Economic Differences Between Rwanda and Burundi

ECONOMIC DIFFERENCES IN RWANDA AND BURUNDI
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Economic Differences Between Rwanda and Burundi
When ranked by area, Rwanda and Burundi fall in the top ten list of smallest countries in the African continent, both lying on an area of approximately 27,000 square kilometers. Both countries, which lie in East Africa, are mainly alike in most aspects. They are both land-locked and have no coastline, implying that their economies depend largely on expensive transits to and from the Indian Ocean through their neighboring countries like Kenya and Uganda. Both countries are predominantly composed of three ethnic groups, the Hutu, Tutsi, and Twa, which account for most of their population. Both countries have heavily been affected by ethnic clashes and political wars, particularly in the 20th Century, which has dramatically shaped their social and economic sectors. Although these countries are similar in most aspects, they have some vast economic differences that set them miles apart.
Economic Specialization
The popular genocidal war between the Hutu and Tutsi communities in Rwanda (Anderton and Brauer, 2016) significantly affected its economy in the 20th Century. It primarily led to the reliance on agriculture as the primary source of subsistence. Before the 1994 upheavals, which greatly marred the country's development, the economy was built around the production of food and beverages and production of agricultural tools and textiles. However, after Rwanda recovered from the war, Arabica coffee, which was introduced into the country by its European colonists, grew its top cash crop item. Moreover, the country's significant exports in the 20th Century were tea, which started in 1952 (Rwanda Development Board, 2021). Minerals, for example, tin ores, niobium, tantalum, and pyrethrum, are used in pyrethrin. These items were mainly exported to Switzerland, the EU, South Africa, Swaziland, Kenya, United States, and Malaysia. In return, the main import commodities for the country were petroleum oils, computers, and other electrical machinery, motor vehicles, salt, pharmaceutical products, and plastics. Rwanda's export share was slightly lower than its competitors in the East African regions, such as Kenya, Tanzania, and Uganda. Being landlocked proved to be a significant barrier for trading activities in Rwanda due to the high costs of freight services for both its imports and exports. Therefore, countries like Kenya had a comparative advantage in the export of coffee to overseas countries compared to Rwanda.
In the 20th Century, the economic sector of Burundi was largely affected by population pressure, poor ecological conditions, and the civil war. These conditions significantly affected Burundi's self-sufficiency and impeded its economic development. The economy of Burundi is essentially rural, with the emphasis being placed on agriculture as the main source of subsistence for its dense population. (Nkurunziza and Ngaruko, 2004) describe the economic performance in the country as catastrophic and attribute this to the failed political system in the country. The main imports to Burundi are food-based items, for example, cereals, like malt and wheat; machinery; construction materials; a...