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This paper examines the Joint Staff Assessment of Rwanda’s Poverty Reduction Strategy Paper (PRSP) progress report. The authorities have showed continued commitment to privatization of public enterprises. Financial management reform is on track, as are established targets in the social sectors, particularly for education. Rwanda’s PRSP targets annual real GDP growth rates in the range of 7–8 percent a year in the near future, supported by improved agricultural productivity and an expansion in nonagricultural demand for goods and services.
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The study analyzes the key elements of the poverty reduction strategy, including the participatory approach, donor coordination, growth-enhancing policies, and accountability and governance issues. A training program for government accountants has started, and the law establishing the office of the Ombudsman has been gazetted. The annual progress report acknowledges the need for an acceleration of structural reforms. New health and agricultural strategies are expected to revive and refocus the momentum in these critical sectors. However, poverty still affects two-thirds of the population, particularly in rural areas, and capacity constraints remain a major obstacle for reform implementation.
This Joint Staff Advisory Note focuses on the Poverty Reduction Strategy Paper for Rwanda. Rwanda’s second Economic Development and Poverty Reduction Strategy (EDPRS 2) covers FY2013/14–2017/18. It builds on the lessons learned in the implementation of the EDPRS 1. Among the positive lessons, the authorities point to the importance of ownership of the strategy including aid-financed programs, home-grown initiatives, community-based solutions, and an adequate institutional and legal framework. The overall objectives of the EDPRS 2 are to accelerate growth and further reduce poverty, including extreme poverty.