J.K.U.A.T

P.O BOX 62000, NAIROBI TEL: (067) -52181 - 4 FAX: (067) – 52164

FACULTY OF AGRICULTURE

DEPARTMENT OF HORTICULTURE

Term Paper:

RWANDA DEVELOPMENT, STRUCTURE, AND TRANSFORMATION BEFORE AND

AFTER INDEPENDENCE OF JULY 1st, 1962

RM 506: SOCIO-ECONOMICS AND DEVELOPMENT

Instructor: Don Kavoi Mutuku Muendo

Name: Ntawuruhunga Donatien

Reg.No: AG: 332-4114/2014

July 25, 2014

E-mail: ntaw@webmail.co.za or ntawdon@gmail.com

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ABSTRACT

This paper discusses issues of development in broader sense and various initiatives undertaken

by Rwanda to reach the current stage of development, challenges and as well as the way forward

for future generations.

We’ve seen that broadly development can be defined as a manner applicable to all societies, at

all historical periods as an upward ascending movement featuring greater levels of energy,

efficiency, quality, productivity, complexity, comprehension, creativity, mastery, enjoyment and

accomplishment. Development is a process of social change, not merely a set of policies and

programs instituted for some specific results.

The history of Rwanda shows that the colonial era as well as different regimes that followed

independence did not help in building a sustainable development of the Rwandan population.

Instead, they have brought division between two communities comprising the majority of

population under the principle of “divide and rule” behind the ethnicity identity that culminated

into the 1994 genocide for Tutsis.

In the aftermath of genocide, the new government of national unity led by Paul Kagame brought

radical changes towards Rwanda’s destiny. After emergency and reconstruction period (1994-

2000), Rwanda embarked on ambitious development programmes. Adversity was turned into

opportunity by creating a national vision i.e. “Vision 2020” which is a translation of Rwandans’

aspirations for the future of their country and society. The Vision presents a framework and key

priorities for Rwanda’s development and a guiding tool for the future, and is ambitious to

overcome poverty and foster unity and reconciliation. Vision 2020 has been made operational by

a series of medium-term national Poverty Reduction and Economic Development Strategies.

NtawuruhungaDonatien

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1. Introduction

Rwanda has made remarkable stride in its development during the recent years after the genocide

against the Tutsis in 1994. The researcher was driven by the interest of deepening the research in

the historical background of the country and evaluate different development initiatives

undertaken by governments at different stages of its history and the way forward of the country

for its future generations.

In analyzing the problem, we were guided by the following research questions:

1. What are the key development patterns of Rwanda during its different historical stages?

2. What have been the challenges faced along with its historical background?

3. What were the achievements and failures during different periods of Rwanda?

4. What is the country’s way forward to-day?

2. Conceptual Framework

Our starting point is defining the term development as a key word in our work:

Development-Development can be broadly defined in a manner applicable to all societies, at all

historical periods as an upward ascending movement featuring greater levels of energy,

efficiency, quality, productivity, complexity, comprehension, creativity, mastery, enjoyment and

accomplishment (Jacobs, Garry and Asokan N., 1999: p. 152). Development is a process of

social change, not merely a set of policies and programs instituted for some specific results.

During the last five centuries this process has picked up in speed and intensity, and during the

last five decades has witnessed a marked surge in acceleration (International Commission on

Peace and Food: 1994, p. 163).

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3. Data

3.1.Data Collection Techniques used

In this research, we surveyed the relevant literature through internet and library, and our

accumulated knowledge and experience as Rwandan citizen to gather our data for analysis and

conclusions.

3.2.Methodological applications used

Methods used to analyze data include: historical method, analytical method, comparative method

and statistical method.

4. Results and Discussions

4.1.Geographical locationof Rwanda

At 26,338 square kilometres (10,169 sq mi), Rwanda is the world's 149th-largest country. It is

comparable in size to Burundi, Haiti and Albania.The entire country is at a high altitude: the

lowest point is the Rusizi River at 950 metres (3,117 ft) above sea level. Rwanda is located in

Eastern Africa, and is bordered by the Congo-DR to the west, Uganda to the north, Tanzania to

the east, and Burundi to the south. It lays a few degrees south of the equator and is landlocked.

The capital of Rwanda is Kigali.

