Chad is considered a country in extreme poverty; oil, cattle, and gum Arabic are Chad' s primary exports. 80% of the population lives on subsistence-level farming, producing just enough to feed their families. Years of civil war has left the country unsuitable to most foreign investors.
In 2000, with the support of the World Bank (WB), a pipeline was constructed to transport oil from Chad to the Atlantic Ocean. The Law 001 was passed by the Chadian government allocating 80% of the oil revenue to finance education, health, environment, water and rural development projects, restoring hope to a multitude living on less then a $1 a day. In December 2005, the president amended the Law 001, substantially weakening the poverty reduction agenda, and reallocating the money towards territorial administration and security activities. In January 2006, following this breach of contract by the Chadian government, the WB suspended approximately $124 million by withholding further loans and grants to the Chadian government and suspending the disbursement of International Development Association (IDA) funds allocated to the country. Only recently has the WB agreed to reopen disbursements pending the reallocation of 70% of the oil money towards developing the country. Historically there is no precedent that demonstrates that Chad' s government is likely to follow through with these promises.
Over the past 3 years the country has once again fallen victim to instability. Despite a popular cry for democracy, the President changed the constitution to retain his seat at the head of the country. Deserters regrouped along the Chadian-Sudan border vowing to displace him. Cross-border attacks have led to further insecurities and intensified animosity between Chad and Sudan. Chadians are being murdered and displaced within their own country and fear has kept the general population from taking action.
Chad is the host country to over 200,000 Sudanese refugees who fled their country as a result of the conflict in the Darfur region. Insecurity and cross-border violence has continued to escalate. The large amount of foreign aid being allocated to alleviate the situation of the Sudanese refugees has already caused tension and frustration from Chadians seeing their land being depleted and little being done for them. Only 5% of the UNHCR budget is allocated for host populations services. In Abeche, the siege of most NGOs providing aid to the refugees, the cost of living has so increased that many locals are finding themselves no longer able to access even the most basic resources. As poor as those fleeing Darfur and now facing conflict inside their own country, Chadian children are caught in a cross-fire of destruction and brutality.
In the southern part of Chad, refugees from the Central African Republic (CAR) have also migrated across the border. The World Food Program (WFP) is currently providing assistance to approximately 42,000 CAR refugees.
