Changes

In 2001, the Government of the D.R.C. under Joseph Kabila undertook a series of economic reforms to reverse this steep decline. Reforms were monitored by the IMF and included liberalization of petroleum prices and exchange rates and adoption of disciplined fiscal and monetary policies. The reform program reduced inflation from over 500% per year in 2000 to only about 7% at an annual rate in 2003. In June 2002, the World Bank and IMF approved new credits for the D.R.C. for the first time in over a decade. Bilateral donors, whose assistance has been almost entirely dedicated to humanitarian interventions in recent years, also are beginning to fund development projects in the D.R.C. In October 2003, the World Bank launched a multi-sector plan for development and reconstruction. The Paris Club also granted the D.R.C. Highly Indebted Poor Country status in July 2003. This will help alleviate the D.R.C.’s external sovereign debt burden and potentially free funds for economic development.  

In 2001, the Government of the D.R.C. under Joseph Kabila undertook a series of economic reforms to reverse this steep decline. Reforms were monitored by the IMF and included liberalization of petroleum prices and exchange rates and adoption of disciplined fiscal and monetary policies. The reform program reduced inflation from over 500% per year in 2000 to only about 7% at an annual rate in 2003. In June 2002, the World Bank and IMF approved new credits for the D.R.C. for the first time in over a decade. Bilateral donors, whose assistance has been almost entirely dedicated to humanitarian interventions in recent years, also are beginning to fund development projects in the D.R.C. In October 2003, the World Bank launched a multi-sector plan for development and reconstruction. The Paris Club also granted the D.R.C. Highly Indebted Poor Country status in July 2003. This will help alleviate the D.R.C.’s external sovereign debt burden and potentially free funds for economic development.  

Agriculture is the mainstay of the Congolese economy, accounting for 56.3% of GDP in 2002. The main cash crops include coffee, palm oil, rubber, cotton, sugar, tea, and cocoa. Food crops include cassava, plantains, maize, groundnuts, and rice. Industry, especially the mining sector, is underdeveloped relative to its potential in the D.R.C. In 2002, industry accounted for only 18.8% of GDP, with only 3.9% attributed to manufacturing. Services reached 24.9% of GDP. The Congo was the world's fourth-largest producer of industrial diamonds during the 1980s, and diamonds continue to dominate exports, accounting for over half of exports ($642 million) in 2003. The Congo's main copper and cobalt interests are dominated by Gecamines, the state-owned mining giant. Gecamines production has been severely affected by corruption, civil unrest, world market trends, and failure to reinvest.  

Agriculture is the mainstay of the Congolese economy, accounting for 56.3% of GDP in 2002. The main cash crops include coffee, palm oil, rubber, cotton, sugar, tea, and cocoa. Food crops include cassava, plantains, maize, groundnuts, and rice. Industry, especially the mining sector, is underdeveloped relative to its potential in the D.R.C. In 2002, industry accounted for only 18.8% of GDP, with only 3.9% attributed to manufacturing. Services reached 24.9% of GDP. The Congo was the world's fourth-largest producer of industrial diamonds during the 1980s, and diamonds continue to dominate exports, accounting for over half of exports ($642 million) in 2003. The Congo's main copper and cobalt interests are dominated by Gecamines, the state-owned mining giant. Gecamines production has been severely affected by corruption, civil unrest, world market trends, and failure to reinvest. In recent years, gold mining has boomed in the country's southern provinces.  

For decades, corruption and misguided policy have created a dual economy in the D.R.C. Individuals and businesses in the formal sector operated with high costs under arbitrarily enforced laws. As a consequence, the informal sector now dominates the economy. In 2002, with the population of the D.R.C. estimated at 56 million, only 230,000 Congolese working in private enterprise in the formal sector were enrolled in the social security system. Approximately 600,000 Congolese were employed by the government.  

For decades, corruption and misguided policy have created a dual economy in the D.R.C. Individuals and businesses in the formal sector operated with high costs under arbitrarily enforced laws. As a consequence, the informal sector now dominates the economy. In 2002, with the population of the D.R.C. estimated at 56 million, only 230,000 Congolese working in private enterprise in the formal sector were enrolled in the social security system. Approximately 600,000 Congolese were employed by the government.  

*Currency: Congolese franc (FC).

*Currency: Congolese franc (FC).

*Trade: Exports (2002)--$1.040 billion. Products--diamonds, cobalt, copper, coffee, petroleum. Partners--E.U., Japan, South Africa, U.S., China. Imports (2002)--$1.216 billion. Products--consumer goods (food, textiles), capital equipment, refined petroleum products. Partners--E.U., China, South Africa, U.S.  

*Trade: Exports (2002)--$1.040 billion. Products--diamonds, cobalt, copper, coffee, petroleum. Partners--E.U., Japan, South Africa, U.S., China. Imports (2002)--$1.216 billion. Products--consumer goods (food, textiles), capital equipment, refined petroleum products. Partners--E.U., China, South Africa, U.S.  

*Total external debt (2002): $8.211 billion. (Currently under revision due to HIPC decision point in 2003.)  

*Total external debt (2002): $8.211 billion. (Currently under revision due to HIPC decision point in 2003.)

==History==  

==History==