4.2.Rwanda’s brief history

4.2.1. Pre-Colonial and Colonial Period

Pre-colonial period-Pre-colonial Rwanda was a highly centralized Kingdom presided over by

Tutsi kings who hailed from one ruling clan. The king ruled through three categories of chiefs:

cattle chiefs; land chiefs; and military chiefs. The chiefs were predominantly, but not

exclusively, Batutsi, especially the cattle and military chiefs.

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While the relationship between the king and the rest of the population was unequal, the

relationship between the ordinary Bahutu, Batutsi and Batwa was one of mutual benefit mainly

through the exchange of their labour. The relationship was symbiotic. A clientele system called

"Ubuhake" permeated the whole society.

Colonial period:In 1899 Rwanda became a German colony. After the defeat of the Germans

during World War 1 (WW1) subsequently in 1919 Rwanda became a mandate territory of the

League of Nations under the administration of Belgium. The Germans and the Belgians

administered Rwanda through a system of indirect rule. During this colonial era, a cash crop

economy was introduced in Rwanda, and this was administered through harsh methods that

further alienated the King and his chiefs from the rest of the population.

In 1935 the Belgian colonial administration introduced a discriminatory national identification

on the basis of ethnicity. On July 1st, 1962 Belgium granted formal political independence to

Rwanda.

4.2.2. Post-Independence Period

From 1959 onwards, the population of Batutsi was targeted, causing hundreds of thousands of

deaths, and a population of almost two million Rwandese people in the Diaspora that was to last

almost four decades.

The First Republic, under President GregoireKayibanda, institutionalized discrimination against

Batutsi and periodically used massacres against this targeted population as a means of

maintaining the status quo. Some Rwandese groups in the diaspora attempted, without success to

stage a comeback through armed means.

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In 1965 Rwanda was declared a one-party state under MDR/PARMEHUTU, which was the

architect of the racist ideology that was to be consolidated in the Second Republic under

President Major General Juvenal Habyarimana.

Both the First and second Republics repeatedly stated that Rwanda was a small, overpopulated

country that could not accommodate Rwandese refugees if they were to return. Increasingly, the

population across the ethnic lines was marginalized and impoverished while Habyarimana's

regime became more violently intolerant. The divisions within the ruling Bahutu clique that

culminated in the coup d'etat of 1973 became more heightened in the 1970s and 1980s when the

clique talked of Bahutu of the north and Bahutu of the south. Political activities remained

banned.

4.3.Socio-economic activities at a glance

Pre-colonial period-In pre-colonial times, Rwanda’s socio-economic activity revolved around

cattle rising, agriculture, ironwork, art crafts and hunting; with a high subsistence base. Cattle

and land had a significant economic value and were considered as signs of wealth. As with many

countries in Africa, trade of goods and services was carried out in Rwanda through a barter

system.

Colonial period-During the colonial period, Congo, Rwanda and Burundi were placed under

common Belgian protectorate from 1916 to the early 1960s. The introduction of a head-tax and

use of money as a medium of exchange by the Germans and Belgians respectively changed the

society’s socio-economic perception of wealth and ownership of cattle was no longer the only

symbol of wealth.

Post-independence period-Two years after gaining independence, the National Bank of

Rwanda was founded to be the principal regulatory and supervisory authority of the financial

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system, monetary system and payment system in the country. Overall, the economy of Rwanda

grew steadily. However, price fluctuations for tea and coffee -Rwanda’s major exports and

source of foreign exchange on international markets -had substantial effect on Rwanda’s

agriculture-dependent economy. A modest per capita growth during the first two decades after

independence came to an end around 1980. Economic stagnation combined with high rates of

population growth resulted in declining per capita GDP throughout the 1980s and 1990s.

The liberation war that began in 1990 had a severely negative impact on the economy, which

was utterly destroyed at the end of the 1994 Genocide against Tutsi. The proportion of

population below the poverty line rose from 53% to 70 % between 1993 and 1997. Humanitarian

aid together with the efforts of the Government of Rwanda to rebuild the country’s economy

produced positive results after undergoing a wide program of privatization of state-owned

enterprises driven by the World Bank to stop the drain on Government resources. These reforms

resulted in a GDP growth of 9% and 13% in 1995 and 1996 respectively, which continued during

the emergency transitional period that ended in 2000.

Consequently, the people of Rwanda through their leadership embarked on an ambitious

development agenda known as Vision 2020, which aims to transform Rwanda into a knowledge-

based, middle-income country by the year 2020. Rwanda also adopted the Millennium

Development Goals in 2000 and has since been cited as an example for progress towards the

goals, especially given the post-conflict status of the country.

