Annex IV

Report of Committee IV

Chapter III
Economic and Social Development

3.1 Introduction

Burundi is a very poor country. With a per capita income of $US 143 in 1998 according to the Ministry of Development Planning and Reconstruction, it is one of the 10 poorest countries in the world. In 1999, the International Monetary Fund (IMF) estimated the total gross domestic product (GDP) at BuF 432.6 billion which corresponds to approximately 65,000 BuF per inhabitant.⁶

The ethnic conflicts that have marked Burundi's history since independence have prevented the country from achieving the political stability that is indispensable for any healthy and sustainable economic development.

Although Burundi has experienced long periods of political instability, it has nevertheless experienced a low but steady level of economic growth. However, the benefits of this growth have not been equitably distributed. In order to prevent any future conflicts, national wealth must be increased and equitably distributed.

Unfortunately, the civil war that has been taking place in Burundi since 1993 has wiped out the economic and social accomplishments of the past three decades and set the country back nearly 40 years. The GDP, which stood at $US 125 (1987 value) in 1960, was only $US 114 in 1996⁷ and $US 106 in 1999.

If the current generation is not to bequeath this weak economy to its descendants, Burundians must commit themselves to a major effort and even sacrifices to bring about the country's economic recovery, for the task is not an easy one.

3.2 The economic situation in Burundi

Burundi's economic situation is dire, as all socio-economic indicators make clear.

3.2.1 Worsening poverty

There has been a drastic increase in poverty. In rural areas, the portion of the population living under the poverty threshold⁸ rose from 36 per cent to 58 per cent between 1990 and 1998, or an increase of over 60 per cent. In urban areas, the monetary poverty level reached 66 per cent in 1997.⁹ In 1999, all observers inside and outside the country acknowledged that the poor have increased in number, and that they are growing poorer.

Changes in per capita GDP and the human development index confirm this trend towards increasing poverty. According to the World Bank,¹⁰ per capita GDP grew by 2 per cent annually from 1980 to 1985 and by only 0.9 per cent from 1986 to 1992. If the economic growth rate prior to the crisis had been maintained, per capita income, which was $US 210 in 1992, would have doubled in 87 years.¹¹ From 1993 to 1999, per capita income continued to decline, with GDP shrinking by more than 20 per cent, according to the Minister of Finance. The human development index fell from 3.4 points in 1993 to 3 points in 1998.

3.2.2 The bleak macroeconomic and financial picture

3.2.2.1 The budget

The situation of public finance has become rather alarming. Since 1996, the overall budget balance has stayed negative. Financing for current expenditure, investment and debt-servicing payments has always come from the country's banking system and from deferred internal and external payments.

3.2.2.2 Inflation

Monetary financing of the budget, declining output in all sectors, and a shortage of foreign currency reserves inevitably led to across-the-board price increases. The consumer price index for households in Bujumbura rose to 295 in 1999 (against a base figure of 100 in 1991).¹² Current price levels are unsustainable, not only for households but for all other economic agents as well. Inflation has a depressing effect on all other sectors of the economy.

3.2.2.3 Depletion of foreign currency reserves

Although the level of imports since 1996 remains low, foreign currency reserves have dwindled. According to the Bank of the Republic of Burundi, they fell from $US 200 million at the end of 1995 to $US 35 million as at 31 December 1999. This is not the first time that Burundi has had serious problems with its foreign currency levels, having experienced them in 1986. Thanks to its structural adjustment programme, Burundi obtained significant financing from the international community and was thus able to overcome the crisis imposed by the foreign currency shortage. Official development assistance rose from 14 per cent of GDP in 1985 to 23 per cent of GDP in 1993, falling back to 14 per cent in 1998. From 1994 to 1995, support for the balance of payments rose to 2 per cent of GDP. Since 1995 Burundi has received no support in this area.

Today the state of Burundi's foreign currency reserves is critical. As Burundi has no economic programme supported by IMF and the World Bank, the country has found it very difficult to obtain assistance to support its balance of payments. To cope with this situation, the Government has placed restrictions on payments and transfers for international transactions.

