2006 Government of Rwanda and Development Partners Meeting 22-23 November 2006, InterContinental Kigali – Rwanda
Draft Opening Statement by the UN Resident Coordinator in Rwanda Mr. Moustapha Soumaré, on behalf of Development Partners
Your Excellency, President of the Republic of Rwanda, Right Honorable Prime Minister, Honorable Ministers, Excellencies, Members of the Diplomatic Corps and Heads of International Organizations Distinguished Guests, Partners in Development, Ladies and Gentlemen.
INTRODUCTION
Mr. President, from the outset, I wish to take this opportunity to express our appreciation of your exceptional leadership and your strong support for a continued dialogue between your government and the development partners towards sustained and equitable development in Rwanda. I would also like to thank you, Honorable Minister James MUSONI, for your leadership in organizing the Sixth Annual Government of Rwanda and Development Partners Meeting (DPM). I am pleased and humbled by the opportunity to address, for the second time, such a distinguished audience and to make this statement on behalf of all of Rwanda’s Development Partners.
On a personal note, I am particularly delighted to resume my functions of Resident Coordinator of the United Nations System in Rwanda. As you may know, I have spent seven months on detachment as Research Director for the Secretary General’s High Level Panel on UN System-Wide Coherence in the Areas of Development, Humanitarian Assistance, and the Environment. The work has been both challenging and enriching, and my experience here in Rwanda has proven very valuable in completing this assignment.
Excellencies, Ladies and Gentlemen,
Over the past twelve months, we have all worked hard and succeeded in making substantive contributions to the objectives agreed upon since our last DPM meeting – For this, I wish to congratulate both the government and development partners. As is the case in any development endeavor, the development program embarked upon by the Rwandan Government with our support is a continuous
2006 DPM – UN RC Opening Statement 1 of 10 process. As such, I am sure that you’ll agree with me that despite the many achievements, much remains to be done.
We are therefore gathered here again this year, to take stock of what has been achieved and how we will work together to address the remaining challenges through dialogue, with mutual accountability and with a sharp emphasis on achieving results that tackle poverty head-on. The agenda over the next two days offers an opportunity for all of us to review major achievements and constraints in development processes, assess the challenges that have come about, and deliberate on policies and strategic priorities for Rwanda’s development.
Excellencies, Ladies and Gentlemen
This year, the Government of Rwanda proposes that we focus on “Long-Term Investments for Economic Growth and Poverty Reduction”. We welcome this theme for it emphasizes the government’s commitment to reduce poverty and achieve economic development through long-term investments. This policy direction, embedded in Rwanda’s Vision 2020, is further justified and supported by your recent statement, Mr. President, when you reiterated in September 2006 that Rwanda’s goal is to become a middle income country by the year 2020.
Keeping in mind the principles of dialogue, mutual accountability, and pro-poor development, certain key questions arise:
• First: How do we ensure that long-term investments in Rwanda effectively put an end to poverty and offer a better life for all?
• Second: What do we do to make sure that the fruits of economic growth are shared by all members of Rwandan society and that all Rwanda’s people can contribute to the nation’s progress?
• Third: How should the government, development partners, private sector and civil society each fulfill their various responsibilities and commitments vis-à-vis the country’s development policies and programmes and stand accountable for their actions?
Mr. President, in a sense you anticipated these reflections when during a speech at Columbia University last year, you asked us all to: Quote “Collectively agree that development is liberation from want and from fear, so that all people[s] can live dignified lives. All people[s], not some.” Unquote
These questions and your call, Mr. President, require that we look carefully at our theme of long-term investment for economic growth and poverty reduction.
