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This study aims to examine the illicit capital movement through trade misinvoicing in Burundi, at disaggregated levels by major trading partners and by major export and import commodities.

Trade misinvoicing is estimated by comparing the trade values declared by Burundi with those declared by trading partners in a bilateral international transaction, after adjusting for the cost of freight and insurance. Disaggregated trade misinvoicing by major trading partners is computed using the Direction of Trade Statistics database of the International Monetary Fund over the period 1970–2019. Disaggregated trade misinvoicing by major trading commodities is computed using the UN-COMTRADE database over the period 1993–2019.

Exports of Burundi to most of its major trading partners are found to be underinvoiced. The top destinations for export underinvoicing are United Arab Emirates, Belgium and Germany. However, exports to UK and Switzerland are found to be overinvoiced. The major export commodities considered, coffee and gold, are found to be affected by trade misinvoicing to a great extent. On the import side, the estimation results indicate that imports of Burundi from its major trading partners are in general overinvoiced. High import overinvoicing is observed in the trade with Saudi Arabia, China and Japan. At commodity level, for the top 6 commodities considered, imports were to a great extent found to be overinvoiced. Cases of illicit capital outflows and inflows through trade misinvoicing are highlighted.

Some policy implications are drawn from this study. First, in collaboration with its development partners, the Government of Burundi should put in place measures to reduce the trade misinvoicing phenomenon, which undermines poverty reduction efforts. The study has shown which trade partners are involved and which commodities are mostly affected. Policy efforts could then be focused in that regard. Investigations at the company and transaction levels can be made to identify the mechanisms of trade misinvoicing. Second, more effort is needed in ensuring systematic and transparent reporting of international trade transactions. To fight trade misinvoicing, transparency in international trade is key, through coordinated enforcement of reporting rules.

Previous studies analyzed the problem of trade misinvoicing at an aggregated level. However, this leaves out essential information on trading partners involved in the phenomenon as well as trading commodities affected. This study investigates trade misinvoicing at disaggregated levels, at product level and by trading partner.

This study aims to undertake an institutional analysis of capital flight and examine the drivers of capital flight from Burundi.

Given the episodes of political instability and poor governance which have characterized Burundi’s landscape in the past decades, coupled with macroeconomic instability which has been prevailing, political, economic and institutional factors are used to explain the trend and magnitude of capital flight which were recorded. An econometric analysis using robust least squares is also used to examine the determinants of capital flight from Burundi.

The estimation results seem to be sensitive to capital flight measurement used, but in general, they suggest that external debt, political instability and wars, as well as exports, are the main drivers of capital flight from Burundi.

The findings of this study imply that to discourage capital flight, the government of Burundi should promote peace and political stability. In addition, more responsibility, more transparency and accountability are required from the government of Burundi in managing resources from external debt. Moreover, some actions are needed to fight trade misinvoicing, which was seen to be a major channel of capital flight from Burundi. It is however to be acknowledged that our econometric analysis results might not be robust because of data limitations related to data availability on capital flight for only the period 1985-2013.

This study contributes to the existing capital flight literature in two ways. First, by undertaking the first ever country-specific study focusing on Burundi, and second, by undertaking an institutional analysis of capital flight to understand the political, economic and institutional issues behind capital flight from Burundi. The focus in this study is on Burundi because of the burden that capital flight imposes on the country already impoverished.

The chapter seeks to examine how local women’s groups in Burundi and Liberia have responded to the opportunities offered by UN Security Council Resolution 1325 on Women, Peace and Security and how transnational understandings of gender security have affected the way the locals advocate for gender policies at home.

Through discussion of data collected during extended fieldwork, the chapter illustrates the internal negotiation process between the international and the local elements of the transnational campaign for the implementation of Resolution 1325. The chapter first looks at the processes of identity creation and learning that enable local activists to adapt to transnational understandings of gender security. Second, it looks at the (re)production and adaptation of those understandings in local campaigns for gender security in post-conflict¹ Burundi and Liberia.

The chapter demonstrates how a very particular discourse on ‘gender security’ is used and reproduced through power relations between local and transnational activists, thereby enabling certain practices and policies to become natural and the best possible option.

This implies that while transnational advocacy networks help grassroots social movements to be heard at international fora, these networks also impose certain discourses and practices, contributing to a depoliticisation of the grassroots activity.

Understanding how transnational advocacy networks negotiate and transform local women’s rights discourses is all the more important since these transnational networks have been considered as moral authorities in the global political arena.

The purpose of this paper is to examine the early stages of the transition to specialty coffee in Burundi and the role of an agribusiness support program as a catalyst for this transition.

This study uses two years of panel data (2007 and 2012) to analyze changes in technology adoption among coffee washing stations (CWSs) and how the adoption of improved technologies affects coffee quality.

Programmatic investment in Burundi’s coffee value chain resulted in a significant shift in adoption of processing technologies by CWSs. Producers who processed at these stations saw a significant increase in the quality of their coffee and forged sustainable trade relationships with international buyers.

Future research should investigate the incentives and barriers of producers to invest in production boosting practices.

This is one of the first empirical papers that analyzes Burundi’s transition from ordinary to specialty coffee and how programmatic investments in improved technologies has helped to make the change possible.