Residents of Sake flee fighting between M23 rebels and government troops
in eastern Democratic Republic of the Congo. Photograph: Dai
Kurokawa/EPA
Since our readings this week are discussing the effects of foreign aid in Africa, I decided to follow a story in Rwanda, where foreign aid is being called ‘poison’ by its president, Paul Kagame. The president is pushing Rwanda to stop receiving foreign aid because he said that it is adversely affecting the growth of Rwanda’s economy. About 45% of Rwanda’s national budget comes from foreign aid, as the state has been unable to recover from the genocide in the 1990’s which left the economy in shambles.
According to an article from World News Australia, Kagame has created the Agaciro Development Fund (agaciro meaning ‘dignity’ and ‘pride’), which the government believes will jumpstart the Rwandan economy and end its dependence on foreign aid. The Agaciro Development Fund was initiated in August by Kagame and is based off of the contributions of Rwandan citizens. Elected officials are going door-to-door to collect money from citizens and the article reports that Rwandans are being somewhat shamed into contributing as much if not more than their neighbors. Public servants are giving up as much as one tenth of their salaries to the fund, others are contributing through text messages, the Internet, and through banks. Since August, the Agaciro Development fund has raised 22 billion Rwandan Francs or $35 million, which will be put towards development and electricity infrastructure in the rural parts of Rwanda.
Britain, a solid ally to Rwanda, has £21 million in aid waiting to be sent to Rwanda next month. However, Britain is debating whether to suspend this aid as did the U.S., the Netherlands and Germany, due to a UN report saying that Rwanda may be aiding the M23 rebel army in the conflict occurring currently in the eastern DRC.
Despite the possible corrupt usage of funding, I think that this is a step in the right direction for Rwanda since half of its budget comes from outside sources. As we have learned, many African states have not instituted a taxation system and cannot create federal funds. It sounds like Rwandans are contributing for the pride of their nation, but unless they see results from their givings, this movement may end up failing. The Rwandan government has to invest in infrastructure and sustain the funds by creating jobs, securing education, and making solid investments.
Sources:
"Rwandans Try to Free Themselves from 'poison' of Foreign Aid." World Crunch. World News Australia, 20 Nov. 2012. Web. 24 Nov. 2012. <http://www.sbs.com.au/news/article/1713081/Rwandans-try-to-free-themselves-from-poison-of-for>.
Borger, Julian, and David Smith. "UK May Cut Rwanda Aid over Support for DRC Rebels." The Guardian. Guardian News and Media, 22 Nov. 2012. Web. 24 Nov. 2012. <http://www.guardian.co.uk/world/2012/nov/22/uk-rwanda-aid-drc-rebels>
I think this is a good move for any country working to gain their place in the global market and the respect of other competing nations. Rwanda definitely needed the aid to develop to this point, but if they now feel that they can move towards independence from financial aid, this move should be celebrated. It may not be an easy jump, but I agree that investing in infrastructure, jobs, and education is the key to maintaining this freedom.
ReplyDeleteI have a few concerns with this plan. First of all, we've discussed a couple of times in class how Kagame's regime has moved in the direction of authoritarianism. Given that the people are providing money to the government, I would hope that the government uses that money in a way that serves the people. Authoritarian governments often lack that accountability, however, so there is a possibility that Kagame is taking people's money to further his own aims for the country rather than the ones that the population would have him address. I think that Kagame's basic interest to decrease Rwanda's dependence is well intentioned, but there also needs to be a more sustainable way to do so.
ReplyDeleteI think that Rwanda is smart to do this because it is time for a change in the country. I think foreign countries look at Rwanda as weak because of their past history with the Hutu's and the Tutsi's. While they needed international support during that time, they have not had a chance to show how they could manage on their own. In class today we watched a video that explained how foreign aid is destroying some economies in Sub-Saharan Africa and I think that this is the case when it comes to Rwanda. Creating this Agaciro Development Fund is the way for them to show the world what they can do. This will not be easy for Rwanda, but it sounds like their citizens are trying to become really involved which shows hope. My question is if the international community is actually going to back off? Will they give Rwanda a chance to change?
ReplyDelete