Economy
Burundi is one of the world's poorest countries, owing in part to its landlocked geography, poor legal system, lack of economic freedom, lack of access to education, and the proliferation of HIV/AIDS. Approximately 80% of Burundi's population lives in poverty. Famines and food shortages have occurred throughout Burundi, most notably in the 20th century, and according to the World Food Programme, 56.8% of children under age five suffer from chronic malnutrition. One scientific study of 178 nations rated Burundi's population as having the lowest satisfaction with life in the world. As a result of poverty, Burundi is dependent on foreign aid.
Burundi's largest industry is agriculture, which accounted for 58% of the GDP in 1997. Subsistence agriculture accounts for 90% of agriculture. The nation's largest source of revenue is coffee, which makes up 93% of Burundi's exports. Other agricultural products include cotton, tea, maize, sorghum, sweet potatoes, bananas, manioc (tapioca); beef, milk, and hides. Some of Burundi's natural resources include uranium, nickel, cobalt, copper, and platinum. Besides agriculture, other industries include: assembly of imported components; public works construction; food processing, and light consumer goods such as blankets, shoes, and soap. Burundi's currency is the Burundian franc (BIF); as of May 26, 2012, 1,371.00 Burundian franc were equivalent to one United States dollar.
Lack of access to financial services is a serious problem for the majority of the population, particularly in the densely populated rural areas: only 2% of the total population holds bank accounts, and fewer than 0.5% use bank lending services. Microfinance, however, plays a larger role, with 4% of Burundians being members of microfinance institutions – a larger share of the population than that reached by banking and postal services combined. 26 licensed microfinance institutions (MFIs) offer savings, deposits, and short- to medium-term credit. Dependence of the sector on donor assistance is limited.
Burundi is part of the East African Community and a potential member of the planned East African Federation.
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Famous quotes containing the word economy:
“I favor the policy of economy, not because I wish to save money, but because I wish to save people. The men and women of this country who toil are the ones who bear the cost of the Government. Every dollar that we carelessly waste means that their life will be so much the more meager. Every dollar that we prudently save means that their life will be so much the more abundant. Economy is idealism in its most practical terms.”
—Calvin Coolidge (1872–1933)