LIST OF FIGURES AND TABLES

Figures
Figure 2.1 : Aid Coordination Architecture in Rwanda
Figure 3.1 : New Administrative Map of Gasabo District
Figure 4.1 : Gendered perceptions on poverty as Rwanda?s threat to socio-economic
development
Figure 4.2 : Perceptions of the impact of Foreign Aid on the Rwandan economy Figure 4.3 :
Gendered perceptions of Foreign Aid and dependency
Figure 4.4 : Knowledge of the existence of MDGs in Rwanda Figure 4.5 : Ranking of MDGs
according to priority
Figure 4.6 : Rating of Poverty Eradication Strategies
Figure 4.7 : Perceptions of beneficiaries of Foreign Aid in Rwanda
Figure 4.8 : Relations of the Government of Rwanda and the Donor Community Figure 4.9 :
Beneficiaries of Donor Community from 2000-2009
Figure 4.10: Challenges with regards to Implementation of MDGs Figure 4.11: Ranking
Rwanda?s main Resources in order of importance Figure 4.12: Composition of External
Resources
Tables
Table 3.1 : Sampling Systems
Table 4.1 : Views on whether poverty is a threat to Rwanda?s socio-economic development by
organizations
Table 4.2 : Views on whether poverty has functional benefits to society
Table 4.3 : Views on whether Foreign Aid creates dependency on Rwanda by Organization Table
4.4 : SustainabilIIVERIEIRTJUQE$ I3EtQE5 Zto31?sE
Socio-economic development
Table 4.5 : Availability of technical challenges with regards

to implementation of MDGs
Table 4.6 : Data gathered using interview methods
Table 4.7 : Documentary Analysis Procedures
Table 4.8 : NGOs/2010 registered in Gasabo District
Table 4.9 : Estimates of different budgetary sources

LIST OF APPENDICES
Appendix 1 : Map of Rwanda
Appendix 2 : Approval letter from WUA, BRD and Letter from DFID Appendix 3 : Rwanda
Development Partners by Sector
Appendix 4 : Coordination Questionnaires, Interview and FGDs

ACRONYMS
AfDB African Development Bank
BRD Rwanda Development Bank
BS Budget Support
BSHG Budget Support Harmonisation Group
BTC Belgian Technical Cooperation
CBEP Capacity Building and Employment Promotion
CDF Common Development Fund (Rwanda)
CEPEX Central Bureau for Public Investments and External Funding (Rwanda)
DAD Development Assistance Database
DCPETA Decentralization, Citizen Participation, Empowerment, Transparency and

Accountability
DDLR Donor Division of labour in Rwanda
DFID Department for International Development (UK)
DPM Development Partners Meeting
DPAF Donor Performance Assessment framework
DRC Democratic Republic of Congo [Zaire until 1997]
EC European Commission
EDPRS Economic Development Poverty Reduction Strategy
EICV Integral survey on conditions of living within families
ESAP Economic Structural Adjustment Programme
ESF Economic Support Fund
EU European Union
FAO Food and Agriculture Organisation (UN)
FDI Foreign Direct Investment
FGD Focus Group Discussion
FHHs Female Headed Households
GDP Gross Domestic Product
GNP Gross National Product
GoR Government of Rwanda
HARPP Harmonisation and Alignment in Rwanda of Projects and Programmes

HDI Human Development Index

HDR Human Development Report

HIPC Heavily Indebted Poor Countries Initiative

HIV/AIDS Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome
ICT Information and Communications Technology
IDA International Development Association (World Bank)
IFIs International Financial Institutions
IMF International Monetary Fund
IRC International Rescue Committee
JAF Joint Action Forum
JRLO Justice, Reconciliation, Law and Order
LDC Less Developed Countries
MDCs More Developed Counties
MDGs Millennium Development Goals
MINECOFIN Ministry of Finance and Economic Planning (Rwanda)
MINALOC Ministry of Local Government
MoU Memorandum (Memoranda) of Understanding
MTEF Medium-Term Expenditure Framework
NGO(s) Non-governmental organisation
ODA Official development Assistance
ODI Overseas Development Institute
OECD Organisation for Economic Cooperation and Development
OECD-DAC Organisation for Economic Cooperation and Development Development Assistance Committee
OFDA Office of Foreign Disaster Assistance

OPEC Organization of Petroleum-Exporting Countries

Org. Organization
PAS Poverty Assessment Study (Zimbabwe)
PD Paris Declaration
PDD District Development Plan
PFM Public Financial Management (Rwanda)
PRS Poverty Reduction Strategy
PRSP Poverty Reduction Strategy Paper
PRS-PR Poverty Reduction Strategy Progress Report
RGPH General Registration of the Population and Housing
RPF Rwanda Patriotic Front
RWACOM Rwanda
RwF Rwandan Francs
SADC Southern African Development Cooperation
SAP Structural Adjustment Programme(s)
SBS Sector Budget Support
SIDA Swedish International Development Cooperation Agency
SMEs Small and Medium Enterprises
SORWATOM Societe Rwandaise de Tomates
SPPMD Strategic Planning and Poverty Monitoring Department (Minecofin)
SPSS Strategic Programme of Social Science
UK United Kingdom
UN United Nations

UNDP United Nations Development Programme

UNFEM United Nations Development Fund for Women
UNICEF 8 cEId NIINWLEIAIMME und
UNWFP United Nations World Food Program
USA United States of America
USAID United States Agency for International Development
UTEXRWA Usine de Textile au Rwanda
VUP Vision Umurenge Programme
WB World Bank
WHO World Health Progamme

TABLE OF CONTENTS
DECLARATION ii
RELEASED FORM iii
APPROVAL FORM iv
DEDICATION v
ACKNOWLEDGEMENTS vi
ABSTRACT vii
LIST OF FIGURES AND TABLES viii
LIST OF APPENDICES x
ACRONYMS xi
TABLE OF CONTENTS xiv
CHAPTER ONE: INTRODUCTION AND OVERVIEW 1

1.1 Background to the Study 2

1.2 Statement of the Problem 10
1.3 Research Questions 11
1.4 Objectives of the Study 11
1.5 Assumptions of the Study 12
1.6 Significance and Justification of the Study 13
1.7 Definition of key terms 15
1.8 Delimitation of the Study 16
1.9 Limitations of the study 17
1.10 Organisation of the Study 18
1.11 Chapter summary 19
CHAPTER TWO: REVIEW OF RELATED LITERATURE 20
2.0 Introduction 20
2.1 Theoretical Frameworks 20
2.2 Conceptualizing aid, development, poverty and hunger 32
2.3 History of Foreign Aid in Rwandan Economy 38
2.3.1 Aid Effectiveness in Rwanda 40
2.3.2 The Politics of Official Development Assistance on Rwanda 42
2.3.3 The World Bank and UNDP Poverty Indicators-Indices 43
2.4 Foreign Aid and Economic Development in LDCs 47
2.4.1 General Global Trends 47
2.4.2 Foreign Aid and Economic Development in Sub-Saharan Africa 51
2.4.3 Challenges Experienced by Government in Making External Aid Effective 54

2.5 Implications of Literature Review 56

2.6 Chapter summary 58
CHAPTER TRHEE: RESEARCH METHODOLOGY 59
3.0 Introduction 59
3.1 Research Design 59
3.1.1 Research Design - An overview 59
3.1.2 Exploratory and Descriptive Phases of the Research Project 60
3.1.3 An overview of the existing situation of the Gasabo District as the case study 61
3.1.4 Sources of Data 63
3.1.5 Types of data 63
3.1.6 Target Population, Sampling and Sampling Procedures 64
3.2 Data gathering instruments 66
3.2.1 An Overview 66
3.2.2 Structured in-depth Interviews 67
3.2.3 The Questionnaire method 68
3.2.4 Focussed Group Discussions 69
3.2.5 Documentary analysis/content analysis procedures 70
3.2.6 Observational schedules (Participant and non-participant observation) 71
3.3 Data presentation and analysis 71
3.4 Chapter summary 72
CHAPTER FOUR: DATA PRESENTATION, INTERPRETATION AND ANALYSIS 73
4.0 Introduction 73
4.1 Discussion of questionnaire findings 74

