Evaluating how and why the Government of Rwanda failed to achieve middle-income status (MICS) in 2020: Lessons for other African countries

Dominique Emmanuel Uwizeyimana

Article ID: 4538
Vol 8, Issue 9, 2024

VIEWS - 152 (Abstract) 96 (PDF)

Abstract


In the 1960s, many East Asian Tiger countries, such as Taiwan, Malaysia, China, etc., faced unfavourable socio-economic conditions like those facing many African countries such as Rwanda. For example, in the 1960s, Singapore was classified as an undeveloped country, with its GDP per capita standing at less than $320. However, all these countries managed to reach a development level like that of Western and North American countries (such as the U.S. and Canada), within a space of less than 15 years. Today, Singapore’s GDP per capita has risen to an incredible $84,501, making it the sixth highest GDP per capita in the world. With Vision 2020, President Kagame promised that Rwanda, which he referred to as “the African lion”, would cruise faster to the middle-income country status faster than Singapore and other middle income status countries, most of which are in East-Asia in less than 20 years. Thirteen years after the introduction of Rwanda’s Vision 2020, President Kagame dashed off the Wall Street Journal and other western media which often referred to Rwanda’s economic development as “the economic tiger of Africa” in his 2013 famous statement as follows: “There is a view that development is a marathon, not a sprint. We do not agree. Development is a marathon that must be run at a sprint. In our pursuit of progress, we have, of course, looked to East Asia’s so-called “tiger” economies for inspiration. But Africa’s experience is unique, and we must now define our own destiny. So, while being described as an “African tiger” is a welcome recognition of how far Rwanda has come, perhaps it isn’t quite right. After all, our continent has its own big cat. Step forward, the new lions of Africa.”. To achieve this objective between 2000 and 2020, Rwanda’s GDP per capita needed to increase from 254.94 USD (2000) to $1240 (in 2020), and the GDP growth rate was to grow consistently between 7% and 10% for a period of 20 years (2000–2020). The objective of this article is to critically analyse how the Government of Rwanda failed to achieve its promise of achieving a middle-income status (MICS) between 2000 and 2020. In 2000 the Rwandan president Paul Kagame launched Rwanda’s Vision 2020. This was a long-term framework for Rwanda’s development in 20 (i.e., 2000–2020). The idea behind Rwanda’s leadership was to imitate whatever Singapore did to become a developed country in just 15 years after its independence in 1965. Blatantly stated, President Paul Kagame wanted to turn his country into the Singapore of Africa. The IMF states that “Vision 2020 was the longer-term socio-economic development framework that sought to transform Rwanda into a middle-income country by 2020”. There is no doubt that Rwanda has made some developmental strides through the implementation of Vision 2020 as an instrument for operationalisation for the Singaporean-modelled developmental state over the past 20 years and has succeeded in some areas. However, the Government of Rwanda has failed in many areas and has failed to achieve the prestigious MICS in 2020. Therefore, among the many gaps in the current literature that this research seeks close is to find out what were some of the accomplishments that Rwanda’s Vision 2020 was unable to achieve? Why did the Government of Rwanda fail to achieve middle-income status within 20 years? What insights can other developing countries gain from Rwanda’s Vision 2020 experience? This study is a significant contribution to the current theoretical knowledge as it sheds light on the reasons behind the Government of Rwanda’s failure to achieve middle-income country status in 2020, a topic that has been largely ignored by the Government’s documents and the media. Despite Rwanda’s Vision 2020, there has been no scientific study to date that has attempted to deal with this topic. Therefore, this study, titled “Why the Government of Rwanda failed to achieve middle-income status (MICS) in 2020” is likely the first of its kind. By addressing this crucial issue, this study aims to provide valuable insights into the factors that hindered Rwanda’s progress towards becoming a middle-income country, which could be beneficial for other African countries as well. This research is exploratory because the topic, specifically why Rwanda didn’t reach middle-income country (MIC) status in 2020, hasn’t been widely explored or discussed in academic or scientific communities. Addressing the question of why the Rwandan government failed in this goal is important not only for understanding Rwanda’s development challenges but also for drawing lessons that could benefit other African and developing countries around the world. The research used qualitative methodology, relying on thematic content analysis of the literature and a desktop review. The main finding of this research is that Singapore and other countries that achieved high levels of development in the East-Asian Tiger countries have fundamental political, economic, cultural, social, and administrative and leadership conditions that facilitated its transition from a very poor country to a developed country in under 15 years after its independence. The absence of some of socio-economic, geopolitical and technological conditions like those in Singapore and other countries that have achieved impressive development levels over the past 50 years, explain why Rwanda failed to become a middle-income country in 2020 and the reason why its dream to become the African Singapore remains a piped dream.

