Rwanda - Memorandum on the economy

Report No. 1108-RW FILE, COPY Memorandum on the Economy of Rwanda July 27, 1976 Eastern Africa Country Programs II FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS AND UNITS Currency Unit: Rwandese Franc (RwF) Exchange Rates: Through December 1971 US$ 1.00 = RwF 100.00 January 1972-December 1972 US$ 1.00 - RwF 92.11 January 1973-December 1973 US$ 1.00 = RwF 82.90 Since January 1974 US$ 1.00 = RwF 92.84 Fiscal Year: January 1 to December 31 Standards: Metric  FOR OFFICIAL USE ONLY TABLE OF CONTENTS Page No. COUNTRY DATA MAP SUMMARY AND CONCLUSIONS ........... ............. i - iv I. INTRODUCTION .......................................... 1 II. THE CONSTRAINTS TO DEVELOPMENT .1 A. Population Growth and Land Availability. 1 Demography. 1 Agricultural Production. 2 Nutritional Standards. 4 B. Absorptive Capacity. 5 Manpower Training. 5 Management of Technical Assistance. 7 Economic Planning. 8 C. Resource Mobilization. 9 Public Sector .10 Private Sector .12 D. Geographical Isolation and Comparative Advantage. 15 III. RECENT ECONOMIC DEVELOPMENTS .17 A. Income and Economic Growth .17 B. Investment and Savings .20 C. Public Finance .21 Government Revenues .22 Government Current Expenditure .25 Development Budget .26 D. Money and Prices .27 E. Balance of Payments .28 Current Account Balance .................... 29 Exports .29 Imports .30 Capital Inflow and External Assistance 31 IV. DESIGN FOR DEVELOPMENT .32 A. Devlopment Objectives ..32 B. Development Strategy . .33 Devolution . .33 Diversification . .36 C. Prospects ..38 This report was prepared by an economic mission that visited Rwanda in September/October 1975. The mission consisted of Messrs. Roger Key (mission chief), Marco Ragno (economist) and Giulio Fossi (consultant in economic planning). The Annex on the agricultural sector was prepared by Ms. Katherine Marshall. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  TABLE OF CONTENTS (Continued) ANNEX I: The Agricultural Sector ANNEX II: Preparation of the Third Plan, 1976-1980 STATISTICAL ANNEX  rage 1 of 2 pages COUNTRY DATA - RWIND& ,OPUI.ArIMN DENSITY 26341u km 4-2millnion (Oiit-l974) 1 r bs2 Rate of Growth: 3-2 (froml96Otol974) 234 per ki of arable land POPULATION CHARACTERISTICS (197t) HeALTH (1972) Crude Birth Rate (per 1,000) t 5