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REVIVING the GREAT LAKES Public Disclosure Authorized a WORLD BANK GROUP REGIONAL INITIATIVE for PEACE, STABILITY and ECONOMIC DEVELOPMENT

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REVIVING the GREAT LAKES Public Disclosure Authorized a WORLD BANK GROUP REGIONAL INITIATIVE for PEACE, STABILITY and ECONOMIC DEVELOPMENT Public Disclosure Authorized REVIVING THE GREAT LAKES Public Disclosure Authorized A WORLD BANK GROUP REGIONAL INITIATIVE FOR PEACE, STABILITY AND ECONOMIC DEVELOPMENT [In support of the February 24, 2013 “Peace, Security and Cooperation Framework for the DRC and the Region”] Draft for Discussion Only Public Disclosure Authorized Public Disclosure Authorized This draft paper suggests elements of a WBG regional approach to development in the Great Lakes. It is a first cut which aims to begin a process of thinking regionally about development solutions that support the February Framework Agreement. Acronyms and Abbreviations AfDB African Development Bank AG Armed Groups AMSME Africa Micro Small and Medium Enterprise Program AU African Union AUC African Union Commission BDGLE Development Bank of the Great Lakes States BOP Bottom of the Economic Pyramid C3P Public Private Partnerships CAADP Comprehensive Africa Agricultural Development Program CAB Central African Backbone CAR Central African Republic GARG Agriculture and Rural Management Counsels CAS Country Assistance Strategy CASA Conflict Affected States in Africa (IFC) CASF Central African SME Fund (IFC) CEPGL Communautés Economiques des Pays des Grands Lacs CMU Country Management Unit CoFS Combatants on Foreign Soil COMESA Common Market for Eastern and Southern Africa COPIREP Comité de Pilotage de Reformes des Entreprises Publiques CSP Country Strategy Paper DDR Disarmament, Demobilization and Reintegration DfID Department for International Development (UK) DRC Democratic Republic of Congo D&R Demobilization & Reintegration EAAPP East Africa Agricultural Productivity Program EAC East African Community ECGLC Economic Community of the Great Lakes Countries EDF European Development Fund EITI Extractive Industries Transparency Initiative ESW Economic Sector Work EU European Union EUPOL European Union Police EUSEC European Union Security FARDC Army of the Democratic Republic of Congo (Forces armées de la République démocratique du Congo) FDLR Democratic Forces for the Liberation of Rwanda (Forces démocratiques de libération du Rwanda) FSAP Financial Sector Assessment Program FY Fiscal Year GBV Gender-Based Violence GDP Gross Domestic Product GLE Great Lakes Energy ii GLR Great Lakes Region GNI Gross National Income GPP Growth Poles Project GoDRC Government of DRC GoR Government of Rwanda GoU Government of Uganda HIV/ AIDS Human Immunodeficiency Virus/ Acquired Immune Deficiency Syndrome ICGLR International Conference of the Great Lakes Region ICT Information and Communication Technology IDA International Development Association (WBG) IDP Internally Displaced People/Person IFC International Finance Corporation (WBG) IPP Independent Power Projects IRAZ Institute of Agronomic and Animal Research KfW German Reconstruction Credit Institute (Kreditanstalt für Wiederaufbau) LOGiCA Learning on Gender & Conflict in Africa LRA Lord’s Resistance Army M23 March 23 MDG Millenium Development Goals MDRP Multi-Country Demobilization & Reintegration Program MDTF Multi-donor Trust Fund MIGA Multilateral Investment Guarantee Agency (WBG) MINPTT Ministère de Postes, Téléphones et Télécommunications MONUSCO United Nations Organization Stabilization Mission in the DRC (Mission de l’Organisation des Nations Unies pour la stabilisation en RDC) MoU Memorandum of Understanding NELSAP Nile Equatorial Lakes Subsidiary Action Program NGO Nongovernmental organization OECD Organization for Economic Cooperation And Development OHADA Legal Framework on Harmonization of Business Laws in Africa (Organisation pour l’Harmonisation du Droit des Affaires en Afrique) PADMTN Pan-African Domestic Medium Term Note PCN Project Concept Note PEMFAR Public Expenditure Management and Financial Accountability Review PER Public Expenditure Review PREM Poverty Reduction and Economic Management PRG Partial Risk Guarantees PROMINES Governance in the Mineral Sector Technical Assistance Project PROROUTES High Priority Roads Reopening and Maintenance Project PPA Project Preparation Advance PPIAF Public-Private Infrastructure Advisory Facility PPP Public-Private Partnership PRSP Poverty Reduction Strategy Paper PSCF Peace, Security and Cooperation Framework for the DRC and the Region RDF Rwandan Defense Force SCPT Transport and Ports Co. (Société Commerciale des Transports et des Ports) SEP Congolese Oil Company (Entreprises Petrolières Congolaises) SEZ Special Economic Zones iii SGBV Sexual and Gender-Based Violence SINELAC International Electricity Association of the Great Lakes Countries SIP Small Investment Product SME Small and Medium Enterprises SOCIGAZ Commercial and Industrial Gas Company SP Social Protection SSA Sub-Saharan Africa TA Technical Assistance TDRP Transitional Demobilization & Reintegration Program TMEA Trade mark East Africa UN United Nations UNOAU United Nations Office to the African Union UNDPKO United Nations Department of Peace-Keeping Operations US$ United States Dollar WBG World Bank Group WDR World Development Report iv Table of Contents EXECUTIVE SUMMARY .................................................................................................................................. 