Keywords


Rwanda; middle income country; Singapore; Vision 2020

Full Text:

PDF


References


Afroamerica Network. (2013). I will Just Wait for you At the Right Place and I will Hit You, Rwandan General Paul Kagame Threatens Tanzanian Jakaya Kikwete. Available online: http://www.afroamerica.net/AfricaGL/2013/07/03/i-will-just-wait-for-you-at-the-right-place-and-i-will-hit-you-rwandan-general-paul-kagame-threatens-tanzanian-jakaya-kikwete//index.html (accessed on 14 August 2023).

Akayezu, J. D. (2021). The national debt reached 71.3% of the global production; What will happen next year? (Kinyarwanda). Available online: https://igihe.com/amakuru/u-rwanda/article/umwenda-w-igihugu-ugeze-kuri-71-3-by-umusaruro-mbumbe-indi-myaka-bizagenda-bite (accessed on 7 December 2021).

BBC. (2011). Rwanda gives DR Congo back tonnes of smuggled minerals. Available online: https://www.bbc.com/news/world-africa-15570648 (accessed on 28 August 2023).

Buchholz, K. (2022). The World’s Most Innovative Countries. Available online: https://www-statista-com.eu1.proxy.openathens.net/chart/18804/rankings-of-the-global-innovation-index/ (accessed on 25 August 2023).

Diaby, S., & Hajayandi, P. (2018). Burundi’s president Nkurunziza no longer considers Rwanda a partner but an enemy. Available online: https://www.news24.com/news24/burundis-president-nkurunziza-no-longer-considers-rwanda-a-partner-but-an-enemy-20181216 (accessed on 28 August 2023).

Fresherslive. (2023). Saddest Countries in the World 2023—Updated List Top 10. Available online: https://www.fresherslive.com/latest/articles/saddest-countries-in-the-world-updated-list-top-10-10022764 (accessed on 4 September 2023).

Gakwerere, R. P. F. (2020). Rwanda Is East African Community’s Poorest State: World Bank’s Newly-Released 2020 Data—Africa. Available online: https://rpfgakwerere.org/2021/07/13/rwanda-is-east-african-communitys-poorest-state-world-banks-newly-released-2020-data/ (accessed on 4 May 2024).

Game, A., & Kang, X. (2023). Employment impact assessment of the National Feeder Roads Programme, Rwanda. Available online: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.ilo.org/wcmsp5/groups/public/---ed_emp/documents/publication/wcms_868980.pdf (accessed on 14 August 2023).

Gatete, C. (2016). The Rwanda we want: towards ‘vision 2050’: Minister of Finance and Economic Planning. Rwanda, National Dialogue Presentation.

Havugimana, A. (2021). The fifteen major challenges and weakness in the Rwandan education system. Global Scientific Journal (GSJ), 9(5), 1–119.

Himbara, D. (2018). Kagame Is Drowning Rwanda in Debt. Available online: https://medium.com/@david.himbara_27884/kagame-is-drowning-rwanda-into-debt-b7d08f39c14b (accessed on 3 September 2023).

Himbara, D. (2019). Kagame’s Development Airlines is About to Land. Available online: https://medium.com/@david.himbara_27884/kagames-development-airlines-is-about-to-land-eaf38259fe57 (accessed on 28 November 2019).

Himbara, D. (2021a). Rwanda Classified as Poorest and Most Vulnerable Country. Available online: https://medium.com/@david.himbara_27884/rwanda-classified-as-poorest-and-most-vulnerable-country-8fb831401514 (accessed on 14 May 2021).

Himbara, D. (2021b). Rwanda: Poverty Increased by 5.7% Bringing the Population Under the International Poverty Line to 66.2 Percent. Available online: https://medium.com/@david.himbara_27884/rwanda-poverty-increased-by-5-7-239d5f3c3f17 (accessed on 21 February 2021).

Himbara, D. (2021c). Kagame’s Singapore of Africa Remains the Poorest in East Africa, Except for Burundi. Available online: https://medium.com/@david.himbara_27884/kagames-singapore-of-africa-remains-the-poorest-in-east-africa-except-for-burundi-5f1a09c32155 (accessed on 24 November 2021).

