The National Strategy for Transformation (NST) is Rwanda's roadmap of getting to Vision 2050. It is the means to a desired end. It is however important to note that any strategy may change depending on the dynamics at play and cannot be cast in stone. Implementing a strategy is invariably a creative and dynamic process which needs to be continually informed by new developments on the ground. The NST has therefore been divided into periods, the first being NST1 which covers a 7 year period from 2017 to 2024 after which it has to be recalibrated.
Underlying the NST1 is the implementation plan which will include Sector Strategic Plans/SSPs (Covering Specific areas e.g. health, education) and District Development Strategies (Integrating National/sectoral priorities with District/City of Kigali specificities).
Rwanda's Vision 2050 aspires to take Rwanda to high living standards by the middle of the 21st century and high quality livelihoods. In order to achieve this, it will be important to focus on specific areas and these are the three pillars of NST1 which include: Economic Transformation, Social Transformation and Transformational Governance.
This week I want to deal with the Economic Transformation pillar and the necessity to empower district economies if we are to see real inclusive growth and development.
Any vision that is worth its salt, must naturally lead to positive social economic impact where as many citizens as possible experience better social conditions, better incomes and a better quality of life. Inclusive economic growth and development are therefore the key outcomes that are necessary in order to achieve the per capita targets and also decisively deal with poverty.
The overarching objective of the Economic Transformation pillar is therefore; "To accelerate inclusive economic growth and development founded on the private sector, knowledge and Rwanda's natural resources." It seeks to:
- Create decent and productive jobs for economic development and poverty reduction;
- Accelerate urbanization to facilitate economic growth;
- Promote industrial development, export promotion and expansion of trade related infrastructure;
- Develop and promote a service-led and knowledge-based economy; and
- Increase agriculture and livestock quality, productivity and production.
All these objectives are self-explanatory but must be experienced at district level through what I term "economic devolution". In many African countries, poverty persists because economic activity is not inclusive or shared at grass roots level but is concentrated where political power lies. It is therefore critical that each and every district has its own economic development blueprint or strategy. Such a strategy must seek to maximise the benefits of each district's factor endowments to the benefit of locals and the economy as a whole.
There is no argument that Rwanda local governance structure has been significantly decentralized and is well organised but it must ensure that there is increasing and inclusive participation in the national economic and developmental agenda. From Provinces (4) to Districts (30) to Sectors (416) to cells (2148) and finally to villages (14,837), we must see this decentralisation being continually strengthened, informed and empowered to deliver on the national developmental agenda.
We therefore need to see the modernisation and industrialisation of the 30 district economies in order to create inclusive growth, local employment opportunities, and eradicate poverty. It is essential for each and every district to take full responsibility of its own developmental objectives given its unique factor endowments, needs, population profiles and geography. This, of course, requires full support at national leadership level where there is political good will to ensure that Vision 2050 works and touches as many lives as possible.
The key success factors for both provincial and district economies include:
Leadership and management capacity at all levels is the golden thread that will ensure success. Effective leadership at provincial and district level remains a factor which will determine whether each province or district is going to meet its developmental objectives and contribute towards national GDP. This requires proactive and informed leaders who are aware of the socio-economic imperatives and have capacity to intervene and expedite the achievement of national economic priorities. Leaders will therefore not only need the necessary transformational mind-set, but need the necessary tools, support structures and competent actors within their structures to ensure effective allocation and management of resources while efficient and effective project implementation, monitoring and evaluation at ground level are prerequisites for success.
Second, each district needs to know the extent of their key assets which they have, be it land, minerals, culture or human capital. This requires a thorough research and documentation of what each district is endowed with. Substantive factual key socio-economic and periodic research is a critical tool for effective informed action and measuring of progress.
Agriculture, mining and other natural resource endowments in each district must be fully exploited to the benefit of locals. The allocation of land assets, for example, must also prioritise local ownership. So should the issue of mineral claims and rights. Developmental projects should create work for local labour and supplies or raw materials must be sourced locally as much as possible. We must avoid the extraction of wealth from districts and or provinces without locals benefiting. Tourism is also a quick win sector in most of the districts and so the upgrade and marketing of tourism assets and infrastructure including cultural tourism must be aggressively pursued.
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Third, provinces and districts need to promote themselves and create an awareness of the investment opportunities per sector which are within that district. Each province and district must periodically profile and showcase its opportunities to potential investors, both local and international and do whatever is necessary to attract investments. This will require building or recruiting a local skills base and having the administrative capacities to deal with potential investors at provincial level. Investors must be continually encouraged to partner with locals to avoid fronting.
Fourth is the issue of financial resources and their allocation and management. Every developmental plan ultimately needs capital and that capital must be deployed and managed at its optimal efficiency and effectiveness. Financial accountability, transparency and good management are what will determine ultimate success.
Of course there are other cortical multiple ancillary competencies necessary, but in my view, getting the above issues sorted will ensure inclusive social impact of the national economic development agenda and Vision 2050 in particular, while also ensuring that nobody is left behind.
Vince Musewe is an economist at Resource Africa Limited (RAL) Kigali and you may contact him directly on vtmusewe@gmail.com.
