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Congo, Republic of the (ROC)
CONGO, REPUBLIC OF
LOCATION, SIZE, AND EXTENT |
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| Current Account | -2.6 | |||||
| Balance on goods | 1,011.2 | |||||
| Imports | -449.9 | |||||
| Exports | 1,461.1 | |||||
| Balance on services | -460.2 | |||||
| Balance on income | -546.1 | |||||
| Current transfers | -7.5 | |||||
| Capital Account | 9.9 | |||||
| Financial Account | -58.5 | |||||
| Direct investment abroad | 0.3 | |||||
| Direct investment in Congo, Republic of the | 200.7 | |||||
| Portfolio investment assets | -5.1 | |||||
| Portfolio investment liabilities | … | |||||
| Financial derivatives | … | |||||
| Other investment assets | … | |||||
| Other investment liabilities | -254.4 | |||||
| Net Errors and Omissions | -110.3 | |||||
| Reserves and Related Items | 161.5 | |||||
| (…) data not available or not significant. | ||||||
States (7.3%) and France (5.5%) while the main origins of imports were France (32.7%), the United States (10.1%), Germany (6.2%) and Italy (6.0%). Figures published in the IMF's Direction of Trade Statistics confirm the growing importance of China as a market for Congo's oil exports. These have increased in the last decade, from $1.2 million in 1994 to $249 million in 2004.
Until the 1970s, the Congo's chronic trade deficit led to an annual payments deficit. With the growth of oil revenues, the balance of payments became positive; this trend did not last long, however, since the deficit in services grew even faster than the trade surplus during the early 1980s. In recent years, imports have represented over 70% of private consumption.
The Economist Intelligence Unit reported that in 2005 the purchasing power parity of Congo's exports was $4.24 billion while imports totaled $1.26 billion resulting in a trade surplus of $2.98 billion. According to the latest World Economic Outlook, published by the IMF in September 2005, Congo's current-account surplus will increase from 2.3% of GDP in 2004 to 7.3% of GDP in 2005 and 10% of GDP in 2006.
The bank of issue is the Bank of the Central African States (BEAC), which serves all the members of the Central African Customs and Economic Union (UDEAC). Among the commercial banks are the Congolese Union of Banks, the International Bank of Congo, and the Congolese Commercial Bank. The state is the major shareholder in the two commercial banks. The National Development Bank of the Congo extends loans for economic development. The Congo has a 13% share in UDEAC's development bank, headquartered in Brazzaville.
The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $324.8 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $352.0 million. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 6.5%.
There is no securities market in the Congo.
In March 1974, all private insurance companies were nationalized and put under the Congo Insurance and Reinsurance Co. (ARC), which is 50% government owned.
Oil revenues in the 1970s helped expand public sector employment. The collapse in oil prices in the mid-1980s dramatically decreased government revenues, which led to a surge in international borrowing. In 1985, Congo entered negotiation with the IMF for standby credits to satisfy domestic and foreign creditors. In 1986, Congo reluctantly joined with the IMF in a structural adjustment program for which the country received $40 million in funds and was able to reschedule its international payments. By 1988, the Congo's external debt had risen to an unsustainable $4.1 billion. In 1989, a second structural adjustment program was agreed to. In the late 1980s and early 1990s, weak oil prices and a massive public sector combined to drive up Congo's debt. Civil service salaries absorbed over half of the government's 1995 budget. The budget deficit rose form 5.5% of GDP in 1985 to 14% in 1991 and was estimated at 25% in 1998. In 1995, total external debt was approximately $5 billion with service on the debt amounting to 155% of revenues annually, one of the highest ratios in the world. Although the Paris Club agreed to reduce Congo's debt by 67%, debt reduction payments were still expected to reach $500 million in 1996. In 1995, Congo reached another agreement with the IMF and World Bank that would help alleviate some of its debt burden. This reform program came to a halt when civil war erupted in 1997.
The US Central Intelligence Agency (CIA) estimated that in 2005 Congo's central government took in revenues of approximately $1.3 billion and had expenditures of $1 billion. Revenues minus expenditures totaled approximately $263 million. Total external debt was $5 billion.
The International Monetary Fund (IMF) reported that in 2002, the most recent year for which it had data, central government revenues were CFA Fr675.48 billion. The value of revenues in US dollars was about us$1 million, based on a official exchange rate of us$1 = CFA Fr696.99 as reported by the IMF for 2002.
A graduated income tax at rates of 1–50% is levied, varying with an individual's marital status and number of dependents. Employees also pay social security taxes and regional income taxes. As of 2005, the corporate tax rate was 38%, with a minimum of 1% on turnover. Agricultural companies have a 30% corporate rate. Foreign companies that do not have a registered branch in the country are subject to a 7.7% withholding tax on turnover from activities within the country. Foreign companies receiving income sourced from the ROC, but not active within the country are subject
| Revenue and Grants | 675.48 | 100.0% |
| Tax revenue | 176 | 26.1% |
| Social contributions | 23.21 | 3.4% |
| Grants | 3.79 | 0.6% |
| Other revenue | 472.48 | 69.9% |
| Expenditures | … | … |
| General public services | … | … |
| Defense | … | … |
| Public order and safety | … | … |
| Economic affairs | … | … |
| Environmental protection | … | … |
| Housing and community amenities | … | … |
| Health | … | … |
| Recreational, culture, and religion | … | … |
| Education | … | … |
| Social protection | … | … |
| (…) data not available or not significant. | ||
to a 20% withholding tax. Dividends are also taxed at a 20% rate. Also levied are excise duties, and property taxes.
