91618 IDA at Work Burundi: Accelerated and Shared Growth for Peace Consolidation W ith a history of conflict and widespread poverty, Burundi has been working with the International Development Associa- tion (IDA) to rebuild peace and security, modernize public finance, provide basic services, and strengthen the agricultural sector. Since the Arusha Accords in 2000, Burundi has made progress toward political and social stability, while also improving the lives of its people. Burundi’s poverty outlook remains daunting; the country continues to be unlikely to reach the Millennium Development Goals (MDGs) by 2015. In 2010, Burundi ranked 167th of 169 countries on the UNDP Human Development Index. The last measured poverty level for Burundi stood at about 67 percent in 2006, still far from the MDG target of 18 percent in 2015. However, the country achieved progress on some key social indicators, such as maternal and child health, and in education enrollment. From 2005 to 2009, net primary school enrollment increased by 23 percent, under-five mortality decreased by 20 percent, and births assisted by skilled personnel doubled. Challenge Burundi is a small landlocked country with an economy dominated by subsistence agriculture. Coffee is the main export, accounting for more than 60 percent of export revenues and providing income to some 800,000 households. Thirteen years of ethnically fueled civil war widened poverty, increased basic social needs, and severely damaged basic economic infrastructure. Since the Arusha Accords in 2000, which led to power-sharing agreements and elections in 2005 and 2010, Burundi’s development program has aimed at consolidating peace and security, revitalizing the economy through agriculture rehabilitation, and improving operations, IDA supported the stabilization of social service delivery. Burundi faces tremen- the economy and the launch of the national dous challenges in diversifying the economy, reform program. IDA has now moved to reducing the vulnerability of the agricultural assisting the country’s development program sector to shocks, and strengthening good gov- through a series of budget support and invest- ernance and anti-corruption practices within ment operations, often leveraging additional a highly politicized civil service. funds from other development partners. As of March 7, 2011, IDA’s total financial com- It is unlikely that Burundi will reach the Mil- mitment to Burundi was US$409.8 million lennium Development Goals (MDGs) by 2015, targeting key development issues, namely: (i) despite signs of progress. Life expectancy post-conflict rehabilitation and reintegration rose to 50 years in 2009 from 43 years in 2000. to consolidate peace and security through Vaccination rates have improved. The gov- the Emergency Demobilization and Transi- ernment has attempted to increase coverage tional Reintegration Project; (ii) agriculture of public services by announcing in May 2006 rehabilitation and economic diversification free health services to children under five through the Agricultural Rehabilitation and and pregnant women. This measure helped to Sustainable Land Management Project, the decrease the under-five mortality rate by 20 Agro-Pastoral Productivity, and Market Devel- percent from 2005 to 2009. However, the lack opment Project, and the Finance and Private of essential medicine and qualified staff is Sector Development Project; (iii) education, affecting service delivery. About 71 percent of health, HIV/AIDS, and social policy reforms the total population benefit from safe water through four specific projects; (iv) economic (above the Sub-Saharan African average of management and foundations for good 58 percent). In education, progress has been governance and anti-corruption through the made, but further progress is critical to the Economic Reform Support Grant Project; (v) future growth of the country. Since the “free public works (water, sanitation, and flood school” policy was introduced in September protection), job creation, urban develop- 2005, primary education gross enrollment ment, transportation rehabilitation, and has significantly improved to about 130 per- energy through the Public Works and Urban cent in 2007-08 from 80 percent in 2003-04. Management Project, the Road Sector Devel- However, quality is low and the completion opment Project, and the Multi-Sectoral Water rate is only 46 percent. As a result, the odds & Electricity Infrastructure Project; and (vi) of reaching the MDG of 100 percent primary regional communications infrastructure. IDA completion rate remain slim. also coordinates international donor activi- ties, while providing macroeconomic and Approach sector analyses to inform the government’s policies and programs. Due to its weak fiscal position and high risk of debt distress, Burundi has benefited Results since 2000 from IDA grants, which support the development program laid out in the Since September 2006 after two years of country’s first Poverty Reduction Strategy reforms, Burundi has seen macroeconomic Paper. Starting with a series of emergency stabilization, improvement in budget disci- 2 pline and efficacy, and both the rehabilita- ▪▪Filling the gaps in education infrastructure tion and creation of economic infrastructure. and materials by constructing 32 new In relation to that, the outputs of the bank- schools and continuing the distribution of supported programs include: tens of thousands of textbooks to school- children. ▪▪Contribution to peace and security by ▪▪Curbing the risk of HIV/AIDS infection: demobilizing 29,527 adult ex-combatants (i) increase in the number of voluntarily from 2004 to 2010 and 6,886 ex-combat- tested people from 89,000 to 237,000 from ants, including 380 minors. 2005 to 2009; (ii) increasing the number ▪▪ Supporting economic reforms from 2004 of patients placed under antiretroviral to 2009, including the adoption of a treatment to 20,307 in 2010 from 14,343 Budget Framework law1 for the Ministry in 2008; (iii) raising the number of HIV+ of Finance, a revised procurement code, pregnant women under mother-to-child investment code, commercial code, and transmission protection to 61 percent from competition law. 8 percent. ▪▪ Reduction in the number of cases pending ▪▪Strengthening local development since before the Commercial Court beyond the 2007: training of about 2,000 local staff 60-day deadline mandated by law to 10 in project management techniques; 368 percent in 2009 from 40 percent in 2007. micro-projects agreements approved, ▪▪ Rehabilitating agriculture from 2004 to including 182 in favor of vulnerable groups. 