Africa’s own road to prosperity

By Paul Kagame

At recent meetings of the Group of 20 and the International Monetary
Fund, world leaders have gathered to discuss the global economic
crisis.

Unfortunately, it seems that many still believe they can solve the
problems of the poor with sentimentality and promises of massive
infusions of aid, which often do not materialise.

We who live in, and lead, the world's poorest nations are convinced
that the leaders of the rich world and multilateral institutions have
a heart for the poor. But they also need to have a mind for the poor.

Dambisa Moyo's controversial book, Dead Aid, has given us an accurate
evaluation of the aid culture today. The cycle of aid and poverty is
durable: as long as poor nations are focused on receiving aid they
will not work to improve their economies.

Some of Moyo's prescriptions, such as ending all aid within five
years, are aggressive. But I always thought this was the discussion we
should be having: when to end aid and how best to end it.

Aid has not only often failed to meet its objectives; it has also
rarely dealt with the underlying issues of poverty and weak societies.

We see this with our neighbour, the Democratic Republic of the Congo.
There, 17 000 United Nations peacekeepers - the largest and most
expensive presence of its kind in history - treat the symptoms rather
than addressing the issues of capacity, self-determination and
dignity.

Often, aid has left recipient populations unstable, distracted and
more dependent; as Ashraf Ghani, the former finance minister of
Afghanistan, has pointed out, it can even sever the relationship
between democratically elected leadership and the populace.

Do not get me wrong. We appreciate support from the outside, but it
should be support for what we intend to achieve ourselves.

No one should pretend that they care about our nations more than we
do; or assume that they know what is good for us better than we do
ourselves. They should, in fact, respect us for wanting to decide our
own fate.

At the same time, as I tell our people, nobody owes Rwandans anything.
Why should anyone in Rwanda feel comfortable that taxpayers in other
countries are contributing money for our wellbeing or development?
Rwanda is a nation with high goals and a sense of purpose.

We are attempting to increase our gross domestic product by seven
times over a generation, which increases per capita incomes fourfold.
This will create the basis for further innovation and foster trust,
civic-mindedness and tolerance, strengthening our society.

Entrepreneurship is the surest way for a nation to meet these goals.
Michael Fairbanks' book, In The River They Swim, which uses Rwanda as
one of its examples, highlights the need to respect local wisdom,
build a culture of innovation and create investment opportunities in
product development, new distribution systems and innovative branding.

Government activities should focus on supporting entrepreneurship not
just to meet these new goals, but because it unlocks people's minds,
fosters innovation and enables people to exercise their talents. If
people are shielded from the forces of competition, it is like saying
they are disabled.

Entrepreneurship gives people the feeling that they are valued and
have meaning, that they are as capable, as competent and as gifted as
anyone else. Asking our citizens to compete is the same as asking them
to go out into the world on behalf of Rwanda and play their part.

We know this is a tremendous challenge given our status as a
land-locked nation emerging from conflict, with few natural resources,
little specialised infrastructure and low historical investment in
education.

But, in fact, we have reasons to be optimistic: we have a clear
strategy to export based on sustainable competitive advantages.

We sell coffee now for high prices to the world's most demanding
purchasers; our tourism experience attracts the best customers in the
world and market research reveals that perceptions of Rwandan tea are
improving.

This has resulted in wages in key sectors rising at more than 20
percent on an annual basis. We have cut our aid as a percentage of
total GDP by half over the past decade, and last year we grew at more
than 11 percent even as the world entered a recession.

While this is encouraging, we know the road to prosperity is a long
one. We will travel it with the help of a new school of development
thinkers and entrepreneurs, with those who demonstrate they have not
just a heart, but also a mind for the poor..

l The writer is President of Rwanda

— Financial Times

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