The journey to economic transformation began with strong institutional reforms with the

objective to increase efficiency and better use of public resources as well as to strengthen

accountability.

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4.4.Historical Challenges faced by Rwanda

4.4.1. The legacy of colonialism

What is the responsibility of the West in the Rwandan tragedy/Genocide that took place in 1994

killing 1million lives, leaving the country ungovernable, orphans, widows, disabled, insecurity

and the country’s economy at null? First, it is important to stress that the conflict between the

Hutu and Tutsi was largely the product of the colonial system, many features of which still

prevail today. From the late 19th

century, the early German colonial occupation had used them

Wami (King) of the Nyiginya monarchy installed at Nyanza as a means of establishing its

military posts.

However, it was largely the administrative reforms initiated in 1926 by the Belgians which were

decisive in shaping socio-ethnic relations. The Belgians explicitly used dynastic conflicts to

reinforce their territorial control.

Since Independence in 1962, relations with the former colonial powers and donors have become

exceedingly more complex. Inherited from the Belgian colonial period, however, the same

objective of pushing one ethnic group against the other (‘divide and rule’) has largely prevailed

in the various ‘military’, ‘human rights’ and ‘macro- economic’ interventions undertaken from

the outset of the civil war in 1990.

4.4.2. The economy since independence of July 1st, 1962

The evolution of the post-colonial economic system played a decisive role in the development of

the Rwandan crisis. While progress was indeed recorded since Independence in diversifying the

national economy, the colonial-style export economy based on coffee (les cultures obligatoires)

established under the Belgian administration was largely maintained providing Rwanda with

more than 80% of its foreign exchange earnings. A renter class with interests in coffee trade and

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with close ties to the seat of political power had developed. Levels of poverty remained high, yet

during the 1970s, and the first part of the 1980s, economic and social progress was nonetheless

realized: real gross domestic product (GPD) growth was of the order of 4.9% per annum (1965-

89), school enrolment increased markedly; recorded inflation was among the lowest in sub-

Saharan Africa, less than 4% per annum.

While the Rwandan rural economy remained fragile, marked by acute demographic pressures

(3.2% per annum population growth), land fragmentation and soil erosion, local-level food self-

sufficiency had, to some extent, been achieved alongside the development of the export

economy. Coffee was cultivated by approximately 70% of rural households, yet it constituted

only a fraction of total monetary income. A variety of other commercial activities had been

developed including the sale of traditional food staples and banana beer in regional and urban

markets.

Until the late 1980s, imports of cereals including food aid were minimal compared to the patterns

observed in other countries of the region. The food situation started to deteriorate in the early

1980s with a marked decline in the per capita availability of food. In overt contradiction to the

usual trade reforms adopted under the auspices of the World Bank, protection to local producers

had been provided through restrictions on the import of food commodities. They were lifted with

the adoption of the 1990 structural adjustment programme.

4.5.Major challenges facing Rwanda to-day

The economy of Rwanda is currently characterized by internal (budget deficit) and external

(Balance of Payments) macroeconomic disequilibria, alongside low savings and investment rates

and high unemployment and underemployment. In addition, Rwanda’s exports, composed

mainly of tea and coffee – whose prices are subject to fluctuations on the international market –

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have not been able to cover export needs. This overall situation can be best explained by

reviewing a number of individual challenges.

1) Diminishing agricultural productivity and arable land distribution

Agriculture, accounts for more than 90% of the labour force, yet remains unproductive and

largely on a subsistence level. Distribution of arable land now stands at one hectare for every 9

Rwandans and is diminishing due to high birth rates. The obvious consequence is that a

substantial number of rural families who subsist on agriculture own less than 1 hectare, which is

too small to earn a living.

2) Natural Barriers to trade

Rwanda is land-locked, with long distances from ocean ports; a factor that raises transportation

costs for both exports and imports. The country lacks a link to regional railway networks, which

means most trade is conducted by road. Poor road quality creates high transportation costs

leading to inflated prices of domestically manufactured products, as raw materials used for

manufacturing need to be imported. These natural barriers to trade hinder industrial and other

forms of development.

