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Coordinating China and DAC Development Partners: Challenges to the Aid Architecture in Rwanda

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Coordinating China and DAC Development Partners: Challenges to the Aid Architecture in Rwanda A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Grimm, Sven; Höß, Heike; Knappe, Katharina; Siebold, Marion; Sperrfechter, Johannes Research Report Coordinating China and DAC development partners: challenges to the aid architecture in Rwanda Studies, No. 56 Provided in Cooperation with: German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE), Bonn Suggested Citation: Grimm, Sven; Höß, Heike; Knappe, Katharina; Siebold, Marion; Sperrfechter, Johannes (2011) : Coordinating China and DAC development partners: challenges to the aid architecture in Rwanda, Studies, No. 56, ISBN 978-3-88985-492-6, Deutsches Institut für Entwicklungspolitik (DIE), Bonn This Version is available at: http://hdl.handle.net/10419/199181 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu 10-6467_Studie_56_Grimm:10 11.02.2011 14:14 Uhr Seite 1 Coordinating China and DAC development partners 10-6467_Studie_56_Grimm:10 11.02.2011 14:14 Uhr Seite 2 German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE) The German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE) is a multidisciplinary research, consultancy and training institute for Germany’s bilat- eral and for multilateral development co-operation. On the basis of independent research, it acts as consultant to public institutions in Germany and abroad on current issues of co-operation between developed and developing countries. Through its 9- months training course, the German Development Institute prepares German and European University graduates for a career in the field of development policy. Dr Sven Grimm is research fellow at DIE. He has worked on external partners’ cooperation with Africa since 1999. The emerging economies’ role in Africa, and specifically China-Africa relations, feature in his work since 2006. Since 2011, Dr Grimm is on leave of absence from DIE and is the Director of the Centre for Chinese Studies of Stellenbosch University, South Africa. E-mail: [email protected] Heike Höß was participant of the DIE Postgraduate Programme for Development Policy 2009–2010*) E-mail: [email protected] Katharina Knappe was participant of the DIE Postgraduate Programme for Devel- opment Policy 2009–2010*) E-mail: [email protected] Marion Siebold was participant of the DIE Postgraduate Programme for Develop- ment Policy 2009–2010*) E-mail: [email protected] Johannes Sperrfechter was participant of the DIE Postgraduate Programme for Development Policy 2009–2010*) E-mail: [email protected] Isabel Vogler was participant of the DIE Postgraduate Programme for Develop- ment Policy 2009–2010*) E-mail: [email protected] *) The views expressed in this study are the sole responsibility of the author. 10-6467_Studie_56_Grimm:10 11.02.2011 14:14 Uhr Seite 3 Studies Deutsches Institut für Entwicklungspolitik 56 Coordinating China and DAC development partners Challenges to the aid architecture in Rwanda Sven Grimm Heike Höß Katharina Knappe Marion Siebold Johannes Sperrfechter Isabel Vogler Bonn 2010 10-6467_Studie_56_Grimm:10 11.02.2011 14:14 Uhr Seite 4 Studies / Deutsches Institut für Entwicklungspolitik ISSN 1860-0468 Die deutsche Nationalbibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über http://dnb.d-nb.de abrufbar. The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliorgaphic data is available in the Internet at http://dnb.d-nb.de. ISBN 978-3-88985-492-6 © Deutsches Institut für Entwicklungspolitik gGmbH Tulpenfeld 6, 53113 Bonn " +49 (0)228 94927-0 ! +49 (0)228 94927-130 E-Mail: [email protected] http://www.die-gdi.de 10-6467_Studie_56_Grimm:10 11.02.2011 14:14 Uhr Seite 5 Preface This study was conceived as part of DIE’s research and training pro- gramme, led by a member of its research staff and carried out by a team of five post-graduate participants in DIE’s annual training course. The research in this case was special, however, in that it was undertaken in col- laboration with the Chinese Academy of Social Sciences (CASS) in an African country. Our three Chinese colleagues, Professor