Himbara, D. (2021d). Kagame government was granted an emergency debt relief because Rwanda is one of the 25 poorest and most vulnerable countries in the world badly hit by Covid-19. Available online: https://medium.com/@david.himbara_27884/kagame-government-was-granted-an-emergency-debt-relief-because-rwanda-is-one-of-the-25-poorest-and-cfe269f876c6 (accessed on 20 August 2021).

Himbara, D. (2021e). Rwanda Is East African Community’s Poorest State: World Bank’s Newly-Released 2020 Data. Available online: https://medium.com/@david.himbara_27884/rwanda-is-east-african-communitys-poorest-state-world-bank-s-newly-released-2020-data-c05fde3853d0 (accessed on 12 July 2021).

Human Right Watch. (2023). R Congo: Killings, Rapes by Rwanda-Backed M23 Rebels: Rebels’ Incursions Exacerbate Humanitarian Crisis in East. Available online: https://www.hrw.org/news/2023/06/13/dr-congo-killings-rapes-rwanda-backed-m23-rebels (accessed on 14 Aug. 23).

IFPRI. (2021). ROJECT PAPER: Synopsis: Assessing the economywide impacts of COVID-19 on Rwanda’s economy, agri food system, and poverty: A social accounting matrix (SAM) multiplier approach. Available online: https://www.ifpri.org/publication/synopsis-assessing-economywide-impacts-covid-19-rwandas-economy-agri-food-system-and#:~:text=Rwanda’s%20GDP%20in%202020%20will,USD%201.1%20to%201.6%20billion (accessed on 23 August 2023).

IMF. (2020). IMF Executive Board Approves Immediate Debt Relief for 25 Countries. Available online: https://www.imf.org/en/News/Articles/2020/04/13/pr20151-imf-executive-board-approves-immediate-debt-relief-for-25-countries (accessed on 14 May 2021).

IMF. (2023). Debt relief under the heavily indebted poor countries (HIPC) initiative. Available online: https://www.imf.org/en/About/Factsheets/Sheets/2023/Debt-relief-under-the-heavily-indebted-poor-countries-initiative-HIPC (accessed on 23 August 2023).

IMF. (2023). Rwanda. Available online: file:///C:/Users/dominiqueu/Downloads/null-002.2023.issue-198-en.pdf (accessed on 10 August 2023).

IMF. (2023). World bank assessment letter update for the Resilience and sustainability facility. Available online: file:///C:/Users/dominiqueu/Downloads/002-article-A002-en.pdf (accessed on 2 September 2023).

Immigration and Refugee Board of Canada. (2015). Burundi: The May 2015 coup attempt, including its instigators, how it unfolded, the violent incidents and the outcome; the treatment of the coup instigators by the government. Available online: https://www.refworld.org/docid/568fc3474.html (accessed 14 August 2023).

Kagame, P. (2013). President Kagame on Kikwete’s statement (FDLR negotiation). Available online: https://www.google.com/search?q=kagame+to+hit+kikwete+speech&sca_esv=556788212&rlz=1C1GCEB_enZA928ZA928&sxsrf=AB5stBghm1nKcu8JIoSu85TngPAkLvE67A%3A1692028048187&ei=kEzaZLOxCrn87_UPzLSOgAQ&ved=0ahUKEwizuYvWv9yAAxU5_rsIHUyaA0AQ4dUDCA8&uact=5&oq=kagame+to+hit+kikwete+speech&gs_lp=Egxnd3Mtd2l6LXNlcnAiHGthZ2FtZSB0byBoaXQga2lrd2V0ZSBzcGVlY2hIsjpQtBVYpC1wAngAkAEAmAHRA6ABhB-qAQcyLTUuNi4xuAEDyAEA-AEBwgIHECMYsAIYJ8ICCBAhGKABGMMEwgIKECEYoAEYwwQYCuIDBBgBIEGIBgE&sclient=gws-wiz-serp#fpstate=ive&vld=cid:b5e5f1dc,vid:xUzK5c-V6q4 (accessed on 14 August 2023).

Kagame, P. (2013). Rwanda and the New Lions of Africa: Economic growth and improved governance have changed the lives of citizens across the continent. Available online: https://www.wsj.com/articles/SB10001424127887324767004578485234078541160 (accessed on 12 July 2021).