4.1.1 Questionnaire Administration 74

4.1.2 Quali-Quantitative Analysis of Questionnaire Data 74
4.1.3 Overall synthesis of findings from the questionnaire 91
4.2 Qualitative Analysis of Findings 91
4.2.1 Interview data from administrators 92
4.2.2 Data from Observational schedules 100
4.2.3 Documentary Analysis Procedures 104
CHAPTER FIVE: 110
SUMMARIES, CONCLUSIONS AND RECOMMENDATIONS 110
5.0 Introduction 110
5.1 Summary of the major findings 111
5.2 Conclusion of the study 113
5.3 Recommendations for this study 114
REFERENCES 116
ELECTONIC RESOURCES 125
APPENDICES 126

CHAPTER ONE: INTRODUCTION AND OVERVIEW

The instrumental role of foreign aid on Rwanda?s socio-economic development has always been
a topical subject of debate am ong scholars, intellectuals, social scientists and developmentalists
respectively. On one extrem e end, it is argued that foreign aid is not necessary whereas on the
As such, the attainment of the prime goal of the so-called Millennium Development Goals
(MDG 1) To eradicate extreme poverty and hunger largely hinges on the foreign support
Rwanda may happen to receive from various corners of the world. What it entails is that the

relativity nature of development may generate m ixed feelings to the extent that people may fail
to arrive at a universal agreement with regard the best way to attain socio-economic
development.
However, it is the conviction of this study to move a strong motion that Rwanda?s
socioeconomic development entirely depends on the magnitude at which various stakeholders
join hands and aim at eradicating or seeking the
optimum ways to ameliorate poverty in society. It is therefore the focus of this study to make a
scholarly inquiry into this seemingly grey area and
ascertain the best possible w ays and strategies to adopt as Rwanda embarks on this critical
voyage (poverty eradication).
Against this background, it follow s that there is great need to establish the viable strategies upon
which poverty can be reduced. One fundamental strategy lies in marrying foreign aid with the
available strategies linked to MDGs.
According to World Bank and International Monetary Fund (WB-IMF, 2002) recommendations,
one of the ways of realizing this goal is provision of aid to less developed countries (LDCs) by
more developed countries (MDCs). Such aid is supported by WB & IMF - directed economic
structural adjustment programs. One may underscore the fact that the various programmes will
be tailor-made to focus on specific developmental targets hence attainment of socio-economic
development in some way.
The pivotal or multi-million dollar question that arises then is: to what extent can such
conditional aid contribute to the socio-economic development of the host country in the long
run? And to answer this question, one needs to remember what Mushi (1982:09) says about
positive aid: that aid is developmental only if it lays the foundation for its future rejection.
That is to say aid is only truly useful if in the long run it promises and guarantees self-reliance
and economic self-sustenance to the beneficiary. Otherwise if aid creates perpetual dependence
then it is not useful at all in the first place. Thus, the dynamic views associated with foreign aid
will eventually make it perceived at varying degrees of usefulness particularly in developing
nations.
1.1 Background to the Study
In Rwanda aid has been coming from various quarters, chief among them United Nations
Development Program (UNDP) and World Bank (WB) following the genocide. Against this
backdrop, the purpose was partly to assist with reconstruction and also to eradicate poverty and
hunger, the latter being done under the auspices of the MDGs. This study therefore, seeks to

assess whether such aid has a positive or negative impact on the Rwanda?s socio-economic
development by focusing on the particular case of Gasabo District.
Millennium Development Goal Number 1 clearly states that the primary spirit behind all
millennium development goals is to: eradicate extreme poverty and hunger
( www.developmentgoals.org). R eduction of global poverty and hunger lies at the core of the
Millennium Development Goals (MDGs). The target is to reduce by half the proportion of
people living on less than US$1 a day in low and middle income countries - from 28 percent in
1990 to 14 percent in 2015, and halve the proportion of people who suffer from hunger during
the same period (ibid). It may seem that the twenty-five year time-frame has elapsed without any
This however will negatively impact on the entire socio-economic development of Rwanda,
hence the need to investigate the circumstances surrounding the present phenomena. One may
observe that, to date twenty years have passed without any material indication of success. Only
five years rem ain and yet the possibility of achieving this is still a far cry. Over the years,
foreign
aid has been fuelled by both political and economic m otivations of the ruling classes in the
western donor nations. A classic example is the United States of America Foreign Aid, the
Marshall Plan [1948-1951] that was aimed at rehabilitating the shattered economies of Western
Europe, at the same tim e containing the international spread of communism. When the balance
of Cold War interests shifted from Europe to the World in the mid-1950s, the policy of
containment embodied in the U.S. aid program dictated a shift in emphasis toward political
economic and military support for friendly less developed nations especially those considered
geographically strategic (Todaro, 1983).

Against this backdrop, it follows that the rationale for foreign aid in general should not be
perceived from a lay person?s perspective, thus it requires some introspection of some sort.
Those who offer assistance primarily consider their chances of benefiting latter even if they
commit themselves to some mammoth task as evidenced in the commitment to eradicate poverty.
In all cases, during the socialist, colonial and post-colonial periods donor aid was meant to chart
the course of globalization and the interests of global financiers; and this makes donor aid
suspicious: whether it really stirs sustainable development or it simply serves the economic and
political interests of the donor at the expense of host countries. This prompts the need to find out
whether poverty alleviation intervention programmes initiated by the more developed countries
(MDCs) in LDCs are really addressing the needs of the deserving neediest or not.

Various studies have been carried out around the globe about whether donors are angels of mercy
or doom. As already been alluded to, aid has been given to LDCs in the spirit of the eight MDGs
which can be summarized as to:

Eradicate extreme poverty and hunger

Achieve universal primary education
Promote gender equality and empower women
Reduce child mortality
Improve maternal health
Combat HIV/AIDS, malaria, and other diseases
Ensure environmental sustainability
Develop a global partnership for development (Todaro, 2006: 24)
From the summary, it can be argued that all the other goals are essentially subordinate and play a
complementary role to MDG 1. It follows that all other goals have a bearing to MDG 1 in one
way or the other, implying that to achieve the target of Goal 1 progress has to be made on the
other goals as well. The irony that global studies have established regarding the attainment of
poverty reduction, however, is that not much progress has been made. Foreign aid on the other
side greatly increases the patronage power of recipient governments. As Bauer (2008) notes,
"The great increase in the prizes of political power has been a major factor in the frequency and
intensity of political conflict in contemporary Africa and in the rest of the less developed world,
than developmental response. In this respect, foreign aid may be accused of meddling with the
recipient nation?s political issues hence a detrimental aspect from the sceptics viewpoint.
Sceptics are always conscious of their sovereignty.
UNDP, (2003), advances that in the 1990s income poverty increased in 37 countries while
hunger multiplied in 21 countries. One may underscore the fact that this cardinal admission with

