Estimating Poverty in Burundi

In this paper, we evaluate absolute consumption poverty and inequality in rural and urban Burundi after more than 5 years of civil war. Using the cost of basic needs method, we find a poverty incidence of 71.5% in rural areas and 36.5% in Bujumbura, and a Gini-coefficient of inequality of respectively 34.9 and 44.5%. In analysing the main correlates and determinants of rural poverty, we identify the very low levels of education and the intensity of the civil war as key factors explaining the high incidence of rural poverty. Acknowledgements: The author wants to thank Philip Verwimp for extensive comments and suggestions. Copyright © Tom Bundervoet 2006 Estimating Poverty in Burundi