3) Narrow economic base

It is clear that increases in the productivity and exports of Coffee and Tea alone will not be

sufficient to build the Rwandan economy. Therefore efforts need to be made to expand the

economic base and especially exports. Although there are small pockets of various high value

minerals in Rwanda, there is no single natural resource of sufficient quantity that will kick-start

the economy. For several decades, the mining sector was largely based on the extraction and

export of Cassiterite from several mines and numerous surface operations. Deposits of other

minerals such as Wolfram, Colombo-tantalite and Gold do exist, but total reserves are not

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known. The country does have estimated reservesof 60 billion cubic metres of natural gas in

Lake Kivu, but this sector has lacked investments both for effective exploration and profitable

exploitation.

4) Weak institutional capacity

Governance, including the management of public resources remains insufficient due to lack of

sound institutions and competent personnel. Rather than develop sound systems themselves, past

governments continued to rely on foreign technical assistance that was both costly, largely

indifferent to domestic long term needs and failed to build local capacities. Although great

progress has been made on this front, it still represents a significant hindrance to effective

governance.

5) Low level of human resource development

The severe shortage of professional personnel constitutes an obstacle to the development of all

sectors. Lack of adequately trained people in agriculture and animal husbandry hampers

modernization of this sector, whilst a shortage technicians and competent managers severely

constrain the expansion of the secondary and tertiary sectors. Illiteracy is rampant both amongst

the urban and the rural population with 48% of Rwandans unable to read and write.

Addressing this situation is made more difficult by the prevalence of major diseases, such as

malaria and HIV/AIDS, which together with malnutrition reduce the productivity of the

population.

6) Social and Economic Consequences of the Genocide

The 1994 Genocide devastated the Rwandan economy as well as its population. GDP was halved

in a single year, 8% of the population was plunged into poverty and vast tracts of land and

livestock were destroyed. The genocide also exacerbated a number of development constraints,

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which existed before 1994. The already poorly developed productive infrastructure was

completely destroyed and the nation was robbed of a generation of trained teachers, doctors,

public servants and private entrepreneurs. Thus, the consequences of genocide have devastated

Rwanda’s social, political and economic fabric. Without successful reconciliation, political

stability and security, private investors will not develop confidence in the country.

4.6.Major Rwanda’s achievements to-date

Despite the painful history that characterized the country before and after independence, Rwanda

has made a significant progress since the aftermath of genocide based on its visionary leadership

led by Paul Kagame.

Some of the registered achievements include but not limited to:

Politics

Reconciliation:the Government of Rwanda is working towards reconciling and reuniting

the population after three decades of politics based on an ideology of division and

exclusion, which culminated into genocide.

Inclusive government: Banishing the politics of exclusion and establishing an inclusive

transitional government comprising 5 parties in government and 8 parties in parliament.

After Genocide, power-sharing agreements ensured that the President of the Republic, the

President of the National Assembly and the Prime Minister were from different parties.

New Constitution:Rwanda adopted new constitution which entered into force since

2003. Views gathered from the people across the country in ‘town-hall’ meetings. Once

the draft was completed, it was put to the people again in a referendum and was endorsed

in May 2003 by 93% of the vote. It was the first time in the nation’s history that people

have been given the opportunity to actively contribute to the constitution-making process.

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Governance reforms: The aim was to dismantle the over-centralized state apparatus and

replace it with a decentralized system of government that gives more power and

resources to local government structures. The process was completed in 2002/3.

Democratization: Democratization of all levels of administration. The process began in

1998 with elections at the village level, followed by elections at the district level in 2000,

and elections for the National Assembly, Senate and President in 2003.

Transparency and accountability: Institutions and legislation have been put in place to

ensure accountability and prevent abuse of public office. As a result Rwanda has been

recognized by the World Bank Institute as the developing country with the lowest level of

corruption.

Improved government performance: To improve overall government performance,

particularly service delivery.

Security

The Government has established peace and security throughout the country. Today

Rwanda is among the most peaceful and secure countries in the east and central African

sub-region.

The Government has closely monitored security threats to the country and taken

appropriate action to ensure safety and security of the people of Rwanda.

The Government has actively encouraged voluntary repatriation of refugees, particularly

in the DR Congo and Tanzania.

The Government has absorbed ex-Rwandan army forces soldiers who did not commit any

crimes during the Genocide, into the RPA/RDF. 15,000 were absorbed into RPA at a

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time when they were 40,000; some held very senior positions, e.g. present and former

Ministers of Defense were ex-Rwandan army forces officers.

A new national Police force was established, replacing and streamlining the functions of

the former Gendarmerie and Communal Police.The size of the armed forces has been

reduced while being further professionalized and better equipped.

