## _cr05325 - 1.  In November 2003, the government of Burundi finalized its Interim Poverty

## Source details

**Canonical URL:** [_cr05325 - 1.  In November 2003, the government of Burundi finalized its Interim Poverty](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2005/_cr05325.pdf)

## Other formats

- [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2005/_cr05325.pdf.md)
- [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2005/_cr05325.pdf.json)

---

### Context and implementation of the Interim PRSP
- Interim PRSP finalized November 2003; reviewed by World Bank and IMF Boards on January 24, 2004; adoption allowed access to IMF PRGF.
- Six strategic lines of action:
  - (1) promotion of peace and good governance
  - (2) revival of a strong economy to reduce poverty
  - (3) access to basic social services
  - (4) reinsertion and reintegration of ex-combatants and vulnerable groups
  - (5) fight against HIV/AIDS
  - (6) participation of women in social and economic development
- Political context:
  - Process of normalizing and democratizing political life; priority given to enduring peace and implementation of Arusha Agreements.
  - Referendum on post-transition constitution scheduled for February 28, 2005; followed by municipal and legislative elections.
- Macroeconomic and sectoral notes:
  - Coffee production estimated at 37,000 tons in the 2004-2005 crop year.
  - Economic growth came in slightly below 5 percent in 2004.
  - Inflation rate remained slightly higher than 10 percent at end-2004.
  - Tax receipts continue to fall short of expectations; proposed measures (service tax of 6 percent; application of Article 26 of the 2005 Budget Law regarding a withholding tax on the oil sector) face strong resistance.
  - For 2005 the primary budget deficit is forecast at Fbu105 billion (10.2 percent of GDP).
- Structural reforms and liberalization:
  - Coffee sector liberalized (Decree 100/12 signed on January 14, 2005): private investments authorized throughout production chain; restrictions on exports and sales eliminated; OCIBU to be restructured.
  - Sugar sector marketing and price controls fully liberalized (Decree 100/89 signed on March 3, 2005).
- Social sector:
  - Despite reallocation of budget resources toward current social and health expenditures, social indicators show deterioration and inadequate access to basic services.

### Preparation of the full PRSP — objectives, timeline, and participatory approach
- Full PRSP (DPRSP) builds on the Interim PRSP and Arusha Agreement principles; aims for participatory preparation to support post-transition development.
- Official launch of preparatory process: May 21, 2004.
- Action plan drawn up in November 2004 with target date of end-June 2005 for final document.
- Key timeline milestones:
  - Community participatory consultations: July 20 to December 28, 2004 (provincial/town workshops) and concluding province-wide by April 30, 2005.
  - Drawing together town and provincial conclusions: until May 30, 2005.
  - Provincial consultation reports expected on June 15, 2005.
  - National summary of community consultations scheduled for June 30, 2005.
  - Sector consultations: stock-taking April 15–May 15, 2005; sector consultations May 15–June 15, 2005.
  - Base document presented June 30, 2005.
  - Preliminary draft of PRSP expected July 30, 2005; second draft August 15, 2005; final document August 30, 2005.

### Institutional framework for PRSP formulation
- Interministerial Committee to Monitor Economic and Social Policies:
  - 13 members, chaired by the Vice-President; Minister of Finance is vice-chairman.
  - Formulates overall orientation and general principles; promoted participation by development partners.
- Permanent Secretariat for Monitoring Economic and Social Reforms (SP/REFES):
  - Coordinates activities and is the mainspring of PRSP design.
- Technical Oversight Committee:
  - 15 members including civil society, NGOs, technical ministries, women's and private sector associations.
  - Guides stages of process, monitors studies, analyzes/adopts reports from community and sectoral consultations.
  - Ensures participation of bilateral and multilateral partners and harmonization with Millennium Development Goals.
- Decentralized structures:
  - Communal Development and Poverty Reduction Committees (CCDLP) at town level and Provincial Development and Poverty Reduction Committees (CPDLP) at provincial level to organize community involvement.