The Republic of the Congo is a member of the Central African Economic and Monetary Community (CEMAC) with Cameroon, Central African Republic, Chad, Equatorial Guinea, and Gabon. There is a 5% duty on basic necessities, 10% on raw materials and capital goods, 20% on intermediate and miscellaneous goods, and 30% on consumer goods. There is also an 18.7% value-added tax based on CIF (cost, insurance, freight) plus the duty. Significant nontariff trade barriers include import license requirements and a corrupt and inefficient customs system.
The 1973 investment code guaranteed the free transfer of capital, normally earned profits, and funds resulting from sales of foreign companies. According to legislation adopted in 1982, reduced import duties and taxes are offered on production equipment and profits on manufacturing and trading are tax exempt for the first five years. However, in view of the Congo's fragile economy, banks required a public guarantee before investing their funds. A new investment code enacted in 1992 and amended in 1996 legislates equal treatment for domestic and foreign investors.
In 1994, the regiment for participation by foreign oil companies was changed from the joint ventures that had prevailed since 1968 to production sharing agreements (PSAs), by which foreign oil companies operate under contracts with the national oil company, SNPC. Plans were announced in 1995–96 to privatize state-owned enterprises in the oil distribution, oil refining, telecommunications, rail and water transportation, electricity, and water distribution sectors designed to attract foreign investment.
In June 1997, the United States and Congo concluded a bilateral investment treaty (BIT). That month, the outbreak of civil war brought most privatization initiatives to a halt. The flow of foreign direct investment (FDI) was a negative divestment of an estimated -$11.9 million in 1997. Despite renewed violence in 1998 and 1999, privatization of some upstream and downstream operations of Hydro-Congo increased FDI inflow to $117.8 million and $134.6 million, respectively. A fragile peace accompanied by an IMF-directed austerity program in 2000 helped produce a negative outflow of FDI of -$75.2 million. For 2001, FDI inflow was estimated at a modest $77 million. It had risen to $323 million in 2003 and $668 million in 2004 reflecting the donor and international confidence and the end of political turmoil.
Virtually all foreign investment in the Republic of Congo has been in the oil and timber sectors, with the French company TotalFinaElf historically dominant in the oil sector, which in turn historically dominates the economy. The second-largest oil investor has been ENI-Agip (Agip-Congo) of Italy. US oil companies that have investments include Anadarko, ChevronTexaco, CMSNomeco, Exxon-Mobile, and Marathon. Other foreign oil participants are Royal Dutch Shell (United Kingdom), Energy Africa (South Africa), and Heritage Oil (Canada). Most of the oil industry is not only an enclave, employing mostly foreign personnel, but offshore. Investment in the wider economy continues to be hampered by numerous factors even apart from political turmoil, including a poorly developed financial sector; an inadequate and war-damaged infrastructure; high labor, transportation and raw material costs; low productivity; and militant labor unions.
The 1982–86 development plan called for expenditures of over $2.5 billion for the improvement of infrastructure (roads, electricity, water) and for the development of production in agriculture, forestry, and light industry; however, economic difficulties caused the plan to be cut back sharply. The 1987–91 development plan promoted agricultural self-sufficiency and rural development through the planned creation of 160 village centers and a mandatory national service program for youths. Reduction of the country's dependency on petroleum and the reform of the parastatal sector were set as priorities. The devaluation of the CFA (Communauté Financière Africaine) franc in 1994 was implemented to boost those economic activities which did not rely on imports.
France is the leading foreign donor country. For a time the country reduced its participation (1985–89), but raised it to record levels in 1990. China and the former Soviet Union also provided substantial aid. Between 1946 and 1999, Congo also received funds from the European Economic Community (now the European Union), from the World Bank, the International Development Agency, and the African Development Bank.
In the mid-1990s, Congo embarked on a path of economic reform, including reform of the tax, investment, labor, and hydrocarbon codes. The privatization of state-owned enterprises was planned, particularly telecommunications and transportation monopolies. The Paris Club agreed to a debt restructuring plan in 1996. When war broke out in 1997, economic reform came to a halt. President Sassou-Nguesso, reelected in 2002, indicated his desire to reestablish cooperation with international financial institutions, and to further pursue privatization and other economic reforms. The president's economic program, called Nouvelle espérance (New Hope), was to cover the period 2003–10. A peace accord was signed in March 2003, which was designed to pave the way for sound economic development. In August 2005, the board of the IMF completed its first annual review of Congo's three-year poverty reduction and growth facility (PRGF) and gave a positive endorsement of progress in spite of problems of accountability of the revenues from the oil industry.
Employed persons are covered by the social insurance system, with a special system in place for civil servants. The insured provides 4% of gross earnings, with the employer contributing 8% of payroll to fund the program. Old age, disability and survivorship benefits are provided. Employed women are covered by maternity benefits, which amount to 50% of earnings for 15 weeks. Workers' compensation benefits are funded by employer contributions and include medical care. There is a funeral grant to cover the cost of final arrangements, up to a maximum. Employees are entitled to a family allowance for each child under 16 years of age, and there is a birth grant for the first three children.
The Fundamental Act prohibits discrimination based on race, gender, or religion, but many marriage and family laws do discriminate against women. Polygamy is legal, while polyandry is not. Adultery is legal for men but not for women. Women receive less education on average than men, and their salaries are generally lower. Women are not prominent at the highest levels of political or professional life. However, the Union of Congolese Women promotes the advancement of women and has launched major literacy and female education campaigns. Domestic violence is widespread and rarely reported. Civil conflict is thought to have increased the number of indigent children living on the streets of Brazzaville.
