Introduction
What do you want to have done by the year 2020? Any ideas? Rwanda knows exactly what it wants to do: transform the economy into that of a middle income country. It wants per capita GDP increased in an equitable way from $25078 to $900; to reduce the number of poor people to 25 percent of the population (from 60 percent); to increase life expectancy to 65 years (from 41 years in 2000); and to increase literacy to 90 percent of the population (from 48 percent). In doing all that, it also wants to become the internet capital of East Africa. Sound ambitious? It’s meant to be!
Why is it important?
Since 1994, the Government of Rwanda has stabilised the political situation, whilst putting the economy back on track, but challenges do remain. The Rwandan population will potentially double to around 16 million by the year 2020. Vision 2020 targets themselves require an annual growth rate of at least 7% if they are to make it possible for the average Rwandan to live in a decent home, access quality healthcare and basic infrastructure (i.e., water and electricity) and educate their children. This demands fundamental transformation from an economy based on subsistence agriculture to one based on ICT, supported by a knowledge-based society, with high levels of savings and private investment and lower external aid.
In Pictures: Rwanda Vision 2020
Where did Vision 2020 come from?
Vision 2020 is a result of a national consultative process that took place 1998-99 led by the Office of the President. Questions were raised at that time: How do Rwandan envisage their future? What kind of society do they want to become? How can they construct a united and inclusive Rwandan identity? What are the transformations needed to emerge from a deeply unsatisfactory social and economic situation? A broad consensus emerged on the necessity for Rwandans to clearly define the future of the country themselves. Vision 2020 was subsequently developed as the long term framework for Rwanda’s development. Policies and strategies have since been developed based on the 6 pillars of Vision 2020:
Pillars of the VISION 2020 |
Cross-cutting areas of VISION 2020 |
1. Good governance and a capable state |
1. Gender equality
2. Protection of environment and sustainable natural resource management
3. Science and technology, including ICT |
2. Human resource development and a knowledge
based economy |
3. A private sector-led economy |
4. Infrastructure development |
5. Productive and Market Oriented Agriculture |
6. Regional and International Economic integration. |
How will it be achieved?
Vision 2020 recognises that growth must be pro-poor, giving all Rwandan’s the chance to gain from the new economic opportunities. It aspires for Rwanda to become a modern, strong and united nation, proud of its fundamental values, politically stable and without discrimination amongst its citizens. In order to reach these goals, Vision 2020 envisages this transformation through the promotion of market-based agriculture, introduction of new technologies in the rural/agricultural sector, an inclusive market-based private-sector-led economic system, and a specialization in export-oriented light manufacturing and service industries, making full use of modem information and ICT technologies and encouraging tourism. Rwanda’s leadership demands that policy, strategies, programmes and investments actually be measured against Vision 2020.
Progress: perceptions and results?
In order for per capita incomes to reach US$900, Rwanda would have to expand its economy seven times, no small achievement. So – how realistic are these goals? What progress has been made and what results have been achieved – these are the questions Rwanda’s Government and citizens are asking.
A recent On the Frontier (www.onthefrontier.com) Group survey offers some interesting data. In September 2005, the OTF Group surveyed a cross-section of 300 Rwandans from the country’s five main regions, Kigali, Butare, Ruhengeri, Kibuye and Kibungo. The survey asked for their views on the economy and economic development. Most respondents thought the goals in Vision 2020 were attainable. Seventy per cent (70%) of respondents believed that the average Rwandan would enjoy a higher standard of living in 5 years. Moreover, eighty two per cent (82%) believed that the majority of Rwandan businesses will be much more competitive in the world market in five years.
Rwanda’s economy has grown by an average six per cent since 2001, a strong performance considering rising oil, energy and food prices. Rwanda’s goods exports are poised to reach $123m in 2005, up 25% from 2004. This export level would be the highest recorded since 1990. These export statistics do not include tourism, another strong growth area. Results in relation to human development statistics are also going in the right direction, for example in 2004, life expectancy had increased to 44 years; literacy rates have improved amongst the adult population (over 15 years) to 65%; primary school enrolment rates (in particular for girls) have also risen to 17%; immunization rates for measles stand at 84%; and access to potable water has increased in both urban and rural areas.
Making Rwanda an ICT centre of excellence in the region requires the state to invest a lot in the development of infrastructure, institutions and equipment. The human resources must be nurtured through development of skills, training and education to meet global market demands. The country recently privatised the telecommunications network which has increased investment and service capacity and quality. Fibre Optic cables are being laid through out the whole country, local governments will be networked, Kigali has wireless and ADSL internet connections and these are expanding to other regions. The Kigali Institute of Science and Technology (KIST) is to concentrate on being a fully fledged science oriented institution, and a new Ministerial post focusing on ICT, Science and Technology was recently created, housed in the Office of the President. Rwanda also recently came top in Africa in a survey on the ‘Ease of doing Business’ taking only 21 days to register a business. In winning international recognition and awards for her efforts, Rwanda is clearly setting the pace regionally.
Conclusion:
The second Poverty Reduction Strategy (PRS) is currently being developed, again based on the longer term Vision 2020 aspirations. Rwanda has learned from its first PRS that while there have been strong results in some areas, more needs to be done in the productive and growth sectors if it is to meet the goals its set – hence the second PRS will be called the ‘Economic Development and Poverty Reduction Strategy’ (EDPRS) in order to reflect this focus. So, while undoubtedly challenges remain, there is no doubt that Rwanda is determined to meet these and beat them. Someone with 20:20 Vision is said to be able to see clearly – without the aid of spectacles. Have you got your spectacles on or off?
