The situation of Rwanda's dependence on foreign aid

This article discusses the situation of Rwanda's dependence on foreign aid. Rwanda's poverty is mainly linked to inadequate economic policies that do not promote strong investment in industry and education; and the taxation system that weakens small entrepreneurs resulting in real and disguised unemployment, weakened purchasing power in the population, imports far in excess of exports and balance of payments imbalance. In order to overcome all these problems, Rwanda has recourse to foreign aid. Rwanda's dependence on foreign aid is seen in the huge amount of this aid which has been increasing since its independence in 1962, almost 40% of the state budget comes from donations and external loans. One notices sometimes the moral hazard in the aid policy or in the practice of attracting foreign investment. Rwanda should therefore let the population participate democratically in the process of requesting and using foreign aid through an active and free civil society and try to plan for the end of its aid dependency.