Pygmy minorities also face discrimination despite legal protections. They are often paid with food or goods for their labor, rather than with salaries. Pygmies are underrepresented in government and are largely marginalized from government decision making.
The human rights record has improved somewhat since the transition to democracy, but abuses have continued. There were reports of torture and extrajudicial killings, as well as disappearances, rapes, and arbitrary searches, arrests, and detention.
In 2004, there were an estimated 25 doctors, 175 pharmacists, 185 nurses, and 25 midwives. per 100,000 people. The birth rate was 38 per 1,000 people. The infant mortality in 2005 was at 87.41 deaths per 1,000 live births. In 2005, the average life expectancy was estimated at 52.26 years.
An endemic disease control service conducts vaccination and inoculation campaigns. All medicine, antibiotic, and vaccine imports must be authorized by the Ministry of Health. In 1999, there were 318 reported cases of tuberculosis per 100,000 people. As of 1999, immunization rates for children up to one year old were as follows: diphtheria, polio, and tetanus, 29%, and measles, 23%. In 1990, 24% of children under five years old were considered malnourished. In the mid-1990s, 50% of urban and 11% of rural inhabitants had access to safe water.
The HIV/AIDS prevalence was 4.90 per 100 adults in 2003. As of 2004, there were approximately 90,000 people living with HIV/AIDS in the country. There were an estimated 9,700 deaths from AIDS in 2003.
At last estimate, more than 88% of all housing units were private houses. Owners occupied more than 60% of dwellings, tenants nearly 25%, and over 9% were occupied rent free. Close to one-third of all units had brick external walls, more than 25% had stone walls, nearly 16% had planks, and over 10% cob. In 2000, only about 51% of the population had access to improved water systems.
The educational system is patterned on that of France, but changes have been introduced gradually to adapt the curriculum to local needs and traditions. All private schools were taken over by the government in 1965. Six years of primary school are compulsory. Secondary school covers a seven-year course of study; students may choose a general course of studies or a technical program for their secondary education. The academic year runs from October to June. The language of instruction is French.
Primary school enrollment in 2003 was estimated at about 54% of age-eligible students. It is estimated that about 59% of all students complete their primary education. In 2001, there were 183,000 students enrolled in secondary schools. The student-to-teacher ratio for primary school was at about 24:1 in 2003; the ratio for secondary school was about 13:1.
The National University, which opened in Brazzaville in 1971, was later renamed Marien Ngouabi University. In 2003, about 4% of the tertiary age population were enrolled in some type of higher education program. The adult literacy rate for 2004 was estimated at about 82.8%, with 88.9% for men and 77.1% for women.
As of 2003, public expenditure on education was estimated at 3.2% of GDP, or 12.6% of total government expenditures.
Brazzaville has Marien Ngouabi University Library, with 20,000 volumes in 2002, and the National Popular Library with 15,000 volumes. The French Cultural Center houses a library of 33,000 volumes, and the World Health Organization holds 40,000 in Brazzaville.
The National Museum of the Congo (1965), also in Brazzaville, contains ethnography displays and historical displays. There are regional museums in Pointe-Noire and Kinkala.
National and international communications are state owned and operated. In 2003, there were an estimated two mainline telephones for every 1,000 people. The same year, there were approximately 94 mobile phones in use for every 1,000 people.
Radio and television are the primary sources of news and information. In 2004, there was one privately owned radio station and one privately owned television station. There were two government-owned radio stations, Radio Congo and Radio Brazzaville and one government-owned television station, Tele Congo. Radio Brazzaville broadcasts in French and local languages. telecasts are in French, Kikongo, and Lingala. The news coverage and the editorial positions of the state-owned media reflected government priorities and views. There are several satellite television connections available. In 2003, there were an estimated 109 radios and 13 television sets for every 1,000 people. The same year, there were 4.3 personal computers for every 1,000 people and 4 of every 1,000 people had access to the Internet.
In 2002, there were five daily newspapers, all published in Brazzaville: Mweti, published by the government information ministry (2002 circulation, 7,000); ACI (Daily News Bulletin, circulation 1,000); Courrier d'Afrique; Journal de Brazzaville; and Journal Official de la Republique du Congo. There are also a few periodicals and magazines, the most popular among them being La Semaine Africaine, published by the Catholic Church, with a 1995 circulation of 8,000. The state owned Agence Congolaise d'Information is the primary news service.
Though the constitution provides for free expression and a free press, the government retains a monopoly over radio and television. A 2001 press law abolished long-standing jail sentences for libel and insult, but penalties still exist for incitement to violence and racism.
There are Chambers of Commerce, Agriculture, and Industry in Brazzaville, Loubomo, Pointe-Noire, and Ouesso. In rural areas, cooperatives promote the production and marketing of agricultural products. Among the tribes, self-help societies have grown rapidly, particularly in the larger towns. Some volunteer service organizations, such as the Lions Clubs International, are also present.
Larger towns have youth centers. The two major national youth movements are the Union of Socialist Youth of the Congo (UJSC) and the National Federation of Young Students (FENAJEST). The Congolese Olympic Committee (COC) coordinates about 10 national youth sports organizations. There are a few scouting programs as well.
The Congolese Observatory for Human Rights is a national group. There are also national chapters of the Red Cross Society, UNICEF, and Caritas.
