Critical economic situation endangers fragile peace - UN

Serious indications exist of a "marked deterioration" of Burundi's economy, and unless the budget is provided with support to enable it to meet immediate financial needs, political tensions could surface and endanger the country's fragile peace process.

This assessment resulted from a meeting on Burundi's economy organised on 14 June by the international members of the Implementation Monitoring Committee for the Arusha Agreement of 28 August 2000, the special envoys and representatives for Burundi, and representatives of the donor community.

Participants also underscored an urgent need for non-project aid to be made available without awaiting the conclusion of an agreement with the IMF. UN News reported that the IMF had confirmed the timetable for the preparation of a post-conflict programme for Burundi, which should be submitted to its Executive Board in late September or early October, "if the conditions the Fund is waiting for have been established".

In a forecast for Burundi's economy over 2002-03, the Economist Intelligence Unit reported on 10 June that growth could be between 3.5 percent and 4 percent, with donor resources most likely to support increased public spending in social sectors and the rehabilitation of rural infrastructure "in some areas". However, it said, "Any meaningful increase in foreign and domestic investment will have to await a comprehensive ceasefire".