regard the prevalence of poverty and hunger justifies the great need for foreign aid in countries
like Rwanda. The poorest region in the world, sub-Saharan Africa has the worst affected
countries, seconded by Latin America (ibid). Ethiopia, Rwanda, Burundi, Botswana, Kenya and
Mozambique fall into this category. They have all been destinations of foreign aid as guided by
MDGs. The period under which MDGs for poverty reduction have been evaluated in Rwanda has
been repositioned from 1990 to 2000 following the traumatic upheaval of the 1994 genocide.
According to IRIN News, (2006) initial progress was very slow with 57% of the population
remaining below the national poverty line, assessed in terms of food needs and non-food
essentials.
In that year alone, 37% of the population survived on an income insufficient to provide the
minimum calorie requirement of MDG 1; and Rwanda experienced one of the highest levels of
extreme poverty in the world. To this effect, the correlation between the existence of peace and
the subsequent attainment of positive development in a nation is largely evidenced as the socalled genocide had grave and detrimental effects on socio-economic development; hence the
capacity of Rwanda as a sole nation without foreign aid became hazy. To make matters worse,
neither of these poverty rates had fallen by more than a few points since 2000, despite strong
headlines on economic growth in the media (ibid). Indeed, the Gini coefficient1 measure of
inequality increased over that period from 0.47 to 0.51, a relatively high rate for East Africa
(ibid).
The implication is that the rewards of growth were not reaching rural households, where 90% of
poverty in Rwanda is located. This fact abides in spite of the optimistic view that points to the
stable political environment and the availability of generous development aid of the order of $50
per capita per annum coupled with the rewards of a significant debt relief that was issued in 2005
(ibid). The fact that the threat of hunger and poverty are far from over is not even waived by the
bumper harvest of 2008 which fended off the worst global food price crisis. Of course the
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17iA1713a.11Fo113.1ed17iQ171.5 Z 13Qd13lA17( FRQRPiF 17 Development Poverty
Reduction Strategy (EDPRS) 2008 - 2012 and in its strategic Vision 2020, which sets out the
goal of advancing to middle income status by relying less on unskilled agriculture but more on
knowledge-based services such as tourism (UNDP/HDRRwanda, 2007).
1
The Gini Coefficient measures how concentrated incomes are among the population of an
economy: the higher the Gini, the more concentrated
incomes are among a few people. The Gini ranges between 0 (indicating income is distributed
equally between all people) and 1 (indicating all income in the economy accrues to one person).

The EDPRS results and policy matrix is organised around the 3 EDPRS flagship programs which
have been aligned to the three clusters: The economic cluster which covers the Macro Economic
and Financial sector and the economic sectors of Agriculture, Infrastructure (Energy, Transport),
Private Sector development as well as Environment and Natural Resources
management. The Social cluster covers Health, Education, Social Protection, Water and
Sanitation, and Youth; And Governance cluster covers the following sector working groups:
Public Financial Management (PFM), Justice, Reconciliation, Law and Order (JRLO),
Decentralization, Citizen Participation, Empowerment, Transparency and Accountability
(DCPETA), and Capacity Building and Employment Promotion (CBEP).
In spite of all this exuberant optimism by the Government, most observers consider that the
MDGs target of halving poverty by 2015 is very unlikely to be achieved. There are signs that
decentralization of government structures has not progressed as quickly as hoped, and yet this is
an important factor in implementing poverty reduction programmes. On the other hand, the
government continues to depend on aid for no less than 49% of its 2010 budget (ibid); and this
leaves one wondering how far dependence on aid will take Rwanda?s socio-economic
development.
In 2004, the Government of Rwanda (GoR) was dependent upon international development
assistance to the tune of almost 50% of its overall budget, and over 80% of its development
budget. It was receiving over $350 million a year in aid from over 30 bilateral and multilateral
donors and a wide range of non-governmental organisations. (Hayman, 2006)

From a dependency theory point of view, this has an impact particularly on the direction of
development since the donors may pursue their own socio-political agendas that may filter some
ripple effects on the overall economic growth within Rwanda. National policies and programmes
aimed at promoting economic growth, social welfare and political change were heavily
influenced by external actors: foreign technical assistants were bolstering weak internal capacity
within government institutions; policy consultants and advisors were flying in and out of
Rwanda?s capital city, Kigali, to help with the preparation of policy papers and evaluations; a
sizable community of expatriate aid workers was present throughout the country. All this
necessitates the need to evaluate the far-reaching consequences of aid to Rwanda. (Hayman,
2005).
In Kenya and Tanzania, the Swedish aid on rural development had a positive impact in raising
the standards of the poor. To this effect, it would follow that socio-economic development within
these nations was registered. Radetzki in Word Bank (2005:258) maintains that in Tanzania,
Swedish has provided support for industrial forest planting and care, sawmilling and related
activities, technical assistance and village afforestation and this began in mid 1969. One may
argues that deforestation was a major challenge which if not controlled could have costed the
country to the extent that it was going to be difficult to fight poverty. Poverty alleviation is thus
central in order to realise full socio-economic development at all cost. Radetzki in Word Bank
(2005:258) further posits that in Kenya soil conservation was successful due to aid from Sweden.
In this context, it would follow that there is great need to conserve soil if sustainable agricultural

production that fight poverty is to be realised. Howell (2003:418) is of the view that foreign aid
from British to Agriculture in Kenya enhanced agricultural research. To this effect, it follows that
the impact of foreign aid had positive impact on productivity.
Through research new conventional agricultural practices that are geared towards effective fight
against poverty are introduced. Johnston, Hobenand Jaeger (2001:279) report that USA foreign
aid support to sub-Saharan Africa registered socio-economic development in that the economic
aid has been provided for primary development programmes, food aid, and budgetary support
under the Economic Support Fund (ESF) as security supporting assistance. One may observe
that, such foreign aid was quite instrumental in aiding to effective and sustainable socioeconomic
development. In proposing effective mechanisms for the provision of foreign aid, Lele and Jain
(2001:579) on their analysis of aid to African agriculture, argue that donors should ensure that
their assistance programmes in individual countries successfully combine a long term
development strategy with the more pragmatic considerations of day to day economic
development. To this end, it follows that, such strategies if intertwined with aid provision will
effective anchor socio-economic development of a given nation.
In narrating and tracing the impact of foreign aid and its subsequent role in fighting poverty,
Tsikata in Devarajan, Dollar and Holmgrain (2001:47) maintain that From a state of economic
collapse, Ghana?s economy rebounded with sustained economic growth during the first decade
of the reform. This stellar performance was accompanied by an exponentional increase in aid
inflows from both bilateral and multilateral sources. Against this backdrop, it would follow that
the introduction of foreign aid enhanced some economic growth, thus socio-economic
development is promoted. In a related study, by Molmgrein (2001:101) of Uganda, it was noted
that aid in various forms helped to support the generation and implementation of the policy
reforms and Uganda. One may suggest that the various policy reforms may have some bearing
on the alleviation of poverty at all cost. In this context aid is perceived to be part of development,
hence the need to have it as nations become geared for the collective effort to fight the global
poverty. Similarly, in Zambia, Parkner (2001:1020) reports that aid was pivotal in promoting
equitable socio-economic development in the area of agriculture, infrastructure, health and
education. One may underscore the fact that if all these areas are funded it follows that the
impact of global poverty will be minimised at all cost. As Seers (1988), would argue that
development entails eradication of inequality, poverty and unemployment. In advancing debates
on the impact of aid to African countries, Dambisa Moyo (2002) presents an argument that
sometimes aid in Africa is not working and proposed other mechanisms in order to remove or
demystify the issue of aid being classified as Dead Aid.
To this end this brings us to the relativity nature of foreign aid as put forward by the
interactionist view that various subjective meanings are attached to social phenomenon (Ritzer,
1996).
1.2 Statement of the Problem

Poverty has been regarded as a social problem that has significantly affected a magnitude of
people across cultures. To this end, heated debates have been generated with regards the possible
and viable ways of eradicating the problem. However, foreign aid has been proposed as an
ultimate solution that can in turn propel the developmental proper shaft in the socio-economic
horizons. The problem has thus arisen in the legitimacy aspects with regards the efficacy of
foreign aid in enhancing, facilitating or propelling as well as promoting socio-economic
development particularly through the eradication of extreme poverty and hunger to zero levels.
Rwanda has an increase in the depth of poverty in its several areas and a deterioration of living
conditions at the bottom of the income distribution. As a consequence of rising inequality,
Rwanda could have exhausted its ability to reduce poverty rates through economic growth alone.
Growing inequality is not only an obstacle to poverty reduction and sustainable economic
growth; it could also undermine social peace. The problem would thus be stated: Does foreign
aid have an impact in fighting SRY7TVIQ5EKuCI7TIEC5
FRCs7117CtlyESTRPRt7ISZEC5aVIRFIReconomic development?
1.3 Research Questions
This study seeks to answer or address the following key research questions:
1.3.1 What is the effect of poverty and hunger on Rwanda?s socio-economic development?
1.3.2 Does foreign aid enhance Rwanda?s socio-economic development?
1.3.3 Do citizens of Rwanda appreciate the introduction of MDGs as guiding principles for
poverty alleviation?
1.3.4 How effective are Rwanda?s strategic policies on poverty reduction?
1.3.5 How sustainable is foreign-donor assistance towards the reduction of
poverty and hunger; and how do the beneficiaries evaluate the impact of such foreign aid on the
local and national socio-economic development?
1.4 Objectives of the Study
The study seeks to:
1.4.1 Assess the extent of poverty in Rwanda in general and in Gasabo District in particular
following the adoption of MDGs.