The main tourist attractions are the beaches near the Côte Sauvage region and water-skiing on the Kouillou and Congo rivers. In 2002, there were 21,611 visitors from other countries and 2,986 rooms in hotels. More than 91% of the tourists were from Africa and Europe. All visitors need passports, and visas must be secured in advance. Vaccination for yellow fever is required and precautions for malaria are recommended.
The US government estimated the daily cost of staying in the Congo in 2005 at $284, depending upon choice of accommodations.
The best-known figures are Abbé Fulbert Youlou (1917–72), a former Roman Catholic priest who served as president from 1960 to 1963, as well as mayor of Brazzaville; Alphonse Massamba-Debat (1921–77), president from 1963 to 1968; and Marien Ngouabi (1938–77), who came to power in a 1968 coup and was president from 1968 to 1977. Denis Sassou-Nguesso (b.1943?) became president in 1979; he served until 1992, and then again beginning in 1997. Prominent author and playwright Emmanuel DongalaBoundzeki (b.1941) is also a chemistry professor at Marien Ngouabi University in Brazzaville.
The Republic of the Congo has no territories or colonies.
Attwater, Helen. My Gorilla Journey. Leicester, Eng.: Charnwood, 2000.
Decalo, Samuel. Historical Dictionary of Congo. Lanham, Md.: Scarecrow Press, 1996.
——. Historical Dictionary of Congo. [computer file] Boulder, Colo.: netLibrary, Inc., 2000.
Fegley, Randall. The Congo. Santa Barbara, Calif.: Clio, 1993.
Republic of Congo: An Old Generation of Leaders in New Carnage. New York: Amnesty International, USA., 1999.
Tayler, Jeffrey. Facing the Congo: A Modern-day Journey into the Heart of Darkness. New York: Three Rivers, 2000.
Zeilig, Leo and David Seddon. A Political and Economic Dictionary of Africa. Philadelphia: Routledge/Taylor and Francis, 2005.
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"Congo, Republic of the (ROC)." Worldmark Encyclopedia of Nations. 2007. Encyclopedia.com. 25 May. 2012 <http://www.encyclopedia.com>.
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Congo, Republic of The
CONGO, REPUBLIC OF THECOUNTRY OVERVIEWLOCATION AND SIZE.The Republic of the Congo (ROC) is located in Western Africa and has an area of 342,000 square kilometers (132,000 square miles). It has a modest coastline of 169 kilometers (105 miles) along the Atlantic Ocean in the southwest and shares land borders with Gabon, Cameroon, and the Central African Republic on the west and north. The country is sometimes referred to casually as simply Congo or the Congo, or even Congo Brazzaville, to designate that it is the Congo with Brazzaville as its capital, distinguishing it from the Democratic Republic of the Congo (or Congo Kinshasa), which has its capital at Kinshasa. The Democratic Republic of the Congo lies along Congo's eastern border, with Angola's Cabinda Province sharing a small section of the southeastern border. The Congo is slightly smaller than Montana. The capital city of Brazzaville is located in the southeast of the country, directly across the Congo River from Kinshasa. POPULATION.Congo's population was 2,830,961 and growing at an annual rate of 2.23 percent annually in 2000. The birth rate and the death rate in 2000 were estimated at 38.61 and 16.35 per 1,000 population, respectively. Life expectancy in Congo is only about 47 years of age, with women living to age 50 and men on average to age 44. One contributing factor to this short life span is the AIDS epidemic, which has in recent years swept across much of sub-Saharan Africa (that part of the African continent that is south of the Sahara desert). The Congo is one of the most urbanized countries in Africa. Eighty-five percent of the population lives in Brazzaville, Pointe-Noire, or one of the smaller cities found along the railway which connects Brazzaville and Point-Noire. The official language is French. However, there are many dialects spoken in the Congo of which Lingala and Monokutuba are the most widely spoken. The population of the Congo is made up of 4 major ethnic groups: the Kongo, the M'Bochi, the Sangha, and the Teke. Only 12,000 pygmies (or the Baka people, a collection of tribes who dwell in African forests in the region occupied by Congo and its neighbors) remain in the country. OVERVIEW OF ECONOMYThe Congolese economy depends on agricultural production for personal consumption and the exploitation of natural resources. Because the country provides a key port and other transport facilities for neighboring countries such as Chad, Gabon, and the Central African Republic, commercial activities also play an important role in the economy. In 1997, the Congo's government had US$302 million in revenues and US$468 million in expenditures, with a major share of its revenues derived from oil drilling. In the 1980s rising oil revenues provided the Congolese government with the ability to finance large-scale development projects by borrowing against a large share of its future oil income. But this has resulted in shortages in current government revenues. In the late 1990s, oil prices fell and this further reduced government revenue and the country's economic progress. Further, the Congo suffered another setback due to a civil war that broke out in 1997. By the end of the 1990s the Republic of the Congo was in a state of disarray. The country's external debt in 1997 was estimated at a huge US$5 billion. Added to this burden of debt was a highly overvalued CFA franc, which made it difficult to export goods; a 5-month civil war in 1997 that cost thousands of lives, wreaked havoc on the capital city of Brazzaville, and sent hundreds of thousands of refugees into the countryside and out of the country; a volatile oil market; and a bloated bureaucracy that is unable to quickly shift economic policies for the better. POLITICS, GOVERNMENT, AND TAXATIONThe Congo's 1992 constitution states that the Congo is a multiparty democracy, and that the president is head of state. Legislative power is apportioned between a 125-member National Assembly