burundi: structural adjustment policy

151 Pages·2010·3.19 MB·English

The Government of the
Republic of Burundi
with
The Center for Research on Economic
Development of the University of Michigan
present
BURUNDI: STRUCTURAL
ADJUSTMENT POLICY
Report on the Conference held in Bujumbura, Burundi
May 23 - 25 1990
The Government of the Republic of Burundi
with
The Center for Research on Economic

Development of the University of Michigan

present
BURUNDI: STRUCTURAL

ADJUSTMENT POLICY

Report on the Conference
held in Bujumbura, Burundi
May 23 - 25 1990
Prepared by

The Center for Research on Economic Development

at the University of Michigan

for

The United States Agency for International Development (USAID)

Grant No. 623-0000-G-00-001 2-00

September 1990
Published by

The Center for Research on Economic Development

The University of Michigan

340 Lorch Hall

611 Tappan Street

Ann Arbor, Michigan, 48109-1220 USA

Tel. [phone] Fax. [phone]
PREFACE

This volume contains the proceedings of a Conference on Structural Adjustment, held In
Bujumbura on May23 -25, 1990.
The Conference was initiated and managed by the Government of Burundi, and in particular by
the Permanent Secretariat of the Monitoring Committee of the Structural Adju3tment Program.
Funding for the Conference was provided by the Burundi Mission of the United States Agency for
International Development (USAID) and by the European Economic Community. Contributions
towards the organization of the Conference were made by the Center for Research on Economic
Development (CRED), which was also responsible for the editing of this volume.
The volume contains complete versions of the formal addresses and papers presented at the
Conference, along with summaries of the discussions which followed. A detailed summary of the
entire proceedings was prepared by the staff of the Permanent Secretariat, and is Included In the
introductory section of the volume. This is followed by the addresses and papers, which fall into four
categories:
1. A formal address by the Minister of Finance, Mr. Gerard Niylbigira;
2. Presentations by representatives of three international organizations: the European
Economic Community, the Economic Commission for Africa, and the United Nations
Industrial Development Organization;
3. Presentations on experience with structural adjustment in Madagascar and Ghana;
4. Papers on four themes central to structural adjustment: e;change rate policy, agricultural
pricing policy, public firiance, and privatization.
We at the Center for Research on Economic Development were impressed by the quality and
quantity of the effort which went into the Conference, and appreciated the opportunity to work in
genuine collaboration with the Permanent Secretariat, USAID/Burundi, and the other institutions
involved. It is our hope :hat the Conference itself and this volume of proceedings will be a useful
contribution towards the process of structural adjustment in Burundi, and will be of interest to
government officials, development assistance officials and scholars in other countries.
Ernest J. Wilson, III, Director
Center for Research on Economic Development
September 30, 1990
iii
Table of Contents
Page
Preface
ii
Ust of Participants
vii
Ust of Acronyms and Abbreviations
Ix
Summary of Proceedings
1
Opening Speech
23
by G6.rard Niyibigira
African Economies and Structural Adjustment 31
by Dominique David
The African Experience with Economic Reforms 41
by Patrick Bugembe
Examination of the Development of the Industrial Sector in Africa 49
by Philippe Scholtes
Examination of Some Experiences of Madagascar 55
by Nirina Andriamanerasoa
Examination of Some Experiences of Ghana 65
by Abner Bab Klu
Exchange Rate Policies in Africa and the Requirements of 79
Stabilization and Structural Adjustment
by Patrick Plane
Is Price Policy Still Important? Structural Adjustment 103
and the Reform of Agricultural Price Policy
by B. Lynn Salinger
Burundian Fiscal Policy and its Impact on Private Savings 121
by Prime Nyamoya
presented by Joseph Akilimali
A Theoretical Treatment of Tax Policy 145
by Apollinaire Ndorukwigira
V
List of Participants
Local Participants
Mr. Gerard NIYIBIGIRA, Ministre des Finances et Vice-Pr6sident du Comlt6 de Suivi du PAS, Opening
Speech

