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Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized REPUBLIC OF CONGO Unity * Labor * Progress --------- NATIONAL POVERTY REDUCTION COMMITTEE PERMANENT TECHNICAL SECRETARIAT Final Poverty Reduction Strategy Paper March 31, 2008 Abbreviations ACI Congolese News Agency ACIS Advance Cargo Information System APRM Accelerated Participatory Research Method ARV Anti-Retrovirals BCS Basic Community Services BEAC Bank of Central African States BISOC Congo Social Review CDLP Departmental Poverty Reduction Committee CEDAW Convention on the Elimination of All Forms of Discrimination against Women CEEAC Economic Community of Central African States CEMAC Central African Economic and Monetary Community CEmOC Comprehensive Emergency Obstetric Care CFCO Congo-Ocean Railway CLLP Local Poverty Reduction Committee CNLP National Poverty Reduction Committee CNLS National AIDS Council CNSEE National Center of Statistics and Economic Surveys COBAC Central African Banking Commission CODIR Steering Committee (Hospitals) COGES Management Committee (Hospitals) COMEG Central Purchasing Authority for Pharmaceuticals COOPEC Savings and Loan Cooperatives COSA Health Committee (Hospitals) COSAME Cooperation and Support for Craftspersons et Micro-enterprises of the South CSI Comprehensive Health Centers CSOs Civil Society Organizations CT Technical Unit DCMCE Central Directorate of Government Procurement and Contracts DDP Departmental Directorate of Planning DDR Demobilization, Disarmament et Reintegration DDS Departmental Directorate of Statistics DEP Director of Research and Planning DGE General Directorate of Economy DGPD General Directorate of Planning and Development DGPOP Directorate General for Population DHS Demographic and Health Survey DOT Directly Observable Treatment strategy DRC Democratic Republic of the Congo ECOM Congolese Household Survey EITI Extractive Industry Transparency Initiative EmOC Base Emergency Obstetric Care EmONC Emergency Obstetric and Neonatal Care EPI Expanded Program on Immunization ESAP Economic and Social Action Program ESAP Enhanced Structural Adjustment Program FDI Foreign Direct Investment FEAMT Transport Equipment and Material Procurement Fund FMI International Monetary Fund FOB Free On Board FODEC Community Development Fund GDP Gross Domestic Product GIR Gross Intake Rate HIPC Heavily Indebted Poor Countries HIV Human Immunodeficiency Virus I - PRSP Interim Poverty Reduction Strategy Paper ICEM Civic and Moral Education ICTs Information and Communication Technologies IEC/CBC Information, Education and Communication/Communication for Behavior Change IGAs Income-Generating Activities ILO International Labor Organization IPCP Interim Post-Conflict Program ITU International Telecommunications Union IWRM Integrated Water Resources Management KAP Knowledge Aptitude Practices KAP Survey Knowledge Aptitude Practices Survey LMD Bachelor’s-Master’s-PhD MASSAHMGF Ministry of Social Affairs, Solidarity, Humanitarian Action, Wounded War Veterans, and the Family MDGs Millennium Development Goals MEFB Ministry de the Economy, Finances and Budget MFI Microfinance Institution MPATIEN Ministry of Planning, Land Development, Economic Integration and NEPAD MTBF Medium-Term Budgetary Framework MTEF Medium-Term Expenditure Framework MUCODEC Congolese Mutual Savings and Loan Association N.A. Not Reported NEPAD New Partnership for Africa’s Development NGOs Non-Governmental Organizations NICTs New Information and Communication Technologies NIU Single Identification Number NSAs Non-State Actors NTP National Transport plan OCER Congolese Road Maintenance Office OEPT Equatorial Postal and Telecommunications Office OHADA Organisation for the Harmonization of Business Law in Africa OIF International Organization of Francophonie ON-DHD National Observatory for Sustainable Human Development ONPT National Posts and Telecommunications Office OVC Orphans and Other Vulnerable Children PAPN Pointe-Noire Autonomous Port PARESO Economic and Social Recovery Program PASCOB Project to Support the Health System in Congo Brazzaville PID Provision for Diversified Investment PMRU Micro-Performance Program in Urban Areas PNAE National Environmental Action Plan PNDS National Health Development Program PPA Participatory Poverty Assessment PPDS Multiyear Statistical Development Program PRAEBASE Program of Support for Basic Education PRGF Poverty Reduction and Growth Facility PRS Poverty Reduction Strategy PRSP Poverty Reduction Strategy Paper PSSA Special Program for Food security RESEN Progress Report on the National Education System RGPH General Population and Housing Census SAP Structural Adjustment Program SMEs-SMIs Small and Medium-sized Enterprises/Small and Medium-sized Industries SNAT