### Participatory process, progress, and outstanding actions
- Lead NGO for community consultations: Twitezimbere (methodologies MARP and PPA approved on June 4, 2004).
- Regional/provincial workshops and awareness campaigns organized in 17 provinces and 129 towns/zones from July 20 to December 28, 2004.
- Provincial and town-level capacity strengthening workshops held; CPDLP and CCDLP established in August, 2004.
- Specific progress:
  - Community consultations conducted first in Kirundo, Muyinga, Mwaro and rural Bujumbura; these conclude April 30, 2005.
  - Study of incidence and perception of poverty completed; results available.
  - Report on community consultation conclusions expected by April 30, 2005.
- Ongoing tasks and sequencing:
  - Summarization of community conclusions at town and province levels until May 30, 2005.
  - Consolidation into national summary and distribution by June 30, 2005.

### Sectoral and thematic consultations — structure and roles
- 16 sectoral and thematic groups organized:
  - Cross-cutting thematic groups: HIV/AIDS, Gender, Governance, Security and Peace, Employment.
  - Sectoral groups: Macro-economy, Financing, Agriculture, Rural Development and Livestock Production, Environment, Health, Education, Reinsertion, Reintegration and Reception, Commerce, Industry, Private Sector, Housing, Civil Society and NGOs, Parliament.
- Technical subcommittees (one per sector/theme) responsibilities:
  - (1) stock-taking of sector situation
  - (2) organize sectoral/thematic consultations based on stock-taking
  - (3) integrate community consultation conclusions into sector reports and synthesize consultations as basis for PRSP first draft
  - (4) derive sectoral policy conclusions: strategic axes, priority actions, quantification of selected actions, execution methods and actors, alignment with Millennium Development Goals
- Additional roles:
  - Establish coherent macroeconomic framework and quantify actions for pro-poor budget.
  - Map comprehensive monitoring/evaluation system based on MDGs and Vision Burundi 2025.
- Resource gaps:
  - Need for technical assistance, notably a specialist in cost estimation and a specialist in macroeconomic policy.
  - Secretariat assisted by Institute for Economic Development (IDEC) for advice and quality control.

### Statistics, public financial management reforms, and development projects
- Statistical and analytical support activities:
  - Inquiry on incidence and perception of poverty funded by World Bank.
  - Unified questionnaire on development indicators (QUID) for BURSAP.
  - French cooperation study “enquête1/2/3”.
  - “The Analysis of the institutional system for monitoring and evaluating poverty in Burundi” (March 24-April 8, 2004) by World Bank.
  - UNDP support for AFRISTAT to assist ISTEEBU capacity strengthening.
- Public financial management and personnel reforms:
  - Program of Reforms of Public Financial Management and Management of Government Personnel drawn up in 2002.
  - Early actions: Treasury audit in 2002; start of ASYCUDA++; census of government agents in 2003; preparation of new budget and accounting nomenclatures in 2003.
  - External assistance: PAGE project preparation 2002-2003 supported by World Bank; settlement of overdue teachers’ wages in 2003-2004; analysis of bill regarding Cour des Comptes supported by Belgium; IMF-supported program in 2002.
  - Follow-on projects: World Bank PAGE project in 2004 and PARAFE by France in 2004.
- Social expenditure projections:
  - Social expenditures expected to rise from 5.4 percent of GDP in 2003 to 6.7 percent in 2004 and 7 percent in 2005.
- Rural development project:
  - Project for Rehabilitation of the Agricultural Sector in Burundi (PRASAB) supported by World Bank $35 million credit; expenditures spread over 3 years (2005-2008).

### Activities completed and planned
- Completed:
  - December 2004 orientation workshop for focal points.
  - Terms of reference for sectoral/thematic consultations and overall PRSP preparation budget finalized in March 2005.
  - Joint meetings with IDEC organized in March 2005.
- In progress/planned:
  - Macroeconomic study on sources of growth: terms of reference prepared; study underway by two Burundi consultants.
  - Identification of focal points and organization of sectoral consultations March to mid-April.
  - Sector stock-taking April 15–May 15, 2005.
  - Sector consultations May 15–June 15, 2005.
  - Synthesis of community and sectoral consultations to create base document for full PRSP by June 30, 2005.
  - Drafting timetable: preliminary draft July 30, 2005; second draft August 15, 2005; final document August 30, 2005.

