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Annual Meetings: Making Earth's Riches Work for Poor and Fragile Countries

Bassam Sebti's picture

At least 80% of countries considered fragile or affected by conflict are home to valuable extractive resources that the global economy hungers for. Earth’s riches like oil, gas, and minerals often fuel conflict, trapping all but the elites in poverty amid vast wealth.
 
A high-level panel of industry experts and representatives from CSOs and resource-rich nations weighed in today on the challenges that define poverty or prosperity in a fragile country.
 
Fragile states endowed with natural resources have the chance to benefit from their transformational impact, said Sri Mulyani Indrawati, managing director and chief operating officer of the World Bank Group. "Success can mean stability and development, and failure can mean aid dependency,” she said. 
 
Indrawati underscored the need to get things right — alluding to the recurrent discussion regarding the “resource curse.” “Our focus is on transparency, governance, and strengthening country capacity,” she said.
 
On transparency, panelist Clare Short, chair of the Extractives Industries Transparency Initiative, an international standard that ensures transparency around countries’ oil, gas and mineral resources, acknowledged that extractive resources “are very difficult to manage.”

At the UN Security Council on Fragility and Natural Resources

Caroline Anstey's picture

Imagine you are a leader of an African country and your entire government budget for the year is $1.2 billion.

That same year, an investor sells 51 percent of their stake in a huge iron ore mine in your country for $2.5 billion — more than double your annual government budget.

And imagine having ordered a review into mining licenses granted by previous regimes and knowing that the investor who made the $2.5 billion sale had been granted a mining license in your country for free.

It's what happened in Guinea. It's a story I heard Guinea's president, Alpha Condé tell the G8's trade, transparency and taxation conference in London. And it's a story I thought well worth sharing at the UN Security Council's meeting on fragile states and natural resources last week.

Starting a Historic Trip with the United Nations

Jim Yong Kim's picture

KINSHASA, Democratic Republic of Congo — For too long the people of the Great Lakes region of Africa have suffered from conflict and insecurity. We need to bring peace, security, and development to the region with great urgency to build on an 11-country peace framework arrangement. I am joining with U.N. Secretary-General Ban Ki-moon on a historic trip to the region — the first ever taken together to Africa by the heads of our organizations. Watch the video of my crossing the Congo River, from Brazzaville to Kinshasa, at the very beginning of the trip. 

The Fight to End Wildlife Crime Is a Fight for Humanity

Valerie Hickey's picture

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Elephants in Kenya. Curt Carnemark/World Bank

Elephant ivory is on the march. Not elephants, but their ivory. The elephants are left bloodied and dead on the range. So are many rangers who work to protect a country’s natural capital. In the past 10 years, over 1,000 rangers have been murdered in 35 countries alone; the International Ranger Federation tell us that as many as 5,000 may have been murdered worldwide in that time.
 

At the CITES COP – the Conference of the Parties to the Convention on International Trade in Endangered Species – the halls in Bangkok ring loud with concern for the elephants and other charismatic species, particularly rhinos, that are being exterminated across Africa in pursuit of private profit, at the expense of communities that rely on nature for their food, shelter, start-up capital, and safety net in a warming world.


So why should the World Bank care? Our concern is to build strong economies and healthy communities by revving the engine of inclusive green growth as we prepare countries and communities for the impacts of climate change.

What does this have to do with elephant ivory you ask? Simply put, we cannot achieve our dream of a world without poverty without taking account of the rise in wildlife crime.

World Bank Is Committed to Forest Communities

Rachel Kyte's picture

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Curt Carnemark/World Bank

Here at the World Bank we believe that independent internal evaluation is central to strengthening our work. Rigorous, evidence-based evaluation informs the design of global programs and enhances the development impact of partner and country efforts.

The World Bank Group’s Independent Evaluation Group (IEG) has undertaken a review of the implementation of the 2002 Forest Strategy. The strategy emphasized the positive developmental benefits of forest conservation and management, while strengthening environmental and social safeguards.

