This information comes from the assessment conducted in country for the Rwanda report in February 2008.
In the economic arena, so much is going well in Rwanda. Behind a growth rate of 6 percent in 2007, and realistic external projections for up to 6.5 percent growth in the near future, there is a remarkably intensive, informed, and carefully implemented agenda for reform. Together, Rwanda’s government, private sector, professional communities, NGOs and workforce – along with a large donor community – are striving to overcome a legacy of poverty, one that is uniquely complicated by the country’s recent history of war and genocide.
Reform is taking place on several fronts. On a macro-level, the country’s Economic Development and Poverty Reduction Strategy (2008–2012) (EDPRS), is the government’s newly enacted operational tool that aims to push change forward. The EDPRS reiterates the country’s vision for growth and development and then details a “medium-term” implementation strategy, one that emphasizes the contributions to be gained not only from government reform, but also from a vibrant and healthy private sector. As a core theme, the EDPRS emphasizes the importance of “soft” infrastructure – that is, a regulatory environment that is friendly to domestic enterprises and outside investors. The EDPRS also emphasizes the need for Rwanda to improve the skills of its citizens through better primary education, more opportunities in technical and vocational training, and stronger universities.
A host of targeted efforts are under way to achieve the overriding goal of a business-friendly environment, one that ultimately contributes to economic growth and reductions in poverty. For example, through a comprehensive legal reform program, Rwanda’s key commercial laws are undergoing revision for the purpose, generally, of becoming more business-friendly and consistent with international best practice. At nearly all levels, the national government emphasizes the importance of administrative transparency, efficiency, customer service, and private sector partnerships. At the same time, a nationwide emphasis on environmental preservation, tax and land reform, and construction of “hard” infrastructure indicates that the country is facing with all due gravity the problems that stem from its geography and recent history. New and re-invigorated supporting institutions are also taking shape – or are envisioned for the near future – including the increasingly dynamic Private Sector Federation, a consolidated legal training center, and various other private and public institutions dedicated to strengthening professional skills and capacities.
In response to its efforts to achieve meaningful economic reforms, Rwanda has been recognized throughout the world as an example to other less-developed countries. Moreover, the extent to which domestic private sector observers assert that the Rwandan government is “honest,” “fair,” and “business-friendly” is remarkable not only for a country in East Africa, but also for the developing world generally.
Yet enthusiasm for all that is going right should not obscure a number of reservations that arise when Rwanda’s economic and political environments are scrutinized closely. Certain potentially detrimental dynamics exist that are at once plain to see and difficult to nail down. These are best confronted vigorously and now: As Rwanda continues to attract (and solicit) international interest in the role it can play as a stable, well-governed state at the crossroads of Africa, it should avoid negative impressions that may present “red flags” against future engagement with outsiders. Even more important, the government should seek to do better by its own beleaguered people.
