procedure (PTS).
  - Streamline positions, staffing, and jobs by defining a new organic framework.

*Source: _cr07330 - 162.     The  sociopolitical  situation  prevailing  in  the  DRC  in  recent  decades  has  had*

### Box 13. Actions and reforms targeting public administration reform

### Box 13. Actions and reforms targeting public administration reform

### Comprehensive institutional assessments and personnel actions
- Comprehensive institutional assessment of main ministries carried out by a consulting firm in September 2002 covering missions, organic framework, and personnel regulations of selected ministries (Civil Service, Finance, Budget, Planning, Agriculture) and of the financial administrations. Two subsequent phases call for similar studies on the rest of the public administration in 2006.
- Audit of service-providing systems analyzing mechanisms for providing services at the local level in education and health.
- Audit of the State’s personnel expenditure management procedures and adoption by the Government of that audit’s recommendations in 2004.
- Civil service census initiated in early 2005; first stage covered the city of Kinshasa only and is being continued in 2006 throughout the entire country.
- Adoption of the early retirement program in 2005 aimed at paying the end-of-service allowances of about 100,000 civil servants and at revitalizing the administration and lowering the average staff age.

### Payroll, staffing and management systems (PTS and SIG)
- Short-term: introduce a Procedure (PTS) to build on the census, incorporate results as they become available, and contribute to the early retirement program by taking account of and providing security for staff groups deemed redundant. (Paragraph 190)
- Medium/long-term: introduce an Integrated Financial and Administrative Management System (SIG) to:
  - (i) secure and update the data gathered during the census;
  - (ii) merge the PTS database with the census data; and
  - (iii) improve the management of the civil service. (Paragraphs 190–191)

### Reform of the judicial system
- Government commitment to rehabilitate the justice system through publication by end-2006 of the final version of the action plan for strengthening the justice system. (Paragraph 192)
- Government undertakes to:
  - implement a sectoral policy on justice and the priority actions in the judicial area;
  - continue the establishment of commercial tribunals in Kinshasa and Lubumbashi;
  - finalize the DRC’s entry into OHADA; and
  - organize the official signing ceremony for the act launching the mixed committee for monitoring the justice framework program and establishing its secretariat. (Paragraph 193)
- Box 14: Organizational audit of the judicial system and framework program for justice carried out with support from multiple partners; a Mixed Committee for Monitoring the Justice Framework Program was established to support the Ministry of Justice and prepare a sectoral program.

### Actions and reforms to fight corruption
- Strategy built around:
  - (i) effective strengthening of the independence of the justice system;
  - (ii) reforms of the laws and regulations on tax and customs benefits or incentives to promote simplification, transparency, and systematization to eradicate corruption;
  - (iii) introduction of incentive mechanisms that reward integrity and improve working conditions of public employees while subjecting them to controls and penalties;
  - (iv) definition of a private sector development policy and promotion of an environment favorable to the private sector;
  - (v) continuing tax reforms promoting growth and equity, including information and education mechanisms to familiarize taxpayers with their rights and duties;
  - (vi) strengthening audit and control mechanisms applicable to State revenue and expenditure;
  - (vii) reform of public procurement; and
  - (viii) periodic review of public expenditure (RDP). (Paragraph 194)
- Specific Government actions to be taken:
  - (i) conduct a public information campaign on the anticorruption law and the code of good conduct for State employees;
  - (ii) continue audits begun in public enterprises and financial administrations in Kinshasa and in the provinces;
  - (iii) speed up judicial reform to ensure genuine independence of justice;
  - (iv) adhere to the timetable for the reform of public procurement;
  - (v) create a financial intelligence unit (FIU) on money laundering;
  - (vi) combat fraud at the borders by simplifying procedures and strengthening controls to reduce undervaluation;
  - (vii) improve transparency in the forestry and mining sectors; and
  - (viii) complete drafting of the future public procurement code and evaluate professional capacities in the procurement sector. (Paragraph 195)
- Combating money laundering:
  - Government undertakes to establish the National Financial Intelligence Unit (CENAREF); a draft decree establishing this unit has been prepared and will be submitted to the Council of Ministers for adoption. (Paragraph 196)
- Box 15: On March 29, 2005, Law No. 005/006 amending and supplementing Book II of the Congolese Criminal Code was promulgated. Key innovations include:
  - distinction between petty corruption and serious corruption;
  - recognition that acts of corruption may be committed by public employees or individuals;
  - reaffirmation of the role of the judicial branch in prevention, detection, and repression of corruption;
  - protection of those reporting acts of corruption (witnesses, experts, and victims, and their families) against reprisals or intimidation and protection from criminal prosecution for reporting in good faith;
  - introduction of mutual legal assistance and extradition mechanisms; and
  - revaluation of the amounts of fines.

### Human and institutional capacity-building
- Successful implementation of the PRGSP requires building capacity for managing public affairs at macroeconomic, sectoral, and decentralized levels, including administrative capacities and capacities of grassroots communities, civil society, and local NGOs to participate in implementation, management, and monitoring of development activities. (Paragraph 197)
- Crisis impact on human resources: the DRC lost a sizable number of skilled individuals due to violence, emigration, or flight from poverty and lack of prospects. (Paragraph 198)
- Government actions on human resources:
  - train and enhance existing human resources; motivate, incentivize, and retain trained personnel, including by adjusting wages upward in both public and private sectors to promote return of skilled expatriates;
  - develop a culture of excellence by ensuring promotions are based on competence and individual merit;
  - adopt the draft law on the use of national expertise and issue implementing measures to promote contribution by Congolese nationals to development programs. (Paragraph 199)
- Institutional capacity needs:
  - strengthen institutional capacities of structures involved in economic management;
  - improve planning and management tools and databases;
  - improve operating procedures and systems and make use of new information and communications technologies. (Paragraph 200)

### Political governance and decentralization
- Objectives of decentralization set in September 2004 seminar:
  - (i) enable people to participate in public life and design of development policies;
  - (ii) relieve Central Government of implementation tasks so it can focus on major orientations;
  - (iii) bring administration closer to the administered; and
  - (iv) simplify administrative procedures and promote inclusive participation to strengthen decentralized administrative entities (EADs). (Paragraph 201)
- Government will grant resources to provinces to devise their own development programs, particularly in social areas (education, health, water supply and sanitation, and housing), and basic infrastructure. Preparation of provincial PRGSPs to support local development has begun. (Paragraph 202)
- Strengthening grassroots capacities by:
  - (i) introducing viable mechanisms for planning and control by and for the people;
  - (ii) promoting local leadership; and
  - (iii) enhancing accountability through training and information.
- Participatory approach to involve civil society organizations, local NGOs, and religious groups in identifying needs and selecting solutions. (Paragraph 203)
- Encourage emergence of Neighborhood Development Associations (ADQs) or Village Development Associations (ADVs) as focal points for local initiatives; strengthen Provincial Poverty Reduction Committees (CPLPs) and Territorial Poverty Reduction Committees (CTLPs). (Paragraph 204)
- Strengthen the role of women in development:
  - Women constitute more than 52 percent of the active labor force.
  - Objectives: (i) promote improved living conditions for women; (ii) ensure equal access to education and production factors; and (iii) apply legal and regulatory provisions of the new Constitution and new Labor Code to enhance women’s wellbeing. (Paragraphs 205–206)
- Specific government measures for women:
  - (i) ensure equal access to education for girls and boys;
  - (ii) provide in-service training to women with jobs;
  - (iii) facilitate access to credit and production factors;
  - (iv) improve maternal and child health;
  - (v) promote sociopolitical inclusion of women through participation in local development institutions; and
  - (vi) protect women against violence and take specific measures for women affected by armed conflict abuses (rapes, forcible conscription into militias, and prostitution). Promote a culture of equality in the press, at school, and in the workplace. (Paragraph 207)

### Economic governance and continued public finance reforms
- Establish a unified framework for macroeconomic projections by formalizing the Standing Committee on the Macroeconomic Framework (CPCM) through an interministerial order by the Ministries of Planning, of Budget, and of Finance and Economy. CPCM reports to the Minister of Planning and is responsible for preparing the macroeconomic framework for budgets and economic and social programs and for Poverty and Social Impact Analysis (PSIA). CPCM should facilitate circulation of statistical information and internalize the Forecasting and Simulation Instrument (IPS) developed by DEME with UNDP support. (Paragraph 208)
- Continued public finance reforms initiated in 2002 under the Government Economic Program (PEG) aim to:
  - (i) improve revenue mobilization capacities through modernization of tax instruments and tax administrations;
  - (ii) improve the quality and composition of expenditure;
  - (iii) strengthen management of the wage bill and the civil service; and
  - (iv) enhance transparency of State operations. (Paragraph 209)

A. Revenue mobilization

A.1. Customs and Excise Office (OFIDA)
- Principal measures to modernize customs administration:
  - Establishment of a ceiling on the quantity of petroleum products eligible for exemption;
  - Transformation of OFIDA into a Directorate-General of Customs under the Ministry of Finance;
  - Computerization of the Kinshasa-Est customs office;
  - Increase in the excise tax on petroleum products by CGF 10 per quarter and reduction in petroleum product exemptions;
  - Maintenance of the nominal value of the excises on petroleum products (after the CGF 10 increase mentioned above);
  - Increases in selected excise taxes in order to boost revenue;
  - Application of the customs code and increase in the share of imports subject to preshipment inspection;
  - Creation of a computerized office in Kasumbalesa;
  - Completion of the construction and outfitting of the Kasumbalesa customs post;
  - Strengthening of the customs posts on the eastern borders by introducing one-stop shops;
  - Adoption and application of the revised customs procedures manual for one-stop shops;
  - Gradual alignment of the reference prices (PMFs) with world market prices to increase revenue from excise taxes on petroleum products; and
  - Application of the presidential decree making OFIDA the sole collector of duties and taxes at the one-stop shops created at customs posts. (Paragraph 210)

A.2. Directorate-General of Taxes (DGI)
- Government measures:
  - (i) generalization of the use of the taxpayer number and updating of the taxpayer file;
  - (ii) introduction of the VAT;
  - (iii) full collection of the ICA and the other taxes on telecommunications;
  - (iv) initiation of the work to introduce the single identification code for all DGI taxpayers;
  - (v) prohibition of discretionary exemptions;
  - (vi) DGI implementation of the technical assistance recommendations on tax administration and a collection plan in order to reduce tax arrears by at least CGF [10] billion;
  - (vii) implementation of the contract on preshipment inspection of imported goods concluded with [text ends here]. (Paragraph 211)

*Box 13. Actions and reforms targeting public administration reform*

### Box 16. Actions and reforms undertaken with customs administration modernization since 2002

### Box 16. Actions and reforms undertaken with customs administration modernization since 2002

### Customs administration modernization (since 2002)
- Promulgation in July 2004 of the law reforming the customs tariff.
- Adoption of the customs code by Parliament in June 2005.
- Conclusion of the preshipment inspection contract for goods being sent to the Democratic Republic of the Congo, dated November 30, 2005.
- Signing of the decree establishing the one-stop shop for import and export processing, dated December 30, 2005.
- Conclusion of a contract by the Government on behalf of OFIDA with an international firm specialized in preshipment inspection of goods.

### Actions and reforms undertaken in respect of tax administration modernization (Box 17)
- Improvement of collection procedures.
- Opening of the pilot center in Kinshasa.
- Promulgation and amendment of laws aimed at:
  - reforming tax procedures;
  - restoring the term “tax;”
  - calculation and collection modalities for installment and advance payments of the profits tax;
  - amendment of Ordinance-Law No. 69-058 of December 5, 1969 on the turnover tax.
- Signature of the decree eliminating the fiscal franc.
- Limiting the seizure of bank accounts by the tax authorities to only those cases permitted by law.
- Completion of the reform of the taxation system for small and medium-sized enterprises.
- Strengthened tax administration through the opening, in a first phase, of three new tax centers (CDIs) in Matadi, Lubumbashi, and Goma, with a view to improving the tax management of SMEs.
- Planned gradual opening of CDIs of the other provinces accompanied by Comprehensive Tax Centers (CISs) to improve the revenue collections of the Government.

### Directorate-General of Administrative and Government Property Revenue (DGRAD) — planned actions and reforms (A.3)
- Completion of the establishment of the DGRAD.
- Organization of an awareness-building campaign on good tax citizenship to coincide with the anti-fraud campaign throughout the country.
- Strengthening the role of the DGRAD in the collection of nontax revenue, ensuring that all interministerial orders transferring responsibility for the collection of duties and taxes for the Treasury are effectively applied.
- Revision of the previously earmarked revenue allocations of the former BPOs and other collection entities to include among expenditure only the transfers negotiated with the units concerned on the basis of their forecast budgets.
- Improved identification of the duties and taxes collected by the DGRAD.
- Transfer back to the EADs of 40 percent of the area-based tax collected in respect of fiscal 2003.
- Launch of the forest zoning process and completion of the prior consultations with adjacent localities.
- Re-evaluation of the system for transfers back to the financial administrations to reduce discretionary incentives by:
  - adopting the recommendations set forth in the study on streamlining exemptions;
  - finalizing an audit report by the Inspectorate-General of Finance and the Audit Office on the exemptions granted under the investment code through end-2004;
  - reviewing the agreements signed with MIBA and SENGAMINES (cessation of activities) and strengthening administrative controls for limiting customs and tax exemptions to those provided by law, with the elimination of unjustified exemptions.

### Modernizing nontax administration (Box 18)
- Promulgation in July 2004 and amendment in March 2005 of the law on the nomenclature for nontax revenue.
- Collection of the area-based forestry tax for 2003 and 2004.
- Transfer to the General Account of the Treasury of the revenue collected in the mining sector.
- Cancellation of concession contracts held by persons failing to pay the area-based forestry tax of 2003, and publication of the lists of cancelled and valid concessions.
- Publication of the collection results for the area-based forestry tax for 2005 and of the list of contracts to be cancelled on the basis of the collection results for the area-based forestry tax for 2004.
- Payment of the mining royalty by all exporters of mining products and all mining product processing industries.
- Strengthening of the collection procedures for the duties and taxes identified in the Mining Code and the Forestry Code, in particular through improved cooperation among the DGRAD, OFIDA, and the agencies concerned, as well as with private consulting firms as regards the mining royalty.

### Budget execution and transparency — objectives
- Increase pro-poor expenditure, in particular the operating appropriations of the Ministries of Education and Health, while reducing the nonpriority expenditures of institutions and ministries.
- Accelerate and improve the capacity to implement projects financed by HIPC resources.
- With support from external partners, complete the censuses in all provinces and military regions.
- Validate and publish census results (starting with the provinces already completed), and apply them to the payroll as soon as available.
- Improve the execution of capital expenditure.
- Implement a new, simplified payroll system.
- Strengthen the capacity to implement poverty reduction projects.

### Recommended measures for budget execution and monitoring (selected list)
- Monthly reconciliation of the gap between TOFE data and the monetary statistics, within 20 days.
- Monthly submission to the Government of the execution of the cash flow plan by function and by administration, as well as the projected plan for the following month.
- Granting no increase in civil service compensation in the form of increased bonuses once the census has been completed and applied.
- No recruitment will be carried out (and no personnel number assigned) until the staffing census has been completed and the results applied.
- Clarification of the automatic debiting of Treasury accounts between the Ministry of Finance and the BCC, and strengthened management of the General Treasury Account and its subaccounts with the BCC by the Treasury.
- In 2006, maintenance of the level of shared fuel expenditure at the level of the program for 2005, while increasing budget appropriations for water, electricity, and telecommunications.
- Application of public bidding procedures for fuel purchases.
- Report on the streamlining of the number of parties eligible for water and electricity allowances.
- Limitation of the wage bill to 4.7 percent of GDP (or CGF 180 billion) by granting no increase in wages and benefits in 2006.
- Strengthen the management of the military payroll, with assistance of experts from the development partners.
- Comply with budget appropriations in accordance with the rolling expenditure commitment plan for each ministry.
- Monthly review of the expenditure commitment plan to ensure that expenditure is consistent with the anticipated level of State revenue and the monetary programming objectives.