1.4.2 Examine the causal relationship between foreign aid and Rwanda?s socioeconomic
development.
1.4.3 Evaluate the effectiveness of Rwanda?s poverty reduction policies and
strategies against its adoption of MDGs framework through foreign aid. 1.4.4 Establish strategies
for both donor community and Rwanda for sustainable
development through poverty reduction.
1.5 Assumptions of the Study
The study is guided by the following assumptions:
1.5.1 Poverty and hunger has a number of effects on Rwanda? socio economic development
1.5.2 Citizen of Rwanda appreciate MDGs at different levels
1.5.3 Foreign aid might enhance Rwanda socio-economic development
1.5.4 If effective policies and legislatives are introduced to combat poverty,
Rwanda?s socio-economic development will be attained
1.5.5 If foreign aid assists Rwanda in its poverty program alleviation, there will be sustainable
development.
1.5.6 The overall assumption is therefore that: The Superpowers (US and its allies) and financial
institutions give aid with inhibiting conditional ties that still determine the nature of development
in LDCs such as Rwanda.
1.6 Significance and Justification of the Study
It is envisaged that this study will tend to immensely benefit a cluster of beneficiaries among
them the Government of Rwanda, Civil society, the general citizens and other researchers. The
Government of Rwanda (GoR) is the intended primary beneficiary of the findings of this
research. It is hoped that the findings of the study will help put Rwanda into the driver?s
seat and help her devise its development programs and in leading coordination processes.
MINECOFIN (2004).
This research hopes to improve the relationship between Rwanda and the donor community so
that it becomes mutually beneficial rather than lap-sided as is the case at present. The study shall
also motivate and stimulate other researchers hence they will have the intellectual vigour to
continuously advance scholarship into this seemingly grey area. In parallel to this diversity
amongst donors, the GoR itself responds in different ways to individual donor agencies, in tune

with its own perspectives of them and their histories in Rwanda, and on the basis of its own
strategic interests. This research seeks to analyse these different perspectives on Rwanda in light
of the international consensus on aid effectiveness. It questions the diversity amongst donors and
the political factors on both the donor and recipient sides which lie behind the aid relationship.
This study helps in identifying the explicit challenges that Rwanda faces and strategies that could
be designed for its socio-economic development through Foreign Aid. In particular the research
will sensitize the citizens of Gasabo District to the negative or positive implications of donor aid
so that they deal with donor aid carefully.
This conscientization will help them avoid dependency syndromes and to indigenize projects
including those that are donor-funded. In a sense they will own their development programs. On
the whole, the study will expose some of the shortcomings of the approaches being currently
used by the institutions such as United Nations Development Program (UNDP), United States
Agency for International Development (USAID), International Monetary Fund IMF, World Bank
(WB) among others to improve the Rwanda socio-economic development. The general citizens
of Rwanda will turn immensely benefit in that they will have a deeper insight into causes and
nature of hunger as well as getting an enlightenment particularly after interacting with the key
findings and recommendation of this study.
Finally, the choice of the case study in this research is deliberate - to examine the ultimate impact
of foreign aid on the people of Rwanda. It is both an exploratory and explanatory study which
examines whether or not foreign aid is a blessing or a curse. If it is a blessing, then how best can
it be further localized; if it is otherwise, then what home-grown solutions can be given in place of
foreign aid so that either way socio-economic development can be realized?
In the final analysis although the results of this study are confined to Gasabo (Rwanda), the
insights into how donor aid can be used sustainably can certainly be useful to all recipient
countries in their generality. The motivation of this study to the future researchers, it will
reanimate them in depth with the new approaches about the foreign aid and MDGs in LDCs and
will add more knowledge to the existing intellectual studies.
1.7 Definition of key terms
The following terms shall be understood the way they are defined herein:
1.7.1 Socio-economic development
For the purposes of this study, socio-economic development entails all development frameworks
that may meet the social and economic needs of the nation and its general citizens as well as
assisting them to deal with their current and future developmental challenges thus leading to
attainment of sustainable development at large.
1.7.2 Impact

For the purposes of this study, impact refers to the instrumental role a given phenomena has on
something be it positive or negative.
1.7.3 Foreign aid
For the purposes of this study, foreign aid shall be perceived as eternal assistance in kind or cash
that is rendered to a developing nation by another country which can come directly or indirectly
through donor agencies.
1.7.4 Millennium Development Goals (MDGs)
For the purposes of this study, Millennium Development Goals (MDGs) shall be perceived as
quantitative developmental targets that were adopted by different nations in pursuit of the World
Bank (2002) recommendations aimed at fighting the high prevalence of the so-called global
poverty.
1.7.5 Poverty
For the purposes of this study, poverty shall mean a state of material and non-material
deprivation which may be caused by socio-cultural, economic or political factors.
1.8 Delimitation of the Study
In terms of peripheral guides, the study was confined to Gasabo, a district (akarere) of Kigali
City, Rwanda. Its capital is Ndera, a village on the outskirts of the Kigali urban area. The district
also includes large areas of the city itself, including Kacyiru, Kimihurura, Remera and
Kimironko. The district occupies the northern half of Kigali province, which had its boundaries
extended under local government re-organization in 2006 (MINALOC, 2006). Gasabo includes
major suburbs of Kigali, sections of a ring of hills which surround the city, and some villages to
the north and east of those. Rwanda's wealthiest area, Nyarutarama is also in the district, as are
the Offices of the President (in Kacyiru) and most of the ministries.
Gasabo district is divided into 15 sectors (imirenge): Bumbogo, Gatsata, Jali, Gikomero, Gisozi,
Jabana, Kinyinya, Ndera, Nduba, Rusororo, Rutunga, Kacyiru, Kimihurura, Kimironko and
Remera. As such, the results and findings obtained shall be perceived as representative and
generalisable too, to other districts not studied Donor activities in all these areas will be
explored. Both males and females constituted the respondents in this particular study. The study
of aid in the context of hunger and poverty is broad. Conceptually, this study is confined to the
study of aid, poverty and development politics. It entails defining foreign aid, poverty and
development within the context of MDGs. It entails exploring the complex dynamics and the
politics of aid in general and in the localized context of Gasabo, Rwanda.