2010 by improving yields: rice yields rose ▪▪Accelerating job creation from 2004 to to 5.0 MT/ha from 2.5 MT/ha; cassava to 2009 (6,082,722 person-days, 17 percent 12 MT/ha from 6 MT/ha; milk to 7 liters/ women); increasing budget allocations cow/day from 2.5 liters/cow/day, onion to community infrastructure by 80 per- to 15 MT/ha from 4 MT/ha. About 40,000 cent from 2004 to 2007; creating of 3,614 households benefitted (35 percent headed maintenance teams for local community by women) and another 240,000 people infrastructure. benefitted indirectly (45 percent were ▪▪Investing in roads from 2003 to 2010: households headed by women). rehabilitation of more than 176.2 km of ▪▪ Improving access to education from 2006 roads and maintenance of over 885 km of to 2010: the primary completion rate roads; generating over 12,000 jobs; and increased to 46 percent from 38 percent developing road maintenance schemes by and the gross enrollment rate to 130.4 strengthening the financial capacity of the percent from 101.3 percent.2 Road Fund. ▪▪Enhancing access to electricity while securing financing viability by financing 1.  An organic law or fundamental law is a law or system of laws 13,000 additional prepayment meters in which forms the foundation of a government, corporation or other organization’s body of rules. public buildings and areas with poor rev- 2.  Gross enrollment rate is defined as the total enrollment in enue recovery. a specific level of education, regardless of age, expressed as a percentage of the eligible official school-age population cor- ▪▪Building national capacities in procure- responding to the same level of education in a given school ment, and re-structuring the national year. The gross enrollment rate can exceed 100 percent due to power company’s balance sheet to remove the inclusion of over-aged and under-aged students because of early or late entrants, and grade repetition. unsustainable debt. 3 IDA Contribution to improve aid effectiveness and coordina- tion by building the capacity of Burundi’s IDA has extended US$826.6 million in credits aid coordination unit. In addition, the Bank and grants to Burundi since 2000. As a post and UK’s Department for International conflict county, Burundi receives a post-con- Development are helping the government flict allocation from IDA and currently only use, when feasible, sector-wide approaches receives IDA support in the form of grants. and monitor progress toward the partnership About 26 percent of this financial support has commitments of the Paris Declaration. The been provided through budget support opera- Bank works closely with the International tions linked to economic governance reforms. Monetary Fund and the European Commission IDA has mobilized an additional US$1,396 to improve public finance management. In million from other development partners in partnership with the Dutch and Norwegian the form of trust funds to support Burundi’s governments, we have provided direct support development program. to the budget. IDA also collaborates closely with UN agencies such as United Nations Chil- As of March 2011, the distribution of various dren’s Fund, United Nations High Commission projects in the active portfolio is as fol- for Refugees, United Nations Development lows: Water and Sanitation US$50 million; Program, and the World Health Organization Agriculture/Rural Development, Forestry and to improve the provision of water, sanitation, Environment US$93 million; Infrastructure health, and education to the poor. (energy, roads, urban) US$111.8 million; Social Development US$50 million; Human In partnership with UNDP and the African Development US$60 million; Finance and Capacity Building Foundation (ACBF), IDA is Private Sector Development US$19 million; strengthening capacity of Burundians to plan and Economic Management and Public Sector development programs, monitor progress, US$26 million. evaluate results, and manage their own development processes. IDA has forged part- Partners nerships with civil society groups through the “Conseil National de Lutte Contre le Sida” In Burundi, the government and development to support the fight against HIV/AIDS. Wide partners are taking steps to improve coordina- consultations are also undertaken regularly tion and harmonization. A Consultative Group in order to improve the quality of policymak- meeting was organized in October 2009. The ing, strengthen national ownership of key World Bank and the African Development Bank reforms, and promote accountability. carried out joint stakeholder consultations in Burundi to prepare their respective country Moving Forward strategies. The Bank, the International Fund for Agricultural Development, the Food and The Bank’s strategic directions in the country Agriculture Organization and the US Agency will continue to support Burundi’s transition for International Development collaborate from a post-conflict economy to a develop- to ensure full complementarities of respec- ing economy by selectively assisting the tive work programs in agriculture. Under the government to implement a credible Pov- Country Assistance Strategy, the Bank seeks erty Reduction Strategy. This will help the 4 country: (i) promote sustainable and broad- peace and security are preserved for foreign based economic growth through increased direct investment to flow in, demographic productivity of food crops, a larger exports issues start to be addressed, external finan- base, an improved business environment, cial support is increased, national capacities improved infrastructural services thanks to are continuously strengthened to monitor regional integration; (ii) improve access to and manage development programs and social services to consolidate social stability public resources, and electricity production through more efficient and transparent public is secured. Relying on its close partnership financial management and improved access with Burundi and recent efforts to develop to quality basic services; (iii) diffuse good such planning tools as a Medium-Term Expen- governance and anti-corruption practices by diture Framework, IDA will continue to assist strengthening Burundi’s governance strategy the Government of Burundi in addressing the and institutions to improve public financial development challenges. management. Last Updated April 2011. The future development program of Burundi http://www.worldbank.org/ida will help achieve this transition provided that 5