### Measures and reforms regarding controlling the management of public expenditure (Box 19)
- Communication of the expenditure commitment plan to all ministries by the Ministry of Budget since June 2005, and incorporation of the expenditure commitment plan into the computerized expenditure management procedures so as to prevent overruns.
- Publication of the forecast expenditure commitment plans and budget monitoring statements.
- Execution of at least 95 percent of expenditures through computerized payment orders (OPIs).
- Execution of all payments by the BCC within 48 hours of receiving the OPIs.
- Reporting of the balances of State accounts by the BCC at the end of each business day since July 2005.
- Incorporation, since April 2005, of the payroll expenditure of political institutions, public debt expenditure, and expenditure against external resources into the expenditure chain.
- Closure of ministry accounts that fail to meet the criteria defined by the Ministry of Finance for opening same.
- Adoption of a limited accounting framework applicable to the DTO.
- Electronic dispatch of debit and credit advices by the BCC to the Treasury Directorate within 48 hours of any movement in the State accounts.
- Limitation of recourse to budget advances and application of related procedures, in particular the rule on granting new advances only if the use of amounts previously transferred has been documented.
- Observance of the budgetary ceilings on the expenditures of military and political institutions.
- Submission to the Council of Ministers, at the end of each month beginning in April 2006, of a report on travel costs and related expenditure and on the use of the budgetary advances of each ministry during the preceding month.
- Completion by September 2006 of a financial audit of the expenditure financed against the savings generated by the HIPC Initiative in 2003-2005 and deposited to a subaccount with the BCC.
- Submission to the National Assembly, within 30 days following the end of each quarter, of a quarterly report on budget execution.

### Continued public procurement reforms
- Objectives: (i) combat corruption and the lack of transparency in the management of public procurement; and (ii) put an end to the withholding of information and recourse to amicable procedures by intentionally breaking up contracts and undervaluing when providing contract estimates.
- New public procurement code pillars:
  - modernization of the legal framework and contract award procedures, using standard international tools;
  - building staff skills alongside a high-performance private sector;
  - transparency based on internal and external audits as well as measures to combat corruption.
- Government plans to build enterprise capacities by:
  - improving access to information on contract opportunities;
  - training enterprises in the technique and procedures of successful contract bidding.

### Actions carried out in the context of public procurement reform (Box 20)
- Creation of a Public Procurement Reform Commission (COREMAP) by presidential decree in October 2004.
- Effective establishment of COREMAP completed in the first half of 2005 with the appointment of its Executive Secretary, the purchase and equipment of its premises, and the hiring of staff.
- Recruitment of international consulting firms for:
  - drafting the future public procurement code;
  - evaluating professional capacities in this sector.
- Updating of the former regulations and setting of thresholds for the use of bidding procedures.

### Improve the quality of statistics
- DRC joined the General Data Dissemination System (GDDS) of the IMF in April 2004.
- Government undertakes to devise and implement a National Strategy for the Development of Statistics (NSDS) in partnership with the IMF, the World Bank, the AfDB, and the PARIS21 Consortium, and on the basis of scheduled audits (UNECA primarily) and clearly identified priorities.
- Short-term actions to continue:
  - strengthening human, material, and financial resources of the national statistical system (NSS), especially components producing indicators for monitoring and evaluating the PRGSP, with particular attention to the INS;
  - creation within the Ministry of Planning of a structure for centralizing, storing, analyzing, and disseminating information on the monitoring of the PRGSP;
  - participation in the Economic and Statistical Observatory for Sub-Saharan Africa (AFRISTAT);
  - continued cooperation with development partners to finance massive statistical operations;
  - strengthened supervision of financial institutions to prevent systemic risk of illiquidity and insolvency.
- Institutional measures:
  - devise and adopt a Statistics Law defining the structure of the NSS and rights and obligations of agencies and suppliers of statistical data;
  - create a High Council on Statistics (CSS) responsible for organizing concertation between producers and users of statistics and improving coordination.
- National scope statistical actions envisaged:
  - preparation of the second population census (the first dates from 1984);
  - conduct of the General Census of Population and Housing (RGPH) every ten years;
  - regular performance of surveys of the Demographic and Health Survey (EDS), MICS survey, and 1-2-3 survey types;
  - conduct of an agricultural census.
- Coordination among INS, DEME, BCC, IRES, Poverty Observatory to support PRGSP, MDGs, and Vision 26/25 monitoring and impact analysis.

### Consolidate peace and security; Demobilization, Disarmament, and Reintegration (DDR)
- Transitional Government priority objectives:
  - reunification of the country and territorial administration;
  - demobilization and reintegration of the army, police, and security services;
  - reintegration and reinsertion of persons displaced within and outside the country, and the conduct of free, transparent, and democratic elections.
- Recognition that sociopolitical situation remains fragile, with continued need to:
  - speed up reunification of the army and the police with international support;
  - continue disarmament of foreign armed groups and militias in the eastern part of the country.
- National Program for the Disarmament, Demobilization, and Reintegration of ex-combatants (PNDDR) aims to:
  - reduce risks of ex-combatants’ participation in armed actions by facilitating socioeconomic reintegration and recovery of lost resources;
  - reincorporate ex-combatants into viable economic activities and satisfactory social conditions in a conflict prevention context;
  - contribute to national development through job creation and the poverty reduction strategy.
- Target groups for reintegration support: demobilized adult ex-combatants, child soldiers, female ex-combatants, and handicapped ex-combatants.
- PNDDR actions for adult ex-combatants:
  - awareness campaigns for eligible persons, host communities, and supervising authorities;
  - regrouping;
  - disarmament;
  - transfer to orientation centers for demobilization and reintegration or to reassignment centers for integration.
- Government intends to:
  - strengthen capacities of the Military Integration Structure (SMI) and ensure close collaboration with CONADER;
  - periodically appraise reintegration results;
  - exert pressure on those who refuse to submit to the census or to turn in their weapons;
  - move orientation centers and reassignment centers closer together, and limit their operation to approximately two months;
  - increase the presence of the SMI in the orientation centers;
  - broaden supervisory structures to include local NGOs;
  - sharply increase the number of heavily labor-intensive projects in all areas;
  - neutralize the negative forces.

*IMF staff report excerpt.*

### 231.      Reinsertion  of  former  child  soldiers.  The  program  will  basically  aim  at  providing

### _cr07330 - 231.      Reinsertion  of  former  child  soldiers.  The  program  will  basically  aim  at  providing

### Reinsertion of former child soldiers
- Program objectives:
  - Provide assistance including: community welcome preparation by the cooperation bodies, direct support to families, direct support to child soldiers without families, education, vocational training, youth activities (including job opportunities), health care, psychosocial support services, and HIV/AIDS prevention services.

### Reintegration of female ex-combatants
- Program commitments:
  - Offer the same opportunities for equitable economic reintegration as male counterparts.
  - Devote special attention to specific needs of women, security, and social integration.
- PNDDDR actions called for:
  - (i) Provision of information to female ex combatants on their rights during reintegration, with insistence on the fact that these rights are in every respect comparable to those of their male counterparts.
  - (ii) Awareness campaign in the host communities on the dynamics of economic reintegration and safeguarding the benefits from reinsertion allocated to them.
  - (iii) Conduct of support activities and participation of ex-combatant females through their grouping in associations.
  - (iv) Care of ex-combatants in the maternal and infantile health care program as well as the program to prevent and combat STIs and the HIV/AIDS pandemic.

### Political governance actions (Box 21)
- Actions taken after June 30, 2003:
  - Establishment of institutions to support democracy and defined institutional structure needed for DDR in consultation with development partners, creating the National Commission for the Demobilization and Reintegration of Combatants (CONADER).
  - Development of a national disarmament, demobilization, and reintegration plan (PNDDR).
  - Government reunified the national territory.
  - Independent electoral commission (CEI) organized the constitutional referendum on December 18, 2005.
  - Constitution of the Third Republic promulgated on February 18, 2006.

### Integration and administration of the Army and the Police
- Strategic objective:
  - Creation of a republican army and police force reunified and devoted exclusively to service in protecting the nation; establishment of a national army and police force that are restructured and integrated is a key component of conflict resolution and regional stability.
- EUSEC Seminar recommendations (priority actions):
  - (i) Census of all the administrative personnel of the FADRC.
  - (ii) Streamlined use of all the administrative personnel.
  - (iii) Training in new technologies.
  - (iv) Improved wages.
  - (v) Planning for incentive bonuses.
  - (vi) Organization of staffing audits.
  - (vii) Introduction of a combined computerized management system at the central level, using data from individual change advices (AIMs) to be forwarded by the unit directly to the general staff (EMG).
  - (viii) Creation of a computer network at the central level linking the EMG to the Ministry of Defense.
- EUSEC audit and follow-up:
  - An 18-month technical assistance program was defined following an EUSEC audit mission focused on dysfunctions in payroll and quartermaster’s administration.
- Payroll and Quartermaster Administration Program emphasis:
  - Integrated brigades to command loyalty and reduce exactions.
- Program recommended actions:
  - (i) Develop and refine a transitional status that simplifies certain aspects, in particular compensation.
  - (ii) Develop a unified database on all military personnel, identified by means of biometric data and updated in accordance with change advices and/or through electronic data transmission; track careers of individual military personnel.
  - (iii) Issuance of an identity card which would be presented in order to obtain payment.
  - (iv) Establishment of a “financial management” body at the level of each integrated brigade, reporting solely to the Budget and Finance Directorate of the Ministry of Defense; physical payment of the military payroll to be carried out in person by a member of this directorate.
  - (v) Organize a training cycle for the heads of this new system to improve skills and performance.
- Reform actions extended to the national police to improve effectiveness throughout the national territory.
- Ultimate objective:
  - Restore pride and cohesion to military service in the army and the Congolese police, and to their families, through:
    - (i) Resumed functioning of an officer training system.
    - (ii) Refurbishment or construction of housing.
    - (iii) Restoration of the medical support system for soldiers and their families.
    - (iv) Education for their children.
    - (v) More rapid reunification of military personnel and police officers and their families, once the situation so permits.

### Security of persons and property
- Enhanced security prerequisites:
  - Effective reunification of the country and restoration of State authority over the entire national territory.
  - Rapid deployment of security and intelligence services throughout the territory.
  - Training of specialized units of the armed forces, police, and security services.
- Transitional step:
  - Government established the Transition Territorial Authority as an initial milestone.

### Promotion of “good neighbor” relations in the subregion
- Government undertakings:
  - Engage in intensive diplomatic activities aimed at concluding nonaggression agreements consistent with regional integration.
  - Place specialized entities at concerned borders to control migratory flows and organize air, land, lake, and sea surveillance of movements at the borders.

### Pillar 2 — Consolidate macroeconomic stability and growth
- Poverty reduction depends on robust and sustainable economic growth based on a stable macroeconomic framework and policies.
- Fiscal policy intentions:
  - Control public expenditure while ensuring quality and composition of expenditure meet MTEF objectives.
  - Increase public revenue by implementing reforms and rapidly extending the coverage of those already initiated.
- Monetary policy:
  - Will remain period over the period, built around strengthening the independence of the Central Bank.
- Sectors prioritized for investment support (based on partner-assisted studies):
  - (i) Diversify export-oriented agricultural subsectors after ensuring renewed vitality in agriculture, stock farming, and fishing.
  - (ii) Promote development of microcredit and microenterprise.
  - (iii) Adequately supervise exploitation of forest potential.
  - (iv) Define a multimodal transport policy by May 2007, with principle focus on the Port of Matada and the main access points.
  - (v) Finalize implementation of mining sector reforms and begin restructuring of public enterprises in the sector.
  - (vi) Speed up completion of ongoing studies on the electricity subsector (legal and regulatory framework) and make better use of the potential of the Inga site.
- Natural resource exploitation principles:
  - Take into account environmental dimension and transparency norms through regular publication of data on activity levels of stakeholders; implement the Extractive Industries Transparency Initiative (EITI).

### Macroeconomic framework and quantitative goals (2006-2008)
- Framework built around:
  - (i) Consolidation of stability and economic growth.
  - (ii) Implementation of program budgets.
  - (iii) Continuation of economic and structural reforms.
- Specific quantitative goals for the 2006-2008 period:
  - (i) Sustained growth in production, which will reach 7.7 percent on average thanks to an inflow of external project finance.
  - (ii) An average inflation rate of 6.5 percent thanks to prudent fiscal and monetary policies.
  - (iii) An external current account deficit (excluding grants) that will deepen to 13.9 percent of GDP on average following an increase in imports as compared to exports resulting from a greater absorption.
- Summary of the Macroeconomic Framework, 2006-2008 (Table 5)
  - Real GDP growth rate: 2005 Est. 6.5; 2006 Proj. 7.0; 2007 Proj. 7.7; 2008 Proj. 8.4
  - Inflation rate (end-of-period): 2005 Est. 21.3; 2006 Proj. 8.0; 2007 Proj. 6.0; 2008 Proj. 6.0
  - Growth in the money supply (M2): 2005 Est. 24.6; 2006 Proj. 14.0; 2007 Proj. 14.7; 2008 Proj. 15.5
  - Current balance, including grants: 2005 Est. -3.4; 2006 Proj. -4.2; 2007 Proj. -6.1; 2008 Proj. -5.8
  - Current balance, excluding grants: 2005 Est. -8.4; 2006 Proj. -10.1; 2007 Proj. -14.9; 2008 Proj. -16.6
  - Tax ratio: 2005 Est. 11.6; 2006 Proj. 12.3; 2007 Proj. 13.2; 2008 Proj. 14.0
  - Total expenditure: 2005 Est. 15.8; 2006 Proj. 24.3; 2007 Proj. 26.9; 2008 Proj. 29.0
  - Budget balance, excluding grants: 2005 Est. -4.2; 2006 Proj. -12.0; 2007 Proj. -13.7; 2008 Proj. -15.0
  - Gross investment: 2005 Est. 14.1; 2006 Proj. 18.1; 2007 Proj. 23.7; 2008 Proj. 26.1
  - Source: Standing Committee on the Macroeconomic Framework (CPCM).

### Fiscal policy (2006-2008)
- Overall stance:
  - Prudent fiscal policy to consolidate macroeconomic stability through increased resource mobilization and improved control over public expenditure; streamline allocation in favor of social sectors: health, basic education, HIV/AIDS, water supply and sanitation, and road infrastructure.
  - Financing growth-potential sectors requires improving government revenue by strengthening tax administration, introducing tax reforms, combating corruption and fraud, and increasing contribution of mining and forestry sectors.

### Customs, tax, and nontax revenue
- Tax ratio projection:
  - Projected to amount to 13.2 percent of GDP over the period, compared to 11.6 percent of GDP in 2005, thanks to continued efforts to improve transparency and combat fraud in tax and nontax revenue administrations and a policy to broaden the tax base.

### Public expenditure
- Total expenditure trajectory:
  - Expected to increase from 15.8 percent of GDP in 2005 to 29 percent of GDP in 2008, principally owing to increases in public investment in priority sectors.
- Expenditure control measures:
  - Prudent wage policy with an average increase from 4.69 percent of GDP in 2006 to 4.71 percent of GDP in 2008.
  - Increase in investment against own resources from 0.6 percent of GDP in 2005 to 1.8 percent of GDP at the end of the period.
  - Increased use of resources made available by debt relief under the HIPC Initiative and strengthened mechanisms for monitoring their use.
  - Common expenditures maintained at the 2006 level during the period (0.6 percent of GDP).