Mr. Salvator MATATA, Secrdtalre Permanert du Comit6 de Suivi du PAS, Closing speech
Professor Apollinaire NDORUKIWIGIRA, Uni¢ersit du Burundi, "ATheoretical Treatment of Tax Policy"
Mr. Joseph AKIUMAU, repr6sntant le SG de la CCIAA, pr6sentateur de l'expos6 de Mr. Prime
NYAMOYA, "Burundian Fiscal Policy and Its Impact on Private Savings"
Mr. Berrnrd SUNZU, Conseiller au MINIRECOOP
Directeur de Cabinet au Secretariat d'Etat chargs de la Coop6ration
Consei!ler Assistant 6 la Pr~sidence - Cellule 6conomique
Conseiller aupr~s du Cabinet du Premier Ministre - Cellule 6conomique
Direcieur G.nral du Plan
Directeur G6n6ral des D6penses
Dirncteur Gin6ral des Recettes
Directeur Gn6ral de I'lndustrie
Directeur Gin6ral de la Vulgarisation Agricole
Directeur G~n6ral de la Planification Agricole et de I'Elevage
Directeur G6n(ral de I'OCIBU
Directeur GUn6ral du Travail et de Formation Professionnelle
Directeur Gnral de I'Artisanat et des Coop6ratives
Directeur Gn6ral du FNG
Directeur de la Planification
Directeur de la Programmation
Directeur de 'Etude du Milieu et des Syst~mes de Prcductior (SABU)
Directeur du Commerce Ext6rieur
Direcleur G6n6ral pour I'Europe, I'Amrique du Nord et les Organisations Intemationales
Directeur des Organisations Intemationales
Directeur des Imp6ts
Directeur des Douanes
Directeur des COGERCO
Directeur de I'OTB
Directeur de la Comptabilit6
vii
Directeur de I'APEE

Directeur des Etudes et Documentation Industrielles

Directeur du Bureau des PME

Directeur de la Tr6sorerie
Responsable national du projet PASA
Repr6sentants de la BRB (4)
Repr6sentants du SCEP (3)
Conseillers du Secrdtariat d'dtat au Plan (3)
Conseillers du Secretariat Permanent du CS du PAS (3)
Assistants techniques (au Secretariat d'Etat au Plan) (4)
Mr. Andre NKUNDIKIJE, Priv
Mr. KIRAHUZI, Priv6
Mr. Gaspard-Emery KARENZO, Priv6
Mr. Jean SINDAYIGAYA, Priv
Mr. Albin NYAMOYA, Priv
Foreign Delegates:
GPresenting the case of Ghana: Mr. Abner BAB KLU, Directeur des Recettes
Madagascar: Presenting the case of Madagascar: Mr. Nirina ANDRIAMANERASOA, Conseiller
Economique du President
Rwanda: Mr. Joseph HAKIZAMUNGU, Directeur G6n~ral au Ministbre des Finances, Chef de la
d~lgation
Mr. Vedaste SENYANA, Chef de la division analyse 6conomique au Min!stbre du Plan
Mr. Bonaventure NIYIBIZI, Charg6 du secteur priv6
Mr. Damascene NGABOYIMANZI, Charg6 des 6tudes agricoles et de I'analyse
des projets
Mr. Japhet NGENDAHAYO, Ministate du Plan
LMr. Kwassi KLUTSE, Directeur G6nral du Plan et du D6veloppement
Mr. Assimaidou KOSSI, Directeur Adjoint de la Coordination du Plan
viii
University of Michigan, Center for Research on Economic Development (CRED):

Professor Ernest J. WILSON, IIl, Director, "The Private Sector"

Professor Robin BARLOW, Research Scientist
Mr. Patrick PLANE, (CNRS, CERDI, Universit6 de Clermont I),"Exchange Rate
Policies in Africa and the Requirements of Stabilization and Structural
Adjustment'
Ms. B. Lynn SALINGER, (Senior Economist, Associates for International
Resources and Development), "Is Price Policy Still Important?
Struciural Adjustment and the Reform of Agricultural Price Policy"
USAID -Burundi:

Mr. Donald F.MILLER, Reprdsentant de I'USAID au Burundi

Mr. Cam WICKHAM, Program Officer

Mr. Donald HART, Private Enterprise Officer

Ms. Larraine DENAKPO, Training Ccordinator

Representatives from Intemational Organisations:
ECA: Mr. Patrick BUGEMBE, "The African Experience with Economic Reforms"
Professor 0. TERIBA, Directeur de la Division de la Recherche et de la Planification
socio conomique

Professor Onimode BADE

Mr. Kashala THISEN

Mr. Francis MASAKHAUA

EEC: Mr. Dominique DAVID, Conseiller au Directeur G6n~ral du D6veloppement,
"African Economies and Structurel Adjustment"
UNIDO: Mr. Philippe SCHOLTES, Service de la Planification Industrielle, "Examination
of the Development of the Industrial Sector in Africa"
Ix
Ust of Acronyms and Abbreviations
ACP African, Caribbean and Pacific States
AFSAP African Framework for Structural Adjustment Programs
BCC Burundi Coffee Company
CRED Center for Research on Economic Development, The University of
Michigan
EEC European Economic Community
ECA Economic Commission for Africa
GDP Gross domestic product
IBRD International Bank for Reconstruction and Development
IMF International Monetary Fund
UNIDO United Nations Industrial Development Organization
USAID United States Agency for International Development
Colloquium on

The Structural Adjustment Program

Bujumbura 23 -25 May 1990

SUMMARY OF PROCEEDINGS
prepared by
le Secr6tariat Permanent du Comit6 de Suivi
du Programme d'Ajustement Structurel
Premier Ministbre et Ministbre du Plan
R6publique du Burundi
June 1990