1 A. BACKGROUND AND PURPOSE ............................................................................................................... 4 B. UNDERSTANDING THE DRIVERS OF CONFLICT AND INSECURITY IN THE GREAT LAKES ........................ 6 C. DONOR RESPONSE AT A REGIONAL LEVEL .......................................................................................... 11 D. ELEMENTS OF A GREAT LAKES’ REGIONAL DEVELOPMENT INITIATIVE AND A POSSIBLE WORLD BANK GROUP ROLE IN IT ....................................................................................................................................... 12 1. Foundation: Strengthening State Effectiveness in Eastern DRC ...................................................... 12 2. Pillar one: Vulnerability and Resilience ........................................................................................... 17 3. Pillar Two: Economic Cooperation and Regional Integration .......................................................... 25 E. PROGRAM OF POSSIBLE WORLD BANK GROUP ACTIVITIES ............................................................... 40 F. PARTNERSHIP AND INSTITUTIONAL SPACE ......................................................................................... 44 Annex 1: The Drivers of Conflict .............................................................................................................. 48 Annex 2: Charter for Cross-Border Traders ............................................................................................. 51 Annex 3: The CAB5 ICT Connectivity Project. ......................................................................................... 53 Annex 4: Poverty and Social Indicators ................................................................................................... 55 Annex 5: Brief Overview of Demobilization and Reintegration in the GLR over the last 4 years ........... 60 Annex 6: International Conference of the Great Lakes Region and Communauté Economique des Pays des Grands Lacs ....................................................................................................................................... 63 Annex 7: IFC Program in Great Lakes Countries ...................................................................................... 64 Boxes Box 1: Integrated Corridor Development Initiative in the Selected Great Lakes Countries ........................ 29 Box 2: Risky Business: Poor Women Cross-Border Traders in the East of the DRC ..................................... 33 Figures Figure 1: Democratic Republic of Congo: Minerals and Armed Groups ..................................................... 15 Figure 2: GNI per capita, PPP (2011) ........................................................................................................... 23 Figure 3: The Distribution of Economic Activity in the Countries of the Great Lakes Region as shown by Night Light Data .......................................................................................................................................... 26 Figure 4: Map of main trading routes on the border of eastern and southeastern DRC………………………….28 Tables Table 1: Tentative Proposed World Bank Group Analytic and Technical Assistance Program .................... 41 v Table 2: Tentative Proposed World Bank Group Lending Program ............................................................. 42 Table 3. Other Potential Knowledge and Technical Assistance Programs Discussed .................................. 46 vi REVIVING THE GREAT LAKES A WORLD BANK GROUP REGIONAL INITIATIVE FOR PEACE, STABILITY AND ECONOMIC DEVELOPMENT [In support of the February 24, 2013 “Peace, Security and Cooperation Framework for the DRC and the Region”] EXECUTIVE SUMMARY 1. The signing of the “Peace, Security and Cooperation Framework for the DRC and the Region” on February 24, 2013 brings hope to the people of the countries of the Great Lakes Region (GLR) of an end to a protracted period of conflicts and insecurity and opens a window of opportunity for peace, stability and economic development in the region. In signing the agreement the countries of the region committed to work together, with support from the international community, to address common security and economic challenges. 2. Long-term term sustainable peace and stability in the GLR, and in the DRC in particular,
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