### Strengthening capacity and resource needs
- Identified gaps from I-PRSP experience:
  - Shortcomings in dissemination of information and understanding of PRSP process among stakeholders.
- Needs:
  - Institutional support to Permanent Secretariat: human, material, and financial resources.
  - Studies and training workshops to enhance capacity.
  - International assistance needs currently being evaluated.

### National and international partnerships
- Government priority: participation of national NGOs, civil society, and community organizations in PRSP preparation.
- Burundian NGO association involved in organizing community consultations; international NGOs contributing to funding.
- Permanent Secretariat established terms of reference for framework of cooperation with development partners (December 2004, with World Bank assistance).
- Secretariat web site: www.cslpburundi.org

### Estimated budget for PRSP preparation (USD)
- I. Community consultations — Cost per category (USD)
  - Support of decentralized organizations 20,000
  - Awareness and information workshops for provincial officials 1,120
  - Provincial awareness and information workshops on the PRSP aimed at provincial stakeholders 17,000
  - Conduct of town community consultations 289,000
  - Conduct of provincial community consultations 71,765
  - Redaction of the national synthesis and follow-up seminar 26,000
  - Total needed for community consultations 424,885
- II. Sectoral and thematic consultations 118,586
- III. Private sector consultations 29,687
- IV. Civil society consultations 8,619
- V. Overall synthesis/first draft of full PRSP 30,000
- VI. Study on the sources of growth 4,000
- VII. Publicity 6,000
- VIII. Institutional support of REFES 200,000
- Total 396,892
- Grand total 821,777

*Source: IMF staff report content unit _cr05325 - 1.  In November 2003, the government of Burundi finalized its Interim Poverty*

### _cr05325 - 1.  The two greatest constraints in the preparation of the full PRSP are institutional

### Constraints, challenges, and risks
- The two greatest constraints in the preparation of the full PRSP are institutional weaknesses and the normalization process of political life in Burundi.
- Specific constraints, challenges, and risks:
  - The election schedule may interrupt the schedule for finalizing the PRSP on the due date;
  - The scarcity of quality human expertise to support activities in the preparation of the PRSP over time;
  - A delay in the mobilization of financial resources required for the smooth accomplishment of the process;
  - The need to create synergy and harmony between the PRSP preparatory process, the sectoral programs of the government, and the sectoral programs of the development partners involved in the PRSP process;
  - The creation of a coordination mechanism for government and bilateral and multilateral foreign aid agencies.

### Government commitment and progress
- The government of Burundi is resolutely committed to implementing the Interim PRSP and preparing the full PRSP within the time allotted.
- Measures already taken:
  - Ensuring the process goes forward with smooth organization and internalization of the process.
  - Ongoing activities despite delays due in particular to funding difficulties that interrupted activities during the months of September and October 2004.
  - Intention to strengthen partnership with development partners and seek their technical and financial assistance in drawing up a high-quality PRSP.

### Timeframe of activities for the preparation of the full PRSP
- Timeline header (months across 2004 and 2005):
  - 2004: 5     6     7     8     9     10     11     12
  - 2005: 1     2     3     4     5     6     7     8
- Activity schedule (X marks planned activity timing as shown):
  - Official launch
    - X
  - Regional workshops
    - X       X       X       X       X       X
  - Provincial workshops
    - X       X       X       X       X
  - Creation of CPDLPs
    - X       X       X       X       X       X       X       X
  - Harmonization sessions
    - X       X       X       X       X       X       X       X
  - Awareness campaign in towns
    - X       X       X       X       X       X       X       X
  - Community consultations
    - X    X    X    X     X     X     X    X    X    X
  - Summaries of provincial consultations
    - X
  - Sectoral consultations
    - X       X
  - Draft PRSP
    - X
  - Copies to donors
    - X
  - Adoption of the PRSP by the government
    - X