### Medium-Term Expenditure Framework (MTEF) priorities and allocations
- MTEF objectives:
  - Streamlined allocation of available resources, assigning indicative ceilings to sectors with priority accorded to PRGSP strategic axes.
  - Emphasis on: (i) improvement of road infrastructures; (ii) improved access to basic education; (iii) improved access to primary health care; (iv) improved supply of safe drinking water and access to sanitation; and (v) the fight against HIV/AIDS.
- Priority ministries’ share of expenditure appropriations (after subtracting interest payments on the debt):
  - 2006: 41.9 percent
  - 2007: 55.9 percent
  - 2008: 58.5 percent
- Allocations to priority ministries (Table 6) — Appropriations (in percentage of primary expenditures):
  - Public Health — Improved access to primary health care and the fight against HIV/AIDS:
    - 2006: 7.5
    - 2007: 12.3
    - 2008: 12.9
  - Primary, Secondary, and Vocational Education — Improved access to basic education:
    - 2006: 12.2
    - 2007: 15.5
    - 2008: 16.7
  - Public Works and Infrastructure — Improved road infrastructures:
    - 2006: 11.2
    - 2007: 15.8
    - 2008: 16.3
  - Energy — Improved access to safe drinking water:
    - 2006: 10.0
    - 2007: 10.2
    - 2008: 10.3
  - Environment — Improved sanitation:
    - 2006: 0.9
    - 2007: 2.1
    - 2008: 2.3
  - TOTAL:
    - 2006: 41.9
    - 2007: 55.9
    - 2008: 58.5
  - Source: Standing Committee on the Macroeconomic Framework.

*IMF staff compilation from document _cr07330 (selected excerpts).*

### 253.      Overall,  there  is  also  growth  in  the  expenditure  of  these  ministries,  though  it  has  not

### _cr07330 - 253

### Sectoral budget allocations and expenditures
- Overall increase in expenditure of priority ministries, though the short-term primacy of other ministries taken together has not been completely reversed.
- Health:
  - Share of primary expenditure projected to increase from 7.5 percent in 2006 to 12.3 percent in 2007 and 12.9 percent in 2008.
  - Effort distributed unequally between current expenditure and capital expenditure.
- Primary, Secondary, and Vocational Education (EPSP):
  - Budgetary allocation projected to increase from 12.2 percent in 2006 to 15.5 percent in 2007 and 16.7 percent in 2008.
  - Capital expenditure projected to expand more rapidly than operating expenditure due to classroom rehabilitation needs.
- Public Works and Infrastructure (TPI):
  - Share of budgetary expenditure projected to increase from 11.2 percent in 2006 to 15.8 percent in 2007 and 16.3 percent in 2008.
  - Capital expenditure to expand more rapidly than current expenditure for reconstruction and rehabilitation.
- Energy:
  - Share in primary expenditure projected to increase from 10 percent in 2006 to 10.2 percent in 2007 and 10.3 percent in 2008.
  - Capital expenditure to account for a significant share owing to rehabilitation of water treatment centers.
- Environment:
  - Budget allocation projected to improve from 0.9 percent in 2006 to 2.1 percent in 2007 and 2.3 percent in 2008.
  - Capital expenditure significant for installation of systems for evacuation of solid and liquid waste.

### Financing of the budget deficit
- Budget deficit (cash basis), including grants, to be contained at 2.7 percent of GDP on average over the period.
- Financing projections:
  - External budgetary loans and grants: 0.5 percent of GDP in 2006, 1.4 percent of GDP in 2007, and 1.3 percent of GDP in 2008.
  - External financing for investment projects: 9.7 percent of GDP in 2006, 9.9 percent of GDP in 2007, and 11.2 percent of GDP in 2008.
  - Financing gaps: 2.2 percent of GDP in 2006, 1.8 percent of GDP in 2007, and 1.9 percent of GDP in 2008.
- Government intends to pursue discussions with development partners to mobilize additional budgetary support and avoid recourse to banking-system financing.

### Monetary policy
- Monetary policy to remain prudent and prioritize price stability under a floating exchange rate regime and preservation of positive and flexible interest rates.
- Government support for independence of the BCC, which has sole responsibility for monetary policy.
- Objective: maintain the average inflation rate for the period at around 7.4 percent.
- Broad money projected to increase in annual average terms by 14.7 percent, through increases of:
  - 14 percent in 2006,
  - 14.7 percent in 2007,
  - 15.5 percent in 2008.
- State will refrain from advances from the BCC to free up liquidity compatible with private-sector demand.
- Net foreign assets projected increases:
  - US$77 million in 2006,
  - US$44 million in 2007,
  - US$43 million in 2008,
  - compared with an increase of US$21 million in 2005.
- Monetary policy objectives to be widely disseminated and BCC to report regularly on implementation.

### External policy
- Debt sustainability indicators expected to improve in the medium term due to improved exports and debt relief under the Enhanced HIPC Initiative.
- Current balance projected to record an average deficit on the order of 13.9 percent of GDP over the period, largely attributable to increases in capital goods imports and insufficient national savings.
- Government commitments:
  - Pursue a prudent borrowing policy and strengthen contacts with creditors.
  - Scrupulously fulfill external debt service commitments until Completion Point of the HIPC Initiative.
  - Ensure any public-sector borrowing (including by the BCC and EADs) observes concessionality defined in the Technical Memorandum on Execution of the Government Economic Program.
  - Mobilize external financing in line with development objectives and economic policy.
- Public Debt Management:
  - DMFAS program to become operational at the Public Debt Management Office to centralize public-debt information and produce reliable data and sustained debt-viability analysis by end-2006.

### Growth targets, sectoral projections, and composition
- Real GDP growth targets:
  - Growth of 6.5 percent in 2005.
  - Expected growth of 7.0 percent in 2006, 7.7 percent in 2007, and 8.4 percent in 2008.
- Average population growth projected at 3.0 percent; real per capita incomes expected to increase by 3.4 percent on average over the period.
- Sectoral contributions and growth (selected figures preserved exactly as presented):
  - Primary sector share: 54.6 percent in 2005; 53.7 percent in 2006; 52.7 percent in 2007; 51.7 percent in 2008.
  - Secondary sector share: 12.2 percent in 2005; 12.7 percent in 2006; 13.4 percent in 2007; 14.1 percent in 2008.
  - Tertiary sector share: 31.1 percent in 2005; 31.5 percent in 2006; 31.8 percent in 2007; 32.1 percent in 2008.
- Table 7 highlights (percentage change and contribution to growth by sector, 2004–2008) — examples:
  - Primary sector overall growth rates and contributions: 4.0 2.3 (2004), 4.5 2.5 (2005), 5.3 2.9 (2006), 5.7 3.1 (2007), 6.4 3.4 (2008).
  - Agriculture, forestry, hunting and fisheries: 0.6 0.3 (2004), 1.4 1.2 (2005), 3.0 1.2 (2006), 3.4 1.3 (2007), 3.9 1.5 (2008).
  - GDP at market prices: 6.6 6.6 (2004), 6.5 6.5 (2005), 7.0 7.0 (2006), 7.7 7.7 (2007), 8.4 8.4 (2008).
- Average agricultural, livestock, and fisheries production growth projected at 3.4 percent, compared to 1.4 percent in 2005.
- Growth targets predicated on dynamism in construction and public works, trade and transportation, and diversification/increase in primary-sector products including Mines and Forests.

### Agriculture and rural development (strategy and programs)
- Importance:
  - Agriculture accounts for almost 63 percent of GDP and provides the livelihood of over 70 percent of the population.
  - Sector central to economic recovery and poverty reduction.
- Recovery program objectives: restore and exceed pre-crisis production levels; address food insecurity, malnutrition, shortage of quality seed, price increases, and underdevelopment of processing and conservation.
- Short-term actions:
  - (i) Reactivation of seed centers.
  - (ii) Strengthen mobilization and supervision measures for rural roads, focusing on modern crop methods.
  - (iii) Revitalize livestock sector by restoring herds decimated during conflict.
  - (iv) Restore diversification of cash crops.
  - (v) Strengthen support for producers through distribution of inputs and dissemination of applied research.
  - (vi) Develop and organize agricultural markets and fisheries sector.
- Medium-term actions:
  - (i) Support private initiatives (economic agents, cooperatives) in supervision, supply, and marketing.
  - (ii) Support Community Development Committees (CDCs), Village Development Associations (ADVs), and cooperatives to become genuine economic agents and progressively change traditional farming systems.
- Strategy goals: diversify production, improve yields, restore food self-sufficiency, produce marketable surpluses, and increase nonagricultural employment in rural areas.
- Programs and projects underway (examples and financing amounts preserved where given):
  - Emergency Multisector Rehabilitation and Reconstruction Project (PMURR): additional World Bank financing of US$125 million (text partially garbled).
    - Achievements include provision of healthy cuttings and quality seeds; production of improved seeds (Maize, Rice, Groundnuts, Beans, Cowpea, Soy, Manioc); rehabilitation of 1,310 kilometers of rural roads; animal production training; sectoral studies in multiple provinces.
  - Agricultural and Rural Sector Rehabilitation Support Project (PARSAR): grant of US$41.47 million (AfDB) for Bandundu and Bas-Congo; core activities include support for research structures, publication of seed law (implementing decree in preparation), and privatization of seed farms in Bas-Congo.
  - Agricultural and Rural Sector Rehabilitation Project in Katanga, Kasai Oriental, and Kasai Occidental: grant of US$59.04 million targeting food security, agricultural production development, and rural infrastructure rehabilitation.
  - Lake Tanganyika Integrated Rural Development Program (PRODAP): loan and grant of UA 11.75 million aimed at poverty reduction in the Lake Tanganyika basin through institutional capacity building, fisheries and environmental protection, and rehabilitation of local development infrastructures.
- Boosting rural incomes:
  - Short-term focus on cash crops (coffee, tea, cotton, potatoes) to increase monetary incomes of rural families.
- Diversification of agricultural export subsectors:
  - Develop nontraditional exportable products (market garden and fruit crops).
  - Short-term needs: production and distribution plan for market garden seeds, fruit production plans, training of supervisors and line personnel, organization and guidance of producers’ associations.
- Livestock and fisheries:
  - Aim to overcome protein deficiencies, reduce malnutrition and nutrition-deficiency diseases.
  - Priority to rebuild herds and genetic improvement of breeds.
  - Establish integrated program for rebuilding the herd including highly prolific short-cycle small livestock.
  - Promote crafts to create nonagricultural jobs and reduce imports; actions include training, supervision, financing, organization of artisans, extending loans, rehabilitating units destroyed during conflicts, and creating a rural development support fund.

*Source: _cr07330 - pages 253–70 (excerpt).*

### 277.      For heavy livestock, the focus will be on improving local breeds by crossing them with

### For heavy livestock, the focus will be on improving local breeds by crossing them with

### Livestock development and intensification
- Improve local heavy-livestock breeds by crossing them with highly productive breeding stock.
- Set up breeding centers managed by the communities, with training provided by veterinarians from the extension services.
- Intensification requires proper feeding conditions: forage and concentrates; accordingly, forage crops will be encouraged and the seed subsector should incorporate forage crop seeds.
- Prevention and treatment of the most frequent and most harmful diseases must be supported.
- The State and development partners will need to provide considerable short-term support for stock-rearing inputs and various types of care.

### Fishery development
- Fishery has been neglected despite considerable potential thanks to the Congo River.
- Initial support actions:
  - Supervise those active in fishery.
  - Modernize fishery equipment and materials.
  - Facilitate access to credit.
- Long-term actions:
  - Introduce fish processing and conservation techniques to reduce losses during overproduction or transport.

### Promotion of microcredit and microenterprise
- Pursue a voluntarist program of diversification and rural sector finance in synergy with rural development strategy and improved productivity.
- Promote and support microcredit systems and individual and collective production units as microenterprises.
- Develop rural credit to provide improved access to agricultural inputs; note that current financing instruments in rural areas are "quite weak and rudimentary."
- Promote rural saving, currently low, by establishing savings and loan institutions in rural areas.
- Develop flexible and suitably adapted mechanisms for extending credit; NGOs and community development committees will be called upon for this purpose.

### Environmental protection
- Government strategy focused on priority actions:
  - (i) Conduct an ongoing public awareness and education program on safeguarding the environment;
  - (ii) Implement the strategy on the conservation of biodiversity, particularly through protection and restoration of plant cover;
  - (iii) Defense of the natural forests and expansion of afforested areas;
  - (iv) Implementation of the United Nations Framework Convention on Climate Change, protection and conservation of water and water resources, maintaining environmental health, and prevention of natural disasters.
- Institutional mechanisms and appropriate incentives will be put in place to promote private sector and non-State involvement in environmental management and preservation.

### Forests — objectives and axes
- Context and objectives:
  - Some 40 million of the poorest Congolese depend upon the forest for food, materials, energy, and medicine.
  - Objective: restructure the forestry sector to guarantee sustainable exploitation and make it one of the principal income sources.
  - Measures include: (i) better regulation and streamlining of granting forestry concessions; (ii) promoting controlled industrial exploitation to create jobs and generate incomes through trade in wood, charcoal, and non-timber products; (iii) involve abutting and local communities in forest management and protection to enhance their rights and living conditions.
- Strategic axes:
  - a. Rebuilding institutions: strengthen institutional capacities of administrations with responsibility for forests and conservation (training, professional retraining, compensation, equipment, technical assistance, infrastructure rehabilitation, etc.).
  - b. Ensuring participation of all stakeholders: governmental authorities, civil society (NGOs, local communities), private sector, local entities (provinces and territories), international cooperation (cooperation agencies, donors, international development NGOs).
  - c. Promoting local forest management methods: assist small, family- or community-based forestry enterprises and develop community-level forests by acknowledging community rights.
  - d. Preserving biodiversity and environmental services: rehabilitate and expand protected areas (parks) and preserve biodiversity outside protected areas (fauna).
- Expected contributions:
  - Forestry sector can generate incomes and new jobs, contributing to poverty reduction and improved living conditions in grassroots communities.
  - Supervising the sector must be central to the poverty reduction strategy and entail implementing the forestry code of 2002.
- Specific actions to be taken:
  - (i) Strict application of Decree No. 05/11/116 of October 24, 2005 and implementing measures of the Forestry Code and the Law on the Conservation of Nature;
  - (ii) Inclusion of national forestry policy in the regional strategy for management of the forests in the Congo Basin;
  - (iii) Regulation of exports of forestry products;
  - (iv) Establishment and enforcement of public bidding procedures, limiting exceptional amicable procedures to grassroots community forests;
  - (v) Introduction of appropriate taxation which provides incentives (2006-2008);
  - (vi) Adoption of the main implementing provisions for the Forestry Code focused on sustainable development and control, local consultation procedures, and mechanisms for allocating forests;
  - (vii) Recruitment of a third-party observer to assist administration in control missions to combat illegal forest exploitation;
  - (viii) Permanent pass-through to local entities of 40 percent of the area-based forest royalty and effective use of this funding pool for building basic infrastructure;
  - (ix) Training, information, and awareness-building among local communities, forest operators, and management personnel of Protected Areas, and participation in Conference of Ministers of COMIFAC.
- Organized participation of grassroots communities in forest management is essential; Government intends to heighten community awareness via a rural forestry strategy.
- Forestry strategy included in COMIFAC Convergence Plan and incorporates its negotiation mechanisms.

### Transport — policy, priorities, and planned road interventions
- Transport infrastructure (road, river, lake, air) rehabilitation is essential to economic recovery and mobility of persons and goods.
- Objectives from the “Transport Policy Framework of the DRC and 2003-2015 Action Plan”:
  - (i) Ensure integration of economic entities through rehabilitation, modernization, and interconnection of transport networks to contribute to poverty reduction;
  - (ii) Guarantee operational safety by observing standards recommended by competent international organizations;
  - (iii) Meet transport needs of the people at competitive prices with increased private sector involvement via partnerships;
  - (iv) Promote administration of national territory by favoring mobility of security units, strengthening national unity and socioeconomic development;
  - (v) Work toward regional integration as advocated by the African Union and NEPAD, while implementing recommendations of organizations of which the DRC is a member.
- Priority actions to achieve sector objectives:
  - (i) Revision of institutional, judicial, and legal framework;
  - (ii) Promulgation of a law on privatization and public-private-partnerships to mobilize private financing;
  - (iii) Establishment of a transport regulation agency to ensure equitable competition and monitor reforms and concession agreements (PPP);
  - (iv) Restructuring of public enterprises, preceded by social plan studies to safeguard social peace and workers’ interests;
  - (v) Strengthening human and institutional capacities of public agencies and motivating reform implementation and monitoring;
  - (viii) Application of standards and recommendations of international (ICAO, WMO, etc.) and regional organizations (COMESA, SADC, etc.);
  - (ix) Consideration of environmental impact of transport;
  - (x) Systematizing technical inspection of vehicles and aircraft;
  - (xi) Rehabilitation and modernization of transport infrastructures (roads, rail, navigable waterways, airports);
  - (xii) Development and implementation of high-performance means of protecting road assets.
- Planned interventions over the next three years will involve 14,771 kilometers of roads apportioned as:
  - 7.3 percent in 2006, 42 percent in 2007, and 50.7 percent in 2008.
- Road works by type and allocation:
  - Paving: 699 kilometers of roads apportioned as 2.1 percent in 2006, 34 percent in 2007, and 63.9 percent in 2008.
  - Rehabilitation: 6,478 kilometers of roads apportioned as 11.9 percent in 2006, 40.6 percent in 2007, and 47.5 percent in 2008.
  - Maintenance: 7,594 kilometers of roads apportioned as 3.7 percent in 2006, 43.9 percent in 2007, and 52.4 percent in 2008.