and a 60-member Senate. The constitution also stipulates that the president and members of the national assembly are to be elected every 5 years, while senate members are to be elected every 6 years. In 1997, however, the constitution was suspended by former President General Denis Sassou-Nguesso, who overthrew the popularly-elected government of President Pascal Lissouba. To his credit, President Sassou installed a cabinet composed of individuals from various political parties in order to build a broad consensus. In addition, he created a unicameral 75-member National Transitional Council to act as a legislature until the time that elections are held again. He has failed, however, to make good on his promise to restore democratic rule to the Congo by 2001. The Republic of Congo gained its independence from the colonial power of France in 1960, and was led in its first years by a Catholic priest named Abbé Fulbert Youlou, who created a single-party state and aligned the nation with the socialist nations led by the Soviet Union. General Sassou-Nguesso first seized power in 1979. He transformed himself into a civilian leader, and continued the country's socialist policies. However, with the collapse of the Soviet Union in the late 1980s the country made the difficult transition to market economic practices and created a new constitution that paved the way for democratic elections. Sassou-Nguesso lost the presidency in the Congo's first universal elections in 1993 to Pascal Lissouba. In 1997, as the next presidential election loomed, conflict broke out between supporters of President Lissouba and Sassou-Nguesso. A 5-month civil war erupted, and troops from neighboring Angola intervened on Sassou-Nguesso's behalf. General Sassou-Nguesso's forces won, and he declared himself president. However, the peace was short-lived, and fighting broke out once more. The war reached its zenith in 1998 during the battle to control Brazzaville, which substantially destroyed the city and resulted in the deaths of thousands and the flight of 250,000 of its inhabitants. Since that time there have been several attempts to negotiate an end to the conflict, but as of 2001 no settlement has been agreed upon and Sassou-Nguesso remains in power. The war has had a devastating impact on the Congo's economy, due in part to the severing of the main rail line between Brazzaville and Pointe-Noire, which disrupted trade. Oil revenue is the only reason the Congo has not experienced a total collapse of its economy. In 1998, as a result of the war, the country's budget deficit increased to 30 percent. It was reduced to 10 percent in 1999. INFRASTRUCTURE, POWER, AND COMMUNICATIONSTwo major rivers—the Congo (the fifth largest in the world) and the Ubangi—carry commercial shipping in the Congo, and comprise a vital mode of economic activity. A 534-kilometer (332-mile) railroad links many of Congo's villages and the 2 major cities of Brazzaville and Pointe-Noire; however, this railway was badly damaged in the civil war of 1997-98. Congo's road system consists of a total of 12,800 kilometers of highways (7,954 miles), of which only 1,242 kilometers (772 miles) are paved. The Congo has 2 international airports in Brazzaville and the port city of Pointe-Noire. Six newspapers are published in the Congo daily. Congolese sources report that there are 4 AM and 1 FM radio stations, while the CIA World Factbook lists 1 AM, 5 FM, and 1 shortwave station. Very few people in the Congo have telephones, international calls are possible, and the telephone system is highly unreliable. In 1998, there were only 8 telephone lines per 1,000 people. Internet service is provided on a limited basis by the government's Ministry of Post and Telecommunications, as well as by a small number of providers in the neighboring Democratic Republic of the Congo. The Congo's potential for hydroelectric power generation is substantial, but is not fully exploited. Even though hydroelectric plants provide some 99 percent of the country's power, the Congo must still purchase roughly one-fourth of its electricity requirements from its neighbor, the Democratic Republic of the Congo. Altogether, the total electricity produced in 1998 amounted to 503 million kilowatt hours (kWh). Wood is the primary source of fuel for most people living in rural areas.
ECONOMIC SECTORSAgriculture contributes to 10 percent of the GDP and employs approximately 60 percent of the workforce , indicating the real inefficiency of this sector. Most participants in the agricultural sector produce food for their own consumption only. Industry and services represents 59 percent and 31 percent of GDP, respectively. Petroleum produced from offshore oil fields and crude oil represent 75 percent of the Congo's annual exports. Additionally, the Congo exports natural gas, lead, gold, and copper. The Congolese state bureaucracy is a major employer. At the beginning of the 1990s the state employed some 80,000 people, an enormous number for a country of its size. Since that time government efforts to privatize state-run industries have lessened state employment, but the still large and corrupt government bureaucracy acts as a drag on economic growth. AGRICULTUREAgriculture and forestry comprised 12 percent of GDP in 1995, and just 10 percent in 1999. Reliable statistics for a country such as the Congo are difficult to obtain, as most agricultural labor takes place outside of official channels, but most estimates put the percentage of the workforce engaged in agriculture between 60 and 75 percent. In 1998, agricultural exports totaled US$15.3 million, while agricultural imports totaled US$130 million. Cassava is the principal food crop. Other major crops include manioc, plantains, bananas, peanuts, sugarcane, cocoa, coffee, and palm kernels. Agricultural commodities that are exported include tropical and other woods, sugar, coffee, and cocoa. The Congo also produces beef and veal, chicken, lamb, game, and pork. Less than 2 percent of the country's land is cultivated. Forest products from the