A successful Development Strategy: Need for Sustenance

Social capital of agro sectors is critical to our next generation of EDPRSThe next generation of our development agenda EDPRS II, will as pointed out in earlier articles, require national efforts of business unusual. Business unusual in the manner and volumes of financing we require to attain an average projected level GDP growth of 11 per cent per annum up to 2020. Business unusual in skills we need, which will call for re-skilling of manpower necessary to achieve our development agenda. Business unusual in the manner and extent of our performance contracts, which will have to be restructured and refined to meet the needs of our programmatic development agenda. Business unusual in our the extent to which we use our social capital. Business unusual in our savings mobilization which will have to increase from our current savings rate of 10 per cent to over 40 per percent an uphill task indeed, but one we can achieve given our proven national resolve. Business unusual even in investments to GDP level which will raise from the current 21 per cent to over 35 per cent of GDP. These are some of unusual strategic options we need to look solutions for, if we are to grow into a middle income through a GDP growth of 11 per cent. Our trended economic growth which has been so impressive will require supply side approaches for the same to be realized. This is even more pertinent given our weak private sector. Stable macro and microeconomic as well as fiscal measures are necessary, but not sufficient conditions for the attainment of our ambitious agenda we have set for ourselves. Stable macro and microeconomic have temporal effects on growth. Such factors as Total Factor Productivity (TFP) ambitious saving mobilization as well as investment promotion will have to be priorities of priorities of policy makers if we are to achieve our development agenda. With regard to TFP, skills pool for sectors that will drive our economy to the second generation of our development agenda, will need more strategic ownership and thus enhancement. Thus for instances agro production and especially cash crops existing and others that will add value to our production and by extension export oriented production will have to be boosted. Furthermore, horticulture production holds key to high value horticulture exports. This sector will certainly gain from relatively fast and efficient transport from a number of international airlines that operates Kigali route. Horticultural development, unlike other agro production industries can be realised in the short run, and are sustainable given the huge market abroad for the products of this industry. Government intervention in the development of this industry including incentives to investors in this industry and training of skill necessary for its development are key to the successful development of this very industry. Thus, government scholarships will have to be oriented to the sectors that have been earmarked as drivers of our economy so as to match the demand and supply of kills pool in our economy. As pointed out earlier, re-skilling is a quick win strategy as long as it is properly structured, as it should.With regard to savings mobilization to finance our ambitious investment agenda, unusual government intervention will be necessary. Such funds as provident funds, and other high yield financial instruments will be necessary if we to mobilize huge savings for investments needed to finance our ambitious development agenda. But as pointed out in earlier article, this will require fundamental reforms in our financial sector, which as of now, is rather scattered in development with many missing markets, necessary to mobilize financing for our development agenda.Although we have succeeded in ownership of policies at strategic level, nevertheless our social capability will have to be scaled up. Social capability is a critical factor necessary for balanced growth and development without which a country ends up with highly skewed growth, where we have a few rich people and many poor people, a situation that serves only to bred anarchy in the medium term. Social capability which simply focuses on the value of social networks to boost productivity in the economy is vital in any development agenda.Social capital represents the networks with shared values which leads to greater social cooperation and mutual trust, and thus unity of purpose, is critical for development as it mobilizes masses for the agreed development agenda.Social capital will even be critical in our development given that, most of Rwandans are engaged in agro-production. The development of this sector will to a greater extent depend upon the extent to which our famers buy into, and own government development strategies that concern this crucial sector of development. Social capital in agro production entails a critical mass of farmers who believe in government agro strategies, and making these their own. This very possible given the Rwandan culture of resolve to overcome challenges regardless of their magnitude and cost. And although this sector has performed relatively well of late, it will nevertheless require scaling up, and high level of diversification if this sector is to be our economic drivers as expected.To be continued.