### Mines — reforms and sectoral actions
- Government initiated reforms targeting restructuring of public enterprises, including mining sector, focusing on injection of private capital, resurgence of production, and improved management.
- Promulgation of a new Mining Code and establishment of structures to ensure its proper application (Mining Registry, mining planning unit, etc.).
- Sector dynamics:
  - Expansion in artisanal gold and diamond mining.
  - Industrial production of copper, zinc, cobalt, and gold in sharp decline.
  - Recent discoveries of new precious-stone deposits require a special strategy and rigorous integrated management for extraction and processing to obtain maximum added value.
- Actions to be taken:
  - (i) Strengthen management capacities of enterprises in the sector to improve exploitation of precious substances and promote a competitive mining industry;
  - (ii) Disseminate the mining code, mining regulations, and other laws;
  - (iii) Build SAESSCAM’s capacities for supervising and promoting small mining operators;
  - (iv) Encourage and promote microcredit in favor of artisanal mining operators;
  - (v) For GECAMINES, complete the partnership audit to adopt the definitive restructuring strategy;
  - (vi) Operationalize the mine deed validation commission;
  - (vii) Complete the operational audit of CAMI to proceed with its restructuring.
- Sector strategy aims to streamline exploitation of mining resources, provide sustainable support for economic growth, and improve social conditions of workers and the Congolese people.

_Italic: IMF content unit _cr07330 - 277.      For heavy livestock, the focus will be on improving local breeds by crossing them with_._

### 302.      Implementation of this strategy will enable the mining sector to play its primary role in

### _cr07330 - 302.      Implementation of this strategy will enable the mining sector to play its primary role in

### Electricity: objectives and planned actions
- Government objective: ensure broad access by all social groups and national grassroots communities to reliable electrical energy, with a view to increasing access to electricity to 60 percent and ultimately to the entire national territory by 2025.
- Two main tracks of implementation:
  - Electrification of urban centers and exports
    - Priority investments to rehabilitate and improve reliability of existing infrastructures, and develop new infrastructures.
    - Promote development of the Inga site and build associated transport networks to permit the export of surplus electricity in the context of subregional cooperation.
    - Mobilize funds necessary for regional integration projects in the context of regional and subregional organizations (NEPAD, UPDEA, SAPP, PEAC, EAPP, NBI, etc.)
  - Rural electrification
    - Prepare a national rural electrification program and establish an execution structure and timetable.
    - Develop use of other alternative primary energy forms for electricity production (new and renewable energy sources, solar, wind, biogas).
    - Accelerate institutional reforms in the subsector, in particular:
      - Finalize ongoing studies on institutional reforms (COPIREP and the study on PMURR financing).
      - Promulgate the Electricity Code and regulations.
      - Increase use of public-private partnerships for certain projects.
      - Strengthen requirement of good governance in management of public and private stakeholders.
    - Create energy cooperatives in rural and semi-urban areas.
    - Improve technical and commercial management through program contracts and performance contracts based on self-financing and development objectives adapted to the Millennium Development Goals (MDGs).

Box 28 — Actions carried out in the electricity sector
- Work to enhance reliability of the production capacity of the Inga dam has begun.
- Reliability studies and calls for bids have been completed for the most part, and include rehabilitation and transport works for the entire SNEL grid and rehabilitation of several thermal power plants.
- Remaining steps: start works and supply equipment.

### Promote the private sector: strategy and priorities
- Overarching aim: combat poverty and promote sustainable economic growth through a dynamic partnership between the State and the private sector, with incentive policies to improve the business climate and reform public enterprises to promote and support the national and international private sector.
- Objective: institute a business climate conducive to promoting growth of competitive enterprises capable of creating new jobs through:
  - Improvement of the investment climate for national and foreign investors (legal and regulatory framework, tax regime for enterprises).
  - Finalization of the labor code and the commercial code.
  - Settlement of domestic debt to enterprises.
  - Reduction of the commercial date through the London Club’s debt repurchase operation.
  - Strengthen or create institutions and instruments necessary for economic regulation.

#### Improve the business climate
- Private sector to be the motor of growth; five specific orientations:
  - Short-term emergency actions:
    - Settlement of the State’s domestic arrears.
    - Introduction of support mechanisms for economic operators that have incurred damages, inter alia through reconstruction activities.
    - Rehabilitation of production infrastructures, thoroughfares, and marketing channels destroyed during the crisis.
  - Improve the business environment and security while promoting private sector competitiveness.
  - Reform the legal and regulatory framework, including tax regime reform, public enterprise reform, and State divestment.
  - Strengthen incentives for increased private investment.
  - Improve capacities of the financial intermediation system to guarantee effective support for wealth creation.

Box 29 — Actions and reforms undertaken in the private sector
- Legal and sectoral reforms:
  - Approval of new investment and labor codes in 2002.
  - New mining code published in 2002; main implementing decrees issued in 2003.
  - New forestry code promulgated in 2002; implementing orders in 2003 and 2004.
  - Creation of the Post, Telephone, and Telecommunications Regulation Agency (ARPTC) and publication of a new telecommunications law in 2003.
- Judicial and administrative measures:
  - Training of judges and court personnel for commercial tribunals (Rome, January 2004).
  - OHADA training in Kinshasa from January to March 2005 with COPIREP support.
  - Creation of a national arbitration center by ministerial order in June 2003; about 30 arbitrators registered in November 2004.
  - Creation of an official gazette for publishing laws.
  - Receipt in March 2005 of the report on modalities for joining OHADA.
  - Creation of an investment promotion agency (ANAPI) in 2002 and establishment of a one-step shop for licensing.
  - Membership in the African Trade Insurance Agency (ATI) formalized in February 2005; DRC paid its initial contribution to ATI capital with assistance from the World Bank.
- Tax and customs reforms:
  - Publication of a new customs tariff to streamline customs protection.
  - Major reforms in the indirect tax system, including introduction of deductibility under the turnover tax to improve competitiveness and prepare for introduction of the VAT in 2006.
  - Turnover tax on exports eliminated in July 2004.
- Domestic debt audit and settlement:
  - Audit completed in February 2004 for claims through December 31, 2001: total stock of certified debt US$1.270 billion, of which US$470 million was commercial debt.
  - Negotiations on commercial debt covered creditors representing US$365 million; resulted in an average discount of 75 percent in present value terms, reducing the debt stock to US$96 million.
  - The World Bank’s contribution of US$42.5 million in budgetary support will be used to pay the first tranche for 2005.
  - Repayment plan for 2006 and 2007 calls for amounts of US$29.5 million and US$24.7 million, respectively.

#### Public enterprise reform
- Reform aims:
  - Ensure public services provided sustainably and on a commercial basis, calling on private sector assistance (partnerships, concessions, partial or full sale of shares).
  - Reduce quasifiscal costs from poor management or organization of public enterprises.
- Institutional arrangements:
  - Establishment of a steering committee on public enterprise reform (COPIREP) to prepare and carry out reforms after a diagnosis.
  - COPIREP assisted sectoral working parties to develop strategic plans for public enterprise restructuring in mining, transport, energy, telecommunications, and banking sectors.
- Legal and operational measures:
  - Government submitted to Parliament four draft laws on: transformation of public enterprises; State divestment; and application of provisions governing public enterprises and public entities.
  - Study on reclassification of public enterprises eligible for transformation into public entities or commercial companies forwarded to the Government.
  - Studies on restructuring strategies prepared for target enterprises based on public-private partnership principle; enterprises include GECAMINES, the RVA, the SNCC, ONATRA, LAC, City Train, COHYDRO, SNEL, REGIDEO, and the OCPT.

#### Improve financial intermediation and promote microfinance
- Sector diagnosis:
  - Vast reforms of the national financial sector carried out to ensure financing of growth and poverty reduction; banking system still dysfunctional for financing medium- and long-term loans; access to credit remains difficult.
- Vision and targets:
  - Establish by 2010-2015 an efficient national payment system with rapid transactions favoring circulation of capital domestically or abroad.
- Priority actions:
  - Relax conditions to be met for creating banks; minimum capital set at US$1.5 million.
  - Build purchasing power of the national currency through prudent monetary policy and broadening of the money market.
  - Continue restructuring bank and nonbank financial institutions, recapitalize the Central Bank, and create a financial market with a diversified and efficient payments system.
  - Introduce special incentive mechanisms for networked banks (tax system, allocation of foreign exchange, etc.).
  - Redeploy the Central Bank throughout national territory, expand investment code benefits to investors in the banking sector, and implement policies to incentivize creation of banks near where people live.
  - Modernize computer and telecommunications equipment.

### Promote employment: objectives, strategy, and actions
- Demographic and labor context:
  - Working age population in the DRC (those between the ages of 15 and 63) is 80 percent of the total; this category is engaged in agricultural activities in small family farms and the informal sector.
- Overall objective: promote employment for all and increase incomes to improve living conditions.
- Four priority axes of the employment strategy:
  - Develop the national policy on promoting jobs and vocational training.
  - Build capacities of institutions and public and private organizations responsible for promoting jobs and combating poverty, enabling central and decentralized roles (social partners and civil society stakeholders).
  - Equitable expansion of job opportunities and income-generating activities for the poor.
  - Strengthen existing social protection systems and extend them to workers in the informal economy and their families.

- Actions to develop the national employment and vocational training policy:
  - Define priorities and objectives of the employment and vocational training policy.
  - Organize and conduct workshops to prepare and validate the national policy paper on employment and vocational training.
  - Strengthen the legal framework and social dialogue mechanisms.

- Actions to build capacities of institutions and agencies promoting employment and combating poverty:
  - Assess needs for vocational skills and revise/develop plans to enhance stakeholder capacities (Ministry of Labor, NGOs, civil society organizations, workers’ and employers’ associations).
  - Equip and finance structures responsible for promoting employment.
  - Organize information and training workshops on jobs.
  - Establish an ongoing national database on employment and poverty.
  - Promote research and gathering/analysis of data on employment and poverty.
  - Create an environment conducive to institutional vitality.

Box 30 — Actions taken in the employment sector
- Government prepared a sectoral strategy for employment in keeping with recommendations of the Summit of Heads of State of the African Union held in Ouagadougou from September 3 to 9, 2004; a National Action Plan to Promote Employment and Combat Poverty was drawn up and adopted in 2005.
- In 2002 the Government adopted, using a participatory process, a comprehensive Job Creation Program (PROCER); a decree on the creation and operation of this program was signed in 2005. PROCER is the operational tool for the National Action Program to Promote Employment and Combat Poverty.

- Actions to expand pro-poor job opportunities and income-generating activities:
  - Focus on development of subsectors (agriculture, rural development, construction, environment) to improve skills and create equal opportunities for men, women, and youths.
  - Promote cooperative entrepreneurship and formulate program to create decent rural and peri-urban employment and self-employment.
  - Promote labor-intensive approaches and disseminate them in administrations, particularly in reconstruction and sectoral project execution.
  - Introduce microcredit for financing micro, small, and medium-sized enterprises.
  - Promote employment and vocational training by establishing training, education, and employment programs and projects for disadvantaged groups with due regard for gender (youth, women, the disabled, etc.).
  - Strengthen partnership with the private sector.

- Actions to strengthen social protection and extend coverage:
  - Reform current social security system by developing legal framework for operation of mutual associations and encouraging decentralized and innovative social security systems.
  - Promote professional security and health coverage for vulnerable workers, particularly those in agriculture and the informal economy.

*IMF document: _cr07330 - 302. Implementation of this strategy will enable the mining sector to play its primary role in (excerpt).*

### 326.      After thirty years of conflicts and poor governance, the social situation in the DRC, like

### _cr07330 - 326.      After thirty years of conflicts and poor governance, the social situation in the DRC, like

### Social situation overview
- After thirty years of conflicts and poor governance, the health and education systems, and those for access to drinking water and a healthy environment, coupled with nonexistent social protection, require energetic, urgent, and balanced actions.
- Rehabilitation of basic infrastructures and restoration of quality services to a growing population call for an aggressive policy in partnership with community organizations, NGOs, religious groups, and civil society.
- Government objective: restore and exceed by 2015 the performance levels achieved before the crisis, with priority steps in education, health, social protection, water supply, and sanitation.
- Access to basic services viewed from two perspectives: availability of high quality services, and effective access within the financial possibilities or purchasing power of beneficiary population groups.
- Establishment of suitable social safety nets in favor of the poorest is necessary.

### Education — strategic objectives and planned actions
- General objective: establish, in the short term, a legal and regulatory framework conducive to achieving the Millennium Development Goals (MDGs); revise the framework law on national education to proclaim free and mandatory basic education, prioritize State operation, strengthen public-private partnership, decentralize management, address language policy, social linkages, and ethics.
- Specific actions envisaged for universal primary education, secondary education, higher/university education, nonformal education, and streamlining and strengthening educational system management.

Universal primary education
- Objective: increase the gross enrollment ratio from 64.1 percent in 2006 to 80 percent in 2008 and to 100 percent by 2015.
- Equity aim: reduce the enrollment gap between boys and girls by half.
- Girls’ gross enrollment ratio target: increase from 56.2 percent in 2006 to 75.6 percent in 2008.
- Boys’ gross enrollment ratio projection: rise to 83.9 percent in 2008 as compared to 72.3 percent in 2006.
- Planned measures:
  - (i) adjustment and systematic application of class size at 40 pupils;
  - (ii) systematic practice of the dual-shift system in urban and peri-urban areas;
  - (iii) use of the multigrade system in rural areas beginning in the 2008/2009 academic year;
  - (iv) annual rehabilitation of 10 percent of classrooms, and outfitting them with school furniture;
  - (v) organization and development of special programs at the primary school level for children who have never attended school or who dropped out before the fourth year of school;
  - (vi) organization of apprenticeships and vocational training for youths who have not attended school to integrate them into production channels;
  - (vii) introduction of local languages as the language of instruction at the basic level, with appropriate adjustments in assessment methodology;
  - (viii) gradual assumption of the incentive fees paid by families;
  - (ix) continuation of information and awareness campaigns with development partners.

Quality improvements in primary education
- Regulatory and instructional measures:
  - (i) strengthening instructional supervision by recruiting additional teachers (compatible with the pupil/teacher ratio);
  - (ii) establishing school canteens (nutritional aid);
  - (iii) distributing basic textbooks to pupils;
  - (iv) continuing training and retraining of teachers;
  - (v) providing furniture to schools;
  - (vi) providing instructional materials to all public primary schools.

Secondary education
- Objective: broaden secondary base, enable more students to complete eight years of study, restrict access to the second cycle, and improve instruction quality.
- Gross enrollment ratio target (principally for girls): increase from 23 percent to 33 percent by 2015.
- Planned measures:
  - (i) maintain current rate of transition from primary to first cycle of secondary school so all children can receive eight years of schooling;
  - (ii) improve school guidance to identify and develop individual potentials;
  - (iii) gradual refurbishment of 4,936 classrooms beginning in 2007, at the rate of 25 percent a year;
  - (iv) increase class size from 30 to 40 pupils per class to reduce number of secondary schools and reallocate resources to improve physical environment;
  - (v) reduce grade repetition rate from 20 percent to 16 percent by 2008 and 10 percent by 2015;
  - (vi) develop technical and vocational education to train skilled midrange supervisors.