Justice

The Government is building a strong, well-trained and independent judiciary.

The Government has brought to justice over one hundred thousand people accused of

genocide related crimes within a reasonable period of time.

The Government has encouraged confessions, apology and rehabilitation of offenders.

The Government has established the GACACA (traditional tribunal) court system to try

cases of lower level responsibility.

The Economy

Since 1994 the following have taken place:

Kick-started the economy after the genocide.

Embarked on poverty reduction programmes.

Began a process to eradicate the culture of dependence.

Re-focus the economy to emphasize innovation and competitiveness.

Overhauled the tax system including establishing a semi-autonomous tax authority

(Rwanda Revenue Authority), enacted new tax laws, and increased tax collections.

Began the process of integrating the Rwandan economy into the regional and global

economy (Rwanda is currently member of EAC, COMESA, Commonwealth, WTO, etc.).

Registered 7% economic growth every year since 1995.

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Reached the Completion Point and the Decision Point to qualify for debt reduction under

Heavily Indebted Poor Countries (HIPC) Initiative.

Social sector

Support for genocide survivor groups, especially orphans and widows, and child-headed

households.

Health services: improvement in the quality of treatment and care at existing health

facilities, and expansion in the number of these facilities.

Food security and nutrition:various efforts have been deployed by Government to

eliminate hunger among Rwandans. Land use consolidation programme was undertaken by

Government to increase crop production in rural areas alongside another programme called

“One cow per poor family programme” which intends to increase milk in order to fight

against malnutrition and increase farm productivity through organic manure. Chicken

gardens are also developed by every household in which the plant green vegetables and other

crops to sustain quality food in households.

Education: expansion of tertiary educational institutions, establishing the Kigali Institute of

Education, the Kigali Health Institute and the Kigali Institute of Technology. Recently, all

former public tertiary education institutions were transformed into colleges under one

university: the University of Rwanda. Such reforms were undertaken to ensure quality

education and establishing a world class university. Enrollment at tertiary institutions has

increased ten-fold since before 1994. The number of students that have graduated from

tertiary institutions between 1994 and 2004 is three times the number that graduated in the

thirty years before 1994. For Primary education, the Government of Rwanda

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introduceduniversal primary education in 2005, with 9 year basic education whereas in 2012

the programme came to twelve year basic education.

Housing, shelter and settlement:a number of rural households have been shifted into

settlements alongside infrastructure facilities (roads, schools, health centres, markets, water

and electricity, etc.), grass thatched houses banned in the country (there is no single house in

the country covered with grass), etc.

Sports and recreation: sports activities have been developed as well as recreational

facilities. Every Friday afternoon of the week, is sport time for all staff in public service. This

policy has been established to allow civil servants to interacts through sports and other

recreational activities to foster unity and reconciliation and fight against obesity and other

diseases.

Women in development:the Government of Rwanda needed to address the problem of the

exclusion of Women, and to empower them politically and economically. The constitution

states that 30% of cabinet, the Senate and the Chamber of Deputies must be comprised of

women. Today Rwanda has the highest percentage of female legislators followed by Sweden.

The Government has promoted economic empowerment programmes and the new

constitution guarantees women’s marriage and inheritance rights.

4.7.SHAPING RWANDA'S FUTURE

4.7.1. Rwanda Vision 2020

Post genocide, adversity was turned into opportunity by creating a national vision i.e. “Vision

2020” which is a translation of Rwandans’ aspirations for the future of their country and society.

The Vision presents a framework and key priorities for Rwanda’s development and a guiding

tool for the future, and is ambitious to overcome poverty and foster unity and reconciliation.

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The aspirations of Vision 2020 will be realized around six “Pillars” and will be interwoven with

three cross-cutting issues.

Table 1: Pillars of the Vision 2020 and its crosscutting areas

Pillars of the VISION 2020 Cross-cutting areas of VISION 2020

1. Good governance and a capable state 1. Gender equality

2. Protection of environment and

sustainable natural resource

management

3. Science and technology,

including ICT

2. Human resource development and a

knowledge based economy

3. A private sector-led economy

4. Infrastructure development

5. Productive and Market Oriented Agriculture

6. Regional and International Economic

integration.

