Inclusive Economic Growth and Development of a War-Ravaged State

Abstract

The detailed historical analysis presented in this chapter examines the extent to which the post-1994 Rwandan state has established broad-based and reciprocal relations with society in its pursuit of structural economic transformation and whether it has led to inclusive economic growth and development as envisaged by the Democratic Developmental State model. It does so by, firstly, assessing Rwanda’s pre-1994 development strategy specifically focusing on its key sector at the time; agriculture. Secondly, it focuses on Rwanda’s post-1994 development strategy—which encompasses private sector development. It analyses Rwanda’s private sector development strategy through its involvement within three conglomerates (Crystal Ventures Ltd [CVL], Horizon Group and Rwanda Investment Group [RIG]), its market liberalisation strategy and its agricultural commercialisation strategy. Thirdly, this chapter deals specifically with the adoption of Rwanda’s Homegrown Initiatives as it relates to economic decision-making at grassroots level and assesses the impact that it has had on the achievement of inclusive economic growth. This chapter finds that Rwanda has pursued economic development in a centralised manner thereby mitigating against the achievement of inclusive economic growth and development. Similarly to the Ethiopian case study discussed in Part III, this chapter will show that Rwanda, through the activities of its “party-statals,” exhibits features of a Developmental Patrimonial State.