Higher and university-level education
- Objectives and targets:
  - provide quality education to university and advanced institute students;
  - promote research and development to match scientific and technological training with socioeconomic requirements;
  - identify priority subsectors to be professionalized.
- Planned measures:
  - (i) adapt education supply to social demand and socioeconomic realities;
  - (ii) achieve a 30 percent increase in rural girls’ access to higher and university-level education by 2015;
  - (iii) construct five university campuses by 2015 (Kindu, Mbuji Mayi, Goma, Kabinda, and Mbandaka) and rehabilitate existing universities and advanced institutes;
  - (iv) utilize distance learning to expand access;
  - (v) award selective scholarships for children of poor families, especially girls;
  - (vi) increase number of qualified faculty through continuing and doctoral training plans;
  - (vii) improve working conditions for academic and scientific staff;
  - (viii) improve by 2008 the scientific and administrative supervision ratio;
  - (ix) introduce a credible instruction quality control system.

Non-formal education
- Literacy training: develop a national literacy training policy to significantly reduce the gap between male and female literacy ratios by 2015.
- Apprenticeship and vocational training: significantly reduce, by 2015, the proportion of children (especially girls age 8 to 14) outside the formal schooling system by organizing special primary programs and apprenticeships to integrate youths into productive activities.

### Health — recovery strategy, targets, and actions
- Strategy: rehabilitate and establish health facilities (hospitals, health centers, pharmacies, etc.) close to populations; develop human resources via basic and in-service training; improve working conditions for health personnel; supply basic pharmaceutical products; outfit hospitals, health centers, and university clinics.
- Objective: provide high quality primary health care to the entire population, with focus on vulnerable groups, and combat major pandemics including HIV/AIDS, malaria, tuberculosis, onchocerciasis, human African trypanosomiasis, etc.

Health outcomes anticipated
- Infant mortality reduction: to 104 per thousand in 2007 and 98 per thousand in 2008 from the 2006 level of 111 per thousand.
- Maternal mortality reduction: decrease by 2008 to 944 per 100,000 live births, as against 1,276 in 2006.
- Assisted childbirths: projected increase to 75.2 percent from the 2006 rate of 61.6 percent.
- Vaccination coverage: improve to 40 percent in 2008 as compared to 29.6 percent in 2006.

Short-term strategic axes
- (i) development of health zones;
- (ii) reorganization and institutional support of the intermediary and central levels;
- (iii) supply of medications and specific inputs.

Development of health zones
- Focus: improve functionality of hospitals and health centers to provide quality health care.
- Priority short- and medium-term actions:
  - (i) develop integrated leadership at the health zone level (supervisory team for each health zone);
  - (ii) promote human resources development;
  - (iii) streamline operations of health care facilities;
  - (iv) improve health care coverage of the health zone and quality of care;
  - (v) promote partnership with grassroots communities in health policy implementation;
  - (vi) finance health care services accessible to users;
  - (vii) strengthen intrasectoral and intersectoral partnership by including religious groups and NGOs.

Strengthening at the intermediate level
- Province- and district-level Medical Inspectorates to be equipped and rehabilitated to provide efficient supervision of health zones.
- Actions: (i) definition of functions of each of the two levels; (ii) institutional support via rehabilitation and outfitting; (iii) improvement of the normative framework.

Streamlining at the central level
- Objective: configure the central level to play its normative role efficiently and address needs outside the capital regarding operation of the health zones.

Actions already taken in the health sector (highlights)
- Development of policy lines and strategies emphasizing primary health care and specialized programs.
- Increase in the number of Health Zones from 306 to 515 to provide administrative framework for the health care network.
- Definition of functionality standards for Health Zones and activity clusters; decentralization and autonomy for Health Zones.
- Support for specialized programs (HIV/AIDS, malaria, tuberculosis); gradual increase in the health sector budget; institutional capacity building.
- Preparation and implementation of the Health Sector Rehabilitation Support Program (PARSS) with World Bank support.
- Breakdown and distribution of the health budget by province, district, Health Zone, and function; measures to ensure health services more accessible to the poor.

### Water supply and sanitation — priorities, targets, and programs
- Priority: mobilize vast water resources, ensure safe drinking water distribution, reconstruct water and sanitation sector as a high PRS priority to provide daily amounts meeting norms and healthier living spaces.
- Sector aims:
  - (i) increase access to safe drinking water from 22 percent of the population in 2005 to 26.9 percent in 2008 and 49 percent by 2014;
  - (ii) increase access to sanitation from 9 percent of the population in 2005 to 15 percent in 2008 and 45 percent by 2015.

Initial focus and activities
- Rehabilitate existing infrastructures; facilitate broadest possible access; enhance capacities of water production units; improve management of water points by promoting grassroots and private sector participation; strengthen existing sanitation programs and extend them nationally.
- Activities to be carried out:
  - (i) reforms in the water and sanitation sectors;
  - (ii) conduct inventories of water needs of urban and rural populations;
  - (iii) draft the Water and Sanitation Code emphasizing integrated water resource protection and management, define roles of private operators, and clarify action areas (large/medium cities, small peri-urban centers, rural areas);
  - (iv) create a water and sanitation development fund.

Medium-term urban and peri-urban programs for 2006-2015
- (i) execution of the REGIDESO Ten-Year Plan and the Water Supply Master Plan for Kinshasa;
- (ii) open the water supply and sanitation sector to initiatives by civil society, private operators, NGOs, other associations, and beneficiaries themselves;
- (iii) implement the Sanitation Master Plan for the city of Kinshasa.

*Source: _cr07330 - 326.*

### 351.      In peri-urban and rural areas, autonomous community-level management systems will be

### _cr07330 - 351.      In peri-urban and rural areas, autonomous community-level management systems will be

### Water supply and sanitation
- Establishment of autonomous community-level management systems in peri-urban and rural areas as part of decentralization and rural development policy.
- Participation by local civil engineering firms (SMIs) to be promoted.
- Policies to be buttressed by research and promotion of appropriate technologies and dissemination of best practices of grassroots management of autonomous installations.
- A plan for the gradual introduction of borewell units in the 26 provinces will be studied to speed access of residents in outlying areas to safe drinking water.
- Projection of sector indicators is a function of the cycle of sectoral projects, which run from three to five years; it may not be possible to observe the effects of the strategy until 2009 and thereafter.
- Main donors involved in the water supply and sanitation sector:
  - Directorate-General of Cooperation and Development (DGCD) of Belgium
  - Kreditanstalt für Wiederaufbau (KfW) of Germany
  - Agence Française de Développement (AFD)
  - African Development Bank (AfDB)
  - World Bank
  - UNICEF
  - European Union
- Donor focus:
  - AfDB, DGCD, and UNICEF concentrated investment on rural water supply.
  - EU, KfW, and AFD focusing on the urban sector.
- Capacity building and institutional measures:
  - Development of a training program to enhance operational capacities of technicians and health personnel, including sanitary engineers, extension personnel, and small operators in sanitation.
  - Creation of a water and sanitation development fund to promote people’s participation in creating and managing water supply infrastructures.
  - In the sanitation subsector: (i) equipping and establishing commune- and territorial-level sanitation squads under the National Sanitation Program (PNA); (ii) promoting participation of women in management and decision-making in preparation of development programs in rural areas.

### Urban poverty and urban planning
- Strategy links urbanization with provision of quality basic services: health care, education, drinking water, electricity, sanitation, decent housing.
- Objective to overcome housing shortage in major urban centers as part of poverty reduction and MDGs, associating urban planning with basic social services.
- Three strategic axes:
  - (i) improving living conditions of city dwellers;
  - (ii) improved urban management and increased accountability and transparency;
  - (iii) rectifying shortage and poor quality of housing.
- Actions to improve living conditions:
  - (i) reduction of shortage of roads;
  - (ii) access to decent housing;
  - (iii) evacuation and treatment of solid and liquid waste;
  - (iv) evacuation of household waste water;
  - (v) public education and awareness-raising on public health problems;
  - (vi) improving supply conditions by broad coverage of supply points.
- Actions to improve town planning, accountability, and transparency:
  - (i) effective tax sovereignty of urban areas;
  - (ii) organization of municipal tax collection;
  - (iii) increasing accessibility of transport services;
  - (iv) increasing number of social facilities;
  - (v) organizing and supervising the informal sector;
  - (vi) production of new town planning for major and medium-sized urban centers.
- Actions to overcome housing shortage and poor quality:
  - (i) restructuring housing sector and development of new sites (Ministry of Urban Planning);
  - (ii) drafting legal and regulatory provisions on leasing;
  - (iii) creation of a housing bank and introduction of bank credit for housing promoters and real estate developers;
  - (iv) quantity and quality housing production by 2030 (MDG 7: bullet 11);
  - (v) enhancing viability of urban lots.

### Social protection
- Policy objectives:
  - (i) improve social standing of vulnerable persons;
  - (ii) facilitate access of all to basic social services;
  - (iii) implement wealth creation programs adapted to target groups;
  - (iv) promote development at grassroots level.
- Priority target groups: (i) women and vulnerable children; (ii) disabled persons; (iii) the elderly; (iv) displaced persons and refugees.
- Actions for vulnerable women and children:
  - (i) implement sector policy per United Nations agreements on protection of child victims of conflict and HIV/AIDS;
  - (ii) improve socioeconomic conditions of families of vulnerable children;
  - (iii) reintegrate vulnerable children into formal or non-formal education;
  - (iv) socioprofessional reintegration of female and child heads of household;
  - (v) support for food and nutritional needs of families with vulnerable children;
  - (vi) rehabilitation of malnourished children;
  - (vii) targeted support for children with life-threatening disabilities and for their education;
  - (viii) address psychosocial, medical, legal, and judicial concerns of victimized children and those born of sexual violence.
- Actions for disabled persons:
  - (i) establish national and grassroots-based readjustment program;
  - (ii) improve economic and social standing and combat prejudices;
  - (iii) promote education and training;
  - (iv) improve health and mobility situations.
- Actions for the elderly:
  - (i) improve care system for the elderly;
  - (ii) promote vocational retraining for retirees;
  - (iii) offer guaranteed physical and spiritual growth of the elderly.
- Actions for displaced persons and refugees:
  - (i) return and/or reintegration of harmed individuals;
  - (ii) socioeconomic rehabilitation of harmed persons; establishment of a National Commission for the Rehabilitation of Victims (CNRS).
- Box 34: Emergency Standard of Living Project (PUACV)
  - Project to be financed by US$82 million from the World Bank with objectives to:
    - (i) support mid-sized urban centers through restoration of and access to basic services;
    - (ii) support province centers through stabilization and strengthening of socioeconomic conditions and revitalization of economic activities via priority investments;
    - (iii) reduce isolation of isolated areas by reconditioning and maintaining 600 kilometers [of roads];
    - (iv) support provincial institutions by providing basic training, purchasing supplies and equipment, and funding minimum rehabilitation of office premises.
  - Since October 2005, National Social Protection Support Program (PNPS) created by presidential decree with objectives:
    - (i) improve social status of vulnerable persons;
    - (ii) facilitate access by the poor to social services, infrastructure, and basic equipment;
    - (iii) implement wealth-creation programs focusing on target groups, particularly via microfinance;
    - (iv) promote development at grassroots.
  - PNPS strategic axes:
    - (i) enhancing capacities of social protection structures and stakeholders;
    - (ii) social, economic, and professional reintegration of vulnerable individuals via targeted programs;
    - (iii) improving access of vulnerable groups to basic social services;
    - (iv) community assumption of efforts to assist vulnerable groups.
- General state role:
  - Encourage and support implementation of formal and informal social safety nets, promote access to mutual health associations and solidarity-driven structures.
  - Continue reforms regarding: (i) national strategy for social protection of vulnerable groups; (ii) gender inclusion strategies for development policies and programs; (iii) combating violence against women and girls.

### Culture, science, and access to universal technology
- Government vision:
  - (i) instill culture of good citizenship and democracy oriented to collective well-being;
  - (ii) guarantee freedom of expression leading to good governance and broad public participation in management of the commonweal;
  - (iii) achieve complete national coverage by basic post and telecommunications services and support high-performance industry in new services, particularly internet spread in secondary schools and universities;
  - (iv) use appropriate technologies and positive externalities of globalization to address poverty reduction.
- Emphasis on establishing environment conducive to flourishing Congolese music and art, and promoting science and technology for sustainable development.
- Strategic axes:
  - (i) provide Culture, Science and Technology, Press and Information, and Post and Telecommunications sectors with legislation and organizations consistent with sociopolitical development;
  - (ii) extend national coverage of basic services;
  - (iii) eliminate backward thinking and customs regarding the image of women;
  - (iv) protect intellectual property rights and copyrights and establish active partnerships with private sector, civil society organizations, and the international community;
  - (v) establish infrastructures for research and expansion of the musical sector;
  - (vi) financially and technically support researchers, artists, and musicians.

### Pillar 4 — Combat HIV/AIDS: prevalence, objectives, and strategy
- HIV/AIDS prevalence and scale:
  - National prevalence of 4.5 percent, or 2.6 million persons, in 2004.
  - In the 14-19 year age group incidence is 3.6 percent, or 2 percentage points higher than the WHO norm (1.6 percent).
- Overall objective:
  - Fight the pandemic to protect population and persons infected and affected by HIV/AIDS, contribute to development by slowing spread and reducing impact on individuals, families, and communities within poverty reduction efforts.
- Three-year focus:
  - Stabilize trend of epidemic, improve living conditions of PLWHAs, attenuate impact on development.
- Specific objectives:
  - (i) reduce transmission rates of HIV and STIs, particularly among women and youths;
  - (ii) speed up treatment and improve quality of life of persons living with HIV/AIDS;
  - (iii) attenuate negative socioeconomic impact on individuals, families, and communities, and strengthen coordination and monitoring and evaluation mechanisms.
- Target populations for interventions:
  - General population and vulnerable at-risk groups: women, youths, sex workers, men in uniform, truck drivers, air carrier employees, traffickers and artisanal miners in precious substances, displaced persons, and those more vulnerable to infection.
  - Emphasis on vulnerability factors exposing target groups to STIs and HIV/AIDS; holistic care for PLWHAs and affected persons (widows, orphans).
- Core strategy:
  - Aggressive policy with core focus on prevention to reduce transmission among sexually active population, including mother-to-child transmission.
  - Other axes: (i) speed up treatment and improve quality of life; (ii) attenuate socioeconomic impact; (iii) strengthen national coordination and monitoring/evaluation at all levels.

### Preventive interventions and treatment scale-up
- Prevent and stabilize transmission of HIV and STIs (interventions):
  - (i) mobilize communities to change behavior regarding vulnerability factors (prostitution, failure to use condoms, early sexual relations);
  - (ii) promote counseling and voluntary screening for awareness and early care of PLWHAs;
  - (iii) proper treatment of sexually transmitted infections to reduce HIV transmission factors;
  - (iv) prevention of mother-to-child transmission;
  - (v) condom programs (social marketing and targeted distribution) among vulnerable groups;
  - (vi) enhanced access by adolescents and youths to information on HIV/AIDS prevention;
  - (vii) safety with transfusions via establishment of Blood Transfusion Centers in major population centers and Blood Banks in hospitals;
  - (viii) reduction of HIV transmission risks by distribution of Post-Exposure Prophylaxis (PEP) kits to women, particularly victims of sexual violence.
- Speeding treatment and improving quality of life of PLWHAs:
  - (i) strengthen laboratory capacities to diagnose HIV and opportunistic infections;
  - (ii) build laboratory capacities for biological monitoring of persons treated with ARV medications;
  - (iii) treat eligible PLWHAs with ARVs;
  - (iv) cover medical treatment of opportunistic infections;
  - (v) train caregivers in treatment of PLWHAs;
  - (vi) train personnel to improve professional psychosocial care of PLWHAs.
- Actions already taken (Box 35):
  - (i) promotion of condom use among vulnerable groups (social marketing and targeted distribution);
  - (ii) transfusion and injection safety by establishing Blood Transfusion Centers in major urban areas and Blood Banks in hospitals;
  - (iii) integration of fight against HIV/AIDS in workplace and school/academic environment;
  - (iv) covering costs of ARV drugs;
  - (v) prevention of mother-to-child transmission (MCT).

