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the challenges facing landlocked developing countries: a case study ...

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In 1996, after Major Pierre Buyoya seized power, Burundi’s neighboring <strong>countries</strong> imposed<br />

strict sanctions on <strong>the</strong> country, including <strong>the</strong> closure of all transportation links. It is estimated<br />

that <strong>the</strong>se sanctions led to a 50 per cent loss in Burundi's export earnings and a 25 per cent<br />

increase in import costs in 1996. In addition to <strong>the</strong> sanctions, an international aid freeze was<br />

inflicted on Burundi. The sanctions necessitated <strong>the</strong> diversion of much of Burundi’s external<br />

trade to <strong>the</strong> ancillary Zambian corridor, and forced much of <strong>the</strong> regional trade into <strong>the</strong><br />

informal sector. Such instability has restricted Burundi’s former role as a regional exporter<br />

and re-exporter of manufactured goods.<br />

Burundi’s relations with its most vital transit neighbor, Tanzania, have been particularly<br />

strained as a result of its own ongoing civil war. Tanzania continues to strongly oppose Tutsi<br />

military rule, and led <strong>the</strong> campaign for regional sanctions in 1996. The hundreds of thousands<br />

of Burundian refugees now living in Tanzania have fur<strong>the</strong>r weakened relations (CNN 2000).<br />

The refugees are not only a strain on <strong>the</strong> Tanzanian economy, but also often lead rebel<br />

attacks on Burundi, undermining border security. Burundi accuses Tanzania of aiding such<br />

anti-government rebels (BBC 2002).<br />

Burundi is also involved in <strong>the</strong> civil war to its west in <strong>the</strong> DRC. Hostilities between <strong>the</strong> two<br />

governments are largely a product of <strong>the</strong> Congolese government’s weapons support for one<br />

of <strong>the</strong> main Burundian rebel groups, <strong>the</strong> CNDD-FDD. Similarly, <strong>the</strong> Burundian government<br />

has good relations with Rassemblement congolais pour la démocratie (RCD), <strong>the</strong> main rebel<br />

group opposing <strong>the</strong> DRC government.<br />

Burundi has meanwhile suffered from increasing tensions with its nor<strong>the</strong>rn neighbor<br />

Rwanda. Despite <strong>facing</strong> similar internal ethnic tensions, <strong>the</strong> two governments are said to<br />

mistrust each o<strong>the</strong>r. Rwanda took part in <strong>the</strong> 1996-99 economic sanctions levied on Burundi.<br />

Burundi’s trade <strong>challenges</strong> have been exacerbated by conflicts independent of its own. All<br />

three border crossings along <strong>the</strong> Nor<strong>the</strong>rn Transit Corridor have been subject to instability: in<br />

addition to <strong>the</strong> problems on <strong>the</strong> Burundi-Rwanda border, <strong>the</strong> Rwanda-Uganda border has<br />

witnessed increasing violence as a result of differing objectives in <strong>the</strong> DRC war and <strong>the</strong><br />

Uganda-Kenya border has also been subject to periodic tensions and closures.<br />

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