Publication: Central African Republic: Country Economic Memorandum - From Fragility to Accelerated and Inclusive Growth
Files in English
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.
“World Bank. 2022. Central African Republic: Country Economic Memorandum - From Fragility to Accelerated and Inclusive Growth. © Washington, DC: World Bank. http://hdl.handle.net/10986/37419 License: CC BY 3.0 IGO.”