- GDP: Both Rwanda and Uganda have a GDP per capita of $1,200 and real GDP growth is quite comparable. Rwanda (7,% 7.5%, 4.1%) might be experiencing a slightly higher GDP growth than Uganda (6.4%, 5.2%, 7.2%). GDP in Rwanda is heavily based on agriculture while Uganda has a larger industry sector. Rwanda actually has a higher Gini coefficient that Uganda which means it has higher economic inequality (side note: Uganda is still better than the US).
- Inflation: 13.7% in Uganda (up from 4% in 2010) to 5.5% in Rwanda (up from 2.3% in 2010). The cause of this insane inflation in Uganda has been due to supply side shocks. Read more at: http://www.trademarksa.org/news/bou-speaks-its-reforms-bring-down-high-inflation-rates
- Budget and fiscal policy: There is a significant difference here. Taxes and revenues for Rwanda is at 26% of GDP while it's only 15% of GDP in Uganda. Can someone please explain what the implications of this may be? Rwanda has a budget deficit of 2.3% of GDP while Uganda had a deficit of 6.1% of GDP
Overall, the countries seem quite comparable. Are there any essential economic indicators that I have missed?
******
I have tried to reconcile the facts above with the pothole free, beautifully lit, seemingly poverty free, Kigali. It has been claimed that great leadership, corruption free governance and strong nationalism are the secret to its "success".
I'm not convinced.
Selling goods on the side of the road is banned. This banning, though it undeniably makes for clean uncluttered pavements, results in loss of economic potential. Where did the street vendors go? Driven to destitution and then out of the city?
A large amount of money was spent on water fountains in the middle of roundabouts surrounded by well manicured grass and beautifully trimmed hedges. Who pays for the upkeep? Who pays to maintain the palm trees, ostentatiously planted in the road dividers, in a land locked country? What was sacrificed to pay for coloured (blue for roundabouts, green for taxi bays and yellow lanes) lights on the road?
I am 15% in to "Land of a thousand hills" and need to do some internet sleuthing to better understand the paradox that is Rwanda.
******
http://www.nytimes.com/2010/05/01/world/africa/01rwanda.html
******
I have tried to reconcile the facts above with the pothole free, beautifully lit, seemingly poverty free, Kigali. It has been claimed that great leadership, corruption free governance and strong nationalism are the secret to its "success".
I'm not convinced.
Selling goods on the side of the road is banned. This banning, though it undeniably makes for clean uncluttered pavements, results in loss of economic potential. Where did the street vendors go? Driven to destitution and then out of the city?
A large amount of money was spent on water fountains in the middle of roundabouts surrounded by well manicured grass and beautifully trimmed hedges. Who pays for the upkeep? Who pays to maintain the palm trees, ostentatiously planted in the road dividers, in a land locked country? What was sacrificed to pay for coloured (blue for roundabouts, green for taxi bays and yellow lanes) lights on the road?
I am 15% in to "Land of a thousand hills" and need to do some internet sleuthing to better understand the paradox that is Rwanda.
******
http://www.nytimes.com/2010/05/01/world/africa/01rwanda.html
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