Democratic Republic of Congo : Reforming Public Enterprises through Improved Governance
The Democratic Republic of Congo (DRC) is endowed with natural resources, in particular for mineral development, and its large agricultural potential is still untapped, having also a considerable percentage of the world's hydroelectric potenti...
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| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/03/3051512/congo-democratic-republic-reforming-public-enterprises-through-improved-governance http://hdl.handle.net/10986/14715 |
| Summary: | The Democratic Republic of Congo (DRC)
is endowed with natural resources, in particular for mineral
development, and its large agricultural potential is still
untapped, having also a considerable percentage of the
world's hydroelectric potential. Yet DRC's
socioeconomic indicators place the country as among the most
deprived in the world. This study first reviews the
country's agriculture and infrastructure sectors, to
set the grounds for an inclusive private sector. It
specifies the private sector has been crowded by the public
enterprises taking over the economy, public enterprises
which have developed outside their core business, in
unrelated activities. These public enterprises are virtually
bankrupt with inefficient and loss generating processes,
imposing significant fiscal pressures on the state. On
reviewing the political transition, the liberalization and
stabilization of the economy, as well as restoration of the
basis for economic growth, has proved a far-reaching
program. Economic, and structural reforms included the areas
of trade and prices, financial and business environment, as
well as public enterprise reform. The Congolese context,
with its history of mismanagement of the public enterprises,
and lack of regulatory framework, requires improved
governance and performance of companies. In the context of a
strategy, public enterprise reform is being implemented
within new sectoral policies, through a decision-making
process supported by trade unions and independent third
parties. These actions should lead to adopting
restructuring, and divesting strategies. |
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