Burundi - The economy

RESTRICTED FIlXE Copy Report No. AE- la This report was prepared tor use within the Biank and its atfiliated organizations. They do not. accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION THE ECONOMY BURUNDI February 24, 1969 Eastern Africa Department  CURRENCY EQUIVALENTS Currency Unit - Burundi Franc (Bu F) After February 1965 US$ 1 Bu F 87.50 Bu F 1 US $ 0. 01143 Bu F 1 million = US $ 11, 429 Before February 1965 TC T i _ I_ Ci A ua pi - Du X DU.U Bu F I US $ 0.02  This report was prepared by Messrs. Lyle M. Hansen (Chief of Mission), Atle Elsaas and Jean-Mlarie Payen after a visit to Burundi in May 1968.  TABLE OF CONTENTS A. The Countr-y ......... Nc .3. History and Political Development . . 1 II. * u' ECOi ,IO':IJC DEvELOPVW . ...M..L...2 A. Introduction . . 2 B. The Structure of the Economy . . 3 C. Economic GrowJth.. 5 D. Development in Major Sectors . . 8 Agriculture. 8 Industry . . 11 Transport and Communications . .12 Education and Kanpower . .13 III. PTJBLIC POLICIES .................................... 14 General ...................................... 1L Summary of Developments after Independence ... 15 Growth, Fiscal Policy and the External Balance 15 Budget Policy ................................ 18 Central Government Revenues ........ .. 18 Ordinary Budget Expenditure ..................... 19 The Extraordinary Budget ......... ............ 20 Central Government Budget and Finances ..1..... 2 Public Sector Investments and Their Financing 23 The Credit System ............................ 26 Balance of Pavments ........ .................. 27 Developments in 1968 ........... .............. 30 Simmmry of PerPormqn -.P 31 IV. FUTURE PROSPECTS AND PROBLIS . .31 Mviedium Term Prospects. 32 Capital Requirements... 35 Creditworthiness . .37 STATISTICAL APPENDIX ANITEX I - Development in Major Sectors ANITEX II - Projected Exports, Export Taxes and Producer Ir.core-s19-97 Earnings and Alternatives in Fiscal Policy MAPS  BASIC DATA Area: 10,759 square miles Population: (1968 estimates) 3.4 millions Density (per square mile) 316 in current prices (1965) -US$ million 153.4 4l- -.o4et4ized ac4tivities4- 6. 1 Lu~~.LA IA, .L I -%A ~ U I.V I ' u J.1.; J. in non-monetized activities 92.3 : 4. _ n oAcR _ n.. 7, 1. n - _~ cb. per capji_ta,196