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| >> AFR Regional Overview >> Rwanda Overview | |||||||||
IntroductionIt is now over six years since the genocide and civil war in Rwanda of 1994 that left over 800,000 people dead and over four million displaced. The transitional government has continued to make progress in promoting the national peace and reconciliation essential for the country to address fundamental social and economic problems. The country underwent a peaceful change in leadership in March 2000. Internal stability and security have returned to all parts of the country. The emergency situation has, by and large, ended and the focus has shifted towards sustainable development. However, the lingering effects of the genocide, such as the loss of human capacity and the destruction of much of the basic social and economic infrastructure, pose significant hurdles to Rwanda's full recovery and efforts to reduce poverty. Continued turmoil in neighboring Burundi and the Democratic Republic of the Congo complicates the task, as does the growing AIDS pandemic. The United States seeks to prevent a recurrence of genocide by promoting a more open and equitable society and by alleviating the severe poverty of most Rwandans. In addition, continued stability in Rwanda is an essential ingredient in international efforts to promote lasting peace and security in the strategically important Great Lakes Region of Africa. The USAID program in Rwanda supports the Agency's three new priority areas: Economic Growth; Global Health; and Development, Relief and Conflict Prevention in the Great Lakes Region and the Greater Horn of Africa. The Development ChallengeDespite concrete progress in restoring internal security, rebuilding economic and social infrastructure and introducing democratic reforms, Rwanda still faces a daunting task to achieve sustainable and equitable development. Over 65% of the population live below the poverty line. Although agricultural production has recovered to pre-war levels, only 40% of pre-war industry has resumed production. The gross domestic product (GDP) growth rate slowed to a disappointing 5.2% in 2000, below the 8% annual rate estimated necessary to reduce poverty levels. Rwanda is the most densely populated country in Africa with an estimated annual population growth rate of nearly 3% which, if unchecked, will result in a doubling of the population within 20 years. Adult literacy is less than 50%. At 205 per 1,000, the mortality rate for children under five is well above sub-Saharan Africa norms and almost half of children suffer from nutritional stunting. HIV/AIDS affects 11% of the adult population. Life expectancy has continued to fall, from 42 to 39 years as a result of AIDS and malaria. Roughly 111,000 persons accused of genocide related crimes remain in prison. Over 90% of the population are dependent on subsistence agriculture on shrinking plots of land of declining quality. As a result, per capita food production has continued to decline and is now less than 70% of the levels required for food self-sufficiency. Compounding the challenges are external constraints, which include continuing instability in the Great Lakes region, the increasing cost of essential imports, especially oil and energy, declining or stagnant worldwide commodity prices for some of Rwanda's important agricultural products and food insecurity in several regions due to erratic climatic conditions. More positively, internal security has returned to the entire country, enabling agricultural yields in the fertile northwestern "breadbasket" region to recover almost completely. Nonetheless, in mid-2000, poor distribution systems failed to avert a critical food security situation in the eastern and south central parts of the country where the worst drought since 1954 brought virtually no rain for seven months. In response to Government of Rwanda (GOR) appeals for assistance, the World Food Program (WFP) responded with the delivery of 9,800 tons of food assistance, valued at approximately $5 million, which fed about 102,000 families. However, prospects remain uncertain for long term recovery in the drought prone regions. In December 2000, Rwanda was successful in reaching a "decision point" for the IMF/World Bank Heavily Indebted Poor Countries (HIPC) Initiative and stands to reduce its debt burden by about $30 million per year over the next ten years by fully qualifying in 2001. The GOR's Interim Poverty Reduction Strategy Paper was well received and the final version is expected by the fall of 2001. In the area of relief and prevention, the Government has seen continued progress in its efforts to promote stability and a more representative government. Plans for adjudicating the bulk of the 111,000 detainees accused of genocide crimes through a traditional modified justice system, called gacaca, are moving ahead slowly and should get underway later in 2001. A new civilian police force was created in July 2000 to replace the old gendarmerie. Finally, in March 2001, the Government successfully held secret ballot local elections and appears on-track to honor its commitment to hold national elections in 2003, and bring to an end the political "transition" period. Other DonorsIn 2000, direct budgetary support amounted to $102 million. The World Bank, the European Union, and the United Kingdom were the major donors. The British have supplanted the U.S. as the major bilateral donor to Rwanda, providing over $55 million in budgetary and project support in 2000. Coordination among the donors has continued to improve and the United Nations has taken steps to include the donor community in the crafting of its new Development Assistance Framework. Although the U.S. has been by far the largest bilateral donor since 1994, providing almost $600 million in food, emergency and development assistance, overall levels have decreased substantially since 1998 as the program has shifted from emergency towards development assistance. In FY 2000, USAID assistance totaled $34.7 million, of which $4.5 million was Economic Support Funds (ESF) from the Great Lakes Justice Initiative (GLJI), $17.8 million was Development Assistance (DA), $11.4 million was P.L. 480 Title II and $1 million was emergency International Development Assistance (IDA) from the Office of Foreign Disaster Assistance. FY 2002 ProgramUSAID/ Rwanda's strategic objectives will continue to support USAID's three priority areas of Development Relief and Conflict Prevention, Global Health, and Economic Growth. USAID proposes to use $7,155,000 DA and $6,802,000 CSD in FY 2002 resources to strengthen civil society and assist Rwanda's efforts to improve transparency and accountability by decentralizing governmental responsibilities. In the health sector, USAID will augment its efforts to combat AIDS in the coming year by expanding AIDS awareness activities, working with other donors to prevent mother to child transmission of AIDS and providing counseling and other support to persons living with AIDS. To support the goal of Development Relief and Conflict Prevention, DA and regional ESF/Great Lakes Justice Initiative (GLJI) funds are requested to augment ongoing programs to strengthen the administration of justice, improve the capacity of the Transitional National Assembly, strengthen civil society and assist Rwanda's efforts to improve transparency and accountability by decentralizing governmental responsibilities. USAID will continue to integrate Greater Horn of Africa Initiative (GHAI) goals, principles and resources into its programs to promote national reconciliation through dialogue, research and technology. USAID also expects to provide over $10 million in FY 2001 in non-emergency P.L.480 assistance as part of its approved five-year, $59 million food aid program. Also in the food security area under relief and prevention, USAID is now in the early stages of implementing a three-year, multi-faceted effort to stimulate agricultural production and promote broad-based economic growth, complemented by a substantial development-oriented Food for Peace program. Components of the program include human resource development at the key agricultural research, training and educational institutions, policy advice to the Ministry of Agriculture and the expansion of agribusiness and export opportunities. In the health sector, USAID doubled the size of its program in FY 2000 for the prevention and treatment of HIV/AIDS with funding from the Leadership and Investment in Fighting an Epidemic (LIFE) Initiative. These funds expanded HIV/AIDS prevention activities in the underserved Kibuye region and the number of voluntary counseling and testing centers in Rwanda. USAID will augment its efforts to combat AIDS in the coming year by expanding AIDS awareness activities, working with other donors to prevent mother to child transmission of AIDS and providing counseling and other support to persons living with AIDS. Activity Data Sheets
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