*Source: _cr05325 - 1.  The two greatest constraints in the preparation of the full PRSP are institutional*

### 1.  In November 2003, the government of Burundi finalized its Interim Poverty

### _cr05325 - 1.  In November 2003, the government of Burundi finalized its Interim Poverty

### Context and implementation of the Interim PRSP
- Interim PRSP finalized November 2003; reviewed by World Bank and IMF Boards on January 24, 2004; adoption allowed access to IMF PRGF.
- Six strategic lines of action:
  - (1) promotion of peace and good governance
  - (2) revival of a strong economy to reduce poverty
  - (3) access to basic social services
  - (4) reinsertion and reintegration of ex-combatants and vulnerable groups
  - (5) fight against HIV/AIDS
  - (6) participation of women in social and economic development
- Political context:
  - Process of normalizing and democratizing political life; priority given to enduring peace and implementation of Arusha Agreements.
  - Referendum on post-transition constitution scheduled for February 28, 2005; followed by municipal and legislative elections.
- Macroeconomic and sectoral notes:
  - Coffee production estimated at 37,000 tons in the 2004-2005 crop year.
  - Economic growth came in slightly below 5 percent in 2004.
  - Inflation rate remained slightly higher than 10 percent at end-2004.
  - Tax receipts continue to fall short of expectations; proposed measures (service tax of 6 percent; application of Article 26 of the 2005 Budget Law regarding a withholding tax on the oil sector) face strong resistance.
  - For 2005 the primary budget deficit is forecast at Fbu105 billion (10.2 percent of GDP).
- Structural reforms and liberalization:
  - Coffee sector liberalized (Decree 100/12 signed on January 14, 2005): private investments authorized throughout production chain; restrictions on exports and sales eliminated; OCIBU to be restructured.
  - Sugar sector marketing and price controls fully liberalized (Decree 100/89 signed on March 3, 2005).
- Social sector: despite reallocation of budget resources toward current social and health expenditures, social indicators show deterioration and inadequate access to basic services.

### Preparation of the full PRSP — objectives, timeline, and participatory approach
- Full PRSP (DPRSP) builds on the Interim PRSP and Arusha Agreement principles; aims for participatory preparation to support post-transition development.
- Official launch of preparatory process: May 21, 2004.
- Action plan drawn up in November 2004 with target date of end-June 2005 for final document.
- Key timeline milestones:
  - Community participatory consultations: July 20 to December 28, 2004 (provincial/town workshops) and concluding province-wide by April 30, 2005.
  - Drawing together town and provincial conclusions: until May 30, 2005.
  - Provincial consultation reports expected on June 15, 2005.
  - National summary of community consultations scheduled for June 30, 2005.
  - Sector consultations: stock-taking April 15–May 15, 2005; sector consultations May 15–June 15, 2005.
  - Base document presented June 30, 2005.
  - Preliminary draft of PRSP expected July 30, 2005; second draft August 15, 2005; final document August 30, 2005.

### Institutional framework for PRSP formulation
- Interministerial Committee to Monitor Economic and Social Policies:
  - 13 members, chaired by the Vice-President; Minister of Finance is vice-chairman.
  - Formulates overall orientation and general principles; promoted participation by development partners.
- Permanent Secretariat for Monitoring Economic and Social Reforms (SP/REFES):
  - Coordinates activities and is the mainspring of PRSP design.
- Technical Oversight Committee:
  - 15 members including civil society, NGOs, technical ministries, women's and private sector associations.
  - Guides stages of process, monitors studies, analyzes/adopts reports from community and sectoral consultations.
  - Ensures participation of bilateral and multilateral partners and harmonization with Millennium Development Goals.
- Decentralized structures:
  - Communal Development and Poverty Reduction Committees (CCDLP) at town level and Provincial Development and Poverty Reduction Committees (CPDLP) at provincial level to organize community involvement.