The report confirms that the World Bank’s forest work has:

  • contributed substantially to positive environmental outcomes;
  • successfully reduced deforestation when forest protected areas are designed and managed by people who live in and around them;
  • improved livelihoods, especially through support for participatory forest management initiatives, which involve and empower local communities;
  • advanced the rule of law in a sector plagued by patronage, corruption, and rent-seeking by increasing transparency and accountability and by putting environmental standards in place.

But to be most useful, an evaluation must meet a quality standard.

While we agree with some of IEG’s findings, we – and our Board - strongly disagree with others.

Why crossing the Congo was so special

Eva Jarawan's picture

Eva Jarawan in the DRC

Even during the busy Spring Meetings here in Washington, my thoughts keep going back to two places I visited this month that lie on either side of the Congo River. I crossed the great river by boat from Brazzaville to Kinshasa, a special journey for many reasons. In Brazzaville, capital of the tiny Republic of Congo, I’d been impressed by the quality of leadership in managing additional financing for one of our projects which addresses HIV/AIDS, and on the other side of the river, I was returning to the Democratic Republic of Congo after a long gap, to find that a health systems rehabilitation project I’d worked on many years ago was in fact thriving and delivering good results.

Today being World Malaria Day, I must register that I saw some extremely useful work going on in Kikimi, a very poor neighborhood near Kinshasa. Our partnership with local NGOs to provide better health services across DRC looks like it’s working well here. Instead of just being shown reports on inputs and equipment, which I’ve found frustrating in the past, this time I met a large number of women who told me about insecticide-treated bed nets they’d received during routine visits to their health center and how useful these nets were to prevent malaria. I saw pharmacy shelves well-stocked with malaria drugs, oral rehydration therapy for diarrhea, and basic antibiotics. The project wasn’t perfect but it was delivering results that I could see with my own eyes.

Improving capacity building in post-conflict and fragile settings

Nina Vucenik's picture

Young children in school. Ghana. Photo: © Curt Carnemark / World BankThree African ministers shared their experience with Bank officials on Thursday when they met to discuss ways to develop capacity in post-conflict countries.

 “We are here to listen—tell us how we can better assist you. And please, be frank,” said Obiageli Ezekwesili, World Bank Africa Region Vice President.

Ezekwesili asked the ministers from Liberia, Rwanda and the Democratic Republic of Congo (DRC) to discuss capacity development efforts in their countries, and to identify what has and has not worked, and how donors can provide more effective support for human development, infrastructure, and public sector reforms.

Several common themes emerged from the ministers’ interventions, including:

  • Donors prioritizing support for primary and secondary education, and not higher education
  • Donors pressing a “one size fits all” approach on countries, trying to replicate programs that were successful elsewhere
  • The failure by expatriate advisors in civil service posts to transfer their knowledge and skills to local counterparts
  • Tension among returning members of the Diaspora and local populations that stayed behind, partly around incentive structures for civil service
  • An urgent need to deliver skills-training and create job opportunities for young ex-combatants
     

South Africa. Photo: Trevor Samson / World BankAugustine Ngafaun, Minister of Finance for Liberia, outlined the enormity of the challenges facing his country, which has “75 percent of the educational facilities destroyed” combined with a “massive brain drain” as a result of professionals fleeing during Liberia’s recent conflict.

“We have very few doctors, teachers and hardly any engineers,” said Ngafaun, Liberia's Minister of Finance.

He also noted that, despite the importance of the mining sector for Liberia’s growth, there are not even five geologists in the entire country.

Rwanda’s Finance Minister James Musoni noted that even though the reconstruction challenges were daunting, his country has made significant progress since the 1994 genocide. He said it is crucial for the donor community to understand the context in which each country operates, as in some cases the political leadership may not be ready.

Ezekwesili stressed the need to build confidence in all sectors, pointing out that “development solutions work only to the extent that the capacities of the nation-state, the private sector, and civil society are strong.”

“The lack of capacity is magnified by the stress of the post conflict environment,” Ezekwesili said. 

Story: Improving Capacity Building in Post-conflict and Fragile Settings—African Ministers Share their Experience

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