### Socioeconomic mitigation and coordination
- Attenuate socioeconomic impact:
  - (i) support for assumption of care costs for orphans and vulnerable children (education, medical costs, food supplements);
  - (ii) support for foster families of orphans and vulnerable children (socioeconomic support);
  - (iii) combat social stigma and discrimination;
  - (iv) include fight against HIV/AIDS at workplace and in school/academic environment;
  - (v) improve legal framework for protection of PLWHAs.
- Building coordination and monitoring/evaluation capacity:
  - Strengthen coordination as essential for concerted implementation of priority axes.
  - Revitalize the National Multisectoral Commission to Combat AIDS (CNMLS) to provide renewed leadership.
  - National Multisectoral Program to Combat AIDS (PNMLS) must play true coordination role per its mandate.
  - PNMLS to establish environment for concertation, planning, financing, executing, and monitoring/evaluating the program to combat HIV/AIDS in synergy with all stakeholders to achieve objectives, avoid duplications, and maximize resources.

### Pillar 5 — Promote local initiatives (dynamique communautaire)
- [Content unit ends with introduction to Pillar 5; no further details provided in the supplied text.]

*Source: _cr07330 - 351. In peri-urban and rural areas, autonomous community-level management systems will be (IMF PDF content provided).*

### 380.      The  40  years  of  conflict  and  poor  governance,  together  with  the  glaring  absence  of

### _cr07330 - 380.

### Role of grassroots organizations and decentralization
- The 40 years of conflict and poor governance, together with the glaring absence of decentralized State structures, have created a void that grassroots organizations have filled to ensure community survival through income-generating activities, support for the financing of education, and the creation of health associations and solidarity groups.
- Participatory grassroots consultations corroborated this finding and reaffirmed the desire of grassroots organizations to participate "here and now" in the management of the commonweal, poverty reduction programs, and economic recovery.
- The Government is committed to involving grassroots organizations in consolidating peace and economic development and has inscribed this community dynamic as one of the key pillars of the PRGSP for implementation at all levels.
- The decentralization policy reflects the Government’s will to create conditions for organized participation by grassroots organizations in:
  - the definition of sectoral policies;
  - the planning of poverty reduction programs which concern them directly; and
  - the implementation of those programs.

### Objectives of grassroots participation
- General objective:
  - Achieve decentralized implementation of the poverty reduction strategy at the local government level, thus making ownership of the strategy more likely.
- Specific objectives (short, medium, and long terms):
  - (i) the participation of grassroots organizations in planning and decision-making;
  - (ii) the promotion, emergence, and legal recognition of community development organizations;
  - (iii) strengthened intervention capacities on the part of the community development organizations: project planning, management, and monitoring and evaluation; and
  - (iv) strengthened capacities for supporting grassroots initiatives, with particular attention to the initiatives of women and youths.

### Practical measures and financing
- The Government plans to include in its decentralization policy, and in the preparation of socioeconomic development programs and policies, practical modalities for the organized and concerted participation of grassroots organizations.
- To bolster this dynamic, the Government will introduce appropriate mechanisms for the financing of community development efforts (a community development fund).
- The Government intends to tap the positive experience of the MIDA program (Migration for Development in Africa) of the International Organization for Migration (IOM) to promote transfer of skills and resources (both intellectual and financial) from the national diaspora to benefit the country and local initiatives. A National Migration for Development Program will be initiated.

### Basic principles for PRGSP implementation, monitoring, and evaluation
- The steering and control system for implementation, monitoring, and evaluation must be neutral, clear, and adapted to the multisectoral and multidimensional nature of the poverty reduction program and the post-conflict context.
- Two basic principles:
  - Efficiency:
    - Calls on Government and stakeholders to consolidate bases for sustainable economic growth focused on a cohesive macroeconomic framework.
  - Effectiveness:
    - Associated with proximity, making it happen, transparency, and speed, which can guarantee success of implementation, monitoring, and evaluation.
- Definitions and implications:
  - Proximity:
    - Decision-making related to implementation should take place as close as possible to beneficiaries; Government will encourage emergence of civil society organizations and district-, zone-, village-, and neighborhood-level Development Associations so beneficiaries are involved in all decisions concerning their communities.
  - Making it happen:
    - Implementation involves official institutions, local governments, civil society, the private sector, and NGOs.
  - Transparency:
    - Establish mechanisms guaranteeing trackability, visibility, and control of investments via media, publication of financing status reports, and beneficiary participation in monitoring public expenditure.
  - Speed:
    - Adopt procedures ensuring rapidity and transparency in disbursements and contract awards and execution; public procurement structures will be restructured, reorganized, deconcentrated, and decentralized.

### Implementation responsibilities and ongoing actions
- Some PRGSP actions are already underway, including reforms supported by development partners in sectoral programs and governance, and efforts in demobilizing ex-combatants and reintegrating them into civilian life.
- PRGSP execution responsibility:
  - Each sectoral ministry in its area, in partnership with development partners such as NGOs, the private sector, civil society, and religious groups, at national, provincial, and local levels.
- Implementation requires strengthening institutional capacities of the State and NGOs; capacity-building will be carried out in the context of actions programmed in Pillar I of the national strategy on good governance, on the assumption they are efficiently carried out.

### Monitoring and evaluation: aims, data sources, and methods
- Monitoring system requirements:
  - Ensure requisite financing is available for priority actions;
  - Ensure planned actions are carried out satisfactorily over time;
  - Periodically review and correct actions not performed or overdue.
- Monitoring aims:
  - (i) assess progress over time for specific groups and rural areas;
  - (ii) gather information to study determinants or preventers of outcomes;
  - (iii) provide decision-makers with information from statistical services, technical ministries, and beneficiaries about effectiveness or shortcomings and needed corrections.
- Monitoring will use indicators identified in advance and approved by all participants.
- Quantitative data sources:
  - (i) administrative data and data from other institutions;
  - (ii) the population census; and
  - (iii) the various household surveys, namely the consumption budget surveys (1-2-3), the Demographic and Health Survey (EDS), specialized surveys to garner observations and determine satisfaction, as well as targeted and thematic surveys.
- Qualitative data focus areas:
  - (i) priorities attached by the poor to improving their situation, broken down by gender and other important grassroots characteristics;
  - (ii) the poor’s perceptions of causes and consequences of poverty;
  - (iii) opportunities that the poor have to improve their lot;
  - (iv) constraints and obstacles to be overcome;
  - (v) differences between localities, districts, urban centers, and rural areas; and
  - (vi) perceptions of the poor regarding access to and quality of services, infrastructures, and governance at the local level.
- Evaluation:
  - Entails comparing results obtained with objectives initially set, explaining any gaps, and proposing corrective measures to improve effectiveness of programs/projects and policies.

### Institutional framework and bodies for implementation, monitoring, and evaluation
- The PRGSP is the sole frame of reference for devising investment and sectoral development programs and will influence planning instruments at national, provincial, and local levels.
- Effectiveness indicators relate to institutional framework and structures; efficiency indicators are oriented toward adherence to the macroeconomic framework defined in Pillar II of the poverty reduction strategy.
- Existing institutional mechanisms to be adapted and extended for PRGSP implementation:
  - The Interministerial Commission Responsible for Formulation of the Poverty Reduction Strategy (CI-SNLCP), chaired by the Minister of Planning.
  - The Interministerial Committee Responsible for Monitoring Programs Concluded with International Financial Institutions (CISPI), chaired by the Minister of Finance.
- Key national-level roles and structures:
  - Prime Minister:
    - Has overall authority for implementation; Chair of the Interministerial Commission on Implementation of the National Poverty Reduction Strategy; assisted by three Vice Chairs: the Minister of Planning, the Minister of Budget, the Minister of Finance, and the Minister of Interior.
    - Calls and presides over quarterly meetings of the Interministerial Commission to review implementation status, eliminate constraints, and consider disciplinary measures.
  - Ministry of Planning:
    - Deals with physical execution of the PRGSP in coordination with sectoral ministries, development partners, civil society, NGOs, and the private sector; guarantor of establishment of sectoral policies and of economic recovery and poverty reduction programs; coordinates NGOs’ activities and modalities for their organized participation.
  - Ministry of Budget:
    - Responsible for budget programming and execution of actions and projects selected under the MTEF with sectoral ministries; responsible for execution of the budget needed to finance the strategy and effective allocation to sectors and priorities.
  - Ministry of Finance:
    - Ensures financial execution of the PRGSP and mobilization of State own resources and external resources; guarantor of compliance with the macroeconomic framework and implementation of associated economic and structural reforms; cooperates with development partners including IMF, World Bank, AfDB, and the private sector.
  - Ministry of Interior:
    - Primary responsibility for Decentralized Administrative Entities; ensures full involvement of deconcentrated and decentralized administrations.
  - CI-SNLCP:
    - Chaired by the Prime Minister and assisted by Ministers of Planning, Budget, Finance, and Interior; periodically takes stock of physical and financial execution in collaboration with the national coordination structure; validates and approves programs and action plans in keeping with the budget timetable; prepares semiannual PRGSP progress monitoring reports and addresses periodic adjustments to the strategy.
    - Works in synergy with Prime Minister, Minister of Planning, Ministry of Budget, Minister of Finance, and Minister of Interior in periodic concertation sessions to impart consistency to poverty reduction policies, programs, and projects at national and decentralized levels.
    - A special focus will be taking gender issues into account and ensuring gender-aware participation on the commission.

* _cr07330 - 380._

### 414.      As  a  support  structure  and  technical  organ  of  the  CI-SNLCP,  the  national  coordination

### _cr07330 - 414.      As  a  support  structure  and  technical  organ  of  the  CI-SNLCP,  the  national  coordination

### National coordination structure — role and functions
- Acts as the Government’s focal point for implementation and monitoring of the poverty reduction strategy.
- Functions as a nimble structure for concertation, partnership, coordination, information, education, and communication (IEC) to assist PRGSP implementation and monitoring/evaluation.
- Serves as an intermediary between:
  - governmental structures,
  - bilateral and multilateral development partners,
  - civil society, NGOs, religious groups,
  - decentralized development structures at the local level.

### Missions of the national coordination structure (paragraph 415)
- (i) monitor the conduct of the reforms called for in the sectoral and thematic strategies;
- (ii) monitor the action plans for implementation of the PRGSP and the communication strategy;
- (iii) ensure the harmonization of the strategies of the external partners and those of the PRGSP;
- (iv) promote coordination among the various stakeholders at the sectoral level in PRGSP implementation;
- (v) strengthen the participatory process in development planning, decision-making, and monitoring and evaluation at all levels;
- (vi) establish a capacity-building program for civil society, the national NGOs, and the local development organizations;
- (vii) produce quarterly, semiannual, and annual reports on PRGSP implementation and disseminate them widely;
- (viii) sponsor evaluations in areas of interest, such as: participation, local initiatives, and best practices to leverage experiences.

### Coordination relationships (paragraph 416)
- Coordination office works in synergy with focal points in technical ministries, civil society, NGOs, private sector, and sectoral development partners.
- Partnership ethos reflects the approach used during PRGSP preparation.

### A.8. National Statistics Institute (INS) — responsibilities (paragraphs 417–418)
- In partnership with the national coordination structure and research and planning directorates of technical ministries (notably Ministries of Planning, Finance, and Budget), INS is responsible for establishing monitoring and evaluation policy and programs of the PRGSP.
- At regular intervals INS will monitor major statistical operations including:
  - national population census,
  - demographic and health surveys (EDS),
  - informal sector survey,
  - household consumption budget survey (1-2-3 Survey),
  - surveys on the status of women and children (MICS),
  - agricultural surveys,
  - gathering and processing data for the national file on administrative entities.
- INS will:
  - create a databank of files from these surveys and use it to produce poverty indicators;
  - monitor collection of data from producers of sectoral statistics (Research and Planning Directorates of ministries);
  - work with international development agencies for technical, material, and financial support to improve data quality, focusing on:
    - introduction of efficient data gathering methodologies,
    - development of data gathering support mechanisms,
    - training of human resources at central, provincial, and local levels;
  - ensure broad distribution of quantified information needed for monitoring and evaluation of the poverty reduction strategy, using appropriate means including the PRGSP website;
  - regularly publish poverty analyses for the DRC.

### A.9. Poverty observatory (OCPI) — structure and mandate (paragraphs 419–420)
- The Congolese Poverty and Inequality Observatory (OCPI) is an independent structure attached to the Ministry of Planning, working in synergy with the national coordination structure for PRGSP implementation.
- Partners include research and planning directorates of technical ministries, civil society organizations, religious groups, the media, NGOs, research centers and academic and scientific institutions, private sector, opinion leaders, labor unions, community development organizations, and development partners.
- Key tasks:
  - (i) periodically evaluate the evolution of poverty as it relates to execution of programs and projects under the PRGSP;
  - (ii) develop instruments and methodologies needed for this evaluation;
  - (iii) create a coordination and partnership framework, in particular with INS, DEPs, and development partners, to evaluate poverty by means of statistics that capture and describe the status of poverty;
  - (v) evaluate the impact of poverty reduction policies and policies aimed at achieving the MDGs;
  - (vi) inform policies on the evolution of poverty, write reports on the phenomenon, and disseminate them widely.

### B. Decentralized level — provincial and local structures (paragraph 421)
- Provincial Poverty Reduction Committees (CPLPs) and Local Poverty Reduction Committees (CLLPs) act as relays to mobilize and involve grassroots communities in PRGSP implementation, pursuant to decentralization policy and participatory processes initiated during PRGSP preparation.

### Implementation partnership
- Partnership with civil society and NGOs (paragraphs 422–423):
  - Civil society organizations will participate at various stages of monitoring and evaluation and monitor programmed activities.
  - Participatory processes through PRGSP working groups (including NGOs, private sector, civil society) will be consolidated.
  - An information network between the national coordination structure and these organizations will link ADQs and ADVs to ensure physical execution corresponds to financial execution and that deadlines are observed.
- Partnership with donors (paragraphs 424–425):
  - PRGSP is the sole development planning framework and an indispensable reference for Government and development partners.
  - A new dynamic will aim to develop new instruments, modalities, and improved coordination of development assistance.
  - Government will emphasize priority actions defined in the PRGSP when selecting assistance and consolidate the concertation framework.
  - Expected outcomes of such partnership: a significant increase in official development assistance, rational and efficient management of resources, and improved impact of programs and projects on growth and poverty reduction.

### Monitoring and evaluation indicators — overall approach (paragraphs 426–427)
- Government intends to establish a participatory monitoring and evaluation mechanism functioning both horizontally (participation of all partners) and vertically (participation of all levels).
- An information system with three components will be put in place:
  - execution monitoring,
  - impact monitoring,
  - Participatory Monitoring and Evaluation (SEP).
- The national coordination and implementation structure is responsible for implementation, monitoring, and evaluation in collaboration with stakeholders, and will clarify the execution timetable for PRGSP actions upon approval by the Executive Boards of the IMF and World Bank.

### 4.5.1. Execution monitoring (paragraphs 428–429)
- Execution monitoring concerns physical and financial performance of projects and programs identified in the Strategy.
- Two types of indicators for execution:
  - (i) resource indicators (financial and physical) measuring resources provided by public authorities and donors (e.g., expenditure for education);
  - (ii) indicators of operational outcomes evaluating operational outputs (e.g., number of schools constructed).
- Execution monitoring will be carried out with sectoral administrations at central level, local government authorities, private sector, donors and lenders, and beneficiary populations.

### 4.5.2. Impact monitoring (paragraphs 430–433)
- Impact monitoring analyzes evolution of poverty and living conditions.
- Two types of indicators for impact:
  - (i) outcome indicators evaluating final results in terms of objectives pursued (for example: gross enrollment ratio);
  - (ii) impact indicators measuring consequences of changes in outcomes (for example: literacy rate) in key dimensions of well-being.
- Impact monitoring will use a statistical program to monitor relevant indicators for periodic analysis of changes in poverty.
- Indicators on the Millennium Development Goals will serve as the basis for building the statistical program (in light of Vision 26/25 and its section on impact analysis).
- Selection, definition, degree of disaggregation, periodicity, and data collection methods emerged from broad consultations.