This depletion of foreign currency reserves is the main cause of the loss in value of Burundi's currency: the official rate of exchange of the BuF vis-à-vis the United States dollar fell from BuF 251.75 at the end of 1994 to BuF 637 as of 10 February 2000 (and from BuF 335 in April 1996 to more than BuF 1,200 in February 2000 on the parallel market).

3.2.2.4 Arrears in the repayment of external public debt

Since 1995, Burundi has not been repaying all of its external debt. It does pay what is owed to IMF, the World Bank, the African Development Bank (ADB) and the International Fund for Agricultural Development (IFAD). Failure to meet these obligations would complicate Burundi's situation even further. The country has also accumulated significant arrears in payments to other creditors. By the end of 1998, the IMF estimated these arrears at $US 70 million. Under these circumstances, the World Bank is recommending that the country rely more on grants than on loans.

3.2.2.5 International co-operation

Since the end of 1995, the international community has significantly decreased its assistance to Burundi. International assistance, which amounted to $US 300 million annually from 1990 to 1992, has decreased considerably ($US 100 million in 1998) and is limited to expanded humanitarian assistance. In 1999, Burundi received through international co-operation a total of BuF 13 billion in credits and BuF 10.8 billion in grants, or $US 42 million in all.

From July 1996 to January 1999, an embargo imposed on Burundi by neighbouring countries compounded the freeze on international co-operation, thereby contributing to the country's poor economic performance.

For most donors, the resumption of structural co-operation is conditional on the signing of a peace agreement at Arusha and the entry into force of the Agreement: cooperation must resume in a political environment that emphasizes democratic values, good governance and respect for human rights and for the rule of law.

3.2.2.6 Economic reforms

Burundi has received a large volume of assistance from the international community in the context of its structural adjustment programme, which seeks primarily to help the Government reduce the role of the State in the economy, increase domestic savings, and reduce Burundi's dependence on external sources of assistance.

In the area of budgetary policy, current operations ought to yield a greater surplus, and the overall budget deficit should be brought down to a level that will allow the State to improve its position vis-à-vis the banking system while increasing credit to the private sector.

In the wake of the crisis which began on 21 October 1993, the economy collapsed, inflation accelerated, domestic savings remained negative, public investment declined significantly, and budgetary disequilibria reached unsustainable levels.

Many of the accomplishments of the long adjustment period, such as the liberalization of currency regulations and the lowering of taxes, were lost.

Some major reforms could no longer be pursued at the same pace, including the reform of public enterprises, liberalization of the coffee sector, promotion of coffee planters' associations and the development of areas other than coffee and tea.

3.2.3 The economy from a sectoral perspective

3.2.3.1 The rural sector

More than 90 per cent of Burundi's population live in rural areas. Agriculture is the main activity, with emphasis on the production of foodstuffs and export crops (coffee, tea, cotton). These three crops alone generate more than 90 per cent of the country's foreign currency earnings.

Given the lack of natural resources capable of generating significant revenue for the State, such as oil and minerals, the State derives much of its income by indirectly taxing the earnings of the rural population.

At the same time, the rural sector keeps the industrial sector going by being the largest market for most of the country's industrial output.

Development in Burundi requires an increase in the cash income of the rural population. To accomplish this, producers need to benefit from their output as much as possible.

3.2.3.2 The secondary and tertiary sectors

The secondary sector accounted for only 15 per cent of GDP in 1998 and 11 per cent of exports in 1993. It is dominated by the public sector, especially in the areas of manufacturing, energy and infrastructure. With the exception of the banking sector, public enterprises are characterized by low productivity, overstaffing, high deficits and heavy indebtedness, both internal and external. These enterprises place a heavy burden on public finances and the banking sector. Public utilities such as Regideso and Onatel provide only limited service coverage. Less than 2 per cent of the population has access to electricity, and there are only three telephone lines for every 1,000 inhabitants. This hampers development in Burundi, particularly in the rural areas.

Moreover, the secondary sector is incapable of absorbing surplus agricultural labour.

With the advent of the crisis, the reforms that had been launched to improve the business climate were disrupted. The total liberalization of international transactions relating to current operations was disrupted by the return to strict currency controls. All these constraints, caused for the most part by the crisis, had an unfortunate effect on private sector development, which constitutes the basis for most economic development.