Kigali Today (KT) Editorial. (2018). Rwanda is preparing to join the ranks of rich countries (Kinyarwanda). Available online: https://www.kigalitoday.com/ubukungu/iterambere/article/u-rwanda-ruritegura-kwinjira-mu-ruhando-rw-ibihugu-bikize (accessed on 14 May 2021).

Mamdani, M. (2001). When Victims Become Killers: Colonialism, Nativism, and the Genocide in Rwanda. Princeton University Press.

MINECOFIN. (2013). Economic Development and Poverty Reduction Strategy II, 2013-2018: Shaping Our Development. Available online: http://www.minecofin.gov.rw/fileadmin/templates/documents/NDPR/EDPRS_2.pdf (accessed on 4 September 2023).

MINECOFIN. (2019). Budget Speech2019-20. Available online: http://www.minecofin.gov.rw/fileadmin/templates/documents/Budget_Management_and_Reporting_Unit/Budget_Speeches/Budget_Speech_2019-20/219-20_Budget_Speech_-English_Final.pdf (accessed on 25 August 2020).

News24. (2017). Ruling party’s business arm dominates Rwandan economy. Available online: https://www.news24.com/News24/ruling-partys-business-arm-dominates-rwandan-economy-20170730 (accessed on 5 May 2024).

Padgett, T. (20110. The Failed State That Keeps Failing: Quake-Ravaged Haiti Still Without a Government. Available online: https://world.time.com/2011/09/10/the-failed-state-that-keeps-failing-quake-ravaged-haiti-still-without-a-government/ (accessed on 12 July 2021).

RDB. (n.d.). Overview. Available online: https://rdb.rw/investment-opportunities/agriculture/ (accessed on 10 August 2023).

REG. 2023. Electricity access. Available online: https://www.reg.rw/what-we-do/access/ (accessed on 14 August 2023).

Republic of Rwanda. (2012). Available online: https://www.minecofin.gov.rw/index.php?eID=dumpFile&t=f&f=12364&token=ea90cf047d4b4d1062796a8894f2593f989b7195 (accessed on 18 August 2023).

Reuters. (2022). Rwanda re-opens border with Uganda but says grievances remain. Available online: https://www.reuters.com/world/africa/rwanda-re-opens-border-with-uganda-says-grievances-remain-2022-01-31/ (accessed on 28 August 2023).

Reyntjens, F. (2021). From ethnic amnesia to ethnocracy: 80% of Rwanda’s top officials are Tutsi. Available online: https://africanarguments.org/2021/11/from-ethnic-amnesia-to-ethnocracy-80-of-rwanda-top-officials-are-tutsi/ (accessed on 25 August 2023).

Rigby, J., & Satija, B. (2023). WHO declares end to COVID global health emergency. Available online: https://www.reuters.com/business/healthcare-pharmaceuticals/covid-is-no-longer-global-health-emergency-who-2023-05-05/ (accessed on 23 August 2023).

Rwanda Directorate General of Immigration and Emigration. (2023). Key geographical uniqueness. Available online: https://www.migration.gov.rw/about-rwanda#:~:text=Rwanda%2C%20warmly%20known%20as%20%22the,literally%20the%20heart%20of%20Africa (accessed on 10 August 2023).

Schendel, R. (2025). Critical thinking at Rwanda’s public universities: Emerging evidence of a crucial development priority. International Journal of Educational Development, 42, 96–105.

The Conversation. (2022). Rwanda has reopened the border with Uganda, but distrust could close it again. Available online: https://theconversation.com/rwanda-has-reopened-the-border-with-uganda-but-distrust-could-close-it-again-176861#:~:text=Rwanda%20abruptly%20closed%20the%20border,to%20topple%20President%20Paul%20Kagame (accessed on 14 August 2023).

The Independent Uganda. (2018). Rwanda, Tanzania agree on SGR from Isaka to Kigali. Available online: https://www.independent.co.ug/rwanda-tanzania-agree-sgr-isaka-kigali/ (accessed on 18 August 2023).

The Independent. (2022). What is Rwanda’s record on human rights? Available online: https://www.independent.co.uk/news/uk/politics/rwanda-human-rights-record-supreme-court-b2101344.html (accessed on 9 August 2023).

The New Humanitarian. (2005). IMF, World Bank write off Kigali’s $1.4 billion debt. Available online: https://www.thenewhumanitarian.org/news/2005/04/14/imf-world-bank-write-kigalis-14-billion-debt (accessed on 3 September 2023).

