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Benefit-Cost Analysis of the Integration of Rwanda in the East African Community: 2007–2013

In: Economic Integration, Currency Union, and Sustainable and Inclusive Growth in East Africa

Author

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  • Emmanuel Mushimiyimana

    (University of Rwanda, School of Social, Political and Admnistrative Sciences)

Abstract

Regional integration is a policy that provides both political and economic gains for member states. However, to benefit from it requires that a member country uses integration opportunities while overcoming challenges. Knowing that Rwanda is a country torn by war and the genocide of 1994 perpetrated against Tutsi this paper finds that Rwanda is rebuilding itself through the East African Community (EAC) by applying political and economic reforms convenient for its integration. Through EAC Rwanda is ushering in both political and economic reforms though there are still challenges in both these fields. Politically, the will for a political federation is still limited. Economically, Rwanda is facing a trade deficit though there has been an increase in its trade relations with EAC in the last 5 years. This trade deficit is due to lack of enough goods for export in the EAC and also its low levels of production. However, due to economies of scale and competition, Rwanda is bringing in new products to the market and its production is improving domestically in terms of food processing and construction materials. Economic policies such as industrial creation in Rwanda and looking for alternatives to compensate for a decline in tariff revenue have also been necessary.

Suggested Citation

  • Emmanuel Mushimiyimana, 2016. "Benefit-Cost Analysis of the Integration of Rwanda in the East African Community: 2007–2013," Advances in African Economic, Social and Political Development, in: Almas Heshmati (ed.), Economic Integration, Currency Union, and Sustainable and Inclusive Growth in East Africa, pages 193-214, Springer.
    • Handle: RePEc:spr:aaechp:978-3-319-30432-8_11
    DOI: 10.1007/978-3-319-30432-8_11
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