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Republic of Burundi Fiscal Decentralization and Local Governance: Managing Trade-Offs to Promote Sustainable Reforms Republic of Burundi Fiscal Decentralization Public Disclosure Authorized and Local Governance Managing Trade-Offs to Promote Sustainable Reforms Public Disclosure Authorized Public Disclosure Authorized Burundi Public Expenditure Review Public Disclosure Authorized OCTOBER 2014 B Republic of Burundi Fiscal Decentralization and Local Governance: Managing Trade-Offs to Promote Sustainable Reforms OCTOBER 2014 WORLD BANK Republic of Burundi Fiscal Decentralization and Local Governance: Cover Design and Text Layout:Duina ReyesManaging Bakovic Trade-Offs to Promote Sustainable Reforms i Standard Disclaimer: This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The endorsementboundaries, colors, or acceptance denominations, of such boundaries.and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the Copyright Statement: The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/ The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. This translation was not created by The World Bank and should not be considered an official World BankIf you translation.create a translation The World of thisBank work, shall please not be add liable the for following any content disclaimer or error along in this with translation. the attribution: For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978-750-4470, http://www.copyright.com/. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mailCover photo: [email protected]. colline Cover design Aand text layout:meeting in Rutegama Commune, Burundi. Photograph by the World Bank. Republic of Burundi Duina Reyes-Bakovic Fiscal Decentralization and Local Governance Public Expenditure Review ii ACKNOWLEDGMENTS he Burundi Fiscal Decentralization and Local Governance report is part of a series T dian Revenue Authority and Mr. Kieran Holmes (former commissaire général, Burundian its effortsof programmatic to promote accelerated policy studies and developed inclusive Revenue Authority). by the World Bank to assist the government in considerable time and information provided by membersThe team ofwould communal also like administrations to acknowledge across the thegrowth, use of improve public resources. access to While basic the services, Government and the country—from administrators to members strengthen transparency and accountability in of Burundi is the primary beneficiary of the of communal staff—who worked side by side analysis, the studies are intended for a wider with the team to produce data for this report. audience, including members of the donor This report would not have been possible community, business leaders, representatives without the generous contributions of the of civil society groups, and other stakeholders Swiss Agency for Development and Cooperation engaged in Burundi’s economy. (SDC), and the German Agency for International Cooperation, (GIZ). Finally, the donor working The report has been prepared jointly with the group comprised of SDC, GIZ, the European counterpartsGovernment offor Burundi, this fruitful and collaboration.the World Bank In Union, and the Belgian Technical Cooperation Task Team is most grateful to its government (BTC) provided valuable support and technical inputs during all the stages of the analysis. particular, the team would like to thank His Excellency Mr. Dieudonné Giteruzi (minister The Bank task team was led by Marco Larizza of communal development), His Excellency Mr. (TTL, senior governance and public sector Jean-Claude Ndihokubwayo (former minister specialist) and included Leanne Michelle Bayer of communal development), His Excellency Mr. (co-TTL, senior social development specialist), Edouard Nduwimana (minister of interior), Professor François Vaillancourt (international Honorable Innocent Nkurunziza (senator), as consultant, fiscal decentralization and public well as Honorable Aimé Nkurunziza (deputy at finance), Professor Julien Nimubona (national the national assembly), Mr. Hilaire Ntakuwundi consultant, governance and institutional deve- (permanent secretary, Ministry of Communal lopment), Thea Hilhorst (senior land governance Development), Ms. Immaculée Bigirimana specialist), Sadia Afolabi (consultant), Lydie (permanent secretary, Ministry of Finance and Ahodehou (program assistant) and Pacifique Economic Development Planning), Mr. Jean Ndoricimpa (team assistant). Marie Ntihirageza (director general, Ministry of Communal Development), Mr. Thérence Chapter 2 on fiscal decentralization was Mbonabuca (director general, Ministry of discussed with senior experts of the Interior), Mr. Firmin Sindayihebura (director Decentralization and Subnational Finance of communal finances, Ministry of Interior), Thematic Group, and valuable comments Madame Spes-Caritas Njebarikanuye (director were received from Jonas Frank (senior public general of FONIC), Mr. Nicolas Ndayishimiye sector specialist), Vivek Srivastava (lead (director general of ISTEEBU), Mr. Domitien public sector specialist), Jamie Boex (senior Ndihokubwayo (commissaire general, Burun- fellow, Urban Institute), Serdar Yilmax (senior Republic of Burundi Fiscal Decentralization and Local Governance: Managing Trade-Offs to Promote Sustainable Reforms iii economist), Anne-Lucie Levebfre (senior public Overall technical oversight and guidance was sector specialist), and Balakrishna Menon provided by Albert Zeufack (sector manager), Parameswaran (lead social development Jacques Morisset (lead economist and sector specialist). Chapter 3, on decentralized land leader), and Chiara Bronchi (lead public sector management, was discussed with senior and governance specialist and cluster leader). sector experts, who provided useful insights The team is also grateful to Philippe Dongier and comments to improve the quality of the (country director) and Rachidi Radji (country analysis, including: Andre Teyssier (senior land manager), whose advice and warm support administration specialist), Caroline Plancon were extremely useful in moving the preparation (senior land policy specialist), and Enrique process forward and engaging in effective The task team remains responsible for any Pantoja (senior land administration specialist). dialogue with government authorities. errors or omissions. Credit is also due to a distinguished group of peer reviewers who provided comments on the draft report: Robert Ebel (senior fellow, Urban Institute and Urban-Brookings Tax Policy Center), Enrique Pantoja (senior land adminis- tration specialist), and Helene Grandvoinnet Washington, DC (lead social development specialist). October 23, 2014 iv TABLE OF CONTENTS Acknowledgments ........................................................................................................ iii Abbreviations and Acronyms ....................................................................................... 1 Glossary of Key Terms .................................................................................................3 Executive Summary ...................................................................................................... 4 ................................................................................................................................6 ............................................................................................................................... Key Policy Issues under Investigation Chapter 1. Understanding the Context of Decentralization in Burundi .....................14 Main Messages: Cross-Cutting Issues 11 ........................................................................................ ........................................... Introduction: The Political and Macroeconomic Context ................................................................... 14 1.1 The Decentralization Process since the End ............................................................................................................ of the Conflict: An Overview 17 1.2 The Decision to Decentralize: Understanding Key Incentives 19 1.3 RelationshipsInstitutional Design: ............................................................................................................................... Mapping Key Actors ........................................ 20 1.4 Institutional Design: Promoting Citizens’ Engagement to Strengthen State-Society Incentives ....................................................................................................................... 25 1.5 Obstacles to Moving the Reform ..............................................................................................................................
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