Friday, December 13, 2013

Rwanda growing

(cont'd from In The River They Swim)

Advisor Malik Fal found that Rwandan national leaders were very determined to improve conditions for the nation's people.    Like other African countries, they have received all forms of aid - but their goal is to grow out of the need for it by creating their own wealth.

(This should sound familiar if you read about economist Dambisa Moyo in my posts a month ago, Nov. 11-14.  She's been advocating this kind of change and sees Rwanda as a good example.  "Following President Kagame’s lead, Rwanda is already obsessed with turning the “no-aid” development theory into a reality.")

One of their strategies was to focus limited resources on industries that had high potential for competitive advantage.  Coffee growers worked hard to produce a better quality product with its better revenues.  Tourism focused on primate safaris and upscale accomodations, triggering infrastructure and service upgrades.

All of this with less foreign aid.  As the World Bank reported (see "Rwanda Changing" post two days ago),  "The domestic economy remained strong despite an estimated 20 percent reduction in Official Donor Assistance (ODA) in 2012."

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