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World Bank Document R ES TR I CTED Mm we Cw eport Nlo. AY'vr-1 6d Public Disclosure Authorized This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION -. RF-WRIi& 11 j Public Disclosure Authorized THE ECONOMY OX No, 2 OF THE o > 6 ,,. CENTRAL AFRICAN REPUBLIC JIn tWU vo'lumie s Public Disclosure Authorized VOLUME I RECENT EVOLUTION AND PROSPECTS Mar 22, 1Q70 Public Disclosure Authorized WTestern Afrrica Depart.Snent 0 lg r-al Co C) A r-I =' Wd - C) i C) N>- \C) C) ' N- ^ ^ C) CM l C) U C.) I~~rii r-4 riI c) C) C)Q t'i C) P4 f r0 ri rt ri This report was prepared after a mission to the Central African Republic in November 1969. The mission consisted of Messrs. Byl and Fall of the Bank and Zaanouni of FAO. This main report (Vol. I), is complemented by an agricultural sector study (Vol. II). Commodity concentration of exports % of Exports of major products to countries outside the Central 4fri;n Customs and Economic Union (UDEAG) (in percent) !Xveragge 1966 1967 1968 1966/68 Diamonds 53.5 h6.7 r3.1 '1l.1 Cotton lh.7 22.v.8 23Th .0.3 Coffee 23.7 20.0 12.,' 18.6h 91.9 89.5 88.7 90.0 External Public Debt (in millions of U;) outstanding as of December 31, 1968 Disbursed only 20.6 Including undisbursed 21.0 Wlith additions until June 30, 1969? 30.8 Public Debt Service on outstanding debt 1969 1970 1971 1972 as of June 30 1969 including undisbursed portion 2.0 2.2 2'.Q 7 Debt Service Ratio (as .C of 1968 exports of goods and services). 4.8 '.3 7.0 Bank Group Operations IDA Credit No. 146 CA for road construction $4.2 million IPY 1969 DItF Position otI n+.$9 5 Tni l i nn Draw-ing: None PnIiMtnAl Sta+.uss Memehr of thei Ce.ntral African (Cistnms and Vtn,rwi-h' TTUnien (IMPA01') Central Bank of Equatorial Africai States &c tameroon Organization of African Unity (OAU) Conmno )o4.!+n Ofb A-ric-n 'and Mol oag-asy Z+-,+e and Mauritius (OCANN) Associated with the: European Economic Community (EEC). BAS IAT AT'A'A P Tn ulon(est.. ) i96 1,530,000 ,ate oDf crowth - Dew;.,itv 2.5 per sq. km. IC;conl atteriance in nercent of' the relevant age grolup PriLmary 58 r ,econdary 1 g ;'ros3 Domestic Product 1967 - i,'AF' 46.6 billion at c:irrent markat prices Per capita 1967 3,-IAF 31,300 or $127 at the 1967 exchange rate. Growth rate 19614-67 h. :{eal grow-th rate 0 to 0.2-. Mjoney and llankinf: The CAlS uses the Communaut6 Financigre Africaine franc (CFAF). (in billions of CFAF) June (end of year) 1966 1967 1968 1969 Money Supply 5.37 5.87 7.17 7.15 Domes,tic Credit 575 7.12 8.82 9.h7 Foreign Assets (net) 1.13 0.34 0.51 -0.18 (11 mos.) budget Public Finances 1966 1967 1968 1969 1970 Total receipts 8.1 8.2 9.2 7.9 11.3 Total exoenditures -7.9 -9.2 -10.2 -9.2 12.1 Overall Surplus or D)eficit +0.1 -1.0 -1.0 -1.2 -0.8 Current Surplus or Teficit +0.7 -0.T -0.7 -0.9 - Capital !jcpenditures -0.6 -0.< -0.3 -0.3 -0.8 Investments outside the budget n.a. 1.5 2.5 n.a. n.a Trade arid Payments 1966 1967 1968 1969 *.xports 9.1 8.9 10.5 n.a. lmports 10.4 12.6 11.8 n.a. Trade balance -1.3 -3.7 -1.3 n.a. .'hanrge in foreign assets, (net) -0.8 -o.8 +0.2 -0.7 (June) Y'oreLgn aid disbursemeTnts 2.5 2.1 1.7 n.a. A 1965 population survey indicated that the population at that moment m ght. be as high as 2.1 mIY:o-,n (nar. 2). THE ECONORY OF THE CE1NTAL A°1TiA1C. ncOlrBTTr Recent Evolution and Prospects Page Noo BASIC DATA Table of Contents List of Text Tables List of Appendix Tables List of Abbreviations used SUMMARY AND CONCLUSIONS I. INTRODUCTION ..................................... 