Abstract

Abstract Rwanda is a posterchild of economic success in twenty-first century Africa. Dominant explanations for the country’s growth use the political settlements framework, asserting that concentrated political power enabled long-term planning. In contrast, this article uses the case of Rwanda’s impressive boom in electricity generation to demonstrate that such concentrated power also distorts policy-making processes, creating a fiscal crisis that jeopardizes Rwanda’s economic transformation. Therefore, this article questions a central premise of the political settlements framework. Concentrated political power in Rwanda enabled rapid and ambitious construction of power plants but resulted in an oversupply crisis, plunging the sector into significant debt and raising the cost of electricity. Rwanda’s political settlement prevented experts from challenging unrealistic targets set by top politicians, which led to a headlong pursuit of electricity generation capacity. To understand this process, we assert the importance of focusing on the bureaucratic/politician relationship, which we label ‘bureaucratic independence’, rather than on the oft-used concept of ‘bureaucratic autonomy’ usually associated with the concentration of political power.

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