Congo, Democratic Republic of - Enhanced Integration Framework Program (EIF) : diagnostic trade integration study
The goal of the Congo, Democratic Republic of (DRC's) trade policy is to create a regulatory, fiscal and institutional environment in which domestic and foreign trade can develop unhindered, opening up the country's vast territory and int...
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| Format: | Foreign Trade, FDI, and Capital Flows Study |
| Language: | English |
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World Bank
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20110210233450 http://hdl.handle.net/10986/2971 |
| Summary: | The goal of the Congo, Democratic
Republic of (DRC's) trade policy is to create a
regulatory, fiscal and institutional environment in which
domestic and foreign trade can develop unhindered, opening
up the country's vast territory and integrating it into
regional and international trade channels. In this respect,
the analyses in this report highlight three priorities: (i)
to streamline and reduce port taxation; (ii) to conclude the
negotiations on a future Economic Partnership Agreement
(EPA) with the European Union (EU); and (iii) to move ahead
with regional integration with the DRC's natural
partners. The identification of these priorities is based on
the diagnosis of the DRC's macroeconomic and trade
performance and the implications of its choices in terms of
trade policy Although it is sometimes said that natural
resources are 'a curse' when referring to the
disappointing performance of many commodity-exporting
countries, work carried out recently has .shown that an
abundance of natural resources is not, in itself, a factor
inhibiting growth. What is important for the DRC and for all
other commodity-exporting countries is to put in place an
environment that is beneficial for all sectors of the
economy, in which all people and sectors have access to
factors of production in a competitive environment where the
rule of law is respected. A stable macroeconomic environment
is the essential prerequisite for efficient markets. The
Congolese economy, however, has recently been subject to
considerable pressures. During the last quarter of 2008,
commodity prices temporarily collapsed. In addition,
disturbances in the Eastern provinces led the Government to
increase spending on national defence, financing this
through a loan from the Central Bank. This unrest led to
market fears concerning the stability of the Congolese
franc, helping to cause its depreciation. The
authorities' response in terms of macroeconomic policy
has been ambiguous, particularly as regards monetary policy.
This report is divided into five chapters: implementation
and recommendations; trade performance and the policy in the
DRC; trade facilitation; performance of sectors upstream:
infrastructure and services; and performance of sectors
downstream: mining, agriculture, and forestry. |
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