At the end of the 1980s, developing countries engaged in a policy of economic openness and trade liberalisation. This paradigm change came with a ‘tax transition’, whereby economically neutral taxation replaced protectionist taxation. This paper examines this break in the tax policy among countries in sub-Saharan Africa (SSA), the last group of countries to engage in liberalisation.
Changes in development strategy: role of the state and tax transition. A sharp increase in the government revenues in developing countries, including SSA, occurred between 1980 and 2012. Tax revenues followed a similar pattern, an aggregate that in part eliminated the impact of revenues from mining.
The political situation in Burundi is typical of a post-conflict country that is striving to reconcile the need to consolidate the newly restored peace and responding to the basic needs and demands of the population, while laying the required foundation for sustainable development.
Burundi is one of the world’s poorest countries, with a very low Human Development Index ranking (185th out of 187 countries). As a result of difficulties in access to employment and production factors, women are more affected by poverty than men.
Support from the international community is subject to conditions due to concerns about governance in public administration, including corruption, embezzlement, lack of transparency in recruitment processes, excessive politicization of public administration, etc.
1.1 The 2012-2016 Burundi Country Strategy Paper (CSP) evaluates the development perspectives and challenges facing the country and the role the Bank can play, in close collaboration with the Government of Burundi (GoB) and development partners, in supporting the country to meet its development objectives; as articulated in the Burundi Vision 2025. This CSP aims to support Burundi exit the post-conflict situation and strengthen the outcomes achieved in the previous CSP which focused on governance and job creation through infrastructure development and targeted interventions in agriculture.
Diversification and structural transformation play important roles in influencing the macroeconomic performance of low-income countries (LICs). Increases in income per capita at early stages of development are typically accompanied by a transformation in a country’s production and export structure. This can include diversification into new products and trading partners as well as increases in the quality of existing products.
Diversification in exports and in domestic production has been conducive to faster economic growth in LICs. Increased diversification is also associated with lower output volatility and greater macroeconomic stability. There is both a growth payoff and a stability payoff to diversification, underscoring the case for paying close attention to policies that facilitate diversification and structural transformation.
Empirical analysis using a newly-constructed cross-country dataset, complemented by country case studies, is utilized to examine the patterns of diversification and transformation in LICs since the mid-1960s. Most LICs have historically been heavily dependent on a narrow range of traditional primary products and on a small number of export markets for the bulk of their export earnings and sources of growth. These patterns have been changing over the past two decades, albeit with significant variation in the extent of diversification both across LICs and within regions. There is still ample scope to upgrade the quality of LICs’ existing export basket and/or introduce new higher value-added products, not only in manufacturing but also in agriculture – often the least productive sector in LICs. Development policies in LICs should therefore include rather than abandon agriculture.
Cross-country empirical evidence points to a range of general policy and reform measures that have proven effective in promoting diversification and structural transformation in LICs. These include improving infrastructure and trade networks, investing in human capital, encouraging financial deepening, and reducing barriers to entry for new products. But there is no one-sizefits-all recipe, as evidenced by the diversity of experiences recorded in the country case studies. A new diversification toolkit developed by Fund staff provides easy access to highly disaggregated, product-level data on export diversification and product quality, enabling country authorities and mission teams to conduct more detailed, country-specific analysis.
This Strategic Plan for Agricultural Transformation in Rwanda –Phase II(PSTA II) document finalised in December 2008 has been developed in response to the need for an updated strategy for agriculture. The PSTA II covers the four year period 2009-2012, terminating at the same time as the Economic Development and Poverty Reduction Strategy(EDPRS) at the end of 2012.
The strategy document is structured as follows: this executive summary and three Parts. Part I covering the context, challenges of the strategic plan with chapters on (a) the role and context of the strategic plan, (b) principles of this strategy and the strategic axes for Rwandan agriculture, (c) Rwandan agriculture today, (d) lessons learned and agriculture objectives revisited, and (e) the methodology used for developing the PSTA. Part II follows on with details on the strategy and its programmes with chapters on each of the four programmes with details of the sub-programmes and activities under each major programme. Finally, Part III covers the strategy implementation and financing modalities. One annexe isappendedon the detailed budget.
