History Country Brief Last Updated March 2008 
For much of the period since independence in 1960, the Central African Republic (CAR) has been politically unstable with bouts of armed conflict. In 1993, after three years of social and political unrest, a coalition government was formed under newly elected President Ange-Félix Patassé. Although the government pledged itself to democratic reform, more violent social and political unrest followed in 1996 and 1997. After surviving a coup attempt in May 2001, Patassé was overthrown in March 2003 by General François Bozizé. Security, while broadly under control in Bangui and many parts of the country, remains fragile. The government is still struggling to restore even the most basic functions, and social needs are immense. Politics The conclusion of presidential and legislative elections in May 2005 marked the end of a two-year transition period in CAR. During the transition period, slightly longer than the original two-year agreement, a new Constitution was ratified (passed by referendum December 5, 2004), and two rounds of presidential and legislative elections were held. Most observers judged the election process to be satisfactory. Economy Beyond the political turmoil, economic development has also been hampered by the country's landlocked position, a poor transport system, a largely unskilled workforce, and a legacy of misdirected economic policies. The government has also had poor revenue collection and budget outcomes, and is behind in military and civilian payrolls. The country thus remains poor despite the economic potential of CAR's natural resources (diamonds, gold, uranium, and timber) and favorable farming conditions. CAR continues to emerge from a fragile economic environment and macroeconomic performance and policy implementation have strengthened. In 2006, growth reached 4.1 percent, the highest in a decade, and is expected to remain at the same level for 2007. The fiscal position is estimated to have improved noticeably in 2006 in large part due to better fiscal management. Donors have been providing assistance to CAR for the strengthening of numerous activities in public financial management and governance. The IMF-backed Poverty Reduction and Growth Facility (PRGF) was approved in December 2006, and Heavily Indebted Poor Countries (HIPC) Decision Point was attained in September 2007. Development progress The political instability has contributed to poor socioeconomic outcomes. CAR ranked 171st out of 177 countries in United Nation Development Programme’s 2007/08 Human Development Index. Poverty is widespread, with an estimated 67 percent of the population living under the poverty line, and the incidence of poverty in rural areas is higher. Access to even basic education and health services is minimal, and outcomes are worsening as these sectors have been significantly under-funded for several decades. Life expectancy at birth is estimated at 39 years, and adult literacy rate for persons 15 years and above is 65 percent. The incidence of HIV/AIDS, estimated at 6.2 percent has continued to climb because of a lack of health services and prevention programs, and is now at a crisis level. The Government finalized its poverty reduction strategy paper (PRSP) in September 2007, which it presented to the donor community at a Round Table in October 2007. World Bank assistance International Development Association normal assistance to CAR was disrupted by the recurrent conflicts during much of the past decade. The World Bank reengaged with CAR in November 2006, through a Development Policy Operation (US$82 million) which cleared the arrears to IDA and provided additional resources for upcoming debt service and budget support. A joint AfDB/WB Interim Strategy for FY07-08 was endorsed by the World Bank in January 2007. The new strategy supports: (i) economic recovery and strengthening public sector governance and technical capacity; and (ii) human development, with emphasis on the poor. Under this strategy, the Bank approved two additional projects in FY07 aimed at delivering visible impacts on the CAR population and strengthening technical capacity and governance. These include an Emergency Urban Infrastructure Rehabilitation and Maintenance Project (US$18 million) and a Regional Trade and Transit Facilitation Project (US$24 million). In addition, an HIV/AIDS project (US$17 million) from 2001 was restructured in May 2007 to include urgent needs in health and education. The Bank’s program includes support for Governance and Capacity Building through Trust Funds under the Low Income Country Under Stress (LICUS) facility. The International Finance Corporation (IFC) is initiating some support to private sector development in the country. Multilateral Investment Guarantee Agency has no activities in the country. Contacts Mrs. Jelena Pantelic
Country Manager
Bangui , Central African Republic
Tel: (236) 61 16 55
Fax: (236) 61 60 87
Email: jpantelic@worldbank.org Mr. Eric Bell
Lead Economist
Tel: (202) 458-7490
Fax: (202) 458- 7490
Email: ebell1@worldbank.org Ms. Kathryn Hollifield
Country Program Coordinator
1818 H. Street N.W, Washinton DC 20433
Tel: +1-202 458 1731
Fax: +1-202 474 5452
Email: khollifield@worldbank.org Ms. Janet Dooley
Senior Country Officer
Tel: (202) 458 4626
Fax: (202) 473-5452
Email: jdooley1@worlbank.org Ms. Nellie Sew Kwan Kan
Senior Program Assistant
Tel: +1-202-473-4756
Fax: +1-202-473-5452
Email: nsewkwankan@worldbank.org |
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