It entails evaluating, competing perceptions of various actors in the politics of aid and what may
be said to constitute aid theory. The timeframe in which the study is confined is 2000 to 2009.
Spatially, the study is limited to Gasabo District of Rwanda although literature will cover SubSaharan Africa and beyond.
1.9 Limitations of the study
During the course of the study, the researcher experienced a number of drawbacks which
included lack of cooperation from respondents, time inadequacy and financial constraints in
meeting the budgetary requirements of the study. However, efforts were made to address the
constraints. The first constraint was purely logistical. Given that the study was self-funded; the
researcher is faced serious challenges of financing travel to Rwanda for data collection as well as
financing the training of 10 assistant field researchers.
The second major constraint was the methodological limitation. Given that the study is based on
a case study approach, it follows that it inevitably exhibits the limitations of the method. Critics
of the case study believe that the study of a small number of cases can offer no grounds for
establishing reliability or generalizability of findings. This point is valid when one considers that
given the sensitive nature of the research some key informants within the donor community and
government offices may deny the researcher access to important documents or information and
this will lead to information asymmetry. In light of this, others declined to be interviewed.
Thirdly, time factor was a limiting constraint. The fact that the researcher is a mother, student and
employee made it difficult for her to rationalise the demands of these roles.
Also related to time was timing. The fact that the research study took place against the
background of genocide and genocide trials meant that the subjects of research study were in
different emotional states, so much that they could easily provide or offer a political
interpretation to the study. In this case chances were that some sensitive members were not
forthcoming and forthright with their answers as expected. Such a background threatened the
validity of the outcome.
However, to overcome the above limitations there was need for careful planning ahead of time.
The planning should take into account use of different data collection techniques such as direct
observation, in-depth interviews, questionnaires and focus group discussions in order to improve
the validity of data through methodological triangulation. Communication with interviewees and
questionnaire respondents should be done on time in order to facilitate meetings. Besides, prior
awareness of these limitations should invoke constant sensitivity to their possibility so that due
care is constantly enforced.
1.10 Organisation of the Study
This study is structured into 5 main/key chapters. The first one provides the introduction:
background to the study, the problem statement, objectives and the conceptual framework of the
study. Chapter two presents a detailed review of related literature: the main focus is putting into
context the polemics of aid theory in general, in Africa and in Rwanda-Gasabo. The third chapter

describes the methodology: the research design and instruments of data collection to be used in
the collection of data.
The findings of the research are then described, analysed and collated in chapter four. Chapter
five provides a summary of findings as well as recommendations of the study.
1.11 Chapter summary
This chapter has provided the introduction of the study: background to the study, the problem
statement, objectives and the conceptual framework of the study, the assumptions to the study, its
significance, delimitations and limitations, and the organisation of the study. The following
chapter is going to review related literature linked to the problem under study. It shall give an
overview of the current situation on Rwanda socio economic development, policy and practice of
both Rwanda and donor community.

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.0 Introduction
This chapter offers a detailed review of related literature. It will further trace the history of the
problem against a background of theoretical underpinnings. Ringrose (1986:78) notes that
literature review discusses published information in a particular subject area, and sometimes
information in a particular subject area within a certain time period. A literature review can be
just a simple summary of the sources, but it is usually has an organizational pattern and combines
both summary and synthesis. The flow of foreign aid to Rwanda has been a subject of discussion
especially following the notorious genocide and its aftermath. To assess the impact of foreign aid
on the socio-economic development of Rwanda, there is need to review some related literature.
This chapter deals with the conceptual framework of the study, the theoretical framework,
understanding poverty in the context of Millennium Development Goal number one, impact of
foreign aid on poverty alleviation (global trends and trends in Africa in general and Rwanda in
particular). Finally, the chapter shall further offer implications of the reviewed literature.
2.1 Theoretical Frameworks
Now that foreign aid, development and poverty have been explained in broad terms, there is need
to analyze some of the contending theories on the nature of foreign aid. Four theories are hereby
selected for some detailed analysis. To this end, this study is principally informed by four major
theoretical frameworks namely the Modernization Theory, the Dependency Theory, the

Interactionist Theory and the Feminist Theory. These contending theories on aid provide various
windows by which the impact of foreign aid on poverty alleviation and economic development
can be objectively assessed.
2.1.1 The Modernization Theory and Foreign Aid
One of the first models used to understand how states and regions started on the path to
economic growth was Rostow?s Modernization Theory. Analyses of European growth after
World War II indicated a fairly rapid and linear trajectory of economic growth that was built on a
simplistic model of saving and investment. According to Rostow?s analysis, modernization takes
place in a series of five stages characterized as follows:
The traditional society.
Preconditions for take-off into self-sustaining growth such as increased education,
manufacturing, and other forms of capital development.
Take-off stage occurs when the economic norms become established at micro, mezzo and macro
levels, which lead to
A drive to maturity characterized by economic diversification and increased standards of living.
The final stage is characterized by mass consumption, which drives continued production,
technological development, and job growth. (Todaro: 2006: 104)
These stages imply that the rate of growth of GDP is determined jointly by the national savings
ratio and the national capital ratio. More specifically, it says that in the absence of government
control, the growth rate of national income will be directly related to the savings ratio (ibid).
Theeconomic logic of this paradigm is simple: in order to grow, economies must religiously
follow the stages; and to achieve the imperatives of each stage, they must concentrate on savings
and local and direct foreign investment. Rostow assumed the validity of the primary economic
model of growth at the time, the Harrod-Domar growth model (ibid), which was the basis for the
savings + investment = growth formula. While intuitively attractive (to the capitalist worldview)
and empirically supported at the time, it assumed a linear growth based on the two isolated
variables of savings and investment. While such a trend seemed to be the case in Europe after the
world wars, Europe?s advantage over other regions (such as Southeast Asia and Africa), is that it
already had a pre-existing infrastructure, and a population already educated in the skills and
norms necessary for technologized life. Among other factors, it ignores hegemonic consequences
of having military, political and economic power at a state/region?s disposal to procure capital
external to itself.This theory assumes that the Third World needs Western donation in order to
advance. Indeed, one may observe that the discourse of foreign aid is rooted in the
Modernization Theory. Modernization theory understands the underdeveloped nations of the
world as traditional societies. At some point in history all societies were traditional. These
societies were able to progress to modern social organization through innovation and
technological growth, particularly within a capitalist system where capital is privately owned.
Capitalism encourages the individual to constantly strive toward improving her product. Growth

is promoted by this push for out-performance, while costs are minimized and efficiency
promoted. Therefore, just as modernization and capitalism push a nation to modernity, the
poverty of the developing nations can be attributed to their failure to innovate, resulting in
technological and therefore economic deficit, and a consequent inability to modernize. Foreign
aid, understood as a means to improve the conditions of life in underdeveloped nations, is
couched within modernist thought. It is the practical expression of the theoretical premise that
modernized nations are morally obligated to assist other nations to transition to modernization
Todaro (1981). To this effect, the modernisation theorists would support the idea that third world
nations should always look west in order to develop through coping western models of
development. Foreign aid may thus be perceived as a rescue package for an affected nation to be
freed from hunger and poverty.
This brings us to the major criticisms levelled against the Modernization Theory mainly by
Dependency theorists who include Marxists.
2.1.2 The Dependency Theory and Foreign Aid
The debates among the liberal reformers, the Marxists, and the world systems theorists have been
vigorous and intellectually challenging over the years. There are still points of serious
disagreements among the various planes of dependency theorists and it is a mistake to think that
there is only one unified theory of dependency. Nonetheless, there are some core propositions
which seem to underlie the analyses of most dependency theorists. Dependency can be defined
as an explanation of the economic development of a state in terms of the external influences -political, economic, and cultural-- on national development policies (Osvaldo Sunkel: 1969: 23).
Theotonio Dos Santos (1971:226) emphasizes the historical dimension of the dependency
relationships in his definition:
[Dependency is]...an historical condition which shapes a certain structure of the world economy
such that it favours some countries to the detriment of others and limits the development
possibilities of the subordinate economics...a situation in which the economy of a certain group
of countries is conditioned by the development and expansion of another economy, to which their
own is subjected.
There are three common features to these definitions which most dependency theorists share.
First, dependency characterizes the international system as comprised of two sets of states,
variously described as dominant/dependent, center/periphery or metropolitan/satellite. The
dominant states are the advanced industrial nations in the Organization of Economic Cooperation
and Development (OECD). The dependent states are those states of Latin America, Asia, and
Africa which have low per capita GNPs and which rely heavily on the export of a single
commodity for foreign exchange earnings. Susanne Bodenheimer (1971). Second, both
definitions have in common the assumption that external forces are of singular importance to the
economic activities within the dependent states. These external forces include multinational
corporations, international commodity markets, foreign assistance, communications, and any
other means by which the advanced industrialized countries can represent their economic
interests abroad.

