|
The Republic of Zaire has been blessed with many natural resources, which are potential for earning national wealth. The economy of Zaire has declined since the 1980's. Due to inflation there was tremendous currency depreciation in Zaire. Several civil wars and internal disputes inside the country have been the major deterrent factors of Zaire economy.
However, the present day government has implemented tight fiscal policy of curb inflation and also to manage depreciation. The improvement political stability may provide an impetus to the all round economic growth of the country. This would help Zaire to make optimum utilization of its vast wealth of mineral and agricultural resources.
Agriculture in Zaire contributes almost 58% of the gross domestic product. Industry contributes 17% and services contribute 25% of the GDP. Like other developing nations, Zaire also supports a secondary or an informal economy. This parallel economy in Zaire is more organized and fully institutionalized than the real economy. It is more rational and predictable. The magnitude of informal economy of Zaire is much more than the official GDP.
Foreign banks like the International Monetary Fund and the World Bank are trying to promote and advocate various reformatory measures to improve the economy in Zaire. The government is trying to increase the export of commodities like copper, coffee, diamonds, cobalt and crude oil.
In spite of the many internal wars, which have reduced the national output of Zaire, the present stable political condition has given a boost to the economy. The economy of Zaire is progressing slowly but steadily.
|