Congo's lush rainforests represent 10 percent of export earnings, and once led exports until the country developed its oil industry. But due to high transportation and wage costs as well as low productivity, the forest industry has suffered severe declines in recent years. INDUSTRYMANUFACTURING.The Congo's manufacturing sector plays a small role in the economy, consisting of around 100 factories in Brazzaville and Pointe Noire, mostly engaged in the processing of agricultural and forest products. There are a number of companies engaged in manufacturing import-substitution products such as footwear, soft drinks, chemicals, cement, and metal-working products. The less significant sectors of the manufacturing industry produce textiles, footwear, cement, and soap. OIL.Oil is Congo's main export and the major support for a faltering economy. In 1998, the Congo exported more than 257,000 barrels of oil daily, and petroleum comprises some 50 percent of exports. In sub-Saharan Africa, the Congo is the fourth-largest oil producer, and has an estimated 1.5 billion barrels in reserve. In 1994, the Congo took steps to deregulate the oil industry by offering production-sharing agreements with major foreign oil companies. This initiative is intended to regularize the flow of income to the government. Despite these steps, declining oil prices in 1998 badly hurt the Congo's economy. The French oil company Elf-Aquitaine, which accounts for 70 percent of Congo's annual oil production, is the major producer, along with the Italian oil firm Agip, and Chevron and Exxon from the United States. Rising worldwide oil prices in 2001, together with new discoveries and production, are expected to increase export revenues in the coming years. OTHER INDUSTRIES.The Congo has the third-largest natural gas reserves in sub-Saharan Africa, estimated at over 3 trillion cubic feet. As of 2001, however, there was no development of a natural gas industry. The Congo has substantial reserves of copper, lead, zinc, gold, and platinum, but these metals are mined in small quantities. SERVICESServices provide a major portion of GDP, making a 37 percent contribution in 1997, second only to industry's 59 percent (largely composed of oil production). One major services area in the Congo is the public bureaucracy. In the early 1990s, the Congolese government was the biggest employer in the country, with a pay-roll in excess of 80,000. This was a severe drain on the country's resources. Due to pressure from the World Bank and other institutions, the government made major cuts in the number of civil servants as well as their salaries. Since the mid-1990s, the payroll has been cut in half and nearly 8,000 government employees have been let go. Figures for other aspects of the service sector such as banking are sketchy. Most of the service industry is located in Pointe-Noire and Brazzaville. As of 2001, the government was engaged in intensive talks with the World Bank, the IMF, and other bodies in an effort to renegotiate aid packages and rebuild the banking system. INTERNATIONAL TRADEWith exports of US$770 million and imports of US$1.7 billion, the Congo has a severe trade imbalance of nearly US$1 billion. The Congo conducts considerable trade with other Central African countries such as Cameroon, the Central African Republic, and Gabon, which are part of the Customs and Economic Union of Central Africa. However, it exports the majority of its goods—primarily oil—to Western countries. The United States purchased 23 percent of the country's exports in 1998, while the Benelux countries took 14 percent, followed by Germany, Italy, Taiwan, and China. France was the major source of goods imported into the Congo, with 23 percent; the United States provided 9 percent; Belgium, 8 percent; and the United Kingdom, 7 percent. Although the Congo has a bilateral investment treaty with the United States and a new investment code intended to bring in more foreign direct investment , it has been unable to attract meaningful foreign investment. According to the U.S. Department of State Background Notes, "High costs for labor, energy, raw materials, and transportation; militant labor unions; and an inadequate transportation infrastructure are among the factors discouraging investment. The recent political instability, war damage, and looting also will undermine investor confidence."
MONEYThe Republic of the Congo is part of the Central African Monetary and Economic Union (Communauté Economiquareue et Monetaire de l'Afrique Centrale, or CEMAC), a group of 5 francophone countries that use the same currency, the CFA franc. The CFA franc is tied to the French franc and can be readily exchanged at 50 CFA francs to 1 French franc. Congo, like all members of the CFA franc communities, has benefitted from this stable currency. As a member of the CFA zone, Congo was profoundly affected by the 50 percent devaluation of the CFA in 1994. The currency had been overvalued prior to the devaluation, making it difficult for the country to export its goods. The devaluation has made its traditional exports more competitive on world markets. In the short term, however, devaluation lowered living standards and probably increased poverty by raising prices while most salaries remained static. CEMAC planned to open a regional stock exchange in Libreville, Gabon, in 2001, despite the existence of a limited stock exchange in Douala. POVERTY AND WEALTHThe lack of proper monitoring makes it difficult to determine the actual income levels of the Congolese people, the majority of whom are involved in subsistence agriculture and trade their labor for the goods that they need. World Bank estimates indicate that the per capita GDP was just US$670 per year in 1999. According to the Congolese government, only 30 percent of the population has access to health care, and they estimate that CFA44 billion is needed to rebuild the medical services sector. Further, there are over 120,000 HIV/AIDS victims in Congo, and only 14 percent of the people live in "healthy" environments.