3.2.3.3 The social sector

The crisis has led to a decline in social indicators:

1. Immunization coverage fell from 83 per cent in 1992 to 48 per cent in 1998;
   
   
2. The crude school enrolment rate at the primary level fell from 70 per cent in 1992-1993 to 53 per cent in 1998-1999. Infant mortality rose from 110 per 1,000 in 1992 to 127 per 1,000 in 1998;¹³
   
   
3. Every month approximately 450,000 affected persons receive food aid, while nutrition centres feed 32,200 people a day. In financial terms, Burundi's food aid from WFP totalled $US 24 million in 1999;
   
   
4. Approximately 1 million people, who are simultaneously producers and consumers, live away from their homes, in camps inside Burundi and in refugee camps in neighbouring countries.

3.2.4 Political and institutional framework

Fortunately, the political crisis has not destroyed the country's administrative and institutional capacity. Burundi still has sufficient administrative capacity to plan and implement policies. However, certain phenomena, such as laxity and corruption, appear to be on the rise in Government offices. This is partly due to the fact that poverty has hit the civil service. High inflation and the shrinking of the Burundian franc have wiped out the earnings of bureaucrats and civil servants. Today, the director of a Government department earns less than $US 100 a month. This situation has adverse consequences for economic development.

3.3 Constraints

As the foregoing shows, Burundi is in a very difficult socio-economic situation. For this situation to improve, the trends that have emerged in the wake of the crisis must be reversed, but the problems which hampered Burundi's economic development prior to the crisis must also be addressed. These include:

1. A high population growth rate;
   
   
2. Low school enrolment;
   
   
3. A weak private sector;
   
   
4. The country's landlocked status; and
   
   
5. A low volume of exports.

3.3.1 A high population growth rate

The population of Burundi in 2000 is estimated at 6.65 million inhabitants, and this population is growing at the very high rate of 2.9 per cent annually, according to the United Nations Population Fund. At this rate, the population will have grown to 13 million in 20 years. The proportion of young people is high, with children under the age of 15 comprising 45 per cent of the population. Such a high growth rate places tremendous pressure on the land, on employment and on social services such as education and health.

3.3.2 Low school enrolment

It is hard for development to succeed in a country where the enrolment rates in schools and vocational institutes are as low as they are in Burundi. In 1998, the crude enrolment rate for young people between the ages of 7 and 23 was 26 per cent.¹⁴

3.3.3 A weak private sector

The private sector in Burundi is very weak and acts as a constraint on the country's development. It offers little in the way of employment opportunities. In 1998, the total active population was estimated at more than 3 million, of whom 93 per cent were engaged in agriculture. The secondary and tertiary sectors accounted for only 2 per cent and 5 per cent respectively. The breakdown of employment has not really changed in years, and the public sector, the main employer, is nearly saturated.

The private sector accounts for 13 per cent of all investment (1998 figures from the Ministry of Planning), whereas it would need to exceed 25 per cent to stimulate accelerated growth. This sector currently faces serious handicaps which are slowing its development, namely a macroeconomic environment characterized by high inflation, foreign currency shortages, a fragile financial system, negative interest rates and lastly a population mired in poverty.

3.3.4 The country's landlocked status

Burundi is a landlocked country. Long distances separate it from Indian Ocean transit ports. The port of Dar es Salaam in the United Republic of Tanzania is 1,428 kilometres away from Burundi, while Mombasa in Kenya is 2,273 kilometres away. It has been estimated that, on the whole, transport costs increase the cost of imports and exports by an additional 30 to 40 per cent. In terms of economic growth, Burundi's landlocked status retards the country's growth rate by 1 per cent.

3.3.5 A low volume of exports

One of the objectives of the structural adjustment programme which began in 1986 was to increase the level of exports and diversify them so that the country would not continue to rely on a single product, namely coffee. This objective was not achieved, and Burundi continues to be heavily dependent on coffee.