Source: Ministry of Finance and Economic Planning of Rwanda

Vision 2020 has been made operational by a series of medium-term national Poverty Reduction

and Economic Development Strategies.The Government of Rwanda set up in September 2007, a

second medium-term framework for achieving economic growth, poverty reduction and human

development, covering a period 2008 to 2012, known as Economic Development and Poverty

Reduction Strategy (EDPRS I) . Ambitions and targets for various aspects of the country’s life

were established, with a common vision and purpose of reducing poverty and positioning

Rwanda on the right track to achieve the aspirations as embodied in Rwanda Vision 2020.

4.7.2. Rwanda EDPRS II (2014-18)

Starting July 2014, the Second Economic Development and Poverty Reduction Strategy

(EDPRS 2), a five year plan designed to accelerate the progress already achieved and to shape

the country’s development in the future was launched. It will build on those policies from

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EDPRS 1 which have been effective in accelerating growth, creating employment and

generating exports.

The overarching goal for EDPRS 2, derived from Vision’s long-term goal of “creating a

productive middle class and fostering entrepreneurship” is:“Accelerating progress to middle

income status and better quality of life for all Rwandans through sustained growth of 11.5% and

accelerated reduction of poverty to less than 30% of the population”.

The EDPRS 2 is guided by the revised targets of the Vision 2020 adopted in May 2012 which

outlined the clearly the objectives to be achieved as a pre-requisite for rapid growth and poverty

reduction.

Table 2: Key Vision 2020 Targets

Objectives Vision 2020 targets

Rapid economic growth to Middle Income

status

GDP per capita of $1240

Avg. GDP growth of 11.5%

Increased Poverty reduction

More off-farm jobs, more urbanization

Poverty reduced to 20%

Extreme poverty eliminated

1.8 million new off-farm jobs

35% of population urban

Reduced external dependency

Private Sector as engine of growth

Exports Growth of 28% p.a.

Private sector takes dominant share of

investment

Source: Ministry of Finance and Economic Planning, EDPRS2, p. 2

4.7.3. Principles of EDPRS 2

EDPRS2 organization is articulated around four thematic areas, which reflect the emerging

priorities for EDPRS 2:

Economic transformation for accelerated economic restructuring and growth striving for

middle income country status;

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Rural development to address the needs of the vast majority of the population and ensure

sustainable poverty reduction and rural livelihoods;

Productivity and Youth Employment to ensure that growth and rural development are

underpinned by appropriate skills and productive employment, especially for the growing

cohort of youth;

Accountable Governance, to underpin improved service delivery and citizen participation in

the development process.

Table 3: Summaries of Thematic Areas and Priorities for EDPRS 2

Economic

transformation for

rapid growth

Rural Development Productivity and

youth employment

creation

Accountable

Governance

1. Increasing the

domestic

interconnectivity of the

economy through

investments in hard and

soft infrastructure

1. Integrated

approach to land use

and rural settlements

1. Improving skills

and attitudes

1. Strengthening

citizen participation

in delivery and

demand for

accountability

2. Increasing the

external connectivity of

the economy and

boosting exports

2. Increasing the

productivity of

agriculture

2. Applying

technology and ICT.

2. Service delivery

3. Transforming the

private sector by

increasing investment in

priority sectors

3. Enabling

graduation from

extreme poverty.

3. Enhancing

entrepreneurship and

business

development

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4. Transform the

economic geography of

Rwanda by facilitating

and managing

urbanization and

promoting secondary

cities as poles of

economic growth

4. Connecting rural

communities to

economic opportunity

through improved

infrastructure.

4. Improving labor

market interventions

5. Pursuing a ‘green

economy’ approach to

economic

transformation

Source: Ministry of Finance and Economic Planning, EDPRS2, p. 15

4.8.4. Opportunities/confidence for achieving EDPRS 2

While Rwanda’s development targets may seem ambitious, they remain achievable. Rwanda has

the potential to grow rapidly and to exceed the levels of growth, poverty reduction and

development experienced during EDPRS1 if opportunities are sustainably exploited and

developed. The track record of past achievements has strengthened confidence and belief of the

population in their ability to deliver on development ambitions.

Rwanda is primed to reap the demographic dividend. Rwanda has just entered its demographic

window of opportunity, a period in which the age dependency ratio of the population decreases,

i.e. the number of dependents (young and old) decreases as a share of the total population,

thereby increasing the economic opportunities for its working age population. The

preliminarycensus results from 2012 show that population growth has slowed in the last 10 years

and the 2010 DHS showed that fertility rates have dropped from6.1 children per woman to 4.6

between 2006 and 2010. However for this demographic potential to be realized, productive

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employment opportunities have to be created, and competent and skilled youth workforce has to

be developed.

