At the request of His Excellency the President of the Republic and Head of State, the Legal (LEG) and Fiscal Affairs (FAD) Departments of the IMF conducted an assessment of governance and corruption mission in Kinshasa, Democratic Republic of the Congo (DRC) from December 9 to 20, 2019 (the “mission”).1 The objectives of the mission were to discuss with the authorities (i) a diagnostic of governance issues in the DRC; and (ii) to articulate measures to help improve governance and the fight against corruption.

Democratic Republic of the Congo: Technical Assistance Report-Governance and Anti-Corruption Assessment

The new government in the DRC is starting to implement its governance programme and planning to revisit the national anti-corruption strategy. The temptation is high to move fast on all fronts but it is important to assess the immediate past and, especially, the transition period from 2003 to 2006, so that lessons which could inform policy decisions can be drawn. This monograph makes a useful contribution to a review of the transition period. It assesses the strengths and weaknesses of the anti-corruption institutions and laws which were in force, evaluating their success or failure and identifying factors that supported or inhibited their effectiveness. It further identifies gaps in national laws and regulations that could be prioritised to make them compliant with international legal instruments. Finally, it makes recommendations about what measures should be prioritised with a view to improving the legal framework and the relevant institutions.

This Selected Issues paper focuses on macro-critical issues related to governance and corruption in Democratic Republic of the Congo (DRC). Third-party indicators suggest that governance has been poor and corruption widespread in the country. Conducting an audit of the civil service and improving the transparency of its remuneration system, simplifying tax payment processes, and merging the activities of the numerous revenue agencies would boost public efficiency and improve the business environment. Contract enforcement and protection of property rights could be enhanced by insulating the courts from external influence. Limited information on the budget annexes and special accounts and little or no oversight by the central government, Parliament, and civil society, create scope for corruption. The multiplicity of special taxes and fees, some accruing to special accounts outside the Treasury, generate opportunities for corruption and informalization of economic activity. Despite some progress in strengthening public financial management, budget execution remains deficient. The government has formalized the four stages of the expenditure chain and introduced budget commitment plans to align expenditures with revenues.

More knowledge, of and about Corruption, is useful for better policy orientation.This book covers theoretical aspects and dimensions of Corruption; it studies the dynamics of Corruption in the contextual framework of public management. It suggests how high levels of Corruption limit investment and growth; and how Corruption, in any form, can lead to ineffective government. Developing countries and those making a transition from socialism are particularly at risk, but Corruption is a worldwide phenomenon. Corruption creates economic inefficiencies and inequities, but reforms are possible to reduce the material benefits from payoffs. However, Corruption is not just an economic problem; it is also intertwined with politics and culture. Reform may require changes in both constitutional structures, the underlying relationship of the market and the state, and the moral campaign for behaviour change. Effective reform cannot occur unless both the international community and domestic political leaders support change.

This paper argues that oil revenue management and public investment in Congo are vulnerable to corruption as a result of limited transparency and accountability. Corruption has potentially contributed to poor macro-fiscal outcomes. The paper acknowledges the authorities’ anti-corruption efforts made so far and proposes further critical reforms to reduce remaining vulnerabilities. Using a dynamic stochastic general equilibrium model results show that, depending on the reforms adopted, the potential additional growth can range between 0.8 to 1.8 percent per year over the next 10 years, and debt can decline by 2.25 to 3 percent of GDP per year over the same period. These results suggest that macrofiscal gains from anti-corruption reforms could be substantial even under conservative reform scenarios.

John Hatchard considers the need for good governance, accountability and integrity in both the public and private sector. He studies how these issues are reflected in both the African Union Convention on Preventing and Combating Corruption and the Unit