Umuhoza, V. I. (2022). Rwanda’s economic plans have fallen short. The answer? Listen. Available online: https://africanarguments.org/2022/02/rwanda-economic-plans-have-fallen-short-the-answer-listen/ (accessed on 9 August 2023).

Umuhoza, V. I. (2022b). Rwanda: Nation’s Economic Plans Have Fallen Short. The Answer? Listen. Available online: https://allafrica.com/stories/202202260201.html (accessed on 4 May 2024).

UNICEF. (2022). Education. Available online: https://www.unicef.org/rwanda/education#:~:text=The%20quality%20of%20education%20requires,traditional%2C%20teacher%2Dcentred%20instruction (accessed on 9 August 2023).

United Nations. (2022). Enhancing Productive Capacities in Rwanda a Coherent and Operational Strategy. Available online: http://unctad.org/aldcinf2022_en.pdf (accessed on 10 August 2023).

US embassy in Kigali. (2008). Ethnicity in Rwanda—Who governs the country? Available online: https://www.wikileaks.org/plusd/cables/08KIGALI525_a.html (accessed on 25 August 2023).

Uwizeyimana, D. E. (2019). Progress Made Towards Achieving Rwanda’s Vision 2020 Key Indicators’ Targets. International Journal of Management Practice, 12(1), 4–46.

Uwizeyimana, D. E. (2024). Why Public Policy Implementation Fail in Africa. Kurdish Studies, 12(2), 627–644.

Ventura, L. (2020). Poorest Countries in the World 2020. Available online: https://www.gfmag.com/global-data/economic-data/the-poorest-countries-in-the-world (accessed on 14 May 2021).

Weatherspoon, D. D., Miller, S. R., Niyitanga, F., et al. (2021). Rwanda’s Commercialization of Smallholder Agriculture: Implications for Rural Food Production and Household Food Choices. Journal of Agricultural & Food Industrial Organization, 19(1), 51–62.

WFP. (2021). European Union provides €500,000 to WFP for Covid-19 recovery in Rwanda. Available online: https://www.wfp.org/news/european-union-provides-eu500000-wfp-covid-19-recovery-rwanda (accessed on 14 May 2021).

WHO. (2020). First Case of COVID-19 confirmed in Rwanda. Available online: https://www.afro.who.int/news/first-case-covid-19-confirmed-rwanda (accessed on 23 August 2023).

WHO. (2023). Rwanda: COVID-19. Available online: https://covid19.who.int/region/afro/country/rw (accessed on 23 August 2023).

Wisevoter. (2023). Poorest African Countries. Available online: https://wisevoter.com/country-rankings/poorest-countries-in-africa/#:~:text=The%20ten%20poorest%20countries%20in,GNI%20per%20capita%20of%20%2456 (accessed on 7 August 2023).

World Bank Data. (2021). GDP per capita (current US$)—Sub-Saharan Africa. Available online: https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=ZG (accessed on 8 June 2023).

World Bank Development Indicators. (2023). Rwanda. Available online: https://datacatalog.worldbank.org/public-licenses#cc-by (accessed on 23 August 23).

World Bank. (2021). Macro Poverty Outlook Country-by-country Analysis and Projections for the Developing World. Available online: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://thedocs.worldbank.org/en/doc/77351105a334213c64122e44c2efe523-0500072021/related/mpo-am21-ssa.pdf (accessed on 23 August 2023).

World Bank. (2021). Poverty headcount ratio at $1.90 a day (2011 PPP) (% of population). Available online: https://0-data-worldbank-org.ujlink.uj.ac.za/indicator/SI.POV.DDAY (accessed on 21 February 2021).

World Bank. (2021a). All Countries and Economies. Available online: https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?most_recent_value_desc=false (accessed on 12 July 2021).

World Bank. (2022). GDP per capita (current US$)—Rwanda: World Bank national accounts data, and OECD National Accounts data files. Available online: https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=RW (accessed on 31 July 2023).

World Bank. (2023). The World Bank in Rwanda. Available online: https://www.worldbank.org/en/country/rwanda/overview (accessed on 9 August 2023).

Zhou, P. (2019). The History of Singapore’s Economic Development. Available online: https://www.thoughtco.com/singapores-economic-development-1434565 (accessed on 18 August 2023).




DOI: https://doi.org/10.24294/jipd.v8i9.4538

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Dominique Emmanuel Uwizeyimana

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.