2006 DPM – UN RC Opening Statement 2 of 10 Perhaps we should consider how investment, investors, and interventions will contribute to the development outcomes set out in the MDGs and Rwanda’s Vision 2020: • Rwanda needs the right kind of investment: long-term, predictable public or private sector finance with clear and transparent terms and conditions which are fair and can be publicly monitored and reported. • Such investments should fund development interventions which can clearly be shown to be appropriate, efficient and effective. Poor interventions waste scarce human and financial resources: a luxury Rwanda cannot afford. • The right kind of investments will only come from the right kind of investors and the right kind of investment partnerships. Whether investors come from among the development partners, from the private sector or from civil society, investment partnerships need to be nurtured and carefully managed. This is where dialogue, mutual accountability and a strong focus on results comes in.
But investment, investment partnerships and interventions can only succeed in the right kind of environment. I think we all know what this environment looks like: • it requires far-sighted leadership and national commitment – something Rwanda already enjoys to a very high degree; • it requires sound policies and a robust legal and institutional framework, where Rwanda is making good progress; and • it requires well-developed human and institutional capacity, which Rwanda is struggling hard to develop.
In aiming for rapid growth, it will be important to keep working on these fundamentals to be sure that momentum is maintained – and in an ever upward direction.
Excellencies, Ladies and Gentlemen,
My hope, therefore, is that our discussions over the next two days will help to develop a framework that can ultimately provide for the successful implementation of national development policies and strategies.
Allow me at this moment to highlight some of the achievements and challenges in key development sectors in Rwanda.
MACROECONOMIC PERFORMANCE
With regard to Macroeconomic Performance, we are pleased to note that there has been increasingly sound macroeconomic management in Rwanda throughout the PRSP I period. The period saw better tax administration, controlled fiscal deficits, and sound monetary policy, resulting in controlled inflation and unprecedented debt relief. Growth has averaged 5.6% over 2002-05, above
2006 DPM – UN RC Opening Statement 3 of 10 average by the standards of sub-Saharan Africa. We must therefore work to keep growth on an upward track, which will require some changes in the structure of the economy, first in agriculture and later in the service sector.
The Government of Rwanda has made significant progress in undertaking profound Public Financial Management (PFM) Reforms. 2006 has seen 220 public accounts trained and the Government has endorsed the PFM Action Plan, drawing a comprehensive roadmap for its implementation and a clear legal framework in the Organic Budget Law. Such reforms are necessary to establish transparent and accountable practices, which in turn, contribute to the overall improvement of macroeconomic performance.
Nonetheless, let me stress that, without more pro-poor critical interventions, sound macroeconomic management might not be sufficient to support growth and poverty reduction in a situation where a rapidly growing population is supported by limited arable land. It is thus important to successfully implement reforms in order to enable the Government to attract and absorb increasing levels of aid, while investing in the productive and social sectors, and further developing sound family planning policies.
This brings me to the review of the PRSI and to the preparation of the second generation PRS.
PRS I REVIEW AND PLANNING
Throughout 2006, the Government of Rwanda and its Development Partners have been focusing on the elaboration of the Economic Development and Poverty Reduction Strategy (EDPRS) in an exemplary participatory process. An independent evaluation of the first PRS, combined with joint sector self evaluations, is providing indispensable guidance for the elaboration of the EDPRS.
The EDPRS needs to serve as a vehicle for integrating Rwanda’s national political vision of unity and prosperity with the necessity to reduce poverty, enhance equity, and provide broad based growth for all. Consultations with poor and socially vulnerable groups thus need prioritization in order to develop relevant pro-poor policies and programs and to build a legal framework that protects the rights of all. And issues of gender equality need to be addressed openly if Rwanda is to maintain its reputation of being progressive in this area.
We must also stress the need for the Long-Term Investment Framework (LTIF), which aims to bring about the development objectives articulated in Vision 2020, to be fully linked with the EDPRS in order to provide for coherent and complementary strategies.
In finalizing the EDPRS, it is of utmost importance to ensure not only that we are faithful to the inspiring vision afforded by the Millennium Development Goals and
2006 DPM – UN RC Opening Statement 4 of 10 Vision 2020, but also that the EDPRS provides the political and instrumental framework for setting medium and long-term development goals and targets.