Third, the definitions of dependency all indicate that the relations between dominant and
dependent states are dynamic because the interactions between the two sets of states tend to not
only reinforce but also intensify the unequal patterns. Moreover, dependency is a very deepseated historical process, rooted in the internationalization of capitalism. In short, dependency
theory attempts to explain the present underdeveloped state of many nations in the world by
examining the patterns of interactions among nations and by arguing that inequality among
nations is an intrinsic part of those interactions (ibid). Most dependency theorists regard
international capitalism as the motive force behind dependency relationships. Andre Gunder
Frank (1972: 3), one of the earliest dependency theorists, is quite clear on this point:
....historical research demonstrates that contemporary underdevelopment is in large part the
historical product of past and continuing economic and other relations between the satellite
underdeveloped and the now developed metropolitan countries. Furthermore, these relations are
an essential part of the capitalist system on a world scale as a whole.
According to this view, the capitalist system has enforced a rigid international division of labour
which is responsible for the underdevelopment of many areas of the world. The dependent states
supply cheap minerals, agricultural commodities, and cheap labour, and also serve as the
repositories of surplus capital, obsolescent technologies, and manufactured goods. These
functions orient the economies of the dependent states toward the outside: money, goods, and
services do flow into dependent states, but the allocation of these resources is determined by the
economic interests of the dominant states, and not by the economic interests of the dependent
state. But before going into the debate on whether aid does encourage dependency and
inefficiency, we need to address a particular misconception: that aid to developing countries,
known as official development assistance (ODA), is an act of simple generosity towards poor
countries in dire need of capital to invest in education, health, infrastructure, and so forth, and
that it comes with no strings attached. Development assistance is neither value-free nor
benevolent. It has served and continues to serve the economic, political and strategic interests of
donor countries. This was particularly so during the Cold War period. It is even more evident
today. (ActionAid, 2005)
So aid is an instrument, not a gift. For many Western countries and institutions, it plays a key
role in their overall strategy to maintain and even expand their influence in Africa. This is
particularly true for former colonial powers such as France and Britain, which have used aid to
maintain their influence in former colonies, in economic, financial, military and strategic areas.
This type of aid does create dependency and it is intended to, since its primary objective is to
shore up regimes that are friendly? to Western countries, regardless of the nature of those
regimes. This explains, among other things, why a dictatorial and inept regime like Mobutu in
the former Zaire (DRC) was kept afloat despite the looting of his country?s resources and the
rampant corruption that characterized his regime. Billions of dollars looted by Mobutu are still
stashed in Western banks while the Congolese people wallow in poverty (ibid).
Moreover, since the start of the debt crisis, aid dependency has been aggravated by conditions
imposed by the IMF and World Bank. Since the 1980s, aid from Western countries has been

conditional on recipient countries implementing policies dictated by these two institutions. One
may argue that, a typical example is the catastrophic ESAP of Zimbabwe in the 1990s. Even aid
from former colonial powers to their former colonies is now conditional on signing an agreement
with the IMF, yet it has become clear that these policies have done more harm than good.
(Government of Zimbabwe 1991)
The dependency on foreign aid has political as well as economic costs. It is obvious that a
country that depends on foreign assistance for up to 40 per cent of its budget cannot control its
own policies. Instead, as the IMF and World Bank?s structural adjustment programmes show,
donors dictate economic and financial policies, based on their own world view and interests
(HDR-UNDP, 2007). The structural adjustment programmes, imposed by the IMF and World
Bank, are a reflection of that reality. As already indicated this has worsened the economic crisis
and deepened external dependency, while the conditions attached to such multilateral aid are the
principal cause of the abject poverty affecting more than half of the African population. Against
this background, one may argue that from a dependency theory point of view, the issue of foreign
aid is a form of colonialism (neo-colonialism),hence Third world nations will remain entirely
dependent on first world nations.
On the whole the Modernization and Dependency theories are macro-theories that evaluate
society from a holistic perspective. As such there is no wonder why all of them fail the test of
local contextualization; hence the need to look at some micro - theories that can explain the
politics of aid at a micro or local level. Two theories have been selected for this balancing
purpose: interactionnism and feminism.
2.1.3 Interactionism and Foreign Aid
Symbolic interactionism is a major sociological perspective that places emphasis on micro-scale
social interaction. Symbolic interactionism is derived from especially the work of George
Herbert Mead. The basic assumption of interactionism is that people act toward things based on
the meaning those things have for them; and these meanings are derived from social interaction
and modified through interpretation. In other words human beings are best understood in relation
to their environment. Herbert Blumer (1969) who coined the term "symbolic interactionism," set
out three basic premises of the perspective:
Humans act toward things on the basis of the meanings they ascribe to those things.
The meaning of such things is derived from, or arises out of, the social interaction that one has
with others and the society.
These meanings are handled in, and modified through, an interpretative process used by the
person in dealing with the things he/she encounters.
Blumer, following Mead, claimed that people interact with each other by interpreting or defining
each other's actions instead of merely reacting to each other's actions. Their response is not made
directly to the actions of one another but instead is based on the meaning which they attach to

such actions. Thus, human interaction is mediated by the use of symbols and signification, by
interpretation, or by ascertaining the meaning of one another's actions. (Blumer 1962). From this
analysis of interactionism one can note that the Interactionist interpretation of foreign aid
depends entirely on the perceptions of the actors in the aid continuum. These include the donor,
the boundary partners in the middle and the recipient at the end of the continuum. It goes without
saying that the donor knows why he is donating in the first place; but the point that needs
emphasis is that the public can only be made to know what the donor makes public that is, the
donor?s explicit motives. However, if the donor has hidden agendas, such agendas can only be
guessed by the public, otherwise the ulterior motive remains hidden from the public sphere and
the donor is not likely to disavow his hidden agenda in any public forum. Nonetheless, even that
hidden agenda remains intrinsically part of the donor?s definition of the aid he releases.
On the other hand, the boundary partners, because they benefit from the aid process, are likely to
accept the donors? definition of aid. They are most likely to resist any temptation to see aid in
any other light than prescribed by the donor. However, the recipients of aid are likely to interpret
aid differently depending on their varied needs. Those in extreme need may see aid as none other
than benevolent. They hardly see any dangers of dependency but simply accept the donor as the
saviour. On the other hand, those especially educated recipients who may not be in dire need of
such aid or whose political portfolios are threatened by their subjects? allegiance to new saviours
are likely to treat aid with suspicion. The local intellectuals may take the suspicion further to
attaching such aid with ulterior motives. The point that needs emphasis, though, is that foreign
aid is interpreted differently by different actors owing to different needs and sensibilities.
2.1.4 Feminism and Foreign Aid
Unlike interactionism, Feminism offers an explanation of how economic models, policies and
budget frameworks and processes have not adopted a gender perspective, and how this has
caused women to bear the brunt of poverty. The theory deplores that economic models, policies
and budgetary frameworks that are adopted by different African governments and institutions
often ignore the lived realities of women; but that men largely dominate and control not only the
means of production but also economic decision-making. Most nations in Sub-Saharan Africa
have dual economies that consist of both formal and informal sectors. Men are dominant in the
formal sector, while women dominate the informal and communal sectors. There is a discernible
trend in Sub-Saharan Africa that economic and development policies target the formal sector,
marginalising the informal and communal sector where women mostly participate.
The Millennium Declaration, signed in September 2000 at the United Nations? Millennium
Summit, commits the member countries to promote gender equality and the empowerment of
women, as effective ways to combat poverty, hunger and disease and to stimulate development
that is truly sustainable. (UN, 2000). Accordingly, the greater part of women?s contribution to
the economy is not counted and not truly reflected in national accounts. Similarly, women?s role
in influencing and participating in economic policy formulation is side lined, leaving them to
deal with the impacts of poverty and marginalisation. (Lucy Makaza-Mazingi, 2009).
The feminisation of poverty is a phenomenon where poverty is viewed as disproportionately

affecting and impacting on women more than it does on men. The phenomenon has been linked,
firstly, to a perceived increase in the proportion of female-headed households (FHHs) and,
secondly, to a rise of female participation in low returns urban informal sector activities,
particularly in the context of the 1980s? economic crises and adjustments in sub-Saharan Africa
and some Asian countries. The feminisation of poverty can be viewed from three distinct
standpoints namely (ibid):

That women have a higher incidence of poverty than men;

That their poverty is more severe than that of men;
That there is a trend of greater poverty among women particularly associated with rising
rates of life.

