Turn off aid tap and come out of aid trap

Gunilla Carlsson, the Sweden’s Foreign aid minister announced his government’s stopping $ USD1 million about Rwf553 million donor funds meant for Rwanda. The decision to stop the aid was based on a UN report that alleges that Rwanda supports a rebel group in neighbouring Democratic Republic of Congo (DRC). A report the Government has rubbished calling it baseless and ill-intended. Rwanda’s Foreign Affairs Minister, Rosemary Museminari says aid should be sustainable, predictable and that it’s only honourable for aid giving nations to deliver. In other words, instead of the Dutch stopping aid to Rwanda, they should have allowed to Rwanda defend it self against the wild allegations of the UN team. Such strong decisions that directly affect the livelihoods of people are questionable when made in haste. But considering the financial crisis in the global market, some donors are closing the aid taps and Sweden is part of the countries. The UN report was just the perfect timing. This would not be the first time aid is withdrawn from Rwanda. Recall when the French— withdrew aid immediately their relations with Rwanda soured.They assumed Rwandan economy would crumble without their aid but the country is growing from strength to strength. Today, locally generated revenue funds 50 per cent of the budget. Francois Kanimba, the Governor of Rwanda’s Central Bank predicts that the overall economic growth is expected to reach 10 per cent at the end of this year. This steady growth has been triggered by the steadily flourishing agricultural, construction, mining, tourism and energy sectors. At this growth rate, every Rwandans will have the projected $900 about (Rwf500,000) to spend annually compared to the current Rwf130,000 on average. From these current indicators, Rwanda is moving towards economic freedom, just like the ‘Four Asian Tigers’ which comprise of the economies of Taiwan, South Korea, Hong Kong and Singapore have. The ‘Four Asian Tigers’ were relatively poor during the 1960’s but their strength lay in the abundance of cheap labour that they had. Coupled with an educational transformation, they were able to influence this combination into a cheap, yet productive workforce. The same strengths lies in Rwanda. The country has a large population, of which 90 per cent is employed in agriculture— the country’s economic engine combined with the current regeneration of the educational system. Education has been singled out as a means of improving productivity; government has focused on improving the education system at all levels, heavy emphasis being placed on ensuring that all children attend elementary education. Therefore, blending the agricultural workforce with an improvement in education, definitely, a high degree of economic freedom will be rooted in the country. More still, Rwanda has embarked on policies like land reforms- real estate and property relocation, agricultural financial support and tariffs, exports to richer industrialised nations that will in the near future reduce donor dependence. One important factor that cannot be ignored is the role of traditional philosophies and cultures in the economic growth of a country. Like Japan that invented and developed a “Culture of harmony” in 1919, over the years they were able to meet the needs of their emerging economy and depended less on foreign aid. Rwanda too, has got a rich culture with traditions that can play an important role in the character of our economic values and behaviour, as regards social peace for economic development. That’s why eliminating genocide ideologies and attaining peace in DR Congo is important for the country economy. By emphasising traditional values of harmony, self-sacrifice and non-individualistic group determination in pursuit of a common cause, Rwanda can achieve long-term economic growth, with less reliance on foreign aid. Contact: anyglorian@yahoo.com