The EDPRS is set to become the centerpiece of development processes in Rwanda. Therefore, we must all work to guarantee that it provides a framework that clearly sets out how results can be achieved in all sectors with clear budgets. Such a framework will provide a sound basis for attracting the long-term investments Rwanda needs and ensuring proper alignment and harmonization.
EDUCATION AND HEALTH:
In the sectors of Education and Health, public investments need to further strengthen Rwanda’s human resources, with continued attention to health, education, as well as science and technology.
Overall performance in the health sector has marked some major successes. The proportion of nurses in rural areas increased from 20% to 56%. Enrolment rates in mutuelles have risen sharply to approximately 70%. And, the rollout of Performance based contracting improved the supply of quality health services to the population.
Nevertheless, acute malnutrition and underweight rates among children under the age of 5 have only fallen slightly over the few last years. Interventions are therefore required to tackle problems of childhood morbidity and mortality as well as that of safe motherhood. Chronic malnutrition or stunting is growing, which could be sign of persistent food shortages at the household level, in addition to frequent pathologies as malaria and long chronic diseases such as HIV/AIDS. Significant improvements to address health and nutrition related problems are needed in order to achieve the MDGs.
As for education, we are pleased to highlight our support to the newly established ten-year plan. This is an ambitious but credible plan, which could allow Rwanda to reach the education MDGs by 2015, if given adequate resources.
We must note, however, that while net enrolment is one of the highest in the region, primary completion rates are at a regional low of about 50%. And, while the percentage of girl students is over 50%, girls’ achievement rates lag behind those of boys throughout the system.
In the first PRS, cross-cutting issues were often neglected or overlooked. Yet integration of cross-cutting issues such as environment, HIV/AIDS, gender, and social inclusion into sector activities is essential if we are to achieve key targets in health, education, or for that matter in the productive sectors. Cross-cutting issues need to be carefully mainstreamed in the elaboration of the EDPRS.
PRIVATE SECTOR
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Regarding the Private Sector, we believe that success in building a dynamic, competitive private sector that can drive the growth of the economy requires supportive actions from all sectors of Rwandan society. Considering the enormous challenges faced in private sector development, we commend the Government for its efforts in establishing an enabling environment for private sector growth and for attracting increased volumes of foreign direct investments. Even though overall rates of economic growth have been lower than those required to meet Vision 2020 aspirations, positive trends have been set. Exports more than doubled over the period 2002-2005 with annual average growth rates of around 30%. The industrial and services sectors have performed strongly, with growth rates of 6%. And, revisions to the investment code and the restructuring of Rwanda Investment and Export Promotion Agency (RIEPA) are evidence of a more outward oriented approach.
We welcome the progress made in the further strengthening of financial institutions and recall that a solid and sound financial sector is a necessary condition for sustained private sector growth. These accomplishments are reflected in the World Bank’s “Doing Business” reports, where Rwanda’s rank in Paying Taxes and Getting Credit improved substantially. Nevertheless, Rwanda’s ranking in Dealing with Licenses, Registering Property, Trading Across Borders and Enforcing Contracts slipped during 2006. We look forward to improvement in these important areas.
The agricultural sector remains the main contributor to employment and GDP growth in Rwanda. This is likely to continue to be the case for some time to come. Most of the growth in the sector comes from food crops and livestock with export contributions increasing due to improved production and superior quality of products. While growth in the sector is above average compared to many countries in the region, it was below the targets set under PRS 1. Productivity trends for key food security crops remain a concern. High population growth and high densities, small and fragmented farm plots, and limited use of intensive farming practices mean that gains in growth are often eroded and can result in degradation of land and other natural resources. Agriculture remains central to the livelihoods of the vast majority of Rwandans. If Vision 2020 goals are to be attained, this sector will need increased investment to support its transformation, improve service delivery at local levels, and ensure food security for all the population.