This raises questions as to whether Southern Africa can meet the Millennium Development Goal
(MDG) number one: of reducing poverty by half by 2015. In Zimbabwe, the Poverty Assessment
Study Survey-PASS II (2003), revealed that poverty remains higher among female-headed
households than male headed households. The Botswana women?s NGO forum notes that 55
percent of the population in rural areas in the country earns income below the poverty line and
female-headed households make up 41 percent of those living in poverty as opposed to 34
percent for male-headed households. A survey carried out in Zambia revealed that 50 percent of
female-headed households were classified as very poor compared to only 27 percent of the maleheaded households (ANSA, 2006).
A noticeable trend in Southern Africa is the dominance of men in most of the occupations
associated with high responsibility, job security, dignity, high earning and social status, while
women are relegated to the low-paying jobs thus increasing inequality between women and men.
In addition, the African Development Bank?s (ADB) (2008) Gender Policy notes that
feminisation of poverty is directly related to the absence of economic opportunities, the lack of
access to economic resources (including credit, land ownership and inheritance), and the lack of
access to education and support services.
Despite the signing of the 1995 Beijing Declaration, the action plan on women?s empowerment,
and the many declarations and debates on gender equity in Africa, the women in Southern Africa
still reflect the ugly face of poverty statistics. The recently adopted SADC gender protocol
recognises the feminisation of poverty as one of the threats to the fragile gains made towards
gender equality over the past decade in the areas of law reform, representation in politics and
decision-making, and some strides in education, with certain African countries reportedly
achieving some of the MDGs on gender- related issues. The traditional discipline of economics,
which still to a large extent implicitly informs the current economic modelling and discourse in
Southern Africa, has relied on a number of critical assumptions about women and their roles
(ibid).

There is now a shared understanding within the development community that development
policies and actions that fail to take gender inequality into account and fail to address disparities
between males and females will have limited effectiveness and serious cost implications. For
example, a recent study estimates that a country failing to meet the gender educational target
would suffer a deficit in per capita income of 0.1-0.3 percentage points. (Dina Abu-Ghaida and
Stephan Klasen, 2002). One may observe that, by the same token the distribution of foreign aid
has been heavily skewed in favour of men over the years mainly because most donor
organisations are controlled by men who happen to occupy higher positions within these
organizations.
One may argue that to date, women are not considered a human factor in decisions on aid for
economic and social development; hence women and children remain victims of the poverty trap.
Todaro, (1993) is of the view that development is a multi-dimensional concept which can be
realized through promoting gender equity. Burvic and Gupta, (1994) note that where women are
targeted with resources it is often assumed that benefits accrue directly to them and also to their
children, to a greater extent than resources targeted at men.
2.2 Conceptualizing aid, development, poverty and hunger
Aid is simply the transfer of money, goods and technical assistance from a donor to a recipient.
According to Todaro, [1981], foreign aid is any official development assistance or "any flow of
capital to least developing countries... and its objective should be characterized by
"concessional terms, that is, the interest rate and repayment period for borrowed capital should
be "softer" [less stringent] than commercial terms". One may observe that, Todaro?s
conceptualization of aid in this case takes for granted that the impact of any such aid is
development; but unfortunately it misses the point that development is relative. On one
dimension, development depends on the perspective of the beholder; in which case the donor, the
recipient of aid and the independent observer all judge the impact of aid from different angles
and with different sensibilities. Against this background, the Government of Rwanda and its
Development Partners have put in place a number of inter-linked forums for dialogue on aid
coordination at different levels. At the 2006 Government of Rwanda and Development Partners
Meeting, Rwanda?s donors presented a joint statement of their intent with respect to the
implementation of Rwanda?s Aid Policy and the Paris Declaration. As part of this, donors agreed
to adopt the 2010 targets above as individual targets, recognizing that collective achievements
against the Paris targets rely on the efforts of individual partners. Central to in-country dialogue
around aid effectiveness are a number of key forums that bring together government, donors,
civil society and the private sector at a number of levels:
Figure 2.1: Aid Coordination Architecture in Rwanda

Source: MINECOFIN, 2007

On another angle one may argue that the concept of aid may be best understood from a historical
perspective. During colonialism, European colonial powers were concerned with the economic
development of the territories they occupied, hence they often released economic assistance to
their proxy governments in the occupied territories. Whether the beneficiaries of the assistance
were the minority ruling white elite or the majority ruled Africans was not an issue for serious
auditing by aiding cosmopolitan governments. Mikesell (1983: 1) posits that even after
independence much of their economic assistance to the new independent states formed after
World War II constituted a continuation of their development and other economic assistance
during the colonial period.
On the other hand, the World Bank charter of 1944 argues that the Developed Countries had a
dual function of promoting the reconstruction of the war-torn countries, developed and
developing, and of promoting economic development in the less developed countries (ibid). The
concept of development assistance as enshrined in the Articles of Agreement for the World Bank
aims at promoting the flow of private international capital in the form of both loans and direct
investment investments to developing countries (Mikesell 1983). To this end, from a Utopian
perspective, Aid would best be defined as loan, grant and technical facility advanced by a Donor
nation to a Recipient sovereign state with neither political nor economic motivations but to
promote the reformative and legacy reclamation efforts of the latter [Recipient] through
facilitation of the development of democratic processes and deepening integration based on
principles of mutual cooperation, non-interference and respect for sovereignty. Nonetheless,
political and economic interests have often overshadowed what has often been projected as
purely humanitarian. And this reality is fore-grounded by the different perceptions of aid by the
Donor and the Recipient; prompting one to proceed with further clarification of what
development (and economic development in particular) really entails for the two parties?
perspectives. Webster?s Dictionary (1990:248) advances that development means "bringing to
more advanced and effective state or to cause to grow and expand. In this regard, this classical
definition when adjusted to the contemporary debate would be conceived as an all-encompassing
and multi- faceted process characterized by both qualitative and quantitative changes in the

diverse sectors of human society, namely social, economic, political, cultural, scientific and
technological, environment, that inherently lead to overall improvement of human and
community welfare, as well as deepening of mutuality and cooperation within and between
communities.
From time immemorial, economic development on the other hand is often taken in a narrower
sense as development of infrastructure and institutions which prop the economy. Such a
definition is confined to one or two variables yet, as a process, development itself is really a
complicated, holistic and complex reality. For this reason social factors are as important as
economic factors in understanding development and this calls for a mutual conceptualization of
the imperatives of the politics of aid for this purpose which is regrettably missing as the nature of
and processes of aid are dictated by those who offer the aid, hardly with either consultation or
local participation of the intended beneficiaries. This makes the recipient a passive pawn in the
scheme of the aid process. In the final analysis it is the donor who defines the problem and
designs and provides his own solution for a perceived problem in the recipient; thus the intended
resultant development is logically not that of the recipient but of the donor who also defines the
progress. (Andrew Sikula, 2009).
Hunger and poverty are often the main causes cited by donors (acting as senior brothers) as the
main causes of their humanitarian intervention.http://www.worldbank.org/prem/poverty. These
are again defined as crises by the donor, and whether these are priority one for the beneficiary or
secondary to other pressing needs is a question donors ever address. Everything falls within the
blueprint plan of the donor. Even the way hunger and poverty are defined is equally
circumscribed.
Poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see
[afford medication] the Doctor. Poverty is not being able to go school and not knowing how to
read. Poverty is not having a job; it is fear of the future, living one day at a time. Poverty is
losing a child to illness brought about by unclean water. Poverty is powerlessness, lack of
representation and freedom (ibid). It is from this understanding of poverty and hunger that the
Millennium Development Goals (MDGs) were drafted by the United Nations, the mother
institution to the World Bank and International Monetary Fund. The MDGs took tangible form in
the Millennium Declaration of world leaders in September 2000. The declaration reflects an
inspirational agreement that the global community will unite to eliminate the scourge of poverty
in a finite time frame (Marshall and Keough: 2004:4). In this context, the Millennium
Development Goals? (MDGs), Goal Number 1 is of particular interest to this study. The goal
targets :To eradicate extreme poverty and hunger, by halving the proportion of people living on
less than $1 a day and those who suffer from hunger (Todaro, 2006: 24). One may observe that,
although goal number one is the most explicit about poverty alleviation, all of them also
contribute in part to the overall elimination of poverty and want in spirit.
Chambers (1983), is of the view that poverty constitutes: lack of assets (inadequate stocks, food
and income), physical weakness and sickness, isolation, vulnerability to contingencies
(insecurity) and powerlessness. Jazairy et al cited in Shepherd, (MEMIEIEI1 1;GEYLEImMI\E
definition by identifying four types of poverty: interstitial poverty (pockets of poverty
surrounded by wealth), material deprivation combined with isolation and alienation (peripheral

