Possible ways for the improvement of Burundi’s economy Essay

To The Republic Of Burundi For An Economic And Public Enterprise Management Project (pp. 2). Retrieved from http//wwwwds.worldbank.org/servlet/WDSContentServer/IW3P/IB/1987/04/01/000009265_3970625091659/Rendered/PDF/multi_page.pdf

While the Government's recently initiated reforms represent a fundamental change in the economic environment conducive to growth and development, structural adjustment is a longterm process which will probably take more than a decade to materialize. Burundi's economy remains very fragile in terms of a resource base and vulnerability to fluctuations in coffee prices and weather conditions. Any adverse developments on these fronts are likely to produce considerable hardship in the economy and reduce the confidence in the expected results of the program. The report emphasizes the need to pursue the policy program with special attention to macroeconomic and public sector management. It recommends further policy actions to reinforce the restructuring of the Burundian economy a) active export promotion policies b) liberalization of the labor and financial markets and c) promotion of private investment, both domestic and foreign. At the sectoral level, priority needs to be given to measures aimed at improving productivity in agriculture, avoiding depletion of natural resources, developing smallscale activities, ensuring adequate maintenance of infrastructure, and improving efficiency in the social sectors. World Bank (2010 June 10). [Burundi  Structural adjustment and development issues Executive summary (English)]. Retrieved from http//documents.worldbank.org/curated/en/1988/01/739081/burundistructuraladjustmentdevelopmentissuesvol12executivesummary.

I feel it is a yes and no situation about whether the negative outcomes of the SAP could have been avoided. Some of the negative impacts of the SAP in Burundi like huge foreign debts, devaluation etc in my opinion is unavoidable. This is because the SAP came at a period of political instability and social unrest. In addition, the economic capacity of the country had not been properly developed through industrialization, local industries had become exposed to international competitors and the export trade agreements were uneven. However, a negative outcome such as the damage of the coffee industry, which is a significant player in the Burundi economy, could have avoided. I think it could have been avoided through the provision of incentives, better trade policies and agreements and a capitalist system in the coffee market, instead of government imposing prices and heavy regulations that crippled the industry. I believe that international financial institutions such as the World Bank and IMF can consistently provide assistance in an objective, unbiased and responsible manner. This is because the objective of such organization is to promote development and better governing systems within the assisted nations. They just need to formulate better policies, act beyond lenders and observers and become active participators in the policy implementation and reform process. They need to do greater monitoring and involvement to hold the governments and operational agencies of the assisted nations accountable to the development, reforms and policy outlines agreed on. They also need to ensure that other foreign participators do not take unfair advantage to exploit the vulnerability of the assisted nations. I think doing all of these and more will ensure that World Bank and IMF can consistently provide assistance in an objective, unbiased