Postconflict Economics in Sub-Saharan Africa, Lessons from the Democratic Republic of the Congo

Abstract

T he Democratic Republic of the Congo (DRC), the third-largest country in Africa, is making significant strides at both the political and economic fronts to extricate itself from one of the bloodiest wars in African history (resulting in 3 million deaths) and decades of economic mismanagement. The DRC has succeeded in breaking the vicious circle of hyperinflation, falling currency, and collapsing output. This remarkable turnaround offers interesting lessons for countries coping with conflict and for the international community in its efforts not only to prevent conflict but also to provide adequate and timely support to postconflict countries. One important lesson is that the early involvement of the International Monetary Fund was key in catalyzing support for the reformers inside the country and fostering the goodwill of the international community to help buttress the peace process.The DRC still faces many challenges ahead, in particular, the demobilization and reintegration of all ex-combatants, the creation of a unified army, the holding of free elections, and the reunification of the country, while, at the same time, it needs to consolidate the remarkable progress achieved so far in creating a macroeconomic environment conducive to sustainable growth and the reduction of poverty. If the DRC succeeds in addressing these challenges, it could become one of the main engines of growth in Africa. However, this achievement will only be possible if the international community intensifies its efforts to strengthen the peace process in the Great Lakes region, hopefully with the genuine participation of all countries concerned. Creating a durable peace in the heart of Africa would alleviate the suffering of millions of Africans, while contributing to a more stable world.This book looks at the lessons and challenges from conflict to reconstruction, providing a summary of the most recent research on conflict, an analysis of the causes of conflicts in Africa, and their key economic characteristics. It reviews the remarkable turnaround in the DRC and its efforts to cope with the many challenges in its path from conflict to stabilization and to reconstruction. These issues have been at the center of the IMF staff's work on the DRC in recent years.The book brings together material and analysis prepared during late 2000 to mid-2004 by the IMF team working on the DRC under the supervision of Jean A.P. Clément, and includes an insightful article from our colleagues from the World Bank on the demilitarization and reinv ©International Monetary Fund. Not for Redistribution