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ECONOMIC DEVELOPMENT & POVERTY REDUCTION STRATEGY 2008 - 2012

The slowdown is set to affect employment with the usual lags. Employment in the EU is projected to contract by another ¼% in 2013 after a fall of ½% this year, also because firms now have less scope to react to the demand shortfall by reducing working hours than during the 2008-09 recession. With the projected turnaround of GDP growth in 2013, employment should stabilise towards the end of next year. However, the moderate growth projected for 2014 will generate only modest employment gains, which are expected to remain below the employment losses incurred in. | THE REPUBLIC OF RWANDA economic development POVERTY reduction strategy 2008 - 2012 September 2007 CONTENTS CONTENTS ACRONYMS GLOSSARY EXECUTIVE SUMMARY . i 1 INTRODUCTION . 1 2 WHERE IS RWANDA NOW . 5 2.1 Economic growth has slowed population growth continues to be rapid and the environment is under stress 5 2.2 Poverty has fallen but needs to fall faster to meet the MDG and Vision 2020 targets . 12 2.3 Key indicators show that health has improved substantially but inequalities in health outcomes persist. 18 2.4 Access to secondary education lags behind primary but tackling quality aspects of primary education are also a high priority . 21 2.5 Governance reforms are well advanced but much remains to be done . 25 2.6 Implications for the EDPRS . 28 3 WHERE DOES RWANDA WANT TO BE IN 2012 . 29 3.1 Implicit targets for the Millennium Development Goals in 2012 . 29 3.2 Targets for Rwanda Vision 2020 . 33 3.3 Targets for the EDPRS in 2012 . 33 4 wHaT does RWANDA DO TO GET THERE . 46 4.1 The Growth for Jobs and Exports flagship programme . 48 4.2 The Vision 2020 Umurenge Flagship Programme . 71 4.3 The Governance flagship programme . 77 4.4 Complementary sectoral interventions to achieve the EDPRS targets . 91 5 HOW DOES RWANDA GET IT DONE . 102 5.1 Implementation framework for the EDPRS . 102 5.2 Align individual incentives to planning priorities . 103 5.3 Extend and consolidate the process of decentralisation . 104 5.4 Flagship programmes will strengthen inter-sectoral coordination . 105 5.5 Improve public financial management . 108 5.6 Promote greater harmonisation and alignment of donors with the EDPRS priorities . 109 5.7 Assign a greater role in policy implementation to markets and the Private Sector . 111 5.8 Implementation issues at sectoral level . 112 5.9 Effective implementation requires good communication . 118 6 HOW MUCH WILL IT COST AND WHAT ARE THE MACROECONOMIC IMPLICATIONS . 119 6.1 EDPRS costs . 119 6.2 Sector allocation of EDPRS costs . 122 6.3 EDPRS .