### 4.5.3. Participatory monitoring and evaluation (SEP) — design and operations (paragraphs 434–439)
- SEP is a process whereby key stakeholders:
  - (i) engage in monitoring and/or evaluation of a project, program, or policy;
  - (ii) share control over contents, process, and findings of monitoring and evaluation;
  - (iii) identify and/or take corrective measures.
- SEP requires collaboration between public and private sectors and civil society in horizontal and vertical partnerships to promote transparency and social and public accountability.
- SEP typically measures quantitative and qualitative indicators; primary focus is normally on qualitative indicators.
- Participatory Monitoring and Evaluation requires stakeholder groups to:
  - (i) select targets (key components of PRS at policy, project, or program level);
  - (ii) define indicators for which data can be gathered (macro, meso, micro levels may select different objectively verifiable indicators for same goal);
  - (iii) agree on periodicity of data collection, analysis, and dissemination;
  - (iv) determine whether qualitative or quantitative information is required and who is responsible for gathering, analyzing, and disseminating data;
  - (v) agree on the Management Information System (MIS) to be shared by all;
  - (vi) reach consensus on validity of indicators and agree to be assessed by them.
- Government will design the SEP system in a participatory manner by organizing workshops at provincial and national levels with representatives from micro, meso, and macro levels to determine SEP components.
- SEP work already completed has two dimensions:
  - (i) identification of preliminary indicators of problems and strategies during PPA field work by stakeholders at village/neighborhood, territory/commune, and province levels;
  - (ii) determination of preliminary list of stakeholders to be invited to SEP Workshops, identified by representatives of eleven provinces and the group of experts preparing the Monitoring and Evaluation Mechanism for the PRS at the National Workshop in Kisanto (Bas-Congo Province) in June 2005.
- Government intends to establish a national unit/bureau to coordinate the decentralized SEP system with clearly delineated roles for interinstitutional collaboration, capacity building, and data analysis and dissemination.
- Civil society organizations (NGOs, professional associations) should:
  - build capacities of grassroots communities to demand accountability;
  - support capacity-building and training activities to develop individual and institutional capacities for good governance and improved service provision.
- Indicators and changes should be reviewed periodically via the MIS network for SEP and at semiannual SEP workshops; activities will be carried out by the national coordinating unit and three levels of key stakeholders nationally and in provinces.

### 4.6. Implementation constraints and risks — overview (paragraphs 440–444)
- Successful implementation requires that foundational prerequisites be met; these prerequisites are:
  - endogenous (political, economic, financial governance),
  - exogenous (external financing in particular).
- Some factors are both constraints and risks and could impede Strategy implementation.
- Exogenous constraints and risks depend considerably on endogenous situation.
- Identified critical prerequisites/constraints:
  - (i) peace;
  - (ii) political, institutional, and economic stability;
  - (iii) deregulation and external openness of the economy;
  - (iv) capacities to absorb external resources and service loans contracted;
  - (v) observance of commitments.

### 4.6.1. Endogenous constraints and risks — political (paragraphs 441–442)
- Political good governance and return of peace are linchpins for all strategic axes.
- Objectives of the political transition since June 30, 2003 (pursuant to the Global and Inclusive Agreement):
  - (i) reunification, pacification, and reconstruction of the country, territorial integrity, and restoration of State authority across national territory;
  - (ii) national reconciliation;
  - (iii) formation of a restructured and integrated national army;
  - (iv) organization of free democratic elections that are transparent at all levels, leading to a new political order.
- Constraints to growth and Strategy implementation include:
  - destruction of principal economic and social infrastructures;
  - absence of security for property and persons causing major population displacements, urban migration, administrative and police interference;
  - shrinkage of the labor force (deaths, emigration, etc.), indicating urgency of implementing related reforms.

### 4.6.1.2. Endogenous constraints and risks — economic (paragraphs 443–444)
- Macroeconomic stability measures initiated since 2001 that must be consolidated:
  - (i) cessation of administered prices for goods and services;
  - (ii) elimination of monopoly on importing and distributing petroleum products, and introduction of transparent and automatic mechanisms for revising prices of such products;
  - (iii) introduction of a prudent monetary policy, reflected in unification of interbank and parallel exchange rates and introduction of a floating exchange regime aimed at stabilizing domestic prices;
  - (iv) cash-basis financing of the State’s financial operations to limit recourse to monetary financing;
  - (v) initiation of structural reforms to establish a climate conducive to private sector development.
- Failure to observe these measures could disrupt the fragile macroeconomic framework and impede Strategy implementation.
- Resource mobilization risks that could jeopardize Strategy implementation:
  - (i) inadequacy of and persistent decline in budgetary resources, endangering execution of pro-poor sectoral strategies and policies;
  - (ii) Government’s failure to execute the capital budgets in three recent years;
  - (iii) limited capacity to absorb external resources, in particular HIPC resources, observed since fiscal 2003, which discourages donors and hampers mobilization of other resources;
  - (iv) delay in disbursement of external resources to finance rapid impact reforms, which could prompt the State to resort to monetary financing with attendant consequences.
- Regional group considerations:
  - DRC is a member of subregional groups such as SADC, CEAC, and COMESA, which recommend elimination of obstacles and barriers to foreign trade, including customs duties.
  - Application of these clauses could deprive the State of the bulk of its own resources if the Government fails to establish a cohesive action plan for forgoing revenue from trade levies and promoting direct taxation.

*Source: _cr07330 - 414. As a support structure and technical organ of the CI-SNLCP, the national coordination (extracted from the provided IMF PDF content).*

### 445.      In the context of the work on implementation, the Government will carry out an analysis

### _cr07330 - 445.      In the context of the work on implementation, the Government will carry out an analysis

### Analysis of absorptive capacity and debt sustainability
- In the context of the work on implementation, the Government will carry out an analysis of absorptive capacity and the impact on the macroeconomic situation of the anticipated substantial increase in external financing, taking into account as well the debt relief forthcoming when the completion point of the HIPC Initiative is reached.
- The analysis will be accompanied by a study on debt sustainability in the DRC.

### Tax and customs reform to offset regional duty elimination
- Given the prospect of implementing the DRC’s regional commitments to eliminate customs duties, the Government will speed up the implementation of the tax and customs reform packages with a view to increase revenue from domestic taxation.

### 4.6.1.3. Constraints and risks associated with the participatory process
- The absence of a cohesive participatory process would undermine support of partners for the PRS.
- The weakness of the base and the data collection system would pose a risk of serious errors in the preparation, implementation, and monitoring/evaluation of Strategy execution.
- The absence of coordination and the weakness of institutions could weaken the implementation of the strategic axes of the PRGSP and profoundly impact their effectiveness.

### 4.6.1.4. Social and human constraints and risks
- Apart from the weakness of institutions, there should also be concern about the capacities of our Administration (which is cumbersome and slow) in preparing viable projects and controlling procedures in their regard.
- The harmonization and simplification of donor procedures would make it possible to minimize the risks of failure considerably.
- A no less important risk would stem from the loss of interest and motivation on the part of public employees, prompting them to resort to harmful practices to motivate themselves (overinvoicing, kickbacks, etc.).
- Improving wages of such personnel is a priority not to be overlooked.

### 4.6.1.5. Constraints and risks from the lack of reliable statistics
- Sound monitoring and regular evaluation of actions based on the availability of reliable statistics can help ensure successful implementation of the Strategy.
- In this context, the strengthening of human, material, and financial capacities in the National Statistics System (SSN) should be continued in light of the work carried out by the INS in conducting the 1-2-3 survey.

*Source: IMF document _cr07330 - 445.*

### 451.      The  DRC’s  dependence  on  external  assistance  is  one  of  the  major  constraints  on  its

### _cr07330 - 451.      The  DRC’s  dependence  on  external  assistance  is  one  of  the  major  constraints  on  its

### Dependence on external assistance and competitiveness constraints
- The DRC’s dependence on external assistance is identified as "one of the major constraints on its development at present," owing largely to "the institutional and structural weakness of its economy."
- "Deterioration in the terms of trade and in the competitiveness of our exported raw materials (primary commodities exported by the DRC) also constitute a significant handicap."

### Baseline macroeconomic framework (principal socioeconomic indicators, baseline scenario)
- Real GDP (annual percentage change): 2004: 6.6; 2005: 6.5; 2006: 7.0; 2007: 7.7; 2008: 8.4.
- CPI (annual average): 2004: 4.0; 2005: 21.6; 2006: 9.2; 2007: 7.0; 2008: 6.0.
- Exports of nonfactor goods and services (annual % change): 2004: 33.7; 2005: 21.6; 2006: 17.1; 2007: 22.6; 2008: 16.9.
- Imports of nonfactor goods and services (annual % change): 2004: 35.2; 2005: 13.4; 2006: 22.0; 2007: 25.0; 2008: 20.7.
- Money and quasi-money (M2) (annual change): 2004: 72.9; 2005: 24.6; 2006: 14.0; 2007: 14.7; 2008: 15.5.
- Public sector (percent of GDP):
  - Revenue and grants: 2004: 11.5; 2005: 13.1; 2006: 21.8; 2007: 24.1; 2008: 26.2.
  - Fiscal and nonfiscal revenue: 2004: 9.5; 2005: 11.6; 2006: 12.3; 2007: 13.2; 2008: 14.0.
  - Total expenditure 1/: 2004: 13.2; 2005: 15.8; 2006: 24.3; 2007: 26.9; 2008: 29.0.
  - Fiscal balance including grants: 2004: -1.7; 2005: -2.7; 2006: -2.6; 2007: -2.7; 2008: -2.8.
  - Fiscal balance excluding grants: 2004: -3.7; 2005: -4.2; 2006: -12.0; 2007: -13.7; 2008: -15.0.
- Savings and investment (percent of GDP):
  - Gross domestic savings: 2004: 4.0; 2005: 7.2; 2006: 9.5; 2007: 10.9; 2008: 11.3.
  - Gross investment: 2004: 12.8; 2005: 14.1; 2006: 18.1; 2007: 23.7; 2008: 26.1.
  - Public sector investment: 2004: 2.8; 2005: 3.6; 2006: 7.1; 2007: 12.2; 2008: 14.1.
  - Savings - Investment (excluding official grants): 2004: -12.3; 2005: -8.4; 2006: -10.1; 2007: -14.9; 2008: -16.6.
- Balance of payments (percent of GDP):
  - Exports of nonfactor goods and services: 2004: 30.4; 2005: 34.0; 2006: 33.9; 2007: 34.9; 2008: 35.9.
  - Imports of nonfactor goods and services: 2004: 39.2; 2005: 40.9; 2006: 42.4; 2007: 47.8; 2008: 50.7.
  - Trade balance: 2004: -3.7; 2005: -2.3; 2006: -4.7; 2007: -7.7; 2008: -8.5.
  - Current balance including grants: 2004: -5.7; 2005: -3.4; 2006: -4.2; 2007: -6.1; 2008: -5.8.
  - Current balance excluding grants: 2004: -12.3; 2005: -8.4; 2006: -10.1; 2007: -14.9; 2008: -16.6.
- Exchange rate:
  - Average: 2004: 398.2; 2005: 474.0; 2006: 460.0; 2007: 484.0; 2008: 491.1.
  - End of period: 2004: 444.1; 2005: 431.3; 2006: 480.0; 2007: 488.1; 2008: 494.1.
- For the record:
  - GDP (CDF billion): 2004: 2,601; 2005: 3,366; 2006: 3,837; 2007: 4,403; 2008: 5,083.
  - GDP (US$ million): 2004: 6,531; 2005: 7,100; 2006: 8,341; 2007: 9,096; 2008: 10,351.
  - Nominal GDP (in per capita dollars): 2004: 112.6; 2005: 118.9; 2006: 135.6; 2007: 143.5; 2008: 158.6.

Note 1/: "Includes the change in arrears and the BCC cash deficit."

### Baseline sectoral and resource-employment details
- Sectoral GDP at constant prices (billions of constant CDF, base 100=2000), GDP at market price:
  - 2004: 339.5; 2005: 361.4; 2006: 386.9; 2007: 416.8; 2008: 451.9.
- Real GDP (percentage change): 2004: 6.6; 2005: 6.5; 2006: 7.0; 2007: 7.7; 2008: 8.4.
- Resource-employment balance (millions of current CDF):
  - Internal demand: 2004: 2,830; 2005: 3,598; 2006: 4,166; 2007: 4,967; 2008: 5,835.
  - Total consumption: 2004: 2,497; 2005: 3,122; 2006: 3,471; 2007: 3,923; 2008: 4,509.
  - Total investment: 2004: 333; 2005: 476; 2006: 695; 2007: 1,044; 2008: 1,326.
  - Exports of goods and services: 2004: 790; 2005: 1,143; 2006: 1,299; 2007: 1,538; 2008: 1,824.
  - Imports of goods and services: 2004: 1,019; 2005: 1,376; 2006: 1,628; 2007: 2,103; 2008: 2,575.
  - Net factor income: 2004: -117.1; 2005: -151.7; 2006: -174.8; 2007: -231.4; 2008: -278.0.

### Baseline fiscal flows and financing
- Government flow of funds (billions of CDF):
  - Fiscal and nonfiscal revenue: 2005: 374.8; 2006: 389.0; 2006 AM 10/22/06 Est.: 473.3; Budget/Proj. 2007: 581.2; 2008: 711.7.
  - Fiscal revenue: 2005: 246.2; 2006: 256.7; 2006 Est.: 308.9; 2007: 387.0; 2008: 481.6.
  - Total expenditure: 2005: 549.0; 2006: 514.9; 2006 Est.: 923.6; 2007: 1,174.3; 2008: 1,463.8.
  - Current expenditures: 2005: 344.6; 2006: 330.0; 2006 Est.: 443.9; 2007: 585.0; 2008: 693.1.
  - Capital expenditures: 2005: 117.5; 2006: 112.0; 2006 Est.: 253.2; 2007: 486.5; 2008: 662.0.
  - Interest paid: 2005: 80.0; 2006: 33.2; 2006 Est.: 99.3; 2007: 95.0; 2008: 95.0.
  - Consolidated general balance (including grants): 2005: -22.6; 2006: -89.2; 2006 Est.: -98.0; 2007: -119.2; 2008: -142.4.
  - Consolidated general balance (excluding grants): 2005: -190.2; 2006: -141.4; 2006 Est.: -460.3; 2007: -601.2; 2008: -760.1.
- Financing:
  - Total financing (excluding grants): 2005: 190.2; 2006: 141.4; 2006 Est.: 460.3; 2007: 601.2; 2008: 760.1.
  - External (net): 2005: 194.1; 2006: 89.1; 2006 Est.: 400.6; 2007: 520.3; 2008: 664.2.
  - Grants: 2005: 72.5; 2006: 27.2; 2006 Est.: 224.2; 2007: 335.1; 2008: 462.5.
  - HIPC Initiative amounts: 2005: 95.1; 2006: 25.0; 2006 Est.: 138.0; 2007: 146.9; 2008: 155.2.
- Funding gap (+) / Overfinancing (-):
  - Baseline: 2005: 0.0; 2006: 0.1; 2006 Est.: 84.4; 2007: 80.9; 2008: 95.9.

### Monetary sector and balance of payments (baseline)
- Integrated monetary survey (end of year, billions of CDF):
  - Net external assets: 2005: -272.0; 2006 Est.: -236.6; 2007 Proj.: -215.3; 2008 Proj.: -194.1.
  - Money and quasi-money (M2): 2005: 268.3; 2006 Est.: 305.9; 2007 Proj.: 351.0; 2008 Proj.: 405.3.
  - Credit to the private sector (end-year): 2005: 65.2; 2006: 75.7; 2007: 90.1; 2008: 109.5.
- Balance of payments (millions of US$):
  - Balance of trade: 2005: -165; 2006 Est.: -389; 2007 Proj.: -700; 2008 Proj.: -876.
  - FOB exports: 2005: 2,069; 2006 Est.: 2,350; 2007 Proj.: 2,585; 2008 Proj.: 2,973.
  - FOB imports: 2005: 2,234; 2006 Est.: 2,740; 2007 Proj.: 3,285; 2008 Proj.: 3,849.
  - Current balance (excluding grants): 2005: -600; 2006 Est.: -840; 2007 Proj.: -1,355; 2008 Proj.: -1,722.
  - Balance of capital (offsetting): 2005: 600; 2006 Est.: 840; 2007 Proj.: 1,355; 2008 Proj.: 1,722.