### Participatory process, progress, and outstanding actions
- Lead NGO for community consultations: Twitezimbere (methodologies MARP and PPA approved on June 4, 2004).
- Regional/provincial workshops and awareness campaigns organized in 17 provinces and 129 towns/zones from July 20 to December 28, 2004.
- Provincial and town-level capacity strengthening workshops held; CPDLP and CCDLP established in August, 2004.
- Specific progress:
  - Community consultations conducted first in Kirundo, Muyinga, Mwaro and rural Bujumbura; these conclude April 30, 2005.
  - Study of incidence and perception of poverty completed; results available.
  - Report on community consultation conclusions expected by April 30, 2005.
- Ongoing tasks and sequencing:
  - Summarization of community conclusions at town and province levels until May 30, 2005.
  - Consolidation into national summary and distribution by June 30, 2005.

### Sectoral and thematic consultations — structure and roles
- 16 sectoral and thematic groups organized:
  - Cross-cutting thematic groups: HIV/AIDS, Gender, Governance, Security and Peace, Employment.
  - Sectoral groups: Macro-economy, Financing, Agriculture, Rural Development and Livestock Production, Environment, Health, Education, Reinsertion, Reintegration and Reception, Commerce, Industry, Private Sector, Housing, Civil Society and NGOs, Parliament.
- Technical subcommittees (one per sector/theme) responsibilities:
  - (1) stock-taking of sector situation
  - (2) organize sectoral/thematic consultations based on stock-taking
  - (3) integrate community consultation conclusions into sector reports and synthesize consultations as basis for PRSP first draft
  - (4) derive sectoral policy conclusions: strategic axes, priority actions, quantification of selected actions, execution methods and actors, alignment with Millennium Development Goals
- Additional roles:
  - Establish coherent macroeconomic framework and quantify actions for pro-poor budget.
  - Map comprehensive monitoring/evaluation system based on MDGs and Vision Burundi 2025.
- Resource gaps:
  - Need for technical assistance, notably a specialist in cost estimation and a specialist in macroeconomic policy.
  - Secretariat assisted by Institute for Economic Development (IDEC) for advice and quality control.

### Statistics, public financial management reforms, and development projects
- Statistical and analytical support activities:
  - Inquiry on incidence and perception of poverty funded by World Bank.
  - Unified questionnaire on development indicators (QUID) for BURSAP.
  - French cooperation study “enquête1/2/3”.
  - “The Analysis of the institutional system for monitoring and evaluating poverty in Burundi” (March 24-April 8, 2004) by World Bank.
  - UNDP support for AFRISTAT to assist ISTEEBU capacity strengthening.
- Public financial management and personnel reforms:
  - Program of Reforms of Public Financial Management and Management of Government Personnel drawn up in 2002.
  - Early actions: Treasury audit in 2002; start of ASYCUDA++; census of government agents in 2003; preparation of new budget and accounting nomenclatures in 2003.
  - External assistance: PAGE project preparation 2002-2003 supported by World Bank; settlement of overdue teachers’ wages in 2003-2004; analysis of bill regarding Cour des Comptes supported by Belgium; IMF-supported program in 2002.
  - Follow-on projects: World Bank PAGE project in 2004 and PARAFE by France in 2004.
- Social expenditure projections:
  - Social expenditures expected to rise from 5.4 percent of GDP in 2003 to 6.7 percent in 2004 and 7 percent in 2005.
- Rural development project:
  - Project for Rehabilitation of the Agricultural Sector in Burundi (PRASAB) supported by World Bank $35 million credit; expenditures spread over 3 years (2005-2008).

### Activities completed and planned
- Completed:
  - December 2004 orientation workshop for focal points.
  - Terms of reference for sectoral/thematic consultations and overall PRSP preparation budget finalized in March 2005.
  - Joint meetings with IDEC organized in March 2005.
- In progress/planned:
  - Macroeconomic study on sources of growth: terms of reference prepared; study underway by two Burundi consultants.
  - Identification of focal points and organization of sectoral consultations March to mid-April.
  - Sector stock-taking April 15–May 15, 2005.
  - Sector consultations May 15–June 15, 2005.
  - Synthesis of community and sectoral consultations to create base document for full PRSP by June 30, 2005.
  - Drafting timetable: preliminary draft July 30, 2005; second draft August 15, 2005; final document August 30, 2005.

