Rwanda has the most effective government among low-income countries globally and across mainland Africa, according to the second Chandler Good Government Index, released Thursday, April 28.
The annual index, published by the Singapore-based non-profit Chandler Institute of Governance (CIG), is built around the notion that every country deserves good leadership, sound policy and effective institutions, as well as systems that work.
Based on over 50 open data sources, the index measures government capabilities and outcomes across 104 countries (about 90 per cent of the world’s population).
One of the insights that emerged from this year’s index, it says, is the close relationship between good governance and social mobility – which it describes as "the extent to which socio-economic circumstances at birth influence a person’s future status and prosperity.”
"Our findings suggest that good governance – not ideology, income-level, or geography – is what determines the extent to which countries create opportunities for their people to rise on the basis of their creativity, work ethic, and contribution,” the report says.
Countries that score highest on the CGGI (Chandler Good Government Index) also have the highest levels of social mobility, the report says.
"It shows the importance of investing in enhancing the capabilities of public servants and the structures they operate within, to achieve a better and more sustainable future,” reads part of a statement.
The top 15 African countries:
The index focuses on seven pillars: Leadership and Foresight; Robust Laws and Policies; Strong Institutions; Financial Stewardship; Attractive Marketplace; Global Influence and Reputation; and Helping People Rise.
Rwanda emerged the second best-performing country in Africa and 55th globally. Mauritius, ranked 38th globally, tops Africa. Botswana (60) completes Africa’s top three, with Morocco (64), South Africa (70), Senegal (71), Tunisia (72), Egypt (73), Ghana (73) and Namibia (78) making Africa’s top 10.
Finland tops the world, followed by Switzerland, Singapore, Denmark and Netherlands in that order. Norway, Sweden, Germany, New Zealand and the United Kingdom complete the top 10.
Rwanda performed strongest under the Leadership and Oversight pillar, ranking 17th globally, while it also performed relatively strongly in capability to serve as an Attractive Marketplace, emerging 28th overall. But it performed poorly on Global Influence and Reputation (91st), generally reflecting Africa’s trend. Rwanda ranked 49th in Financial Stewardship, 57th in Robust Laws and Policies, 63rd under the Strong Institutions pillar, and 79th in its capability with regard to Helping People Rise.
Rwanda’s skills development approach
In particular, the 132-page report takes note of Rwanda’s strides in upskilling its workforce to meet new demands and to attract foreign investments.
"For many years, the Rwandan government has worked to create conditions favourable to foreign investment, and to position the country as an attractive market for investment and business in East Africa. These efforts continued even during the pandemic’s initial impact,” the report reads in part. "Decades of good governance since the 1990s have led to successful policies addressing economic and development issues that have enabled inclusion in the workforce and nurtured a skilled and capable workforce for a range of industries.”
A National Strategy for Transformation has also sought to bolster foreign direct investment and set Rwanda on a course for steady gains into the future, it says.
"The country’s National Skills Development and Employment Promotion Strategy, along with its predecessor the National Employment Program, align with the broader national development strategy, building skills and promoting employment to support economic transformation.”
"Structured across 11 schemes, the Strategy connects enterprises and public agencies, increasing opportunities to help close skills gaps. By matching skill supply and demand, policymakers aim to support those already in the workforce, as well as young people entering it, in particular those enrolled in technical and vocational education and tertiary education,” the report says.
The rankings of Mauritius, Rwanda, and Botswana by pillar:
This, it adds, represents a proactive and integrated approach to bolstering the nation’s workforce as a key factor in attracting foreign direct investment and strengthening the small- and medium-sized enterprises (SMEs) that make up a majority of firms in the Rwandan economy.
Covid-19 response was "swift and methodical”
The Covid-19 pandemic presented a formidable challenge, it says. "Rwanda’s tourism industry, which had been witnessing steady growth, was devastated by the global collapse in travel. The government’s response to this crisis was swift and methodical.”
Rwanda’s Chamber of Tourism quickly started training programmes for those in the hospitality sector who were placed on forced leave, it says. "The training enabled participants to acquire future-oriented skills, remain employable, and reintegrate into the workforce.”
"The government’s skills development approach focused on supporting SMEs, and enabling linkages with European and African investors.”
The report also acknowledges Rwanda's open-door migration regime, stating that the country "took steps to leverage immigration policies to encourage the in-flow of highly skilled workers to fill demand gaps, with immigrants tending to enter high-skilled occupations at a faster rate.”
In 2021, the country also opened up citizenship to anyone with special skills or talents determined to be in demand or of national interest, it adds.
To attract foreign direct investment, the report says, the Rwandan government developed the Kigali Innovation City (KIC) in 2020, a commercial zone inspired by Silicon Valley, "to promote development across technology and biotech firms in partnership with private investors and major universities.”
"In tandem, it also developed the Kigali International Financial Centre (KFIC) to position Kigali as a premier financial centre, and established a framework of laws and regulations to promote the development of talent and the creation of leading technologies.”
The new policies, the index says, promote the growth of start-up and medium-sized enterprises while appealing to investors in high-tech industries through transparent schemes that incentivise the management and governance of investments.
"The KIC and the KIFC, backed by a new investment law launched, in 2021, herald for Rwanda a new development approach that promotes a diverse private sector and start-up ecosystem while growing the relevant talent pool.
"These, along with further support measures such as adjustments to taxation, interest rates, and labour laws, set Rwanda on a durable course for the long-term attraction and retention of both talent and investment.”
Rwanda’s "progress and decisiveness in response to rapidly changing circumstances, including the pandemic, signal the benefits of well-coordinated, mutually reinforcing policies as key expressions of effective governance,” the index reads in part.
‘An enduring source of competitive advantage’
The 2022 CGGI shows that countries with good governance were better prepared for the Covid-19 pandemic, conducted more tests per capita, and generally experienced fewer excess deaths per capita, the non-profit says in the statement.
"Government capabilities are an enduring source of competitive advantage for nations. These capabilities include systems, institutions, processes, and skills – elements that take time to improve and build up,” Wu Wei Neng, Executive Director, Chandler Institute of Governance, says in the statement. "Once developed and strengthened, government capabilities are not easily eroded in the short-term, and can support governments through brief periods of instability or crisis.”
The top 20 countries globally:
Ed-Olowo-Okere of the Governance Global Practice at the World Bank said that "In the absence of good governance, countries may not be able to formulate good policies. Even when governments adopt good policies, without good governance they will struggle with gaps in implementation that derail intended outcomes. This is especially true in Africa where poor governance has affected development outcomes, resulting in a high concentration of people living below the poverty line.”
According to the report, effective government capabilities are closely linked to better outcomes for citizens.
It cites Rule of Law, Property Rights, and Anti-Corruption capabilities as "the cornerstones upon which trust-based societies and economies are built.”
"These three capabilities are essential factors in determining good governance, and sturdy foundations for national development and flourishing. Their presence suggests several other healthy behaviours and processes are being implemented – ones that prevent money from being siphoned, for instance, or the law being selectively applied.”
The index established that there is a moderate relationship between good governance and Covid-19 outcomes.
Well-governed countries had fewer excess deaths from Covid-19 than poorly governed countries, the report says.
"Leadership makes a difference. What public sector leaders decide, do, or say impacts public trust in government. Good leaders create and sustain cultures of integrity, competence and service. They have a clear sense of medium- and longer-term pathways for their government and country. They cultivate the foresight needed to anticipate emerging challenges and opportunities.”