Skip to main content

How To Talk To Rwandan Rulers: First Flatter Them, And Then Hit Hard With Truth

Lagarde was only warming up. Here she is with another flattery: "Since the early 2000s, Rwanda has grown at an average of about 8 percent—well above the regional average and on par with emerging Asia. Per capita income has more than trebled, and while poverty is still high—at about 45 percent of the population—the poorest have shared the benefits of growth. This is a remarkable feat."
And then she hits them below the belt:
"Mobilizing domestic revenues will be critical in creating fiscal space as reliance on aid gradually recedes. At 16 percent of GDP, the tax collection effort is still low compared to peers in Africa, and well below the 25 percent target set by the East African Community."
In plain language: you guys get serious. You cannot claim success when your economy is driven by aid which remains as high as 15 percent of GDP and 40 percent of your government spending. This is no success story. Low tax collection makes you a lousy performer even by African standards. This means your country hardly has any private sector to tax!
Lagarde gives another blow: "Rwanda has made important strides over the years, such as cutting red tape for construction permits, making it easier to get electricity, and strengthening the legal rights of borrowers and lenders. At 46 out of 189 countries in 2015, Rwanda is now in the top three sub-Saharan performers according to the World Bank Doing Business Indicators. Even so, infrastructure gaps continue to hold back the private sector from flourishing. In particular, key infrastructure projects in transportation, water and energy need to come on stream to unlock its full potential."
In plain language - your Doing Business ind  How To Talk To Rwandan Rulers: First Flatter Them, And Then Hit Hard With Truth

Comments

Popular posts from this blog

Mutharika declares ten districts 'disaster areas' as 23,000 Malawians are displaced by floods

The entire southern Lower Shire Valley bordering Mozambique has also been declared a 'disaster area'. Vice President Saulos Chilima, government officials and journalists Tuesday aborted a planned tour to inspect the effects of the damage in the valley because the military helicopter could not fly due to bad weather. Mutharika appealed to the international community and NGOs to assist the flood victims. He said at least 23, 000 people have been made homeless following the flooding. He said the displaced people immediately need temporary shelter, food, medicine and clothing. "Government alone cannot afford so I appeal to the international community for urgent assistance," he said. Over 20 people across the country have died following the flooding.-maravipost Mutharika declares ten districts 'disaster areas' as 23,000 Malawians are displaced by floods : Mutharika declares ten districts 'disaster areas' as 23,000 Malawians are displaced by floods

Malawi coup plotter suspect Goodall Gondwe resigns as economic planning minister

Malawi coup plotter suspect Goodall Gondwe resigns as economic planning minister Dr Goodall Gondwe, who is still recuperating from high blood pressure he suffered Monday after being arrested for allegedly trying to block President Banda’s ascendency to the Office of President last April has finally resigned as economic planning and development effective Frida

Kenya - Civil War Brews in Kenya

Kenya - Civ . il War Brews in Kenya Faced with a combination of body blows ranging from spiking prices for maize, import dependent Kenya’s staple food, IMF mandated food subsidy cuts, a foolhardy USA instigated invasion of Somalia, election triggered ethnic warfare and a simmering independence movement by the Muslims in the Mombasa coastal region Kenya is in trouble, serious trouble. Hunger speculators lead by financial terrorists such as Goldman Sachs are using the drought in the USA, the worlds largest producer of maize/corn to drive prices to what are predicted to be record levels, more than doubling by early 2013 forcing Kenya’s imported maize dependent population’s malnutrition rate into meltdown status.