National Land Use Development Plan SNDE National Water Distribution Company SNE National Electricity Company SNPC National Petroleum Company of Congo SOPECO Congolese Postal and Savings Company SOTELCO Congo Telecommunications Company STIs Sexually Transmitted Infections STP Permanent Technical Secretariat SYSTAF/UGE Automatic Tax System/Large Enterprise Units TBS Gross School enrolment Rate TCA Turnover Tax THIS Common External Tariff TIPAC Inter-State Transit for Central African countries TSGs Thematic and Sectoral Groups TVA Value Added Tax TVE Technical and Vocational Education UDEAC Customs Union of Central African States UN United Nations UNDP United Nations Development Programme UNFPA United Nations Population Fund UNFPA United Nations Population Fund VRD Roads and Utility Services WB World Bank WFP World Food Programme TABLE OF CONTENT Analytical Summary................................................................................................................................ 1 Chapter I: Background and Process of Preparation of the PRSP.......................................................... 7 1.1. Background .................................................................................................................................. 7 1.2. PRSP Preparation Process.......................................................................................................... 8 Chapter II: Diagnosis of Poverty in Congo ........................................................................................... 12 2.1. Monetary poverty ....................................................................................................................... 12 2.2. Non-monetary poverty................................................................................................................ 15 2.3. Diagnosis based on the participatory consultations................................................................... 21 2.4. Sectoral and thematic diagnosis ................................................................................................ 22 Chapter III: Strategic Pillars of Poverty Reduction ............................................................................... 62 3.1 Pillar 1: Improvement of governance and consolidation of peace and security.......................... 62 3.2. Pillar 2: Promotion of growth and macroeconomic stability ....................................................... 70 3.3. Pillar 3: Improvement in access of the population to basic social services ............................... 80 3.4 Pillar 4: Social environment and integration of vulnerable groups.............................................. 86 3.4 Pillar 5: Fight against HIV/AIDS ............................................................................................... 89 Chapter IV: Macroeconomic Framework and Resource Allocation...................................................... 91 4.1. Recent developments in respect of the Macroeconomic Framework (2007) ............................ 91 4.2 Changes in the macroeconomic framework between 2008 and 2010........................................ 92 4.3. Debt relief obtained by Congo after gaining access to the I-HIPC ............................................ 98 Chapter V: Implementation, Monitoring, and Evaluation of the Poverty Reduction Strategy............. 100 5.1. Assessment of the situation ..................................................................................................... 100 5.2. Implementation of the strategy................................................................................................. 101 5.3. Strategy monitoring and evaluation ......................................................................................... 103 5.4. Role of the statistical mechanism ............................................................................................ 109 5.5. PRS monitoring and evaluation framework.............................................................................. 109 5.6. Partnership............................................................................................................................... 112 5.7. Associated measures, constraints, and risks of the strategy................................................... 112 Conclusion.......................................................................................................................................... 118 Tables Table 1: Poverty Indices by Geographical Location …………………………..… 13 Table 2 : Quartile Dispersion Ratios ……………………………………………………. 14 Table 3: Household Income and Consumption by Consumption Quintiles ………. 15 Table 4: List of Areas of Deprivation and Variables ………………………………… 16 Table 5: Poverty Incidence in Various