### Strengthening capacity and resource needs
- Identified gaps from I-PRSP experience:
  - Shortcomings in dissemination of information and understanding of PRSP process among stakeholders.
- Needs:
  - Institutional support to Permanent Secretariat: human, material, and financial resources.
  - Studies and training workshops to enhance capacity.
  - International assistance needs currently being evaluated.

### National and international partnerships
- Government priority: participation of national NGOs, civil society, and community organizations in PRSP preparation.
- Burundian NGO association involved in organizing community consultations; international NGOs contributing to funding.
- Permanent Secretariat established terms of reference for framework of cooperation with development partners (December 2004, with World Bank assistance).
- Secretariat web site: www.cslpburundi.org

### Estimated budget for PRSP preparation (USD)
I. Community consultations — Cost per category (USD)
- Support of decentralized organizations 20,000
- Awareness and information workshops for provincial officials 1,120
- Provincial awareness and information workshops on the PRSP aimed at provincial stakeholders 17,000
- Conduct of town community consultations 289,000
- Conduct of provincial community consultations 71,765
- Redaction of the national synthesis and follow-up seminar 26,000
- Total needed for community consultations 424,885

II. Sectoral and thematic consultations 118,586
III. Private sector consultations 29,687
IV. Civil society consultations 8,619
V. Overall synthesis/first draft of full PRSP 30,000
VI. Study on the sources of growth 4,000
VII. Publicity 6,000
VIII. Institutional support of REFES 200,000

- Total 396,892
- Grand total 821,777

*Source: IMF staff report content unit _cr05325 - 1.  In November 2003, the government of Burundi finalized its Interim Poverty*

### 1.  The two greatest constraints in the preparation of the full PRSP are institutional

### _cr05325 - 1.  The two greatest constraints in the preparation of the full PRSP are institutional

### Constraints, challenges, and risks
- The two greatest constraints in the preparation of the full PRSP are institutional weaknesses and the normalization process of political life in Burundi.
- Specific constraints, challenges, and risks:
  - The election schedule may interrupt the schedule for finalizing the PRSP on the due date;
  - The scarcity of quality human expertise to support activities in the preparation of the PRSP over time;
  - A delay in the mobilization of financial resources required for the smooth accomplishment of the process;
  - The need to create synergy and harmony between the PRSP preparatory process, the sectoral programs of the government, and the sectoral programs of the development partners involved in the PRSP process;
  - The creation of a coordination mechanism for government and bilateral and multilateral foreign aid agencies.

### Government commitment and progress
- The government of Burundi is resolutely committed to implementing the Interim PRSP and preparing the full PRSP within the time allotted.
- Measures already taken:
  - Ensuring the process goes forward with smooth organization and internalization of the process.
  - Ongoing activities despite delays due in particular to funding difficulties that interrupted activities during the months of September and October 2004.
  - Intention to strengthen partnership with development partners and seek their technical and financial assistance in drawing up a high-quality PRSP.

### Timeframe of activities for the preparation of the full PRSP
- Timeline header (months across 2004 and 2005):
  - 2004: 5     6     7     8     9     10     11     12
  - 2005: 1     2     3     4     5     6     7     8

- Activity schedule (X marks planned activity timing as shown):
  - Official launch
    - X
  - Regional workshops
    - X       X       X       X       X       X
  - Provincial workshops
    - X       X       X       X       X
  - Creation of CPDLPs
    - X       X       X       X       X       X       X       X
  - Harmonization sessions
    - X       X       X       X       X       X       X       X
  - Awareness campaign in towns
    - X       X       X       X       X       X       X       X
  - Community consultations
    - X    X    X    X     X     X     X    X    X    X
  - Summaries of provincial consultations
    - X
  - Sectoral consultations
    - X       X
  - Draft PRSP
    - X
  - Copies to donors
    - X
  - Adoption of the PRSP by the government
    - X

*Source: _cr05325 - 1.  The two greatest constraints in the preparation of the full PRSP are institutional*

---


_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2005/_cr05325.pdf_