Growing urbanization offers an opportunity for increased off-farm employment and development

of cities. According to the World Bank, Rwanda has the fastest rate of urbanization among

African countries, with the proportion of people living in urban areas increasing nearly threefold

between 1990 and 2011. Urbanization is widely associated with increased off-farm activity,

which would alleviate some of the pressures on the land from rising population density. While

the urbanization rate is growing, the level remains relatively low. This is a unique opportunity

for Rwanda to avoid mistakes made by other middle income countries by pro-actively managing

the urbanization process and mitigating risks of urban sprawl, divided cities, high urban

unemployment and high urban poverty.

A strong investment climate including stability, peace and security in the country is a

foundation for growing investment and trade. The continued reforms in the doing business

environment has laid thefoundations for Rwanda to develop into a top investment and trade

destination within Africa. The prolonged period of peace and stability also provides a

reassurance to investors. To reinforce this opportunity, Rwanda will need to identify, prioritize

and strengthen viable export sectors.

Functioning decentralized systems provide a valid platform for citizen service delivery and

participation. Rwanda has a well-functioning and detailed decentralized system that goes to

community level (Umudugudu). This includes a lot of community level engagement in

programmes like Ubudehe (social protection) and Umuganda (community works). These existing

home-grown systems can be strengthened and used as opportunities for real engagement with the

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community where community development and policy related issues can be discussed via

appropriate feedback mechanisms.

Regional integration provides an outlet for Rwanda's landlocked nature. With Rwanda now a

part of regional communities like the East African Community (EAC), Common Market for East

and Southern Africa (COMESA) and the Countries of the Great Lakes (CEPGL), a host of

markets and opportunities are opened if Rwanda invests in the right infrastructure for increased

connectivity. It also provides a forum for Rwanda to address and advocate for the

implementation of priority projects like the regional railway.

Rwanda as a leader in environment and climate change awareness is a natural centre for green

investments. Rwanda has taken important steps at a high level to recognise the importance of the

environment and climate change. The adoption of the National Green Growth and Climate

Change Adaptation Strategy highlights the centre stage this issue has taken in GoR policy

making. With the changing international environment giving more recognition of climate

change as a global issue, Rwanda stands to gain by moving rapidly and quickly to ensure

sustainability of interventions through environment mainstreaming, ecosystem protection and

rehabilitation as well as tapping into the growing international pool of green investments.

Growing financial literacy and inclusion is a pathway to increased savings and reduced

vulnerability. With more than 70% of the population now using a form of financial services, the

monetization of the economy is increasing and the country is on path to increase savings,

integrate into regional and global markets and break the cycle of persistent and generational

poverty. More of the population will now be able to invest in their future through education and

entrepreneurship while reducing dependence.

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RM: 506-Term Paper

5. Conclusion

Rwanda is a landlocked country situated in East Africa with Uganda at its border in North, DR-

Congo at its border in West, Burundi at its border in South and Tanzania at its border in East.

Research findings show that Rwanda went through a painful history of genocide that took place

in 19994 taking almost 1 million lives of innocent people. During the per-colonial era, Rwanda

was a kingdom peacefully governed by a monarch. During colonization, in 1935 the Belgian

colonial administration introduced a discriminatory national identification on the basis of

ethnicity. This new structure brought divisionism among Rwandan which culminated in the 1994

genocide where 1 million of Tutsis were massacred. The country was destroyed but in the

aftermath of genocide, the new Government of national unity set up strategies to rebuild the

country with the slogan of genocide “Never Again”.

Despite various challenges inherited from the colonial period and the genocide, the new

government of national unity has undertaken ambitious reforms which led the country to many

achievements politically, socially, economically, in security and justice. To achieve this, the

country set up its Vision 2020 and medium term developed strategies to ensure the

implementation of the Vision 2020. The first strategy named national strategy for poverty

reduction covered the period 2003 through 2007, the second named Economic Development and

Poverty Reduction Strategy (EDPRS 1) covered the period 2008-2012. After the evaluation of

EDPRS1, the EDPRS2 programme started with the month of July 2014 to cover the period 2014-

2018. While Rwanda’s development targets may seem ambitious, they remain achievable.

Rwanda has the potential to grow rapidly building in the confidence of its leaders and its people.

The track record of past achievements has strengthened confidence and belief of the population

in their ability to deliver on development ambitions.

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