Rwanda News Agency/Agence Rwandaise d'Information (Kigali)
18 July 2008
Kigali — With stringent corruption controls, very high immunization rates and sound fiscal discipline, Rwanda is to be rewarded with a $24.7 Million injection from the U.S. government to maintain the reform process, RNA reports.
The funding will be from the Millennium Challenge Corporation - a U.S. government initiative aimed at backing poor countries whose governments 'rule justly, invest in people, and foster development through enterprise and entrepreneurship'.
For 2008, Rwanda will tap from the Million Threshold Program - meaning it has not yet qualified for the final stage, but has demonstrated a significant commitment to improve its performance - worthy recognition.
The $24.7 million - over a two year period, according to the U.S. Embassy in Kigali is designed to help the government strengthen civic participation, promote civil liberties and rights and improve judicial system - already under fire from campaign groups.
The Millennium Challenge Corporation Board announced the approval on July 10. The announcement is to be made public in Kigali on July 22.
Rwanda is now part of the forty countries that are to get their portions of different amounts from the Account in 2008. These are countries that have showed progress in reform assessed on 17 policy indicators.
From the assessment by the Corporation, Rwanda scores 95 percent on control of corruption and 80% on government effectiveness. As for the rule of law, government scooped 69%.
The same performance is seen on immunization rates running at 93% coupled with health expenditures by government rated at 89%. Fiscal discipline - at 67% - is another aspect that convinced the Bush administration to reward the authorities in Kigali.
However, as far as political rights are concerned, government has a lot to do because figures show it is lagging at 24%. Civil liberties is another element on which Rwanda did not make convincing progress.
Although school enrollment in Rwanda is ranging high, the rising number of girls dropping out remains of concern - it scored just 15%, according to the Millennium Challenge Corporation assessment.
The U.S. does not also seem to be convinced that the authorities in Kigali are doing enough to curb raging inflation. The Economist Intelligence Unit has actually raised its inflation forecast for this year and the next - blaming it partly on shaky fiscal policy.
Land rights and business start up are other points in which Rwanda did not perform to expectation. The authorities, it seem will also have to do more on how they manage the natural resources of the country because it scored just 45%.
A World Bank study commissioned early this year recommended a comprehensive review of human resource requirements for Rwanda to be able to tap from its wealthy soils. An autonomous body of experts will also be established to manage the countries natural resource base.
In this region, Uganda and Tanzania also feature on the 2008 reward list but at different stages.
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