DELIVERING ON DECENTRALIZATION
The Government of Rwanda’s vision for service delivery seeks to ensure effective and sustainable use of public resources, to guarantee transparent, accountable and participatory decision making, and to enhance delivery of basic services.
2006 DPM – UN RC Opening Statement 6 of 10 Sound intra-governmental systems are grounded on clear definitions of spending and revenue management responsibilities between each level of government. We welcome efforts to enhance service delivery through the decentralized approach. Achievements have been made in the area of policy as well in the legal and institutional framework. Recent territorial reforms present a unique opportunity to realizing Rwanda’s vision of better and more accountable services, where roles and responsibilities are clarified at all levels. The establishment of the Common Development Fund (CDF) and the creation of the Rwanda Association of Local Government Authorities (RALGA) are key steps in aiming toward successful service delivery. Likewise, Citizen Report Cards and the Performance Contracts can serve as important mechanisms to enhance accountability.
Deepening decentralization, improving public service performance, and a more effective strategy for capacity development are still required to ensure capacities to implement poverty reduction commitments. Current reforms should be carefully planned and managed in order to avoid delays and disruptions, which could stall momentum for improving key outcome indicators in health, education, water, and agriculture. A new Decentralization Implementation Plan and a reorganized Common Development Fund, aligned with the EDPRS, need to be planned for. And, the Fiscal Decentralization Policy needs to be properly implemented.
Of course, decentralization is not only a technical exercise. More importantly, it is a process of political reform, and a means of strengthening governance through broader political participation. Accordingly, the decentralization process will need to be supported by an improved governance environment.
GOVERNANCE, RULE OF LAW AND RECONCILIATION
Progress in democratization, access to justice, and equity remains vital for the development of an open and accountable political culture. It is with great reverence that we observe the development of a number of new instruments and frameworks that seek to raise governance standards in Africa. We recognize the progress made by the Government in improving the overall political and social climate in the country. Rwanda was one of only two African countries to finalize the African Peer Review Mechanism (APRM) process in 2006, which acknowledges steps forward made by the Government across a wide range of governance areas. The overall assessment was very positive and this should galvanize the Government to address the critical challenges that were identified both in terms of economic and political governance. In addition, the establishment of the Office of the Ombudsman is proving successful in giving ordinary citizens greater voice and improving accountability and transparency.
In order to build on steps thus far taken, additional efforts need to be made to establish an independent mechanism with the capacity to assess evolution in governance and rule of law in Rwanda. Likewise, while Rwanda has taken many steps to ratify international human rights treaties and integrate human rights into
2006 DPM – UN RC Opening Statement 7 of 10 national legislation, better reporting is needed on these. We encourage Rwanda’s continued efforts in developing democratic principles, freedom of expression and promoting issues of national reconciliation with increased determination and resolve.
REGIONAL SECURITY AND COOPERATION
In the area of Regional Security and Cooperation we wish to commend Rwanda’s contribution in the region. By setting high standards in terms of peace, political stability, and economic growth, Rwanda continues to be a positive example of committed leadership in the region. As a strategic opportunity to further strengthen its economy, the Government has taken a proactive approach to establishing trade agreements and to ensuring effective participation in regional and multilateral organizations. Rwanda has reached a major agreement with the East African Community (EAC) on all conditions set for its entry into the economic bloc. Moreover, Rwanda is currently Chair of the Common Market for Eastern and Southern Africa (COMESA) and recently hosted the 21st COMESA Council of Ministers Meeting.
The Government sends a very strong message to the international community with its active participation in the African Union Peace-Keeping Force in the Darfur. And, we hope to see Rwanda participate in a United Nations Peace-Keeping Force in the near future, with an ultimate effort to end years of violence and suffering in that region. 2006 brought about significant political developments in neighboring countries. The holding of free and democratic elections in the Democratic Republic of the Congo (DRC), the first in over 40 years, validates what people can achieve with the help of international partners. Likewise, we welcome the recent ceasefire agreement and work toward lasting peace in Burundi. These are achievements that need to be pursued with full support of the international community and other countries in the region.
