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USAID Information:
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Rwanda
The Development Challenge: The past year has been a democratic turning point for Rwanda as the Government (GOR) promulgated a new constitution, held multi-party presidential and legislative elections, and completed a nine-year post-genocide political transition. Throughout this transitional phase, the GOR showed commitment to increasing rule of law and transparency in governance. As the 2003 election process got underway, however, the government's tolerance for political opposition, press freedom and criticism diminished significantly. Donors, in turn, were hesitant to support elections that might not be declared free and fair. Lacking adequate donor funding, the GOR made up for the deficit by using its own budget to finance elections.
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Please note: All documents are in pdf format |
In close collaboration with the U.S. Embassy, USAID will work with other donors to foster an environment that allows the GOR to ensure civil liberties are guaranteed under the new constitution, strengthen civil society, grant greater independence to the media and create a more democratic and transparent society.
The Rwandan economy slowed to its lowest level in the last seven years in 2003, expanding by just 3.5% compared with nearly 10% in 2002. This was largely due to poor weather and weak global commodity prices. In addition to the decline in tea and coffee prices, and reduced food production, the GOR's expenditures on the elections had a detrimental impact on the budget. The situation is expected to continue in 2004. As a result, the completion point for Rwanda under the International Monetary Fund (IMF) enhanced Heavily Indebted Poor Country Initiative (HIPC), originally scheduled for December 2003, has been postponed.
Regional stability in the Great Lakes countries has improved somewhat in the past year. The peace process moved forward in the Democratic Republic of Congo (DRC) and in Burundi, and Rwanda's relations with Uganda continued to improve. The Rwanda military continued the demobilization program while Rwandan rebel leaders and fighters in neighboring countries have begun to lay down arms and return to Rwanda.
Rwanda is experiencing a large influx of resources to combat HIV/AIDS, including funds from the World Bank; the Global Fund to Fight HIV/AIDS, Tuberculosis and Malaria; and the United States Government under the President's Emergency Plan for AIDS Relief (PEPFAR). Expanding the health infrastructure and management capacity to ensure that these resources are used to provide services to all Rwandans is an immediate development challenge for the GOR and the donor agencies.
The U.S. national interests in Rwanda are increasing regional stability, promoting democracy and human rights, advancing economic prosperity, and enhancing global health.
The USAID Program: The attached Data Sheets cover the three new objectives from the Rwanda Integrated Strategic Plan for 2004-2009 that was approved by USAID/Washington in September 2003. USAID will continue to promote democracy and governance by working with the new parliament and increasing citizen participation in civil society organizations. With FY 2004 funds, the democracy and governance and health teams will launch a new decentralization activity to increase the capacity of district officials to plan, budget and implement new development projects, and improve social services, especially for health and HIV/AIDS. Increased funding for HIV/AIDS under the President's Emergency Plan for AIDS Relief (PEPFAR) will enable USAID and its USG partners to fund a full range of HIV prevention and AIDS treatment services through the rapid expansion of existing programs. Rural economic growth activities not only will increase agricultural productivity through improved technology development and dissemination, but also will develop agro-businesses and strengthen rural financing, which in turn will create jobs and increase rural incomes. USAID intends to use FY 2005 funds to continue support for the new activities initiated in FY 2004 that reach more rural and underserved districts. These activities will increase citizen participation in political, social, and economic development programs that are designed to meet their specific needs.
Rwanda is a focus country under the President's Emergency Plan for AIDS Relief (PEPFAR). All proposed HIV/AIDS activities are being integrated into PEPFAR and are subject to the approval of the U.S. Global AIDS Coordinator. Additional funding from the Global HIV/AIDS Initiative account is anticipated for both FY 2004 and FY 2005.
Other Program Elements: In addition to the resources requested in the Program Data Sheets, USAID's Office of Food for Peace in the Democracy, Conflict, and Humanitarian Assistance Bureau, through its P.L. 480 Programs, supports USAID/Rwanda's efforts to improve agricultural productivity and increase food security. USAID's centrally-funded Famine Early Warning System provides timely information on the location and needs of vulnerable populations, which can change with the onset of droughts, floods, earthquakes and volcanic eruptions. The USAID/Rwanda health program is complemented by central funding from USAID's Global Health Bureau for Child Survival Grants to three private voluntary organizations (PVO). The Global Health Bureau also provides condoms to support HIV/AIDS prevention programs. Under the Congo Basin Forest Partnership of the Central African Regional Program for the Environment (CARPE II), international PVOs received support for conservation activities that reduce the rate of forest degradation and loss of biodiversity in two of Rwanda's unique national parks. Funds from the Africa Education Initiative finance the Ambassador's Girls Scholarship Program and a School Partnership Initiative between high schools in Kigali and Miami.
Other Donors: The United Kingdom (U.K.) and Belgium are Rwanda's first and second largest bilateral partners followed by the U.S. and Sweden. Many donors provide budgetary support. These include the U.K., Sweden, the European Union (EU), the World Bank, the African Development Bank and the IMF. Working with the Rwandan Ministry of Finance, these agencies recently drafted a "Partnership Framework for Harmonization and Alignment of Budget Support between the Government of Rwanda and its Development Partners," which provides guiding principals to reduce transaction costs and keep donors aligned under the Poverty Reduction Strategy Plan.
The Rwandan Government has asked donors to help develop and support sector-wide programs. Sector cluster groups were organized in 2003 to facilitate this process and USAID was named as the lead donor for the Private Sector and HIV/AIDS Cluster Groups. Working with GOR Ministries and other donor agencies, USAID will ensure that the new Strategic Objective programs are aligned with GOR sector program priorities and will establish collaborative implementation arrangements with other donors to reduce transaction costs and avoid duplication of effort.
USAID works closely with the Netherlands, Switzerland and U.K. on decentralization activities, and with Belgium, Germany, and the Netherlands on Judicial Reform and Conflict Management. Lead donors in health and HIV/AIDS include Belgium, the World Bank and the African Development Bank, in addition to the United States. For rural economic growth and agriculture, USAID coordinates closely with the EU, and the World Bank. The U.K. is the lead agency for education and macro-economic technical assistance, while Canada supports gender initiatives and Germany provides support for the environmental programs.
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