Rwanda’s economic growth over the last decade has been remarkable. With a government that is committed to achieving sustainable economic growth coupled with growth in employment opportunities for its people, Rwanda has made impressive progress in rehabilitating and stabilizing its economy to exceed pre 1994 levels. The overall economy is growing at a significant rate. The average annual growth rated in GDP was 8.8 per cent between 2005 and 2009. Rwanda’s GDP per capita has increased from less than 200US$ in 1994 to 540 US$ in 2010.Although still at an early stage, the GoR has set a set path towards economic transformation which shows signs of economic transformation in Rwanda
Since the food price rises starting 2007 and the financial crisis that followed in 2008, the development community has been wrestling with the dual questions of threats to food security and the growing inequality accompanying economic growth. Almost all of the poverty and hunger is now concentrated in the low and lower-middle income countries of Asia and Sub-Saharan Africa, most of it in rural areas. In this paper we examine the performance of a selected number of countries in Asia and Africa by analyzing agriculture’s historic role in structural transformation. A paper drawing on the experience of 109 countries over a 30 year period with a focus on China, India, Indonesia and Brazil was prepared as an input into India’s 12th Five Year Plan in 2011 (Lele et al 2011). By extending that analysis to the East African countries, we demonstrate the extent to which the late developers of the East African Community face odds which are greater than those of densely populated Asian countries in achieving structural transformation. We further demonstrate the urgency of focusing attention on agricultural productivity growth as the critical ingredient for achieving food security, poverty reduction and overall economic development.
Off-farm employment has long been seen by farm residents as a way to bridge the income gap among them that arises from stagnating farm production and growing population pressure. In
Rwanda, where population density in certain regions approaches 400 persons per km2, subdivision and further fragmentation of land has led many households to supplement their incomes through employment in the non-farm sector of the rural economy. Government awareness of the need to stimulate non-farm employment opportunities for the rural poor has grown recently, as demonstrated by a well-known presidential address on this question (Rwanda, 1986), and the official declaration of the year 1988 as the “Year of Raising Farm Incomes.” Hope abounds for
converting such slogans into reality. Promotion of small enterprises, cooperatives, new sources of credit, and employment training are among the alternatives under study (Rwanda, 1988). Yet beyond its contribution to the overall growth of farm residents’ incomes, expansion of the non-farm sector can alleviate income inequalities in the agricultural sector that result from an unequal distribution of landholdings. To the extent that poor farm households with little access to land can obtain the training, capital and credit to facilitate their participation in the non-farm sector, their relative economic position will likewise be enhanced. Similarly, albeit indirectly,
households that continue to rely on agricultural wage labor as their primary source of income also benefit from an expanding non-farm sector, as the creation of employment alternatives shrinks the size of the agricultural labor pool and drives up the prevailing agricultural wage rates.
Inequality is central to Oxfam’s mission to fight poverty. While growth is good for poverty reduction, its effectiveness is severely reduced in places where high levels of inequality persist and privileged elites are able to hoard the rewards. In those cases, marginalized groups will see little of the positive benefits from high growth rates. However, governments, donors, and NGOs (both domestic and international) can do much to help redress these imbalances, particularly in places where development finance (defined as both overseas development aid and domestic resource mobilization targeted towards development) makes up part of the national budget. This report explores how reforms to the way that development finance is provided and administered in developing countries can help to reduce inequality and, as a result, create growth that benefits all. The three case studies focus on education in Rwanda, fiscal policies and revenue collection in Ecuador, and universal health care in Thailand.
Income per capita in Uganda has doubled in the last 20 years. However, economic growth has been concentrated in non-tradable activities and faces challenges such as a growing gap between rural and urban incomes, a low urbanisation rate, rapid rural population growth and high dependency ratios. Structural transformation, with labour and resources moving to more productive sectors, remains in its early stages. The country is approaching an oil boom of uncertain size and duration, which presents possibilities for external sustainability, expanded income and infrastructure and a larger internal market.