Central African Republic : Country Economic Memorandum - From Fragility to Accelerated and Inclusive Growth
The Central African Republic (CAR) is at a critical crossroads. Despite its significant natural resource wealth, CAR remains one of the poorest and most fragile countries in the world. Cycles of political instability and a heavy reliance on natural...
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| Format: | Report |
| Language: | English |
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Washington, DC: World Bank
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099950105022238641/P17499601c00dd03208b990cb1b523b9018 http://hdl.handle.net/10986/37419 |
| Summary: | The Central African Republic (CAR) is
at a critical crossroads. Despite its significant natural
resource wealth, CAR remains one of the poorest and most
fragile countries in the world. Cycles of political
instability and a heavy reliance on natural resources have
left the economy poorly diversified and with a small private
sector. Almost a decade after the 2013 civil war, the
country remains caught in a fragility trap, facing episodes
of renewed insecurity and a substantial state-citizen
divide. Supported by the 2015 peaceful transition of power,
the authorities implemented several reform programs that
helped to restore macroeconomic stability and steered the
economy onto a relatively sustainable path to recovery over
2015–19. This chapter presents a core economic analysis of
CAR—which is characterized by fragility, conflict, and
violence (FCV)—and examines the mutually reinforcing
relationship between fragility, inequality, and lack of
inclusion. It also discusses lessons learned from previous
episodes of political instability and ways to improve social
cohesion. Finally, the chapter provides some insights into
why reforms in the country have not produced sustained
economic growth, and it presents some potential key pathways
out of fragility and the related implications for structural reforms. |
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