Rwanda is a developing nation in the Eastern Africa region that remains highly dependent on foreign aid from international bodies such as World Bank and the United Nations Development Program (UNDP). According to The World Bank (2016), foreign aid accounted for about 30% to 40% of the country’s budget in 2015. The role of foreign aid on Rwanda’s social, economic, and political development is one that is subject to debate among intellectuals. On one hand, it is argued that foreign aid is necessary to facilitate socio-economic development but on the other hand, it is argued that conditional aid flows may create perpetual dependence thus the country cannot establish ways to remain self-sufficient. For Rwanda’s case, the support of the World Bank and UNDP has facilitated structural and economic reforms that have contributed to the country’s political and socio-economic development.
Following its recovery after the 1994 genocide that adversely affected Rwanda’s political and socio-economic stability, the country remains a model of post-conflict reconstruction. The Rwandan government continues to promote its policies of political and socio-economic growth on the basis of the social-economic and political development. Foreign aid has helped the country to stage a remarkable economic recovery and political stability over the past two decades since the genocide. Approximately half of the foreign aid financial support is provided within the country’s economic recovery as well as policy support to help in the social and political developments.
Rwanda has also been keen on working based on the international set of commitments brought to public attention by the United Nations’ Millennium Development Goals (MDGS) that seek to reduce child mortality, improve maternal health, eradicating poverty and hunger, combating diseases like HIV/AIDS and malaria, and achieving primary education. According to the World Bank (2016), Rwanda met most of the MDGs by 2015 evidenced by a 14% drop in the poverty rate between 2001 and 2011, a two-thirds reduction in child mortality, double-digit economic growth over the past decade, and increased enrollment in primary school programs. Foreign aid in combination with internationally set goals has thus been significant contributors to Rwanda’s socio-economic growth.
The Rwandan government is also pursuing healthcare and educational programs that are essential for the long-term quality of the country’s resource skill base. The country has been able to increase the number of its population under health insurance plans from 7% in 2003 to 91% in 2011 (Nyandekwe, Nzayirambaho, & Kakoma, 2014). Two-thirds of the government’s spending on such health care programs comes from foreign aid with a third provided by the Rwandan government. This means that the country would not be able to fund the programs without external funding.
A healthy population is fundamental to economic and societal growth. Good health is central to the well-being of a population which significantly contributes to economic development (Martin, Grant, & D'Agostino, 2012). This is particularly because healthy populations spend less on medical expenses and are thus able to invest much of their income in other economic and income generating activities. In addition, a healthy population is more productive because they can devote more hours working and can improve their performances because the proper well-being is a motivational factor at work. A healthy population has a higher life expectancy which reflects more expected years free of activity limitations. Good health is essential for the cognitive development of children which is essential for their academic and social development. This means that a healthy population also has a better-prepared future workforce which is essential for the continuity of economic growth.
The Rwandan government through its Health Ministry docket supported by foreign aid initiated several health reform policies and initiatives to rebuild its health care sector that was disabled by the 1994 genocide. The most important aspect that is linked to foreign aid is the rebuilding of health care centers destroyed during the genocide with over 14 new and equipped health care centers built between 1994 and 2007 (Pose & Samuels, 2011). In addition, over 45,000 community health workers have been deployed in the community-based centers to work hand-in-hand with both government-run and donor-run health care organizations (Ministry of Health Rwanda, 2014). Since the mid-2000s, there have been administrative reforms that sought to decentralize health care functions to deal with health challenges in remote areas. The government also accommodates the services of international healthcare institutions and UN agencies recognized by the ministry of health. The institutions provide formally trained health practitioners who help to fill the gap that is present in the health care workforce.
The Rwandan government also integrates all its foreign aid sources into a single fiscal framework that ensures it becomes part of its cohesive, long-term strategy. Government ministries also work directly with the foreign aid partners to ensure transparency, accountability, and good governance of the funds and policy realizations are made practical (Ministry of Health Rwanda, 2014). This helps to curb cases of corruption which many African countries grapple with and which hampers political and socio-economic development. This has also helped the government to be able to monitor the health practices in the country and ensure that programs that seek to benefit the population are implemented across the country. Therefore, Rwanda remains highly committed to putting foreign aid in the health sector to good use in a bid to achieve a healthy nation.
References
Martin, G., Grant, A., & D'Agostino, M. (2012). Global health funding and economic development. Globalization and Health, 8(8), 1-4. Retrieved from http://download.springer.com/static/pdf/763/art%253A10.1186%252F1744-8603-8-8.pdf?originUrl=http%3A%2F%2Fglobalizationandhealth.biomedcentral.com%2Farticle%2F10.1186%2F1744-8603-8-8&token2=exp=1473204619~acl=%2Fstatic%2Fpdf%2F763%2Fart%25253A10.1186%25252F1744-8603-8-8.pdf*~hmac=6c608f6baf481308c17f2da8bf6630e49573948754b6eadd3978448d4e4369cd
Ministry of Health Rwanda, PMNCH, WHO, World Bank, AHPSR and participants in the Rwanda multistakeholder policy review. (2014). Success Factors for Women’s and Children’s Health: Rwanda. Switzerland: World Health Organization. Retrieved from http://www.who.int/pmnch/knowledge/publications/rwanda_country_report.pdf
Nyandekwe, M., Nzayirambaho, M., & Kakoma, J. B. (2014). Universal health coverage in Rwanda: dream or reality. The Pan African Medical Journal, 17(232). Retrieved from http://www.panafrican-med-journal.com/content/article/17/232/full/#.V88Y2CmKTIV
Pose, R. R., & Samuels, F. (2011). Rwanda’s progress in health: Leadership, performance and insurance. London: Overseas Development Institute. Retrieved from http://www.developmentprogress.org/sites/developmentprogress.org/files/rwanda_report_-_master_0.pdf
The World Bank. (2016, April 11). Rwanda Overview: Country Overview. The World Bank Group. Retrieved from http://www.worldbank.org/en/country/rwanda/overview