He Wenping, Dr Liu Zhongwei and Zhang Yongpeng, are researchers at the Chinese Institute for West Asian and African Studies (IWAAS) at CASS. The team also coop- erated with a Rwandan researcher, John Rwirahira, from the Institute of Policy Analysis and Research – Rwanda (IPAR – Rwanda). The long-term cooperation involved a conceptualising desk phase, during which both a Chinese and a Rwandan colleague joined the German team members in Bonn. Subsequently, we continued working together through- out the interview phase in Rwanda. Thanks to this set-up, discussions between all three sides – and from all three perspectives: German, Chinese and Rwandan – took place from the very outset and throughout the research phase. This led to a continuous exchange of information and lively discus- sions on divergent or similar views, opinions and perspectives. This excep- tional opportunity for a constant exchange among researchers from differ- ent backgrounds was a key asset of this study – and contributed greatly to the excitement and fun experienced during this specific research project. We are particularly grateful to He Wenping, Liu Zhongwei and Zhang Yongpeng and to John Rwirahira for their committed, perceptive and open- minded participation in this project. The final compilation of the results and the drafting of most of this report were completed by the German team members during a two-week retreat at Lake Kivu in Rwanda; our Chinese colleagues had already left for Beijing by this time. While we have endeav- oured to give a true description of the positions of our Chinese colleagues throughout the drafting process, we do not hold them in any way responsi- ble for the findings presented in this study. During the research phase in Kigali, the African Centre for Economic Transformation (ACET) published a study on Chinese engagement in Africa, taking Rwanda as one of three examples (ACET 2009). Although it had a different slant on the topic, the research team benefited from a valu- 10-6467_Studie_56_Grimm:10 11.02.2011 14:14 Uhr Seite 6 able exchange with the authors of the ACET study for which we would like to express our thanks. We would also like to thank all the interviewees – not least those in the Rwandan administration – for their precious time and the valuable insights they gave us. We hope that our research and the interaction in Rwanda also provided them with new perspectives. Our thanks also go to DIE’s advisors and internal reviewers, Doris Fischer, Christine Hackenesch and Erik Lundsgaarde. The authors are, of course, to blame for any errors or lack of clarity that remains. Particular thanks are due to the German and Chinese Ambassadors to Rwanda for their interest and support. And, last but not least, we would like to thank the KfW Entwicklungsbank for the support that has made this study possible; the KfW team in Kigali greatly facilitated our stay in Rwanda. The authors, Bonn, December 2010 10-6467_Studie_56_Grimm:10 11.02.2011 14:14 Uhr Seite 7 Contents Abbrevations Executive Summary 1 1 Introduction 11 1.1 Aim of the study and research questions 13 1.2 Country case selection 14 1.3 Definition of key terms – development cooperation and coordination 16 1.4 Motives for coordination 19 1.5 Coordination – aspirations and leverage 21 1.6 Methodology 25 1.7 Structure of the study 28 2 The context of development cooperation in Rwanda 28 2.1 Rwandan development policies and strategies 29 2.2 Role of aid and policy ownership in Rwanda 34 2.3 Mapping the donor landscape in Rwanda 36 2.3.1 Rwanda’s development partners – the overall picture 38 2.3.2 Volumes of development assistance 43 2.3.3 Specific instruments and aid modalities – budget support and tied aid 50 3 Case studies – German and Chinese engagement in Rwanda 56 3.1 German engagement in Rwanda – rationale and policy framework 56 3.1.1 Institutional setting of German cooperation with Rwanda 58 3.1.2 Areas of German cooperation 60 3.2 China’s engagement in Rwanda – rationale and policy framework 61 10-6467_Studie_56_Grimm:10 11.02.2011 14:14 Uhr Seite 8 3.2.1 Institutional setting of Chinese cooperation with Rwanda 66 3.2.2 Areas of Chinese cooperation 67 3.3 German and Chinese activities in the core sectors in Rwanda 70 3.3.1
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