Paul Wolfowitz to visit Democratic Republic of Congo

7 March 2007

Visit signals heightened World Bank interest in the country following the inauguration of a new government, as well as in the wake of controversy around the forest and mining sectors.

World Bank President Paul Wolfowitz left last week for his second visit to Africa since assuming the presidency of the Bank in June 2005. He is slated to take part in celebrations this week in Ghana marking 50 years of independence, and will also pay visits to Burundi, South Africa, and the Democratic Republic of Congo (DRC).

Wolfowitz’s visit to the DRC is not unexpected, considering the successful conclusion of the recent presidential elections and the volume of funds that the World Bank has committed to make available to the new government - roughly $1 billion.

His visit also comes in the midst of growing controversy over the Bank’s involvement in the country’s natural resource sectors. The Bank’s support for reforms in the forestry and mining sectors has come under fire from civil society critics concerned that efforts to attract investors and to make these sectors into sources of economic growth are taking precedence over measures to ensure the protection of local community rights and build effective government capacity.

A recent article in the Financial Times raised serious questions about the Bank’s support for the restructuring of DRC’s state-owned mining companies, and an ongoing Inspection Panel investigation into the Bank’s role in the forest sector is drawing attention to the fate of the world’s second largest rainforest and the millions of indigenous and local communities that depend on it.

At the same time, Wolfowitz’s presence may be intended to provide a signal that the DRC is a safe and profitable destination for private investments, as well as donor dollars. The Bank’s involvement in the revision of the DRC’s mining, forestry and investment codes promises renewed opportunities for foreign companies in the country’s most lucrative sectors.

As reported in the Financial Times, recent reports suggest that the perceived stability in the country combined with intensified competition for resources elsewhere, increasing commodity prices, and favorable terms in the revised mining code, are prompting the world’s largest mining companies to consider investing billions.

The influx of mining investment is raising concerns given the government’s lack of demonstrated capacity to monitor, mitigate or manage the impacts of mining. To date, exploitation of DRC’s mineral resources has been pursued with little regard for benefits to the Congolese public, the rights of local communities, or protection of the environment.

During his trip, Wolfowitz is also expected to discuss the importance of DRC’s forests in the context of climate change, and the possibility of using carbon credit instruments to remunerate the preservation of the country’s rainforest – the second largest in the world. Serious doubts remain, however, about the capacity and the will of the DRC government to enforce the forest protections on which such schemes depend, or to guarantee the recognition of local and indigenous community rights in these alternative financing arrangements.

Read more about the World Bank's involvement in the DRC in the new DRC Country Update.

Resources

• World Bank president to visit African countries, Xinhua News Agency, March 3, 2007 (Xinhua website)
• Stability tempts mining companies back to Congo by Rebecca Bream, Financial Times, February 21, 2007 (MONUC website)
• World Bank implicated in controversial DR Congo mining contracts, Bank Information Center, November 22, 2006 (BIC website)
• Clouds on the Horizon: The Congo Basin's forests and climate change, Rainforest Foundation UK, February 2007 (RFUK website)