### Alternative scenario: macroeconomic deviations and impacts
- Real sector deviations:
  - Real GDP 2006 Proj. Base: 7.0; Alt.: 7.1; Deviation: -0.6 for 2007 base vs alt; 2008 Base: 8.4; Alt.: 7.3; Deviation: -1.1.
- Money sector deviations:
  - Money and quasi-money (M2) 2006 Proj. Base: 14.0; Alt.: 14.7; Deviation: 14.1 -0.7; 2008 Base: 15.5; Alt.: 14.2; Deviation: -1.2.
- Public sector (percent of GDP) deviations (selected):
  - Revenue and grants 2006 Base: 21.8; Alt.: 24.1; Deviation: 23.0 -1.1; 2008 Base: 26.5; Alt.: 24.7; Deviation: -1.8.
  - Total expenditure 1/ 2006 Base: 24.3; Alt.: 26.9; Deviation: 25.4 -1.5; 2008 Base: 28.6; Alt.: 27.2; Deviation: -1.4.
  - Fiscal balance excluding grants 2006 Base: -12.0; Alt.: -13.7; Deviation: -12.2 1.5; 2008 Base: -14.6; Alt.: -13.2; Deviation: 1.4.
- Savings and investment under alternative scenario:
  - Gross domestic savings 2006 Base: 9.5; Alt.: 10.9; Deviation: 12.1 1.2; 2008 Base: 11.3; Alt.: 13.1; Deviation: 1.8.
  - Gross investment 2006 Base: 18.1; Alt.: 23.7; Deviation: 22.6 -1.1; 2008 Base: 25.7; Alt.: 24.6; Deviation: -1.1.
- Balance of payments deviations (percent of GDP):
  - Exports of nonfactor goods and services 2006 Base: 33.9; Alt.: 34.9; Deviation: 36.5 1.6; 2008 Base: 35.9; Alt.: 39.0; Deviation: 3.1.
  - Imports of nonfactor goods and services 2006 Base: 42.4; Alt.: 47.8; Deviation: 47.0 -0.7; 2008 Base: 50.3; Alt.: 50.5; Deviation: 0.2.
  - Trade balance 2006 Base: -4.7; Alt.: -7.7; Deviation: -5.2 2.5; 2008 Base: -8.1; Alt.: -4.7; Deviation: 3.4.
- Alternative scenario key macro aggregates (selected):
  - Real GDP (real per capita dollars) 2006 Base: 13.7; Alt.: 13.6; Deviation: 13.0 -0.6; 2008 Base: 14.1; Alt.: 13.0; Deviation: -1.1.

### Alternative scenario sectoral, resource, fiscal, monetary, and balance of payments (selected figures)
- Sectoral GDP at constant prices (GDP at market price):
  - 2006: 361.4 (base), Alternative 2006: 386.9; 2007: 414.5; 2008: 444.6 (Alt. scenario).
- Resource-employment balance (millions of current CDF, alternative scenario):
  - Internal demand: 2006: 3,598; 2007: 4,166; 2008: 4,838; 2008 Alt.: 5,579.
  - Exports of goods and services: 2006: 1,143; 2007: 1,299; 2008: 1,599; 2008 Alt.: 1,948.
  - Imports of goods and services: 2006: 1,376; 2007: 1,628; 2008: 2,059; 2008 Alt.: 2,526.
  - Gross domestic savings (millions CDF): 2006: 244; 2007: 366; 2008: 529; 2008 Alt.: 655.
  - Savings - investment balance (millions CDF): 2006: -284.3; 2007: -386.4; 2008: -555.2; 2008 Alt.: -687.1.
- Government flow of funds (alternative scenario, billions of CDF):
  - Fiscal and nonfiscal revenue: 2005: 374.8; 2006: 389.0; 2006 Est.: 473.3; 2007 Alt. Proj.: 577.9; 2008 Alt. Proj.: 700.2.
  - Total expenditure (Alt. scenario): 2007 Proj.: 1,102.3; 2008 Proj.: 1,350.1.
  - Consolidated general balance (including grants) Alt.: 2006: -89.2; 2006 Est.: -98.0; 2007 Proj.: -102.1; 2008 Proj.: -122.7.
  - Funding gap (+) / Overfinancing (-) Alt.: 2005: 0.0; 2006: 0.1; 2006 Est.: 84.4; 2007: 63.8; 2008: 76.2.
- Integrated monetary survey (alternative scenario, end-year volumes):
  - Money and quasi-money (M2): 2005: 268.3; 2006: 305.9; 2007: 349.0; 2008: 398.7.
  - Credit to the private sector: 2005: 65.2; 2006: 75.7; 2007: 86.3; 2008: 99.2.
  - Foreign currency deposits, as a percentage of M2: 2005: 48.1; 2006: 51.5; 2007: 54.7; 2008: 57.8.
- Balance of payments (alternative scenario, millions of US$):
  - Balance of trade: 2005: -165; 2006: -389; 2007: -449; 2008: -447.
  - FOB exports: 2005: 2,069; 2006: 2,350; 2007: 2,585; 2008: 2,973.
  - FOB imports (Alt.): 2007: 3,034; 2008: 3,420.
  - Current balance (excluding grants) Alt.: 2005: -600; 2006: -840; 2007: -1,103; 2008: -1,310.
  - Funding gap (+) / Overfinancing (-) Alt. balance of payments: 2005: 0; 2006: 8; 2007: -12; 2008: -125.

### Social indicators, infrastructure, and priority sector appropriations (selected)
- Appropriations to priority ministries (as a percentage of primary expenditure):
  - Public health: baseline 2006: 7.5; 2007: 12.3; 2008: 12.9.
  - Primary, secondary, and vocational education: baseline 2006: 12.2; 2007: 15.5; 2008: 16.7.
  - Public works and infrastructure: baseline 2006: 11.2; 2007: 15.8; 2008: 16.3.
- Indicators of progress (selected, baseline projections):
  - Gross enrollment ratio (boys): 2006: 72.3; 2007: 77.7; 2008: 83.9.
  - Gross enrollment ratio (girls): 2006: 56.2; 2007: 63.8; 2008: 75.6.
  - Infant mortality rate (under-5 per 1,000 live births): 2006: 111; 2007: 104; 2008: 89.
  - Maternal mortality rate (per 100,000 live births): 2006: 1 276; 2007: 1 079; 2008: 944.
  - Percentage of assisted births: 2006: 61.6; 2007: 67.8; 2008: 75.2.
  - DPT3 immunization coverage rate: 2006: 29.6; 2007: 35.0; 2008: 40.0.
  - Access to drinking water (percent): 2006: 22.0; 2007: 24.0; 2008: 26.9.
  - Access to sanitation (composite indicator): 2006: 9.0; 2007: 11.5; 2008: 15.0.
- Basic infrastructure (kilometers, baseline):
  - Amount of road to be asphalted (in kilometers): 2006: 15; 2007: 238; 2008: 446 (table formatting indicates incremental values over years).

*Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2007/_cr07330.pdf*

### Annex III:

### Annex III: SUBJECTIVE POVERTY PROFILE

### Profile of urban poverty
- 1. Family circumstances
  - Very poor: Little  or  no  support  from  family  or  community.    Often  living alone, such as elderly persons, widows, and childless women.    If  a  united  household  remains,  neither  parental  authority  nor  daily  food  can  be  guaranteed.    The  loss  of  family  authority  as  exercised  by  parents  means  that  food  cannot  be  guaranteed  on  a  daily  basis.    There  is  a  daily  effort to have enough cash to live and eat.  Members of this category are powerless and shunned by society.
  - Poor and fragile: The  family  is  more  fragile,  but  is  still  capable  of  maintaining  the  immediate  family  structure.    Low-income  household.    Unable  to  find  enough  work  all  the   time.      The   household   is   losing   its   support   network.  Significant decline in social standing.
  - Poor but stable: Struggling  but  stable.    Maintains  a  social  and  family  network.  Willing to assist the oldest members of the family.    Maintains  the  immediate  family  structure  and  an  expanded  network  amounting  to  a  social  safety  net.    Maintains  the  family’s  social  standing  and  contributes  to  community  life.    May  consider  oneself struggling but not poor.
- 2. Source of income
  - Very poor: No  income-generating  activity  or  else  limited  and  very  irregular sources of income.
  - Poor and fragile: Involved  in  a  small-scale  income-generating  activity  or casual labor in the private sector.
  - Poor but stable: Working  in  private  enterpri ses,  banks,  international  organizations, and government offices.
- 3. Diet
  - Very poor: Eats haphazardly (once a day or almost nothing).
  - Poor and fragile: “It’s like shedding the dietary load.” Eats regularly, but just once a day.
  - Poor but stable: Eats more than once a day.
- 4. Transportation
  - Very poor: Travels on foot or takes mass transit without paying.
  - Poor and fragile: Uses mass transit and pays the fare.
  - Poor but stable: Can pay for a taxi.
- 5. Living environment (housing and physical environment)
  - Very poor: The  walls  of  the  house  are  made  of  adobe  brick,  covered  with canvas, bags, or sheet metal, with + two rooms.  The house is often shared with several other groups. No furniture in the house; the inhabitants sleep on mats.
  - Poor and fragile: The  walls  of  the  house  are  made  of  adobe  brick  or  durable  materials,  covered  with  sheet  metal,  with  +  three rooms.  There are bamboo or iron beds with straw mattresses inside  the  house.    The  number  of  persons  spending  the night in a room is higher than normal.
  - Poor but stable: The house is made of durable materials. There are foam rubber mattresses and furniture in the house.
- 6. Drinking water
  - Very poor: Uses well water.
  - Poor and fragile: Uses REGIDESO water drawn at a neighbor’s house.
  - Poor but stable: Has REGIDESO faucets on the lot.
- 7. Energy
  - Very poor: Uses  an  oil  lamp.    To  prepare  meals,  makes  use  of  old  slippers or shavings in stead of live charcoal.
  - Poor and fragile: Has an illicit electrical hook-up.
  - Poor but stable: Has electric power and pays the bills.
- 8. Quality of life: security and independence
  - Very poor: Absolutely  no  security.    Extr emely  low  quality  of  life.    Often depressed.
  - Poor and fragile: Little  security—but  mostly  beyond  family  control.    Struggling  to  maintain  a  semblance  of  family  and  parental control.
  - Poor but stable: Security is a daily effort, but there is still hope in the future.  The quality of life is acceptable so long as the family remains in good health.
- 9. Health
  - Very poor: For  lack  of  cash,  plants  an d  leaves  are  used  to  treat  illnesses and women give birth at home.
  - Poor and fragile: Reliance    on    traditional    pr actitioners    and    self- medication.    Goes  to  the  hospital  in  an  emergency  but cannot pay the costs.
  - Poor but stable: Goes  to  the  hospital  for  treatment  when  ill  and,  for  that  purpose,  must  request  loans  from  family  or  friends.
- 10. School enrollment
  - Very poor: Children do not attend school.
  - Poor and fragile: Access to educa tion is provided first and foremost to intelligent  boys.    Girls  and  less  intelligent  boys  stay  at home.
  - Poor but stable: Children   go   to   school,   but   are   often   sent   home   for nonpayment of school fees.

### Profile of rural poverty
- 1. Family circumstances
  - Very poor: Little  or  no  support  from  family  or  community.    Often  completely  alone,  such  as  elderly  persons,  widows,  and  childless  women.    The  loss  of  family  authority  as  exercised  by  parents  means  that  food  cannot  be  guaranteed  on  a  daily  basis.    There  is  a  daily  effort  to  have  enough  cash  to  live  and  eat.    Shunned by society.
  - Poor and fragile: The  family  is  more  fragile,  but  is  still  capable  of  maintaining  the  immediate  family  structure.    Low-income household.  Unable to find enough work all the time.    The  household  is  losing  its  support  network.    Significant decline in social standing.
  - Poor but stable: Struggling  but  stable.    Maintains  a  social  and  family  network.    Willing  to  assist  the  oldest  members  of  the  family.    Maintains  the  family’s  social  standing  and  contributes  to  community  life.    May  consider  oneself  struggling  but  not  poor.
- 2. Source of income
  - Very poor: No   source   of   income   and   not   involved   in   any   income-generating activity, living by begging.
  - Poor and fragile: Wages obtained by working for others, maintaining or planting  the  fields  of  others,  handling  the  livestock  of  others.
  - Poor but stable: Has  one’s  own  fields  and  livestock  and  sells  harvest or livestock products.
- 3. Diet
  - Very poor: No regular meal each day, only when possible.  The meal consists of vegetables with no salt or oil.
  - Poor and fragile: The  population  feels  that  it  observes  a  forced  daily  fast,  only  eating  karibu  na  kesho  (close  to  tomorrow)  so as to be in shape to work the next morning.
  - Poor but stable: Has at least two meals per day.
- 4. Transportation
  - Very poor: With   no   personal   means   of   transportation   and   unable  to  pay  transportation  costs,  must  travel  on  foot.
  - Poor and fragile: Travels on foot or by bicycle.
  - Poor but stable: Uses  a  bicycle  as  a  means  of  transportation  and  can pay travel costs.
- 5. Living environment (housing and physical environment)
  - Very poor: Very  poor,  homeless  or  living  in  an  adobe  house  with  a thatched  roof  and  a  door  fashioned  from  reeds.  No furniture, no bed, no table, no chairs.  Sleeps on the ground, either on a mat or on cardboard.
  - Poor and fragile: Has an adobe house, with clay placed over sticks and a thatched roof. Has a “muengele” bamboo bed.
  - Poor but stable: Has  a  house  made  of  adobe  brick  with  sheet  metal.  Has a radio, a mattress, and a battery.
- 6. Drinking water
  - Very poor: With  no  developed  well,  water  is  drawn  some  five  kilometers from the village.
  - Poor and fragile: With no developed water source, water is drawn some five kilometers away.
  - Poor but stable: With no developed water source, must travel less than five kilometers to obtain water.
- 7. Energy
  - Very poor: With   a   nearly   total   absence   of   electric   power,   matchsticks  are  used  to  enter  the  house.    Villages  remain plunged in darkness.
  - Poor and fragile: Uses  a  lantern  made  from  a  tin  can  and  a  wick  submerged  in  palm  oil,  called  different  names  by  different populations (Katoritori, RCD, etc.).
  - Poor but stable: Uses oil lamps.
- 8. Quality of life: security and independence
  - Very poor: No security of any sort.  Abandoned by family, with no  support  network.    Ignored  or  sent  away  by  government  offices.    Suffers  from  complete  social  and  economic  exclusion.    Extremely  low  quality  of  life.  Often depressed and fearful about the future.
  - Poor and fragile: Security   concerns   diminish.      Obliged   to   work   in   circumstances  of  insecurity.    Children  expected  to  contribute  to  happiness.    Suffers  from  marginalization  and increasing exclusion.  Slowly abandoning hope in the  future.    Losing  the  struggle  to  maintain  the  actual  family unit and family control.
  - Poor but stable: Minimal  security  is  assured.    Suffers  from  some  minimal  marginalization  but  retains  hope  in  the  future.    The  quality  of  life  is  acceptable  so  long  as the family remains in good health.
- 9. Health
  - Very poor: Treats  ailments  with  traditional  plants.    Childbirth  takes place at home or in the bush/forest.
  - Poor and fragile: Seeks  treatment  at  medical  centers  without  having  the  capacity to pay.
  - Poor but stable: Seeks  treatment  at  medical  centers  and  pays  for  treatment.
- 10. School enrollment
  - Very poor: Children do not attend school because they have no way to pay school fees.
  - Poor and fragile: Education  is  a  matter  that  falls  to  children  themselves  who sell small items to pay for their studies.
  - Poor but stable: School   enrollment   is   provided   to   boys   as   a   priority, and not to girls.

*Annex III: SUBJECTIVE POVERTY PROFILE*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2007/_cr07330.pdf_