DATE=1/12/2000
TYPE=CORRESPONDENT REPORT
TITLE=BURUNDI ECONOMIC CRISIS (L-ONLY)
NUMBER=2-258019
BYLINE=CHALLISS MCDONOUGH
DATELINE=BUJUMBURA, BURUNDI
INTERNET=YES
CONTENT=
VOICED AT:
INTRO: The economy in Burundi has suffered
dramatically in recent years as a side effect of the
deteriorating political situation. Fighting between
rebels and government forces has forced hundreds of
thousands of farmers from their fields, crippling the
vital agricultural sector. Burundi's leaders have
announced a government shake-up aimed at defusing
criticism of its economic policies, but they say the
financial crisis will not end without outside
assistance. From the Burundi capital Bujumbura,
V-O-A's Challiss McDonough has this report.
TEXT: Burundi is broke. Rampant inflation has driven
the cost of everyday consumer goods such as flour and
sugar through the roof. A coalition of 19 labor
unions is threatening a general strike unless the
government does something to lower prices.
Presidential spokesman Appolinaire Gahungu says the
government has simply run out of hard currency.
/// FIRST GAHUNGU ACT ///
On one side, we understand the claims of the
associations, but on the other side, where do
you want us to get the money from?
/// END ACT ///
On Tuesday Burundi President Pierre Buyoya reshuffled
his cabinet, replacing several ministers including the
defense, transport, and finance ministers. Mr.
Gahungu admits the move was aimed in part at appeasing
the workers' associations and the public over the
rising prices. But he also says the government
coppers are empty - there is just no hard currency
left in the national reserve bank.
There are a number of reasons behind Burundi's
economic crisis, which has been worsening for years.
The country's main export is coffee, and world prices
for coffee have dropped dramatically in recent years.
So Mr. Gahungu says Burundi farmers could not take
advantage of their better-than-average harvest last
year. But Burundi's financial troubles predate the
drop in coffee prices.
Government forces have been at all-out war with rebels
for six years, and hundreds of thousands of people
have fled the fighting, either by choice or because
the government has forced them into resettlement
camps.
Mr. Gahungu says widespread displacement and general
insecurity have hurt the agricultural production the
economy depends on.
/// SECOND GAHUNGU ACT ///
Because of the rebellion activities - you know
- some people have displaced from their fields,
from their homesteads, and they haven't been
allowed to take care of their fields to
cultivate. The economic situation or the
economic activity that was mainly based on
agricultural products has dramatically gone
down. And with it going down, the flush of hard
currency coming from outside has also gone down.
/// END ACT ///
But a prominent opposition leader Domitien Ndayizeye
says there is another reason why the fighting has
helped bankrupt the country.
/// NDAYIZEYE ACT (FRENCH) ///
He says the army now takes up half the national budget
and this cannot continue.
The economy has also been ravaged by years of economic
sanctions. Last January Burundi's neighbors in East
Africa suspended their two-year old trade embargo, but
international donors have been reluctant to resume
lending to the country because of continued political
instability.
Mr. Gahungu urges the international community to
rethink that policy. He says freezing economic aid
undermines the peace process.
/// THIRD GAHUNGU ACT ///
Peace in Burundi is something that has to be
accompanied by some economic measures and economic
assistance that would show really to the population
that steps are being made in order to not only talk
about faith, but also improve their living conditions.
/// END ACT ///
Mr. Gahungu says the government will do whatever it
can to end the financial crisis, but he says it can
only do so much without an infusion of cash. (Signed)
NEB/CM/TVM-T/gm
12-Jan-2000 19:07 PM EDT (13-Jan-2000 0007 UTC)
NNNN
Source: Voice of America
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