3.4 Targeted objectives: towards sustainable growth with equity

The conflict in Burundi is partly the result of an inequitable distribution of the country's limited resources. The current imbalances must be corrected without delay, and the country must endeavour to achieve sustainable growth with equity. Principal objectives to be achieved in this area are to;

1. Increase rural and urban household income: per capita GDP should increase and double within one generation;
   
   
2. Provide all children with primary and secondary education at least to the age of 16;
   
   
3. Reduce the infant mortality rate by at least half;
   
   
4. Give the entire population access to health care;
   
   
5. Improve the well-being of the population in all areas.

3.5 Measures to be taken

To achieve these objectives a number of measures should be taken, some of which will require a high degree of political will.

3.5.1 Macroeconomic and financial stabilization

3.5.1.1. A positive budget balance and reduction of the overall budget deficit

Fiscal administration must be improved. In addition to existing measures, the publication of annual reports and corporate records should be made compulsory. As well, the tax base should be broadened and exemptions should be significantly reduced.

At the same time, spending should be cut, especially military spending as the security situation improves, wages should be brought under control, and spending on goods and services should be reduced.

Budget allocations should be based on the actual volume of resources available to the State. Extra-budgetary accounts should respect the principle of a unified budget, as recognized by law, and should be kept to a strict minimum.

If these steps are taken, the overall budget deficit will be reduced and excessive bank financing will be unnecessary. This will also enable the State to make payments on its internal and external arrears.

3.5.1.2 Monetary policy

Monetary policy must once again be independent. This is indispensable if inflation is to be reduced and Burundi's currency stabilized. Monetary financing of the budget deficit must be significantly reduced.

In the banking sector, bankruptcies are extremely harmful to the country because the State must inject large amounts of public funds to bail the failed banks out. In future, the required reserve ratio should be strictly maintained and penalties for bankruptcy stiffened.

3.5.2 Solving the problem of internal and external public debt

3.5.2.1 External public debt

As at 31 December 1999, Burundi's external public debt amounted to BuF 676 billion, or 156 per cent of GDP. Multilateral debt accounts for 86 per cent of all indebtedness, while debts to the World Bank and the ADB account for 57 per cent. These debts cannot be cancelled or rescheduled. To reduce the burden that external debt imposes on the economy, one or more countries that are willing to help Burundi repay its debts must be found. The Government must meet all the conditions required for cancellation or rescheduling of a significant portion of its external debt. Lastly, as Burundi has reached the limit of its borrowing capacity, the country should try to rely on grants rather than on loans.

3.5.2.2 Internal public debt

Internal public debt, which totalled BuF 22,064,000,000 in 1990, fell to BuF 11,673,500,000 in 1994, rising again to BuF 61,965,680,000 in 1999. Much of this debt is short-term debt, as it was contracted from banks and financial institutions in the form of one- to three-month treasury certificates.

Problems in repaying this short-term debt were already apparent in 1997, when the Government decided in the Finance Act that the treasury certificates should be consolidated over a five-year period, with a two-year deferment. The interest owed on this debt has become onerous, rising from BuF 1 billion in 1996 to 3 billion in 1999.

Appropriate measures must be taken to curb internal debts.

3.5.3 Structural reform

In the coffee sector, producers must receive a greater share of the price of their product on international markets. This would result in higher cash incomes for rural Burundians.

In so far as the reform of public enterprises is concerned, enterprises posting repeated losses should be reformed as a matter of priority. Those that cannot be turned around should be dissolved. The Bankruptcy Act should also be applicable to non-strategic public enterprises.

Privatization must remain on the economic reform agenda in order to reduce the burden imposed by public enterprises. In its privatization policy, the Government will ensure that shares are distributed as widely as possible in order to maximize the number of shareholders. Privatization must not create new imbalances or strengthen existing monopolies.

3.5.4 A sectoral perspective

3.5.4.1 The rural sector

Integral development in Burundi means rural development. The resources provided for the development of this sector have had mixed success, given the prevailing poverty and precariousness in rural areas, even though most politicians, government officials and employees in both the civil service and the modern private sector come from this background.

