Rise of the Rwandan economy post-genocide: will this lead to catch-up growth?

University essay from Lunds universitet/Ekonomisk-historiska institutionen

Abstract: Abstract: This thesis examines the concept of sustainable economic growth in post-genocide Rwanda, focusing on its structural transformation from the agricultural sector towards the service sector. This exploration essentially regards the implications for catch-up growth in light of the new notion of premature deindustrialisation. The role of Human Capital and Information and Communication technology (ICT), part of Rwanda's development agenda, are explored in light of their association with increased Labour Productivity (LP). This analysis found that although Rwanda has noted relatively large economic growth, the Labour Productivity of all three sectors have remained either stagnant or noted declines during the post-genocide period. This was similarly the case for all three sectors value added as a share of GDP. Thus, this illuminates the presence of additional driving forces, one of which regards foreign aid. Hence, a potentially unsustainable side to Rwanda's economic growth is brought to light.

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