BANGUI, June 19, 2018 – According to the first issue of the Central African Republic (CAR) Economic Update published today by the World Bank, the deterioration in security conditions and the humanitarian situation is dampening hopes for a robust economic recovery in the Central African Republic. After peaking at 4.8% in 2015, the growth rate slowed to 4.5% in 2016 and 4.3% in 2017. Despite the optimism prevailing since the 2016 presidential election and the government’s promising fiscal consolidation policy, the CAR remains a fragile state that could draw lessons from the successful experience of other fragile states in order to sustain its peacebuilding and recovery efforts.
Titled “Breaking the Cycle of Conflict and Instability,” the World Bank’s publication provides an in-depth analysis of the factors creating fragility and proposes a number of avenues to achieve economic recovery. It identifies three essential prerequisites to break the cycle of instability and conflict: restoring security, combating impunity by guaranteeing compensation for the harm suffered by the victims, and promoting equitable and inclusive economic and social development.
“Without a doubt, the persistent insecurity is the biggest obstacle to poverty reduction, as each new violent confrontation between armed groups leads to additional displacement, destroys private property, and complicates the work of humanitarian organizations,” said Jean-Christophe Carret, World Bank Country Director for the Central African Republic. “The protracted security crisis in the CAR is taking a toll on the capacity of the state to provide essential public services and goods in the areas of health, education, and water.”
The report recommends that lessons be learned from other post-conflict countries such as Ghana, Liberia, and Rwanda, which have managed to put prolonged periods of instability behind them.
“The experience of these countries underscores the importance of promoting the development of civil society in order to consolidate democratic progress, strengthen public accountability, and enhance transparency while implementing a pragmatic set of policy and institutional initiatives to achieve gradual but steady improvement in the quality of the public service,” said Souleymane Coulibaly, World Bank Lead Economist for the Central African Republic and publishing coordinator for Economic Updates.
The new Economic Updates series for the Central African Republic will review economic trends in the country on a biannual basis in order to help the government and its development partners identify new opportunities and tackle persistent challenges.