The following package of measures is intended to raise rural household incomes:

1. There should be significant public investment in the food-crop sector and agro-industry;
   
   
2. Burundians should invest in rural areas;
   
   
3. Producers should be guaranteed prices that serve as incentives;
   
   
4. Producers should be encouraged to organize themselves freely in order to defend their interests;
   
   
5. Credit should be made available in rural areas on favourable terms;
   
   
6. There should be increased investment in and the development of such production support services as telephones, water and electricity in rural areas;
   
   
7. Crop security should be ensured: a recent phenomenon has been the theft of crops in the fields, which is demoralizing to farmers;
   
   
8. Agricultural specialization should be encouraged as much as possible in order to take advantage of regional opportunities and promote trade;
   
   
9. Policies should be implemented to integrate agriculture and livestock farming, thereby promoting the development of other branches that afford Burundi a comparative advantage in the global economy.

3.5.4.2 The private sector

An environment conducive to private sector development must be created. To this end, the following measures are necessary:

1. Political stability is a prerequisite for the development of commercial and industrial activities;
   
   
2. Relations between Government offices and the private sector must be improved. The training of certified public accountants should be encouraged so that these professionals can serve as an intermediary between taxpayers and the tax authorities;
   
   
3. The harassment of economic agents must be stopped, particularly the harassment of merchants on Burundi's roads;
   
   
4. Attractive incentives should be developed to promote the national and international private sector, particularly by improving the investment code;
   
   
5. Special incentives should be created to encourage civil servants and youth who wish to set up their own enterprises, with priority given to rural enterprises;
   
   
6. The business environment should be made more secure; in particular, stiffer penalties should be provided to deal with bad cheques, the execution of commercial court judgements should be accelerated, guarantees should be required and the training of notaries public should be encouraged;
   
   
7. Legislation governing the free trade zone should be improved and investment in the zone should be encouraged;
   
   
8. Investment aimed at developing the country's tourism potential should be encouraged.

3.5.4.3 The social sector

3.5.4.3.1 Education

In today's society, formal education is the key that opens the door to a better life. It affords access to jobs in the public and private sectors, where salaries are higher than in rural areas. Moreover, education beyond the primary level, especially for women, would help solve the problem of accelerated population growth, since educated households have better control over their fertility. It is for this reason that everyone in Burundi should receive an education. As Burundi is not yet able to educate its entire population, it must ensure that equity prevails in the sensitive area of school enrolment. Equity must be reflected in the location of schools and school infrastructure, and in the assignment of qualified teachers.

The crisis in Burundi has caused enrolment levels to plummet. The short-term objective is to bring them back up to pre-crisis levels. The main objective, though, is to reform the education system so that all children can be enrolled. Initially, what is needed is a reform that will allow all children to attend school until at least the tenth grade. Investment in education should be directed towards the achievement of that objective. School capacity at the secondary level should be increased, and colleges at the commune level should be encouraged and supported, as should the establishment of private secondary schools. Teachers should be given appropriate training in adequate numbers, and all the requisite teaching materials should be provided. Particular attention should be paid in this regard to expanding the various areas in which vocational education is provided.

In the area of higher education, the establishment of higher technical institutes and universities, both public and private, should be encouraged.

3.5.4.3.2 Health

The crisis has also lowered the population's standard of health. Immunization coverage, prenatal consultations and childbirth attended by qualified medical personnel have all declined. Acute malnutrition is on the rise, particularly among vulnerable groups such as children and pregnant and nursing women. The country must return to pre-crisis conditions and even improve on them in all areas.

The incidence of AIDS has increased in both rural and urban areas. The number of AIDS orphans has also increased. A programme to combat AIDS and provide assistance to orphans is needed.

The distribution of medical personnel is skewed, with rural areas at a strong disadvantage: over 60 per cent of all doctors are based in the capital. Adequate incentives must be provided, and doctors' personal safety must be guaranteed so that they will be willing to serve in rural areas.

Medicines in Burundi are very expensive, and only those who work in the modern formal sector have health insurance. In order for everyone to have access to medicines, the Government will continue to take steps to make medicines more readily available to the population, chiefly by establishing a system of co-payment for persons in rural and urban areas who do not have insurance.

3.5.4.3.3 Employment

Although the 1990 census indicated that only 0.4 per cent of the population considered themselves to be unemployed, underemployment in rural areas is probably higher, and today affects even more people.

