World Bank2012-03-192012-03-192011-03-01https://hdl.handle.net/10986/2769This Country Economic Memorandum (CEM) is the first for Burundi since the 1980s. It has been developed in collaboration with the government of Burundi. The CEM has been prepared in cooperation with the African development bank and the U.K. department for international development. Burundi is one of the poorest countries in the world, and has suffered from many years of civil conflict and its consequences. In the last years, peace has been established and a promising recovery of the economy has started. Economic growth rates, however, are not in line with what has been projected in the latest poverty reduction strategy paper (September 2006). Real Gross Domestic Product (GDP) growth had been projected to average almost 7 percent between 2006 and 2009 in that strategy paper, but actual growth will average just above 4 percent for the same period. The report reviews the economic developments in the past and tries to identify the most binding constraints to growth. The CEM then sets out a strategy to address these constraints to promote increased and participatory growth, reduce poverty, and improve the livelihood of the population. The report draws on a number of background studies conducted on various subjects relevant to the country's economic development and on existing reports and studies from the government of Burundi, the World Bank, other donors, and academics. The CEM provides a synthesis of various recommendations and attempts to prioritize and sequence key actions.CC BY 3.0 IGOACCESS TO FINANCEACCOUNTINGADMINISTRATIVE COSTSAGGREGATE DEMANDAGRICULTURAL ACTIVITYAGRICULTURAL INCOMEAGRICULTURAL PRODUCTSAGRICULTURAL SECTORAGRICULTUREARREARSAUCTIONSAUDITSBALANCE OF PAYMENTSBANK ACCOUNTSBANK CREDITBANKING INDUSTRYBANKING SECTORBANKSBENEFICIARIESBENEFIT PAYMENTSBUDGET SUPPORTBUDGETINGCAPACITY BUILDINGCAPITAL ACCUMULATIONCAPITAL STOCKCASH MANAGEMENTCENTRAL BANKCOMMERCIAL BANKINGCOMMERCIAL CODECOMMUNITY AFFAIRSCOMMUNITY ECONOMIC DEVELOPMENTCOMPARATIVE ADVANTAGECOMPETITIVENESSCOMPOSITION OF PUBLIC SPENDINGCONSUMPTION EXPENDITURECOOPERATIVESCORRUPTIONCURRENCYCURRENT ACCOUNTCURRENT ACCOUNT DEFICITDEBTDECENTRALIZATIONDECISION MAKINGDEVELOPMENT ASSISTANCEDEVELOPMENT BANKDEVELOPMENT POLICYDISBURSEMENTDISBURSEMENTSDIVERSIFICATIONDIVIDENDSDOMESTIC BORROWINGDOMESTIC MARKETDONOR AGENCIESDONOR SUPPORTECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC DEVELOPMENTSECONOMIC GROWTHECONOMIC IMPACTECONOMIC INCENTIVESECONOMIC PERFORMANCEECONOMIC PRIORITYECONOMIC REFORMSEDUCATIONAL ATTAINMENTELASTICITYEMPLOYMENT OPPORTUNITIESENROLLMENTEQUIPMENTEXCHANGE RATEEXPECTED RETURNEXPENDITUREEXPENDITURESEXPLOITATIONSEXPORT CROPSEXPORT PERFORMANCEEXPORTSEXTERNAL FINANCEEXTERNAL FINANCINGEXTERNAL SHOCKSFARMERFARMERSFINANCIAL ACCOUNTABILITYFINANCIAL ASSISTANCEFINANCIAL LIBERALIZATIONFINANCIAL MANAGEMENTFINANCIAL PRODUCTSFINANCIAL SECTORFINANCIAL SECTOR ASSESSMENTFISCAL DEFICITFISCAL DEFICITSFISCAL DISCIPLINEFISHINGFIXED CAPITALFOREIGN DIRECT INVESTMENTFOREIGN FINANCINGFOREIGN INVESTMENTFOREIGN INVESTMENT FLOWSGDPGDP PER CAPITAGNPGOVERNMENT EXPENDITUREGOVERNMENT FINANCEGOVERNMENT INTERVENTIONGOVERNMENT POLICIESGOVERNMENT POLICYGOVERNMENT REVENUEGOVERNMENT REVENUESGOVERNMENT SPENDINGGROSS DOMESTIC PRODUCTGROSS FIXED CAPITAL FORMATIONGROWTH POLICYGROWTH POTENTIALGROWTH RATEHOUSEHOLDSHUMAN CAPITALHUMAN DEVELOPMENTINCOMEINCOME LEVELSINCOME TAXINFLATIONINFLATION RATEINFORMATION SYSTEMINSTITUTIONAL CAPACITYINSTITUTIONAL REFORMSINTERMEDIATE GOODSINTERNATIONAL DEVELOPMENTINTERNATIONAL STANDARDSINTERNATIONAL TRADEINVESTMENT CLIMATEINVESTOR PROTECTIONJOB CREATIONLABOR FORCELACK OF ACCESSLAND USELEGAL FRAMEWORKLIBERALIZATION OF TRADELOCAL CURRENCYLOCAL GOVERNMENTLOCAL INFRASTRUCTUREMACROECONOMIC POLICIESMARKET PRICESMEDIUM-TERM EXPENDITUREMEDIUM-TERM EXPENDITURE FRAMEWORKMFIMFISMICROCREDITMICROFINANCEMICROFINANCE INSTITUTIONMICROFINANCE INSTITUTIONSMINESMONETARY FUNDMONETARY POLICYMORTGAGESOBSTACLES TO GROWTHOPERATIONAL INDEPENDENCEPEOPLESPER CAPITA INCOMEPERFORMANCE ASSESSMENTPHYSICAL CAPITALPOLICY DECISIONSPOLITICAL ECONOMYPOLITICAL STABILITYPOPULATION DENSITIESPOPULATION GROWTHPOVERTY REDUCTIONPOVERTY REDUCTION STRATEGYPRIVATE INVESTMENTPRIVATE SECTORPRIVATIZATIONPRODUCERSPRODUCTION FUNCTIONPRODUCTIVE INVESTMENTPRODUCTIVE RESOURCESPRODUCTIVITY GROWTHPUBLIC EXPENDITUREPUBLIC EXPENDITURE MANAGEMENTPUBLIC EXPENDITURESPUBLIC FINANCEPUBLIC FINANCESPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC SPENDINGRATE OF RETURNREAL GDPRECEIPTSRECURRENT EXPENDITURERECURRENT EXPENDITURESREFUGEESREGULATORY FRAMEWORKREGULATORY INFRASTRUCTUREREMITTANCESRESOURCE ALLOCATIONRETURN ON INVESTMENTSAVINGSSAVINGS RATESSMALL FARMERSSOCIAL WELFARESOCIOECONOMIC INDICATORSTAXTAX CODETAX EXEMPTIONSTAX INCENTIVESTAX POLICYTAX REGIMETAX REVENUETAX REVENUESTECHNICAL ASSISTANCETOTAL FACTOR PRODUCTIVITYTOTAL REVENUETRADE DIVERSIONTRANSPARENCYTRUST FUNDUNIONURBAN AREASVALUE ADDEDWorld Bank10.1596/2769