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The Rwandan Economy 1973–1994: From Macro to Micro

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Abstract

This chapter analyses the factors behind economic growth in the first decade of the Second Republic as well as the onset of decline from the mid-80s onwards. I deal with the nature of the tax system, the provision of public goods as well as the degree of poverty and inequality. I look at internal migration and the colonization of marginal land in response to population pressure. I use data on the rural household economy to gain insight on the farming and living conditions of ordinary Rwandans.

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Notes

  1. 1.

    Recensement General de la Population et de l’ Habitat au 15 Aout, 1991, Resultats Definitifs, Service National de Recensement, Ministere du Plan, Kigali, April 1994.

  2. 2.

    Des Forges, A., Leave None to tell the Story, Human Rights Watch, New York, 1999, p. 15.

  3. 3.

    L’umuganda dans le dévéloppement national, Janvier 19990, MRND, Kigali.

  4. 4.

    André Guichaoua also arrives at 1 billion RWF as the annual value of the projects realised by umuganda in this period. Guichaoua (1991), Les Travaux Communautaires en Afrique Centrale, Revue Tiers Monde, XXXII, no 127, Juillet-Septembre, p. 563.

  5. 5.

    The value of an entire labour day was 100 FRW, the sum of a long morning and shorter afternoon.

  6. 6.

    Gasana, E., Butera, J.B., Byanafashe, D., Karekezi, A., Rwanda, Comprehending and Mastering African Conflicts, 1999, p. 157.

  7. 7.

    Olson, J.M., The impact of changing socio-economic factors on migration patterns in Rwanda, Ph.D Dissertation, Michigan State University, 1990, p. 150.

  8. 8.

    Clay, D., Reardon, T., Kangasniemi, J, Sustainable Intensification in the Highland Tropics: Rwandan Farmers’ Investments in Land Conservation and Soil Fertility, Economic Development and Cultural Change, 1998, p. 363.

  9. 9.

    Bart, F., Montagnes d’ Afrique, terres paysannes, le cas du Rwanda, 1993.

  10. 10.

    The sale of livestock, worth on average 3,000 RWF in 1990 is strictly speaking not ‘income’ but a change in assets or portfolio.

  11. 11.

    Clay, D., Promoting Food Security in Rwanda through sustainable agricultural productivity: meeting the challenges of Population pressure, Land Degradation and Poverty, International Development Paper no. 17, Michigan State University, Departments of Agricultural Economics and Economics, Chap. 4, p. 16.

  12. 12.

    Blarel, B., Hazell, P., Place, F., Quiggin, J., The Economics of Farm Fragmentation: Evidence from Ghana and Rwanda, The World Bank Economic Review, Vol. 6, no. 2, p. 252.

  13. 13.

    Place, F and Hazell, P, Productivity effects of Indigenous Land Tenure Systems in Sub-Saharan Africa, American Journal of Agricultural Economics, February 1993, pp. 14–15.

  14. 14.

    Byiringiro, F. and Reardon, T., Farm Productivity in Rwanda: the effects of farm size, erosion, and soil conservation investments, Agricultural Economics 15, 1996, pp. 132–135.

  15. 15.

    Clay, D. et al., Promoting Food Security in Rwanda, ibidem, Michigan State University, Chap. 3, p. 34.

  16. 16.

    Wiggins, S.Changes in African Farming Systems between the mid-1970s and the mid-1980s, Journal of International Development, vol. 7, no 6, 1995, pp. 807–848.

  17. 17.

    Platteau, J.Ph., Institutions, Social Norms and Economic Development, Harwood, 2000, Chap. 2, p. 26.

  18. 18.

    Kalinjabo, C., (in French) The role and structure of taxes in Rwanda, National University of Rwanda, Butare, 1984.

  19. 19.

    Original in French: «pour que le mécontentement soit canalisé, il faut une action politique qui est difficilement concevable dans un pays profondément marqué par le monolithisme politique».

  20. 20.

    Scott, J., (1976), The moral economy of the peasant, Yale University Press, New Haven, pp. 29–34.

  21. 21.

    Original in French: les impots rureaux ne tiennent pas compte du revenue réel ou potentiel de chaque contribuable pris isolément. Ils l’atteignent plutôt à travers des contributions personnelles et réelles grossières qui frappent de la même façon tous les assujettis, riches et pauvres confondus.

  22. 22.

    See also Chap. 5 on crop failure in southern Rwanda in 1989. A local NGO pleaded to free peasants from paying taxes in that year.

  23. 23.

    World Bank, 1987, The role of the communes in the development of Rwanda. p. 12.

  24. 24.

    Muller, C., The impact of the production composition on the nutrition status of agricultural households in Rwanda, Applied Economics Letters, 1999, vol. 6, pp. 125–131.

  25. 25.

    Austin, G., The effects of government policy on the ethnic distribution of income and wealth in Rwanda: a review of published sources, Department of Economic History, London School of Economics, 1996.

  26. 26.

    Muller, C., Transient seasonal and chronic poverty of the peasants: Evidence from Rwanda, CSAE, Oxford University, 1997, p. 28.

  27. 27.

    Azam, J.-P., The Redistributive State and Conflicts in Africa, keynote address at the annual Conference of the Norwegian Association for Development Research, Oslo, September 1999.

  28. 28.

    Marysse S., Basic Needs, Income Distribution and the Political Economy of Rwanda, UFSIA, paper 55, 1982.

  29. 29.

    Presidentiel decrees 3/1/1977 and 28/10/1980. Marysse also adds that the wage increase between 1976 and 1980 for all scales in the army was slightly better than in the administration.

  30. 30.

    Storey, A., Economics and Ethnic Conflict, Development Policy Review, vol. 17, 1999.

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Verwimp, P. (2013). The Rwandan Economy 1973–1994: From Macro to Micro. In: Peasants in Power. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-6434-7_3

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