Economic and Social Development: Arusha Accord – 4 August 1993
Implementations
Economic and Social Development – 1993
The broad based Commission for the Repatriation composed of Government, UNHCR, OAU and Refugee representatives was not set up. As the result, the basic socioeconomic infrastructures such as schools, health centers, water, access roads which were said to be established by the commission did not materialized. The restoration of socio-economic services as reinstalling administration did not take place.
Economic and Social Development – 1994
No developments observed this year.
Economic and Social Development – 1995
For the settlement of the refugees, the broad based Commission for Repatriation composed of Government, UNHCR, OAU and Refugee representatives was not set up. However, the Rwandan government signed tripartite agreements with UNHCR and the Governments of Burundi and Zaire on the voluntary repatriation of refugees. These agreements define the conditions for repatriation, including returnee protection and land tenure.1 On 18 July 1995, an agreement was signed to establish the tripartite commission of reparation of Rwandese Refugees from Tanzania between Tanzanian government, Rwandan government and the UNHCR representative. The agreement had provisions for four delegation representing Rwanda, Tanzania, UNHCR and the Organization of the African Unity.2 The rehabilitation and social integration ministry was committed for providing security and protection to returnees.3 Since the civil administration was reestablished. Nevertheless, the report highlights the challenges related to lack of resources to run an effective administration.4
Some progress was made to achieve economic goals as provided in the Arusha accord. In this regard, the Rwandan government had set up a commission to start reviving the People’s Bank. The bank had been initially was set up in 1975 and it had branches in 131 of Rwanda’s 154 communes by early 1994. The infrastructure was destroyed by the conflict in 1994. The revival of the bank was a key to starting recovery of farming and rural economic activities.5
There was sign of economic recovery in the export sector as well. It was reported that farmers in tea growing districts were reviving their plantations, traditionally a hard currency earner, and foreign aid had supported initiatives to repair war-damaged factories.6 Financial supports provided by the European Union ($24.3 Million) had been distributed to rehabilitate buildings, plantations, technical training of staffs, and improving transport.7 In a sense, the economic recovery was underway.
- “UN Secretary General’s Report to the Security Council,” United Nations (S/1995/65), January 25, 1995.
- “Tripartite Commission of Repatriation of Rwandese Refugees From Tanzania,” UNHCR, 1995, accessed September 22, 2011, http://www.unhcr.org/refworld/type,MULTILATERALTREATY,,RWA,3ee71f004,0.html.
- “Rwanda UNHCR to Set Up Refugee Repatriation,” Africa News, September 26, 1995.
- “UN Secretary General’s Report to the Security Council,” United Nations (S/1995/107), February 6, 1995.
- “Rwanda-Economy: Infusing New Blood in the People’s Banks,” IPS-Inter Press Service, October 26, 1995.
- Rwanda-Economy: Brewing Tea Recovery,” IPS-Inter Press Service, November 29, 1995.
- Ibid.
Economic and Social Development – 1996
Almost all civil administration infrastructures were restored throughout Rwanda, which facilitated a gradual repatriation of refugees. In terms of recovery, the Rwandan economy bounced back to the pre-genocide level as reported by the International Monetary Fund.1 According to the news report, some 60 to 70 per cent of enterprises in the tertiary sector, for instance, had re-opened and were thriving as of 1996. Nevertheless, to rebuild its economy, the Rwandan Government needed more than 800 million USD in the years 1996-1998.2
- “Rwanda: Ravaged Country’s Economy Bounces Back,” IPS-Inter Press Service, January 24, 1996.
- “Rwanda; More than 800m US Dollars Needed to Revive Economy,” BBC Summary of World Broadcasts, June 24, 1996.
Economic and Social Development – 1997
Rwanda remained heavily indebted with more than 1 billion in foreign debt or 91% of its GDP.1 Nevertheless, Rwanda made efforts to restore the situation to normal by stabilizing society, rehabilitating the judicial system and rebuilding the economy.2 Donor countries and international development agencies were providing rebuilding support throughout the year.
- “Rwanda: Review 1997,” Africa Review World of Information, February 1997.
- “Albright Arrives in Rwanda, Holds Talks with President Bizimungu,” BBC Summary of World Broadcasts, December 13, 1997.
Economic and Social Development – 1998
It was reported that the consolidation of government authority contributed to the economic recovery. The real GDP recovery was 13 percent, which was a rise of 76 per cent in comparison to the pre-war period.1 The relatively improved security situation in the countryside allowed the government to expand its revenue bases. The rebuilding of plantations and favorable international market for tea and coffee helped to generate much needed foreign reserve. In this regard, government also planned to boost trade and commerce and for this purpose export tariffs were reduced. To protect local industry, imports of locally produced goods were heavily taxed.2
In April 1998, the Rwandan government announced a three-year growth plan that included fiscal, monetary and structural reforms to the Rwandan economy, including the overhaul of its tax system to increase revenue. The reforms was expected to overhaul Rwanda’s public services through retrenchment , and measures to encourage domestic private sector investment to help rebuild infrastructure.3
- “Rwanda: Finance Minister Discusses 1998 Budget, Tax Policy,” BBC Monitoring Africa, January 16, 1998.
- “Rwanda: Africa Review 1998,” Africa Review World of Information, March 1998.
- “Rwanda Announces New Three-Year Growth Plan,” Business Day, April 16, 1998.
Economic and Social Development – 1999
Some progress was made in terms of rebuilding social and economic infrastructure. The African Development Fund financed 91 percent of the Rehabilitation of Health Infrastructure project. The economy grew gradually but a reliance on commodity exports was met by repressed prices in the world market. The agriculture sector continued to be the primary export earner. The government was also mulling over plans to exploit natural resources such as natural gas under Lake Kivu with estimated reserve of more than 50bn cu meters.1
Economic and Social Development – 2000
Little information is available. Nevertheless, the economy grew at the rate of 6 per cent in 1999 compared to 8 per cent in 1998.1 Poverty and AIDS were hindering the Rwanda’s economic rebuilding initiatives.
Economic and Social Development – 2001
The government’s program of rebuilding social and economic infrastructure continued in 2001. Much of the activities were supported by funding from donor agencies. According to a report, macroeconomic performance during 2001 was strong. A growth in manufacturing, construction, transportation, and communications activities was reported.1
Economic and Social Development – 2002
The government’s program of rebuilding social and economic infrastructure continued in 2002. Much of the activities were supported by funding from donor agencies. In this regard, the IMF provided financial support Poverty Reduction and Growth Facility (PRGF) programs, which contributed rebuilding economic and social infrastructure.1
Not much information available on economic activities. However, donor agencies and countries continued to help to rebuild socio-economic infrastructure of the country. In 2003, the transitional phase ended with the holding of the election for the president and the national assembly in which Kagame was elected president and his party the Rwandan Patriotic Front (RPF) won the majority of seats in the assembly.2