Political leaders in Central African Republic are holding peace talks to help put decades of unrest behind the country
Political instability has left its mark on poverty reduction efforts, infrastructure and economic growth
The World Bank is working with Central African Republic to help promote economic growth and stability
BANGUI, December 19, 2008— An“Inclusive Political Dialogue” aimed at restoring peace to the Central African Republic (CAR) following more than 40 years of political unrest is taking place between the government of President François Bozizé, civilian opposition members, and various rebel groups.
The peace talks are generating hopes for economic revival in a country plagued by chronic instability, including multiple coup attempts and mutiny, which have derailed economic development efforts over the last decade.
The legacy of war
Turmoil began in the Central African Republic a few years after its independence in 1960. Today, a fragile peace is in place but, despite the presence of international peacekeeping missions, conflict still exists in inner cities. Having borne the brunt of the suffering, the civilian population has been left with scant resources. According to UNICEF, 295,000 people have been displaced; of those, 98,000 have been forced to seek refuge in neighboring Chad, Sudan, and Cameroon.
Poverty is rife in CAR. Sixty-seven percent of the population lives below the poverty line, and the incidence of poverty in rural areas is even higher. Life expectancy is estimated at 39 years, and the literacy rate of people aged 15 and over stands at 65 percent. Owing to a lack of health and preventive care services, the incidence of HIV/AIDS, estimated at 6.2 percent, has been increasing steadily and has now reached a critical threshold. In its latest human development index, the United Nations Development Programme (UNDP) ranked CAR 171 out of 177 nations.
Infrastructure also has been affected by the years of conflict. A sharp rise in energy prices has all but brought the landlocked country to a standstill, and roads that link CAR to neighboring countries are no longer passable.
“CAR must pursue its reconciliation process as it embarks on the difficult path toward sustainable growth and development,” said World Bank Country Director for Central African Republic Mary Barton-Dock.
Addressing these challenges, according to Barton-Dock, will not only enable CAR to achieve social cohesion, but “will also garner more support from its development partners, including the World Bank, which has reiterated its commitment to support the government’s efforts.”
Hopes for peace
The peace talks represent a source of great hope among many people, who view cooperation by the political players as the only way to escape the abject poverty in which they have been mired for years.
“We have suffered too much from the infernal cycle of mutinies and rebellions; all we want is that politicians come together and establish a climate of peace in CAR for the sake of our children,” said one Bangui resident. In an interview with Radio France Internationale, the president of CAR’s human rights league said that the formation of a government of national unity at the end of the current dialogue is the only way out for the country.
Restoring economic stability
Despite the years of conflict, and as a result of assistance provided by international development partners, including the World Bank Group, the government of CAR has been working to increase its economic stature. Under the Heavily Indebted Poor Countries (HIPC) initiative, CAR is unburdening itself of debt and will soon reach the program’s completion point. On October 30, 2008, France cancelled US$48 million (CFAF 25 billion) in debt in order to pave the way for further debt reduction.
Over time, the HIPC initiative will enable CAR to benefit from debt reduction amounting to US$602 million (CFAF 313 billion) and from cancellation of its multilateral debt of US$101 million (CFAF 52.5 billion). The country has already benefitted from the cancellation of US$9.9 million (CFAF 5.1 billion) and from the rescheduling of US$26.2 million (CFAF 13.5 billion) from the Paris Club.
To date, the World Bank has released a total of US$160 million to CAR. The country has also benefitted from funding to cover salary arrears under the LICUS initiative, a mechanism used by the World Bank to assist fragile and conflict-afflicted states.
In August, CAR received US$7 million in emergency assistance as part of the Bank’s Global Food Response Program (GFRP), and the World Bank is preparing to disburse emergency assistance to help the government address the country’s challenges in the energy sector. An infrastructure rehabilitation project is also underway.
RSS