Republic of Burundi - Country Economic Memorandum (CEM) : The Challenge of Achieving Stable and Shared Growth

Abstract

This 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.