Monday, July 30, 2007

Why Doesn't Rwanda Have Better Growth? Because We Don't Give Them More Money!

UN reports make pretty amusing reading, if you can stomach the cant.

Why isn't Rwanda doing better economically? Is it because of a dysfunctional government, a nonexistent financial sector, and insecure property rights that prevent the poor from borrowing against their meager assets.

NO! It turns out the biggest problem that Rwanda has is: Rich people! Too darned many of them, going around buying stuff and investing. If we could get rid of those darned rich people, everything would be okay.

According to the report, Rwanda's recent growth has bypassed the rural poor leading to a concentration of wealth at the top of the income distribution bracket - a situation that could lead the country to exhaust its ability to reduce poverty rates through economic growth alone.

At the same time, Rwanda has been finalising the Economic Development and Poverty Reduction Strategy.

The strategy estimates that total investment of approximately US$140 per capita per year is needed for MDG-related interventions. With the extent of poverty and the small size of the private sector, the bulk of these investments would have to come from the public sector.

"Rwanda needs to increase investments in development sectors, mainly in agriculture," James Musoni, Rwanda's Minister of Finance and Economic, planning told reporters during the 26 July launch of the report. He also expressed concerns over high population growth.

According to official statistics, life expectancy in Rwanda now stands at 51 years, partly because of efforts to reduce HIV/AIDS related deaths; while the number of people relying on agriculture is projected to drop from 90 percent to 50 percent by 2020.

"In some sectors progress has been recorded but the target is still to be met," the minister added.


The "target"? Sounds like it was written by John Edwards, who hates all rich people except himself. And I even think he hates himself, sometimes.