DRC—[World Bank]

PSL/ NGO

Justification for SCS
The world bank receives money and implements the policies of its main donors, on the other hand has its own agenda and expectations towards the receiving country.

Stakeholder size (number of people)
n. a.

Area of Influence
a. Geographic area
n. a.
b. Population subsets
n. a.

Description of Organization
a. Who are the leaders?
Judy M. O'Connor - Acting Country Director (in the headquaters)
Ms. Keiko Kubota - Country Economist (in the headquaters)
Mr. Jean-Michel Happi - Country Manager (in the DRC)

b. How does one gain influence in the group?
World bank career.
c. What issues do they care about?
Good governance, transparency, economic liberalization.
d. What does the organizational structure look like?
e.

Financial Resources (if applicable)
n. a.

Military Resources (if applicable)
a. What arms do they possess
i. What type?
ii. How much?
b. Experience level

Provide a short history of the stakeholder group
a. What is their origin?
The Democratic Republic of Congo joined the World Bank in 1963. Since then, World Bank assistance on 82 projects has helped the country work towards achieving improved governance, economic growth and a reduction in poverty. As of October 2007, there are nine active World Bank projects with a commitment value of approximately US$1.9 billion in DRC
b. How have they changed?
The Bank suspended its financial assistance in 1991 due to the deteriorating economic and political situation. However, it maintained dialogue with the DRC authorities throughout the 1990s allowing for a rapid re-engagement in 2001.
At re-engagement in 2001, the Bank prepared a Transitional Support Strategy (TSS) covering the years 2001 – 2003, which focused on supporting economic reforms, financing rehabilitation works, providing policy advice in a number of sectors, and playing a leading role in mobilizing and coordinating donors.
The Bank helped DRC prepare its Interim Poverty Strategy Paper which was approved in 2002. A year later, after a successful implementation of the I-PRSP, the full PRSP elaboration was launched in 2003. It was approved by the transitional Government in July 2006, and endorsed by the new elected Government in March 2007, before being approved by both the World Bank and IMF Boards in March/April 2007.
The Bank prepared a second TSS covering 2004 - 2006 that focused on: (a) social stability and security, (b) shared economic growth, (c) governance and institutional strengthening, and (d) social development.
The Bank is currently preparing a CAS (covering 2007 – 2010) – scheduled for Board discussions during the fourth quarter of 2007. The CAS is based on the full Poverty Reduction Strategy Paper (PRSP), approved by the Council of Ministers in July 2006. The objective of the new CAS will be to lay the foundation for a medium-term poverty reduction effort by strengthening infrastructure, institutions, and policies. Bank Group assistance will reflect the five pillars of the PRSP and will support efforts to:
• Promote good governance and consolidate peace.
• Consolidate macroeconomic stability and economic growth.
• Improve access to social services and reduce vulnerability.
• Fight the spread of HIV/AIDS.
• Promote community dynamics.
In addition, the CAS will highlight the increased outreach programs of the IFC, MIGA, and WBI in DRC, and will be enriched from broad-based consultations with various stakeholders, including government, civil society, and the private sector.
This CAS is being prepared in close coordination with over 20 other donors (including the ADB, UN agencies, IMF, European Commission , UK, US, Germany, France, Belgium, Japan, Sweden, etc), with due attention to harmonization and coordination. Efforts aim at reducing the transaction costs for government, minimizing the risks of duplication of efforts, building upon each donor's comparative advantages, and ensuring the most efficient use of resources. Donors have developed a common strategic approach for assistance called the Country Assistance Framework (CAF) which includes a joint diagnosis, a joint result framework, and a joint programming of activities. The CAF helped inform individual donor strategies, including the CAS.
Currently, the Bank portfolio in DRC comprises 11 active projects, totaling about US$1.9 billion in commitments of which approximately US$ 1.1 billion undisbursed. An area list of the projects and a short description are provided below:
• Emergency Multisector Rehabilitation and Reconstruction Project (US$ 579 million; approved in August 2002 and effective in November 2002) to rehabilitate key infrastructure and social services delivery.
• Private Sector Development and Competitiveness Project (US$ 120 million; approved in July 2003, effective in December 2003) to restructure key public companies, and to provide partial guarantees to investors through the Africa Trade Insurance Agency (ATI).
• Emergency Economic and Social Reunification Support Project (US$ 214 million; approved in September 2003, effective in December 2003), to support balance of payments, institutional strengthening, infrastructure repairs, and community-driven development.
• Multisectoral HIV/AIDS Project (US$ 102 million; approved in March 2004, effective in October 2004) to mitigate the negative impact of the HIV/AIDS epidemic on the stabilization, recovery, and development of the country.
• Emergency Demobilization and Reintegration Project (US$ 100 million; approved in May 2004, effective in November 2004) to help consolidate peace and promote economic stability and sustainable development in DRC and in the Great Lakes region.
• Emergency Social Action Project (US$ 60 million; approved in August 2004, effective July 2005) to improve access of the poor to social and economic services, and increase the availability and management of development resources at the community level.
• Emergency Living Conditions Improvement Support Project (US$ 82 million; approved in May 2005, effective September 2005) to reinforce the Bank commitment and its strategy in DRC.
• Health Sector Rehabilitation Support Project (US$ 150 million; approved in September 2005, effective April 2006) to ensure that the target population of selected health zones has access to, and use, a well-defined package of quality essential health services.
• Emergency Urban and Social Rehabilitation Project (US$ 180 million; approved in March 2007) to help DRC face urgent post elections challenge.
• Education Sector Project (US$ 150 million; approved in May 2007) to prevent further deterioration in the delivery of essential services for primary education.
• Southern African Power Market Project (US $177.5 million; approved in November 2003) to facilitate the development of an efficient regional power market.
• Regional and Domestic Power Markets Development Project (US$ 296.7 million; approved in May 2007) to improve efficiency in the electricity sector and expand generation, transmission and distribution capacity in order to better serve domestic power demand and to support regional power market integration.
c. What are their future goals?
The World Bank is fully committed to supporting the fledgling DRC government in the fight against bribery and corruption, which remains the "main obstacle" to economic growth. Foreign support depends on the conclusion of a new reform program in discussions with the IMF and the World Bank. Corruption is the main obstacle to growth, but a "social market economy" plan is under discussion.
The World Bank has sponsored a government-led legal review of 156 logging deals to reorganize forestry concessions, many of them illegally allocated during DRC’s civil war. It has urged the government to cancel illegal concessions and those in breach of a new Forest Code.