The Democratic Republic of Congo (DRC) is home to more than 60 million people, the world’s second largest rainforest, and significant mineral resources. The World Bank has committed over $2 billion in loans, with a worrisome emphasis on natural resource sectors such as mining and logging.
With nine countries sharing its borders, the DRC’s political and economic situation has repercussions for the entire central African region. The DRC is emerging from the wars of 1996-97 and 1998-2003, and some areas continue to experience violent conflict and insecurity despite the signing of peace accords and the inauguration of Joseph Kabila as President in December 2006.
Led by the World Bank and the International Monetary Fund (IMF), the international donor community returned to the DRC in 2001, providing financial and political support during the country’s uncertain transition. Since then, the World Bank has committed over $2 billion in loans and grants to the DRC. The WBG’s emphasis on investment in the natural resource sectors as a key driver of economic growth has aroused concerns.
The WBG has supported the revision of DRC’s mining, forest and investment codes, as well as the restructuring of the state-owned mining and utility companies, with an aim to increasing private sector participation in resource extraction and in power generation and distribution. However, in absence of government capacity to monitor, mitigate and manage the impacts of this investment, the country is effectively being carved up for the taking by logging and mining companies, with little regard for benefits to the Congolese public, the rights of local communities, or protection of the environment. The political and economic interests behind these transactions are massive.
BIC has been monitoring the WBG’s portfolio in the DRC with particular attention to its engagement in the mining, forestry and energy sectors. BIC partners with a variety of environmental, human rights, and community-based organizations in the DRC to increase their influence over development decisions affecting the Congolese population and environment. In April 2006, BIC staff participated in a field visit to the DRC in order to learn more about the impacts of World Bank Group (WBG) operations in the country. BIC continues to provide information and support to civil society groups in the DRC seeking to protect and promote their social, environmental and economic rights in the context of IFI operations in their country.
