CIAO DATE: 12/2009
November 2009
United States Institute of Peace
The Democratic Republic of Congo (DRC) has enormous economic potential thanks to its rich mineral deposits and vast tracts of arable land. Historically, these resources have been exploited by predatory leaders and a host of subregional actors. The time is now ripe for the DRC to put years of war and economic underdevelopment behind it. Research suggests that a robust business sector can help rebuild postwar economies and give citizens a stake in promoting and consolidating peace. The DRC, which is in the early stages of economic recovery following two devastating wars, offers a testing ground for this proposition. The business community showed impressive resilience by continuing to operate throughout the conflict and an associated humanitarian crisis, in which as many as 5.4 million people died. As the DRC emerges from war, its business leaders are well placed to facilitate the transition toward lasting peace. This survey of businesspeople attempts to aid that process by finding out what can be done to improve the business climate in two cities located in two of the DRC’s strategically important regions--Bukavu in the east and Lubumbashi in the south--where business activity is thriving despite the challenges. Importantly, though businesspeople cite security and violent conflict as factors hampering economic activity, these are not the most crucial issues. Rather, the more mundane problems of unreliable electricity supply, high taxes, and other bureaucratic and logistical hurdles are perceived as the largest challenges. Interventions that focus on these obstacles stand the best chance of improving economic conditions and promoting peace.
Resource link: Conflict-Business Dynamics in the Democratic Republic of Congo [PDF] - 607K