The modern sector (i.e. the public, parapublic and private sectors) employs less than 7 per cent of the population and has not grown in more than a decade. It has been severely affected by the crisis in that many enterprises have had to dismiss or cut back their staff.

The public sector is still the only major employer. All members of the country's elite jostle for positions in this sector, which is beginning to be saturated. Equity and transparency must characterise recruitment in the public sector.

The Government will have to make great efforts to create new jobs and an adequate framework and institutions in order to stimulate employment creation and production in the private sector, in the tertiary sector and in rural areas. These efforts should also be an answer to the challenge posed by the restructuring of the public sector, the return of refugees and demobilization.

3.5.4.3.4 The economic and social aspects of demobilization

Given that the actual decision regarding demobilization as well as specific measures (relating to number, timetable, etc) must be taken by Committee III, the following text is subordinated to the provisions of Protocol III.

Demobilization is closely linked to the goals of national reconciliation and development and to the problem of employment (see 3.5.4.3.3.) Once the crisis is over, it will be necessary to demobilize the former combatants and proceed with their socio-professional reintegration. Demobilization and disarmament programmes are very expensive, which is why Burundi will require the assistance of the international community for this undertaking. The number of demobilized persons and armed forces members will have to be strictly monitored, as will expenditure in this sector, in order to justify continued financing by donors. On the basis of information provided by Committee III, an assessment of needs and costs should be made as soon as possible.

The following principles must be observed when implementing economic measures and carrying out demobilization:

1. Equitable treatment of those demobilized;
   
   
2. Establishment of an agency responsible for demobilization at the national and regional levels that will also ensure coordination with donors;
   
   
3. Education of the target group and the communities about demobilization;
   
   
4. Transparency and flexibility in the implementation of the demobilization programme;
   
   
5. An integrated approach that includes among other items financial assistance, assistance with reintegration in the labour market and resettlement, legal advice and socio-psychological support;
   
   
6. Economic integration based among other elements on education, vocational training, credit programmes, income-generating activities and employment programmes;
   
   
7. Special attention to such target groups as child soldiers, women soldiers and the disabled;
   
   
8. Facilitation of the integration of demobilized persons into their families and communities.

3.5.5 Political and institutional framework

3.5.5.1 Good governance

It is universally accepted that the ethics of public affairs management in Burundi have eroded and that good governance is indispensable to accelerated economic growth.

Problems of governance are related to all kinds of conflicts and to a lack of social cohesion. The best way to remedy this situation is to practise transparency in the utilization of public resources, to ensure equity in public spending, and to promote decision-makers who do not favour one ethnic group or region. The civil service must also be reformed and an inspector general's office established.

To make the utilization of public resources more transparent, leaders and officials must be able to demonstrate that they are managing public affairs properly, and their performance in this regard will be evaluated. Decision-making should therefore be decentralized, and an anti-corruption strategy should be pursued. This strategy should seek to minimize opportunities for personal gain and include more effective monitoring mechanisms.

An effective civil service is an essential component of good governance. The basic criteria for recruitment, retention and promotion in an effective civil service are merit and competence. To the extent possible, civil servants should be well paid, honest and immune to requests from politicians.

Current ethnic imbalances in the civil service should be gradually corrected by means of a deliberate policy. This policy should be implemented with transparency and equity in every government body.

3.5.5.2 Court of Audit

A Court of Audit is an excellent tool for the proper management of public affairs. It should be established and made operational as soon as possible. In appointing staff to it, ethnic balance should be respected, for any imbalance would make it partial, and negative ethnic solidarity would soon be apparent, so that certain offences would go unpunished.

3.5.5.3 Decentralization

Decentralization seeks to make the communes focal points for development and to give the population greater access to State services. The Government will provide the communes with sufficient resources to establish a development policy covering, inter alia, education, health, roads and water supply. The decentralization of resources must respect the principle of equity.

3.6 The role of women in development

Burundi has ratified the principal international human rights treaties, including the Universal Declaration of Human Rights, the International Covenant on Economic, Social and Cultural Rights, the International Covenant on Civil and Political Rights, the Convention on the Elimination of all Forms of Discrimination against Women and the Convention on the Rights of the Child.

