of Belgium, France, Morocco, and other countries) repulsed invasions from Angola by former residents of Shaba region (as Katanga had been renamed in 1972). (Schatzberg, 94) A sluggish economy remained Zaire's greatest problem in the1980s. The country's foreign debt was rescheduled in 1981, and the International Monetary Fund (IMF) extended a billion-dollar loan; further aid in 1983-84 followed currency devaluation and other austerity measures. In 1986, however, Zaire abandoned the IMF program, and the economy took a downturn. The government again embraced economic reform in 1989, but the commitment was only temporary. Although Mobutu legalized opposition parties in1990, elections were repeatedly postponed. Discontent with Mobutu intensified during the next several years, as international financial aid was cut off, the economy deteriorated rapidly, and outbreaks of violence, looting, and disease led many Europeans and Americans to flee the country. The influx of more than 1 million Rwandan Hutu refugees in 1994 further destabilized the country. (Schatzberg, 97-98)The economy of the Democratic Republic of the Congo - a nation endowed with potential wealth - has declined drastically since the mid-1980s. The new government instituted a tight fiscal policy that initially curbed inflation and currency depreciation, but these small gains were quickly vast reversed when the foreign-backed rebellion in the eastern part of the country began in August 1998. The war has dramatically reduced government revenue, and increased external debt. Foreign businesses have curtailed operations due to uncertainty about the outcome of the conflict and because of increased government harassment and restrictions. Poor infrastructure, an uncertain legal framework, corruption, and lack of openness in government economic policy and financial operations remain a brake on investment and growth. A number of IMF and World Bank missions have met with the ne...