1.......1 A. Geography .. 1 B. Population ................. I ....... , C. Regional Association .. 2 D. Political and Social Developments . II. STRUCTURE OF THE ECONOMY 3..... A. Gross Domestic Product .. B. Employment, Wages and Prices . 4 III. DEVELOPMENTS IN THE PRINCIPAL SECTORS.. 6 A. Agriculture and Forestry . .6 B. Mining. 9 C. Manufacturing . .11 D. Transport. 2 E. Education .. 15 F. Public Utilities .. 15 G. Tourism .. 16 IV. EXTERNAL PAYMENTS AND MONETARY DEVELOPMENTS . .17 A. Foreign Trade.... 17 B. Balance of Payments .. 18 C. Monetary Developments. 19 D. National Development Bank (BND) . .20 V. PUBLIC FINANCE.. 21 A. Budgetary System ................................... ,.21 B. Current Receipts .. 22 C. Current Expenditures. 23 D. Capital Expenditures .. 24 E. Financing of the Budget Deficit (Treasury Operations) 24 F. The Future of Public Finances . .24 TABLE OF CONTENTS (Continued) -2- Page No. VI. INVESTMENT AND ITS FINANCING ............................. 2b A. The Development Plan .26 B. Total Investment .28 C. Foreign Aid .28 D. Public Debt .30 VII. PROSPECTS FOR THE FUTURE ................................. 31 A. Production and Exports .31 B. Development Planning and Foreign Aid .34 C. Public Finance .35 VIII. CONCLUSIONS .. 35 Statistical Appendix Maps List of Text Tables Table 1: CAR - Gross Domestic Product at Current Market Prices, 1961, '64, '67 Table 2: CAR - Price In d4ces for the City of Bngipi, 1Q61-1969 Table 3: CAR - Major Cash Crops, 1968/69 and Average 1966/67-1968/69 Table 4: CAR - Forestry Production and Exports, 1964-1968 Table 5: CAR - Value of Foreign Trade by Destination and Origin Table 6: CAR - Monetary Survey, 1965-1969 Table 7: CAR - Actual Budget Recelpts and Expenditures 1966-1969 and Budget Estimates 1970 Table 8: CAR - Treasury Operations and Financing, 1966-69 Table 9: CAR - Four-Year Development Plan 1967-1970, Planned and Actual investment 1967-1968 Table 10: CAR - Public and Private Investment in 1963-1968 Table 11: CAR - Diabursements of Foreign Aid, 1964-68 Table 12: CAR - Projections of Exports, 1970-1975 ist of Appenidil Tables Table I :CA - PRIC,ZE INDiICES FOR THE+.lCITY OF BANGUI, 1961-69 'fable IT : CAR - COTTOl PRODUCTIOiNl, P?J0?UDJU.TIV1TY AND PR'ICE STABILI- ZATIoiP PRcOGRAN 196 ,/66-1969/70 AND PROJECT IONS 1970/71- 1971/75, SELE,TED YEAi-LRS. Tabrc. III : CAR - COIITOIN INDUSTY?Y RETURN\1 TO FABRMERS,lJS PER -E.CTARE CUN TIVATTED TRADITIONALLY AiiD UNDER PRODUCTIVITY PROGRAIS, 1967/68-1969/70 AND PROJECTIONS FOR 1970/71-1974/75, S3ELECTE.D YEARS Table IV CAR - ;COST PRICE OF LOGS AND SAWIN TIM3BER EXPORTED OVER THEJ LOBAYE RIVERl, NOVEIUER 1969 Tab] e V CAR - PRODU-TION AND FXPOSTS OF D4IAMONDS. 1961-69 Table V bis CAR',S ALTO) OTHElR AFRICAN COUNTRI:ES' PRODUCTION OF DIAtiONDS lMJAI-t'fl kTfllY WTORLD PRO-DUCTION 0F DIAMIONDS. 196L-1969 Table VI : INDUSTRIAL PRODUCTION, 196tL - 1969 T'Taln e 'rII- :A,-? - AlR TitVFFIJ. 