Rwandan Economy at the Crossroads of Development

This volume represents a cornucopia of research studies coming out of an international conference held in Kigali, Rwanda in 2018. The essays comprise contributions on various microeconomic and macroeconomic policy angles that are crucial for a less developed economy to embark on a road to recovery to converge with the desired trajectory. The topics encompass a broad range of issues like the role of savings, capital formation, human capital, innovations, entrepreneurship, profit-shifting by multinational corporations, small and medium enterprises (SMEs), and firms’ strategies for achieving sustained and balanced growth. The chapters are organized under three major themes based on the commonality of areas that they cover: (i) Macroeconomic Constraints: Monetary Policy, Investments, and Population; (ii) Firms’ Performance, SMEs, and Role of Entrepreneurship; and (iii) Entrepreneurship and Business Performance: Strategies and Policies. It has a collection of 12 empirical studies that havean overall focus on macroeconomic policies such as savings among the rural poor; sustained investments in and development of capital markets; role of entrepreneurial sustainability; role of innovations for firms’ performance; healthcare reforms; the benefits of technology, policy incentives such as tax benefits for promoting growth, and strategic considerations such as marketing or positioning strategies; export strategies; and productivity enhancement via processing and profit sharing. With contributions from 27 authors, the studies bring forth knowledge about the factors that influence well-being via better technologies and innovations favoring productivity, firm performance, and their positive externalities in the food, nutrition, and health sectors. Given the wide-ranging coverage of top-down and bottom-up approaches and strategies for development, the book offers insights for policy interventions necessary for Rwanda’s gradual transition from agriculture to an industrial transformation via manufacturing and service-led development without smokestack industries.

​“The editors and contributors are to be congratulated for the publication of this interesting new volume. Over a quarter of a century ago, the world's attention focused on the Rwandan tragedy. But in more recent times the attention has switched to the country's dynamic economic performance as one of the fastest growing economies in Sub-Sahara Africa. The 12 studies in the volume cover many important topics, from macroeconomic management to innovation and healthcare.” (Hal Hill, Australian National University, H.W. Arndt Professor of Southeast Asian Economies, Crawford School, College of Asia and the Pacific, Australian National University)

“In a short span of 25 years, Rwanda has witnessed astriking transformation from an economy torn by conflict to a success story in development. This book provides an engaging discussion and perceptive analysis of the constraints on, and possibilities of development over the next quarter century. Its macroeconomic perspective supported by microeconomic analysis is unusual, yielding policy lessons not only for Africa but also for Least Developed Countries elsewhere in the world. It will be valuable reading on the Rwanda economy for research scholars and policy practitioners in development. The editors have done a commendable work in bringing out this volume.” (Deepak Nayyar, Emeritus Professor of Economics, Jawaharlal Nehru University, New Delhi, Honorary Fellow, Balliol College, Oxford, and former Vice Chancellor, University of Delhi)


“The volume contains an array of contributions employing sound economics research to address selected topics on Rwanda’s development. The collection’s analyses focus on issues ranging from long-term development prospects vis-à-vis persistent socioeconomic challenges, to options for realizing the country’s ambitious National Strategy for Transformation.  The book will serve as a valuable reference for scholars, policymakers, and readers interested in African development.” (Amelia U. Santos-Paulino, Chief, Investment Research Section, Division on Investment and Enterprise, Deputy Editor, Transnational Corporations Journal,United Nations Conference on Trade and Development (UNCTAD), Geneva, Switzerland)


“There has been considerable interest in the developmental lessons from the Rwandan economic experience, both among scholars and among the policy community. The Rwandan economy has performed well in many dimensions in recent years, and widely regarded as a success story of a country coming out of conflict. This volume by both Rwandan and international scholars bring together what we know about the Rwandan economic development experience. It will be valuable reading for both academics and policy makers. The authors deserve credit for compiling this collection.” (Professor Kunal Sen, Director, United Nations University, World Institute of Development Economics Research, Helsinki, Finland)


“I recommend this book for all those interested in the economic development of the least developed economies of the world. The microeconomic studies of the factors that contribute to survival and growth of small and medium enterprises in Rwanda are especially valuable. Based on a database of 49,000 small and medium enterprises (SMEs) in the region in and around Kigali, there are multiple chapters that examine the factors that contribute to survival and growth of SMEs in Rwanda, including tax incentives, education, training and mentoring, financial discipline, family relationships in the business, networks and others. There are chapters that focus on: what influences SME productivity; and process and product innovations in SMEs. Researchers, students and policy-makers would all benefit from the insights of these studies.” (David G. Tarr, Consultant and Former Lead Economist, The World Bank) 

Gouranga G. Das is Professor of Economics at the Department of Economics, Hanyang University, South Korea. Prior to this appointment, he worked as a Visiting Professor of Economics at Kyungpook National University, Korea and as a Post-Doctoral Research Fellow at the University of Florida.  He obtained his M.Phil and PhD in Economics from Jawaharlal Nehru University, India and Monash University, Melbourne, Australia respectively. He has been visiting researcher in the University of Antwerp, Belgium and UNU-World Institute of Development Economics Research at Helsinki, Finland, and International Monetary Fund (IMF) at Washington DC, USA. Primary fields of his research focus, inter alia, on Trade and Development, Computable General Equilibrium Modeling, Technological Change, Migration, Outsourcing, and Environmental issues. He worked extensively on development issues related to globalization, technology transfer, human capital, role of institutions, and its impact on development and was recently engaged in Asian Development Bank (ADB)’s project on economic policy analysis in the context of Central Asian Economies. He serves in the editorial boards of peer-reviewed professional journals in Economics.  


Johnson Bosco Rukundo is a lecturer at the department of Economics, school of Economics, College of Business and Economics, University of Rwanda. He holds a PhD in Economics from Jönköping University- Sweden and a Master’s Degree in Economic Policy Management from Makerere University (Uganda) as well as Bachelor’s Degree in Economics from the former National University of Rwanda. He has been in the academic profession for the last ten years teaching and undertaking research activities. Major research interests are in; Industrial organization, Economic development, Agriculture productivity, Employment and Growth, and Gender economic policy. His research publications are in the development and growth thematic area. He has aprofound experience in consultancies undertaken for both the private and public institutions as well as civil society organizations.