For children ages 6 through 16, schooling is compulsory and free. The CIA and World Bank estimate that 79 percent of Congolese over the age of 15 are literate. The country's only university, Universite Marien-Ngouabi, is located in Brazzaville and has an enrollment of 12,000 students annually. WORKING CONDITIONSThe lack of proper monitoring agencies makes it impossible to estimate the total workforce or unemployment figures for the Congo; moreover, the existence of a large informal economy and subsistence agricultural practices would distort any figures that were available. The government calls for a monthly minimum wage of about US$85, a sum insufficient to afford a worker and his or her family a decent standard of living. The lack of proper protections for workers has led to the rise of a number of militant labor unions, including the Congolese Trade Union Congress, the General Union of Congolese Pupils and Students, the Revolutionary Union of Congolese Women, and the Union of Congolese Socialist Youth. COUNTRY HISTORY AND ECONOMIC DEVELOPMENT1879. Pierre Savorgnan de Brazza of France explores the area of today's Congo. He signs treaties with its leaders and declares the area to be subject to France's protection. Subsequently, this territory becomes known as the Middle Congo. 1910. The Middle Congo officially becomes one of France's federated colonies. Brazzaville becomes the principal city of the Middle Congo and head of the Federation's government. 1924-34. The Congo-Ocean Railway is completed, which paves the way for the development of the port city of Point-Noire and the numerous townships along the ocean. 1944. Major reforms in France's colonial policy take place as a result of the Brazzaville Conference, including the end of compulsory labor, French citizenship for colonial members, and the right to limited self-rule. 1960. France grants Middle Congo its independence; the country is renamed the Republic of the Congo. 1963. Fulbert Youlou becomes the Congo's first president and prohibits all political parties except his own. He is overthrown by Alphonse Massamba-Débat 3 years later. President Massamba-Débat introduces communism to the Congo and establishes strong ties with communist states, including the People's Republic of China. 1968. Marien Ngouabi becomes head of state after overthrowing Massamba-Débat. Ngouabi's 9-year rule is even more leftist than that of his predecessor. 1970. A new constitution is ratified, renaming the country the People's Republic of the Congo. 1977. General Joahim Yhombi-Opango assumes power after Ngouabi is assassinated. The Congo continues its close ties with France, despite its ideological affiliation with communism. 1979. President Yhombi-Opango is succeeded as president by Colonel Denis Sassou-Nguesso. 1981. The Congo signs a treaty with the Soviet Union establishing cooperation and friendship between the 2 nations.
1991. A new constitution is ratified making the Congo a multi-party democracy. The country's name is changed back to the Republic of the Congo and the country adopts a new national flag and anthem. 1992. Sassou-Nguesso is defeated in the presidential elections by Pascal Lissouba. Subsequently, Lissouba is accused of ethnic favoritism and armed factions supporting Sassou-Nguesso rise against him. 1997. Civil war breaks out in Brazzaville, which results in Brazzaville's destruction. Later that year, Sassou-Nguesso overthrows Lissouba with help from Angola. FUTURE TRENDSOne of the major impediments to improvements to the Congo's economy is the service on the Congo's external debt. The Congo is one of Africa's most indebted countries, with its foreign debt totaling about 250 percent of its GDP. As a result, too large a share of the government's revenues goes to servicing that debt and very little remains for building infrastructure and maintaining the social services of the country. To solve this problem, the International Monetary Fund agreed to an Interim Post-Conflict Reconstruction and Rehabilitation Program which provides for debt relief based on the Congo's implementation of economic reforms. If these measures are undertaken, and debt relief is begun, this will free up much needed resources that can be channeled to infrastructure building. Improvements in infrastructure are essential if the country wishes to draw any foreign investment and build its underdeveloped manufacturing and industrial base. The Congo's economic progress had been hampered by poor oil prices in 1998, which resulted in a decline in government revenue. The government also experienced a slump in revenue as a result of the war. Both of these factors contributed to the major decline in the Congo's economy, which experience-3.0 percent annual GDP growth in 1999. Subsequent increases in world oil prices in 2000 and 2001 were certain to aid the economy, though the destruction of the country's infrastructure by the 1997-98 civil war may make it difficult for the country to prepare its goods for export. In the long term, the Congo must rebuild political stability and commit itself to the dual projects of paying down public debt and rebuilding its infrastructure. Should it solve its political problems the country is likely to gain the assistance of international lending agencies, but even with such assistance the Congo faces a long and difficult road to economic well-being. DEPENDENCIESThe Republic of the Congo has no territories or colonies. BIBLIOGRAPHYCongo Brazzaville Report. <http://www.brazzaville-report.com>.Accessed July 2001. CongoWeb. <http://www.congoweb.net/english.html>. AccessedJuly 2001. Economist Intelligence Unit. Country Profile: Republic of the Congo. London: Economist Intelligence Unit, 2001. "Republic of Congo." The World Bank Group. <http://wbln0018.worldbank.org/AFR/afr.nsf/3b04e45cded3efce852567cf004d4c6b/ce353f161c2b36ef852567d1004790b5?OpenDocument>. Accessed August 2001. U.S. Central Intelligence Agency. World Factbook 2000. <http://www.odci.gov/cia/publications/factbook/index.html>. Accessed August 2001. U.S. Department of State. Background Notes: Congo. <http://www.state.gov/www/background_notes/congo-ro_0002_bgn.html>. Accessed August 2001. —Michael David Nicoleau Raynette Rose Gutrick CAPITAL:Brazzaville. MONETARY UNIT:Communauté Financiére Africaine franc (CFA Fr). The CFA franc is tied to the French franc at an exchange rate of CFA Fr50 to Fr1. One CFA franc equals 100 centimes. There are coins of 5, 10, 50, 100, and 500 CFA francs, and notes of 500, 1,000, 2,000, 5,000, and 10,000 CFA francs. CHIEF EXPORTS:Petroleum, tropical and other woods, diamonds, sugar, coffee, and cocoa. CHIEF IMPORTS:Petroleum products, machines and appliances, construction materials, chemical products, transportation equipment, foodstuffs, textiles, and paper products. GROSS DOMESTIC PRODUCT:US$4.15 billion (purchasing power parity, 1999 est.). BALANCE OF TRADE:Exports: US$1.7 billion (f.o.b., 1999). Imports: US$770 million (f.o.b., 1999). |
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Cite this article
Nicoleau, Michael David; Gutrick, Raynette Rose. "Congo, Republic of The." Worldmark Encyclopedia of National Economies. 2002. Encyclopedia.com. 25 May. 2012 <http://www.encyclopedia.com>. Nicoleau, Michael David; Gutrick, Raynette Rose. "Congo, Republic of The." Worldmark Encyclopedia of National Economies. 2002. Encyclopedia.com. (May 25, 2012). http://www.encyclopedia.com/doc/1G2-3410100021.html Nicoleau, Michael David; Gutrick, Raynette Rose. "Congo, Republic of The." Worldmark Encyclopedia of National Economies. 2002. Retrieved May 25, 2012 from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-3410100021.html |
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Republic of the Congo
Republic of the Congo republic (2005 est. pop. 3,039,000), 132,046 sq mi (342,000 sq km), W central Africa. Congo is bordered on the west by Gabon; on the north by Cameroon and the Central African Republic; on the east and southeast by the Democratic Republic of the Congo; and on the southwest by Cabinda (an Angolan exclave) and the Atlantic Ocean. Brazzaville is the capital and largest city. Other important cities include Pointe-Noire and Loubomo.