Women's advancement, and their equality with men, are one aspect of human rights - one that is a condition for social justice and essential to building a viable, just and developed society. The empowerment of women is an essential prerequisite for the political, social, economic, cultural and ecological security of the entire population.

Equality between the sexes does much to enhance the well-being of women, men, girls and boys, and is indispensable for achieving people-centred sustainable development.

The Government should pay special attention to the status of women and combat all discrimination against them.

In Burundi as elsewhere, women have not been sufficiently involved in affairs of State. Nor have they been adequately represented in the modern private sector or in the business world. This is due to a lack of political will on the part of the Governments in office to date.

Future Governments will have to actively:

1. Give women equal access to the running of the State. Women should be integrated in all sectors, including in the security and defence bodies;
   
   
2. Mobilize women to ensure that their demands are heard in public;
   
   
3. Ensure that all women's concerns are taken into consideration;
   
   
4. Find solutions to the problems that prevent large numbers of girls from pursuing their education at the secondary and university level;
   
   
5. Help women's groups and NGOs improve their organizational and financial capacity;
   
   
6. Improve women's social and legal status;
   
   
7. Give women access to the means of production, particularly land and credit;
   
   
8. Require development programmes and projects to integrate women at all levels.

3.7 The role of youth

In a country like Burundi where youth under the age of 15 make up nearly half the population, no sustainable development is possible if the needs and aspirations of youth are not taken into account.

Accordingly, specific measures must be planned for youth so that they can become participants in, and special beneficiaries of, development.

The following concrete measures should be taken on behalf of youth:

1. Greater attention should be paid to youth and to the education of young people;
   
   
2. Illiteracy should be eradicated among youth by the year 2005 through compulsory education;
   
   
3. Young people not attending school should receive vocational and technical training that will allow them to carry out projects that will contribute to their personal development and to the economic and social development of Burundi;
   
   
4. Income-generating activities should be organized for youth through the establishment of model agricultural and livestock farms;
   
   
5. Young people should be employed in public service projects;
   
   
6. Young people should be made aware of the problems they face - AIDS, vagrancy and delinquency - and educated through sports and cultural activities;
   
   
7. A genuine cultural policy for youth that promotes development should be formulated;
   
   
8. A policy to provide social assistance and supervision for youth in difficult circumstances (orphans, street children, abandoned children, etc.) should be formulated;
   
   
9. Programmes to mobilize and sensitize youth to a culture of peace, democratic values and non-violence should be developed;
   
   
10. Young people should be provided with forum in which they can express their views on questions of national interest.

All these programmes for youth must be integrated into overall development planning and should be contemplated from a long-term perspective. They must be prepared not only for youth but, more important, with and by youth.

3.8 Regional integration

Regional integration can help Burundi solve its socio-economic problems. Burundi should therefore become a member of regional bodies, for it can truly benefit from them.

3.9 Development financing

Burundi has few financial resources available for development, and it will have to make a major effort to increase them. External financing will also have to be mobilized. Burundi must send out political and economic signals strong enough to encourage donors to make a major contribution. These signals have to do with the process of national reconciliation, a strong commitment to economic reform, and the proper management of public affairs.

Effective co-ordination of donor activities will be necessary if Burundi's reconstruction and development are to be successful.

3.10 Equitable sharing of the benefits of development

In Burundi, there are disparities between ethnic groups, regions and rural and urban areas, as well as between men and women, with regard to the distribution of economic riches. The modern sectors of the economy are often dominated by relatively small groups.

The Government must therefore set up an adequate framework to enable that the benefits of development are equitably distributed, particularly in the areas of secondary and higher education, universal health care, employment and equal access to such financial resources as bank credits and public markets. It must also ensure that interest groups do not thwart its efforts to uphold the general welfare.

