It is impossible to talk about economic inequality without also speaking about economic redistribution. In a nutshell, economic redistribution is the redistribution of resources from the population of a country which can then be given to either elites or citizens. Though often economic redistribution is thought of in terms of social welfare and economic growth, giving the resources back to the citizens to improve their livelihoods, it also exists in another form, redistribution to elite citizens for private gain. In Rwanda you can see examples of both.As the country with the highest rates of economic inequality in the region of East Africa, Rwandan policy has been dominated both by policies linked to economic redistribution as will be seen in the two examples below (https://www.theeastafrican.co.ke/business/Rwanda-has-regions-highest-inequality-rate-/2560-3908112-t4t51ez/index.html).
In Rwanda, there are a lot of policies related to economic redistribution to the citizens through social welfare systems and economic development. For example, Rwanda has compulsory health insurance which covers more than 90% of the population, helping to increase life expectancy and health for many of the population (https://www.bti-project.org/de/berichte/laenderberichte/detail/itc/RWA/). Furthermore, many of Rwanda’s policies explicitly target the poorest of the population, including food aid to reduce malnutrition and other aid, which have in turn contributed to a reduction of the proportion of the population below the poverty line from 56.7% to 39.1%, a significant change (https://www.bti-project.org/de/berichte/laenderberichte/detail/itc/RWA/). All of this has contributed to economic development in the region and serve as good examples of redistribution to the public.
However, there is also evidence in Rwanda of economic redistribution to the elite of the nation. Though the 2017 Corruption Perception Index “ranked Rwanda as the third least corrupt country on the African continent” (https://www.trtworld.com/magazine/what-makes-rwanda-one-of-africa-s-fastest-growing-economies-23410) corruption does still exist, and claims are made especially about President Paul Kagame lining his pockets and those of his party especially in the security sector. For example, the Transformation Index in it’s BTI 2018 Rwanda Country Report noted that despite seemingly pursuing a liberal fiscal policy, that there are a growing number of private enterprises linked to the army and the dominant party that have expanded their influence, leading to private gain for these elites. Furthermore, there have been charges that the agricultural policies pursued by Kagame, supposedly to help farmers, have actually been used to help large corporations and have been influenced by Kagame’s party, another example of redistribution to the elite rather than the poor farmers the policies claim to support.
Works Cited:
- Asiimwe, D. (2019, September 4). Rwanda has region’s highest inequality rate. The East African. https://www.theeastafrican.co.ke/business/Rwanda-has-regions-highest-inequality-rate-/2560-3908112-t4t51ez/index.html
- BTI 2018: Rwanda Country Report. (2018). Transformation Index BTI. https://www.bti-project.org/de/berichte/laenderberichte/detail/itc/rwa/ity/2018/itr/esa/Detail. (n.d.). Retrieved March 18, 2020, from https://www.bti-project.org/de/berichte/laenderberichte/detail/itc/RWA/
- Nzohabonimana, D. (2019, January 17). What makes Rwanda one of Africa’s fastest growing economies? TRTWorld. https://www.trtworld.com/magazine/what-makes-rwanda-one-of-africa-s-fastest-growing-economies-23410
Rwanda Reconsidered 