1965 - 1969 Table VIII : CAR - OI3YRIBUTTONsl OP' 7rPORTS ANDHTIPO'viS BY TRANSPORT wfln1- 196), - 1968 Table IX : CAt - JROAD TPR=ORK AND ITS MAINTENANCT,E, 1969 Table X 'ARP - 'S2TTM0AIT!D UlClToMPSrTC(Wi O)F VEHT(ITIE FLEET AS PER JANUARY 31, 1967 Table X?XI CA:li _- TA TJTW O FOlR'eIGN.tJ TRPADE4 RY DRESTINATION ANTD BY nRIGTrN 1966 -6,9 Thble VT b,: CAA - ;TAOFTM, TYn........BY'nWTrSTR TT....PA.......... L;' M TATTN AMNDBY OTRTI-T 1966)-68, rt PELI4 RCuNT 'Ta'1 '<ITT : 0 A - ' Tl1DfllV I2 OFM0flMDIThC'VTt DVr2ITQrPW?PP FnOPPTrTlT TPAhV OUJTSIDiJ,ORAC, 1966-69) ''.-.b]c . ' ,, -s : 'AA - 1n,1A7,f T.TTV rol0TfDflCliiT(,fTv,T,T'I f OV UWr T Pi&pTh-r?V1l?Vfl 2I2! T'PAPT? ~LUJ.U;: A Li -L ).LJ-L fl, - '21 :'' L- I£ 11'J. 4 '.'LJ.LJ. .-I> -GLI4 -AJ. 'J. ALLJ.VC . OUTSIDE'U'JA,\; 1966-6'4 INi PERCE,ITNT Ial --I1 -TT : CAR - 'TFvrn'i'-T,lit OF? DTT\MTrPDAT ACrIDTCTTTMTT rvnfltncVVT UlmI.,pPTf i aLU±ULc .4±2. -L `,flit V LU' 1VILL, UiX I iAUV~LJAA J4.nlh&IXS J LlJ Ji. JL.' .~ Uu.D7AC,, 1966-69 "nI - - 1'A, )A T AirrLr 'CTn nA A1 rn19I 'IlAP1 I.L-cUL .VJV U:tl1. - '-tLf1tI'IW', WI' IF IPt-I'sl0 [ kL LJLJU Table X-V CARt - ASSETS ADl) LIABILITIPE,S OF T-E CUO, RCIAL AND DlEVELOP- ii.ILIIM . AI ), .14JUu-I) (- T:ible1 VI CAt - IJATI ONAL 1DE'VLOPMF",NT BANK CREnDITS OUTSTANDING 1966-68 Tabl~'e '.fTI:[ : ',R - 7 nl.^r,lfflrnrn''p nim rTv'CI ANDT r'tn.'MnrPitPrQ , oAAri Aa Table XVII bis: CAR - AC,TUAL BUDGET RElCEIPTS AND EXPENDITURES 1966-1969, 'rAT flA 1'3 77vy Table XV I II : CAR - BUDGET ESTIMATES, FISCAL YEAR BASIS 1966 - 1970 m 1 n orwr T . T z * _ A A T] rwrrT<Tn rsmTA 5mrQfoo1'I'tiarl Tl1* a>1Acwrnrln rl z 4 'I %'7 r Table XV II I bD sj CAR- BSU E(; IMAT rS1 r FItLSCA.L YED D Av TIJ 1 7UU - 1 I '7r DN PERCENTIe Tiable ,YI:X ;AR, - FOURh-YEEAR JfVJ Or. rr flT AN n -, 7 n , 1A tlTJl A ACTUAL INVESTRM'1NT, 196'7 - 1968 Table IXA :HAt - lA'J- AID i B±onaytv±j.Y C0J 'R, 1960-u9 Table KXI CAR - FAk PROJE-.CT0 AID COMMThITTONTS BY SECTOR AND DISBURSE- i'I4rES, 1960-69 T'able X.JII CAR - EXTERNAL PUBLIC DEBT OUTSTANDING AS OF DEEICMER 31, 190yo8 1-TPLD ADDITUmIONS1TH(UtJiGii TU6Tj` 30j 196y Table XXII1 :AHt - ES'T,ITATED FUTUFRE SERVICE PAYM'ENTS ON EXTERN\AL PUBLIC Dl•t.rEpUJOUTSTAiiJJiNG i:tU?T I)IQBUi'tJ Al UF IJJIS'JJj!tICRWLt'WR1 31, 1968 wTrv- ADDITIONS T111ROUGH JUtNE 30, 1969 ABBR1T1'VIATION3 U3;ED ASECNA Agence pour la -6curite de la Navigation A6rienne en Afrique et a lMladagascar AT.EC Transequatorial Communications Agency/Agence Transequatoriale des Communications BCEAAE'C Central Bank of Equatorial African 3tates and Cameroon/Banque Centrale des Ftats de l Afrique Equatoriale et du Cameroun TDPA Bureau pour le D6veloppement de la Production Agricole BNrD National Development Bank/Banque Nationale de Developpement CCCE Central Fund for Economic Coop6ration/Caisse Centrale de Cooperation Economique CENTRADIAN Central African Diamond Company CFCO Jlhemin de Fer Congo-Ocean CFDT Compagnie Francaise pour le D6veloppement des Fibres Textiles CFMU Compagnie Francaise des Mines d'Uranium CND Comptoir National du Diamant CIEA Atomic Energy Commission/Commissariat de lVEnergie Atomique CGTAE Compagnie G6nerale des Transports en Afrique Equatoriale DDI Diamond Distributors Inc.
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