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"Republic of the Congo." The Columbia Encyclopedia, 6th ed.. 2011. Encyclopedia.com. 25 May. 2012 <http://www.encyclopedia.com>. "Republic of the Congo." The Columbia Encyclopedia, 6th ed.. 2011. Encyclopedia.com. (May 25, 2012). http://www.encyclopedia.com/doc/1E1-Congo-Braz.html "Republic of the Congo." The Columbia Encyclopedia, 6th ed.. 2011. Retrieved May 25, 2012 from Encyclopedia.com: http://www.encyclopedia.com/doc/1E1-Congo-Braz.html |
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Congo, Republic of
Congo, Republic of A country in western Africa, formerly called Congo (Brazzaville) after the French explorer de Brazza, whose eastern boundary is the Congo River; it is bounded by Cameroon and the Central African Republic on the north and Gabon on the west.
PhysicalOn its short stretch of Atlantic Ocean coast there are lagoons, large deposits of potash and oil. A small plain rises inland to a forest-covered escarpment, while most of the country comprises savannah-covered plateaux.EconomyCrude oil is the principal export, and oil revenues have funded a growing manufacturing base which includes food-processing, textiles, chemicals, and metalwork. Lead, copper, zinc, and gold ore are mined. Cassava, sugar cane, and pineapples are the chief agricultural crops, and timber is an important export.HistoryThe Congo area is thought to have been uninhabited before the 15th century when Pygmies moved into the area from the north and Kongo (or Vili) people from the east. The two main kingdoms that flourished in pre-colonial times were the kingdoms of Loango and Teke, both of which prospered by supporting the slave trade. De Brazza began exploring the region in 1875 and he made the first of the series of treaties that brought it under French control in 1880. In 1888 it was united with Gabon, but was later separated from it as the Moyen Congo (Middle Congo). It was absorbed with Chad into French Equatorial Africa (1910–58). It became a member of the French Community as a constituent republic in 1958, and fully independent in 1960. In the 1960s and 1970s it suffered much from unstable governments, which alternated between civilian and military rule. Some measure of stability was achieved by the regime of Colonel Denis Sassou-Nguesso, who came to power in 1979 and was re-elected in 1989. Although a one-party Marxist state from 1970, Congo maintained links with Western nations, particularly France, from whom it gained economic assistance. In September 1990 it was agreed to adopt a multiparty political system. A new constitution was devised and accepted in a referendum in 1992. Elections held later that year produced no clear winner and a coalition was formed. The coalition collapsed and fresh elections were held in 1993. However, the results were disputed and fraud was alleged. A campaign of protest about the electoral process and results was launched by one political faction but it rapidly degenerated into fierce fighting between rival militias. Several ceasefire agreements were made and broken during 1994–97, but attempts to negotiate peace have continued.
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"Congo, Republic of." A Dictionary of World History. 2000. Encyclopedia.com. 25 May. 2012 <http://www.encyclopedia.com>. "Congo, Republic of." A Dictionary of World History. 2000. Encyclopedia.com. (May 25, 2012). http://www.encyclopedia.com/doc/1O48-CongoRepublicof.html "Congo, Republic of." A Dictionary of World History. 2000. Retrieved May 25, 2012 from Encyclopedia.com: http://www.encyclopedia.com/doc/1O48-CongoRepublicof.html |
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Congo, Republic of the
Congo, Republic of the■ CONGOLESE … 209■ AKA … 215 ■ BAKONGO … 221 The people of the Republic of Congo are called Congolese. The population belongs to four major ethnic groups—the Bakongo, Bateke, Mboshi, and Sanga—which comprise more than 40 tribes. This chapter begins with an article on the Congolese people as a whole. There is also an article on the Aka, a group that lives in the high forest region and are possibly the Congo's original inhabitants. The Bakongo, profiled in the last article in this chapter, are Congo's largest ethnic group. |
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"Congo, Republic of the." Junior Worldmark Encyclopedia of World Cultures. 1999. Encyclopedia.com. 25 May. 2012 <http://www.encyclopedia.com>. "Congo, Republic of the." Junior Worldmark Encyclopedia of World Cultures. 1999. Encyclopedia.com. (May 25, 2012). http://www.encyclopedia.com/doc/1G2-3435900118.html "Congo, Republic of the." Junior Worldmark Encyclopedia of World Cultures. 1999. Retrieved May 25, 2012 from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-3435900118.html |
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