George Kagame
10 May 2008
Kigali — Rwanda's march towards achieving targets agreed upon in the famous Paris Declaration has been slow because donors have demanded conditions which reduce the power of government to implement long term projects.
This was revealed today by John Rwangombwa, the Secretary General of the Ministry of Finance and Economic Planning and Secretary to the national treasury.
"The degree of frustration among developing countries is understandable. In Rwanda for example, there are only two development partners who have indicated their intention to fulfil the Paris Declarations treaty," he said.
He was reacting to a recent report drafted after an African Development Bank meeting in Kigali which recommended reforms on how the international donor industry can operate.
The report noted that development efforts in Africa were frustrated by western demands and conditions tied to aid.
The experts also called for urgent action to be taken on commitments set out in a meeting between donors and recipients in Paris in 2005.
During the 2005 Declaration on Aid Effectiveness, international donors and developing countries signed agreements to increase the value of donor aid as its impact on the development of the continent had not been realized.
Rwangombwa added that with such little commitment, the government was faced with a challenge of long term development.
Donors have also been accused of dictating which sectors they want their money to be spent without considering the countries' priorities, according to experts.
Rwangombwa said the allegations were valid in Rwanda's case.
"Research shows that official development assistance has increased to 75 dollars per capita, this is very high but a big chunk of this money is outside the control of the government."
Rwanda has made good progress in fulfilling most of the demands set out in the African Peer Review Mechanisms and the stability of the country's economy has attracted international investments especially in tourism and coffee sector.
He said Rwanda was committed to achieving development targets and had made accountability of public finance management very strict as spelled out in performance contracts signed between local leaders, their subjects and superiors.
Donors have however improved their investments in the health and education sectors which are pillars of Rwanda's Vision 2020 and EDPRS programmes.
"Today there's a shift towards investing in the agricultural sector, infrastructure, water and sanitation. This is because government has prioritized good governance principles." Rwangombwa explained.
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