Between party capitalism and market reforms – understanding sector differences in Rwanda

Abstract

Different strategies have been used by the Rwandan government to promote capitalist accumulation. In some sectors, party and military owned enterprises are predominant. In others, the government has chosen to embrace market-led reforms. Ultimately, the vulnerability experienced by ruling elites contributes to the choice of how capital accumulation is promoted in different sectors. Ruling elites use party and military enterprises to centralise rents and establish control over the direction of economic policy. However, centralising rents is a political choice and excludes individuals from developing access to rents. The pyrethrum sector shows that the use of such groups has resulted in unequal outcomes despite increases in productivity. Reduced international prices have stunted further productivity. Conversely, the mining sector shows evidence of the pursuit of market-led reforms. These reforms have been accompanied by rapid growth in domestic production and exports. Foreign...