Peace and stability are prerequisites for sustained growth; and poverty cannot be reduced without a secure and stable environment. For these reasons, we recommend that the EDPRS include a chapter showing how Rwanda’s commitment to peace and security translates into faster growth and poverty reduction.
Your Excellency, we are confident that your leadership will inspire more progress in terms of regional peace and stability in 2007. Likewise, we trust that the Summit of the Great Lakes Conference, to be held in December, will contribute to further promoting lasting peace in the region.
AID EFFECTIVENESS
With regard to Aid Coordination, we commend the leadership and initiative of the Government in the implementation of the aid effectiveness agenda, in line with
2006 DPM – UN RC Opening Statement 8 of 10 international commitments and national priorities. Rwanda’s achievements are being recognized as international best-practice and are setting standards in South- South Cooperation. We are pleased to highlight that in June 2006 Rwanda was admitted as a member of the OECD/DAC Working Party on Aid Effectiveness. The Ministry of Finance and Economic Planning has skillfully continued to lead Rwanda’s highest level coordination structures, providing for open forums on policy and technical dialogue; and, we highlight the signing of Rwanda’s first Sector Wide Approach (SWAp) in the education sector.
Remarkably, 2006 saw the formal endorsement by Cabinet of Rwanda’s Aid Policy, which is now acting as the guiding framework for aid structures, clarifying types of aid the country wishes to attract, and processes in aid management.
The Policy Implementation Plan will be presented to this distinguished audience tomorrow, just before our Joint Development Partners Statement of Intent. It is important that government and donors alike take action to implement their plans in order for this policy to produce exemplary results.
Moreover, the Government and its Development Partners undertook the first comprehensive survey on aid effectiveness in Rwanda. Results from this exercise are invaluable for donors and the Government alike in developing strategies to improve aid effectiveness and to implement the Aid Policy.
With the Aid Policy in place, we now have an important responsibility: to make an effort to increase aid flows. The 2006 IMF Report on Regional Economic Outlook for Sub-Saharan Africa reiterates the need for aid to be scaled up in Africa, in line with several international commitments. If aid flows remain at current levels, meeting the MDGs, as well as Rwanda’s own long-term targets, will become even more challenging. We undertake to work with the Government of Rwanda to ensure that such commitments are upheld. Your Excellency, as You eloquently stated at Columbia University last year: Quote “The Millennium Development Goals are a compact between rich and poor, and rich countries must honor their commitments and fulfill the obligations that accompany these commitments” Unquote. In return, I would also like to stress the importance for developing countries to create the necessary environment for the effective and efficient use of increased aid resources.
CONCLUSION
Your Excellency President KAGAME, Your Excellencies, Ladies and gentlemen,
In conclusion, allow me to congratulate the government and the people of Rwanda for striving towards reconciliation and long lasting peace, while setting the fundamental conditions for sustained development and poverty alleviation. We
2006 DPM – UN RC Opening Statement 9 of 10 trust that the Government will continue in its endeavors to achieve the principles of democracy, of equality, and of an open society. We assure you of our full commitment toward a continued and accountable partnership.
Since 2002, the DPM has allowed the people of Rwanda and ourselves, your development partners to develop solid foundations for a fruitful partnership. Let us continue this work together, in order to support the Rwandan people in realising their potential and using all their abilities in striving for peace, justice and prosperity.
On that road, we Development Partners wish to reassure that you will not be travelling alone!
HARAKABAHO ITERAMBERE, HARAKABAHO UMUBANO, HARAKABAHO UBUFATANYE.
Long life to our Cooperation and Partnership!
I thank you for your attention
MURAKOZE, MUGIRE AMAHORO.
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