3.11 Implementation

For the implementation of the reconstruction and development measures, an Inter-Ministerial Reconstruction and Development Unit shall be created to which the Ministries of Planning, Finance and Reintegration shall second personnel. The Unit will receive support from the World Bank, UNDP, UNHCR, the European Commission and others. It will have the following mandate:

1. The preparation, within six weeks of the signing of the Agreement, of an emergency reconstruction plan that will set the priorities for reconstruction and provide an initial estimate of costs. In preparing this plan, the National Commission for the Rehabilitation of Sinistrés shall be consulted and invited to submit proposals. This emergency plan will also serve as the basis for discussion at a donor conference;
   
   
2. Subsequently, the preparation of a detailed reconstruction plan covering the transition period as set forth in Protocol II to the Agreement;
   
   
3. At the same time, preparation of a medium- and long-term development.

The three plans shall be submitted to the National Assembly for approval. They will be guided by the measures proposed by Committee IV (see above, chapters II and III) while adapting the priorities in response to developments in the situation and bearing in mind opportunities for financing.

Donors will be involved in the work of the Unit and may request an international auditing company to monitor all financial operations and accounts that may be established.

General Conclusion

Through the Burundi Peace Negotiations at Arusha it has been possible to assess how seriously the political and ethnic crisis that has torn Burundi apart since independence has affected Burundian society:

• Hundreds of thousands of Burundians are refugees, some of them for more than 25 years. Hundreds of thousands more are forced to live in camps where conditions are appalling;
  
  
• There has been widespread destruction: public infrastructure, homes and rental property, commercial centres, etc.;
  
  
• The Burundian economy has been badly damaged and is on the verge of bankruptcy;
  
  
• Burundi's population has grown increasingly poor: the number of people living under the poverty threshold exceeds 60 per cent in both rural and urban areas.
  
  

All Burundians are aware that a lasting peace is impossible so long as a definitive solution is not found to the problem of refugees and sinistrés. Likewise, peace is impossible so long as the country's wealth is not shared equitably.

Burundi cannot help the sinistrés, rebuild destroyed property and restore its economy without the assistance of the international community. The international community is waiting for a visible political gesture that will reflect the commitment of Burundians to refrain from ever again destroying their own country and their willingness to build the country together and ensure that equity prevails in the sharing and distribution of the country's resources.

Bibliography

1. Choisir l'espoir: Pour un engagement constructif au Burundi (Choosing hope: towards constructive engagement in Burundi). United Nations, Bujumbura, 1998.
   
   
2. Burundi: Framework programme of community assistance, United Nations, New York, 1995.
   
   
3. Burundi: Country assistance strategy, World Bank (report No. 14442-Bu), New York, 1995.
   
   
4. Burundi: 1998 Annual report of the United Nations Resident Coordinator, 1999.
   
   
5. Burundi: Les enjeux de la reprise de la cooperation (Conditions for the resumption of co-operation), 1999.
   
   
6. Burundi: Consequences of the embargo on the living conditions of Burundian children and families, UNICEF, 1998.
   
   
7. Activities of international NGOs in Burundi (certain pages)
   
   
8. Estimate of the number of camps and of the number of sinistrés by camp in Burundi, OCHA-Burundi.
   
   
9. World Human Development Report 1997.
   
   
10. Poverty in Burundi, a regional analysis, United Nations Department of Economic and Social Affairs.
    
    
11. World Bank: Memorandum from the President of the International Development Association to administrators concerning the World Bank Group's aid strategy for Burundi, May 1995.
    
    
12. Burundi: Economic strategy and poverty assessment note prepared by the World Bank, report No. 13592-bu, January 1995.
    
    
13. World Bank: Memorandum by the President of the International Development Association.
    
    
14. Burundi Human Development Report 1999.
    
    
15. OCHA: Guiding Principles on Internal Displacement, 1999.

⁶ Current market prices

⁷ World Human Development Report, 1997, p. 180 of the French text.

⁸ The poverty threshold has been set at $US 104.

⁹ Poverty in Burundi, a regional study conducted by the United Nations Department of Economic and Social Affairs, p. 13 of the French version.

¹⁰ Memorandum from the President of the International Development Association to staff concerning the World Bank Group's aid strategy for Burundi, May 1995, p. 3

¹¹ Economic strategy and poverty assessment note by the World Bank, report No. 13592, January 1995, p. 33 of the French version.

¹² Burundian Institute for Statistics and Economic Studies.

¹³ Human Development Report for Burundi, 1999, p.4

¹⁴ Human Development Report on Burundi 1999, p119

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