poverty), overcrowding poverty in areas of population pressure, and traumatic/sporadic poverty temporary poverty into which the non-poor may be thrown by crisis (e.g. war, drought and
famine). One may suggest that, these categories, however, do not seem to encompass those who
are chronically poor and those in absolute poverty, neither do they focus specifically on poverty
in a rural setting such as part of Gasabo district.
Ribas and Machado (2007) further observe that chronic poverty can be analyzed in terms of
absolute or relative deprivation. In pursuit of a plausible definitional view, Mickay and Lawson
(2002) provide characteristics of chronic poverty which include, inter alia, lack of human
capital, the demographic composition of households, location of residence, lack of physical
assets and low paid labour. On the other hand, transient poverty is characterized by family size,
government transfers, and seasonality of economic activities, migration and life cycle events. As
a matter of fact the distinction between the two implies that public policies cannot be uniformly
applied (Gaila and Deolalikar, 1993; Barrientos et al 2005). Similarly, Kurien (cited in Chambers
S.EEI\EGeIVARQERIESRYIBWEI\: EEKEE\RF1R-economic phenomenon whereby the
resources available to a society are used to satisfy the wants of the few while the many do not
have even WILEba\IFEKTeG\ Emet?. ETKI\EGIIIMIRnEi\Eal\R EIMatiYIEinEMMI.
2.3 History of Foreign Aid in Rwandan Economy
Rwanda is generally an extremely poor country with few natural resources and little industrial
production. For 1999, Rwandan GDP is estimated to have been RwF 641.0 billion, or US$ 1.92
million, and RwF 712.2 billion for 2000, or US$ 1.83 million. The real change in Rwandan GDP
is estimated by the Economist Intelligence Unit to have been 5.3% for 1999. In 1999, annual per
capita income was US$ 189. Debt servicing has since 1994 been a major cause for a balanceofpayments deficit, but the most recent figures available seem even more aggravating. (Andr
etal., 2001). In this respect it follows that this should be supported by foreign aid in order to
realise socio-economic development.
Similarly, based on IMF, World Bank, and national data, the Economist Intelligence Unit
estimates the latest available debt figures as follows: the total debt had risen to US$ 1.3 billion in
1999, and debt servicing to US$ 48.2 million, representing 69% of the value of the US$ 70.8
million merchandise exports. Foreign investments account for more than 90% of total gross fixed
investments, and due to the huge inflow of hard currency from donors, the Rwandan Franc has
been reasonably stable despite the low exports. (Economist Intelligence Unit, 2000). One may
observe that, there is a huge economic and social divide between the countryside and the urban
areas. Economically, as well as seen from a wider developmental point of view, the urban areasin particular the capital Kigali - are far better off in all respects. According to the Economist
Intelligence Unit, Kigali is thus home to 94% of Rwanda's banks, 96% of its industry, 65% of
the civil service, 80% of the informal sector and 90% of the hotel space. The city also has the
most reliable supplies of water, electricity and telephone lines.About 90% of the Rwandan work
force is employed in the agricultural sector, and the productivity in this sector is generally low.
Agricultural production collapsed with the Genocide in 1994 and only started to recover two
years later, although much of the improvement is because more areas are being cultivated. Also,
the south-western part of the country has experienced drought and famine. Formal and informal
unemployment is widespread all over the country, which is reflected in the fact that an estimated

70% of the population lives below the poverty line, and the vast majority of this group are from
the countryside. Tea and coffee are the main export items, comprising 80% of the value of total
exports in 2000.
Rwanda earned US$ 68.4 million from exports in 2000, up by US$ 7.2 million from 1999, in
spite of a drop of nearly US$ 4 million in the value of its main export, coffee. Tea accounted for
this improvement, since tea exports were US$ 8.5 million higher in 2000 than in 1999 because of
increased production. The commodity export from Rwanda is essentially made up of agricultural
goods and natural resources. The total amount earned is around one million dollar per year
Rwanda is not really integrated into the global economy. Rwanda earned 219 million US$ in
2002 from export of goods and nonfactor services. This export revenue only constituted 7.65%
of GDP in 2002. Little hope is in sight in this regard, since Rwanda?s export capacity and ability
to attract foreign investment capital is generally regarded as low and likely to remain so for at
least a decade. However, imports reached US$ 245.9 million in 2000 and thus by far outweighed
exports, and the balance of payments situation has not eased in the last few years (Ibid). The
present focus on the Millennium Development Goals (MDGs) has reignited the debate on the
need for more aid to developing countries to help them meet the MDGs by 2015.
However, this has inevitably rekindled the parallel debate as to whether more aid is really the
answer. Will extra money simply shore up inefficient governments and feed government
corruption? One response to this is to say we must bypass government and make money
available directly to NGOs and other organizations. At the same time, others claim that what is
needed is not more aid, but a fundamental transformation of international power relationships,
especially reform of international trade and finance rules to allow African and other developing
countries to sell their goods and services at a fair price.
Private and public transfers, which in 1999 covered 64% of the current deficit, are also
diminishing. As a result, the balance of payment deficit in 1999 went beyond US$ 100 million
for the first time after 1994 power-takeover and the trend is forecast by the IMF to continue.
However, net foreign assistance has been declining and is unlikely to exceed US$ 180 million in
2001 and US$ 170 million in 2002, according to the Economist Intelligence Unit, partly due to
the Rwandan presence in the Congo and partly due to the termination of the ?emergency period?
following the 1994 Genocide.
2.3.1 Aid Effectiveness in Rwanda
During the last decade there has been a heated debate about the relationship between economic
growth and foreign aid. Knack found that there was an adverse effect of aid in so far as during
the period 1982-95 it increased corruption and lead to a deterioration of bureaucratic quality and
the rule of law. Aid thus seems to be a weak policy to reduce corruption (Knack, 2000). So while
aid has little impact on governance, governance has a large impact on the effectiveness of aid.
Aid effectiveness has been seen the return to favour of programme aid instruments, and
particularly the rise of budget support. There has been a shift from discrete projects to much
greater coherence of aid instruments, whether programme or project, around a governmentowned policy. The Rwandan experience raises a wide range of questions about new? programme

aid and in particular budget support which is inherently tied up with the concept of recipient
ownership and has been the stated preferred aid mechanism of the GoR for many years. Only a
limited number of donors provide general budget support in Rwanda, namely the IFIs, the
European Commission, the UK and Sweden. (Hayman, 2005)
The majority of bilateral donors continue to favour the project mechanism, which raises quite
different effectiveness issues. The conditionality of projects is more technical; they induce higher
administrative burdens and are not necessarily tied to GoR priorities. Hence, it is too simplistic
to consider projects to be a poor instrument and budget support a better one; what matters for
both instruments is the behaviour of donors and how they interact with and respect the GoR as
recipient (ibid.). Development Partners have made strong progress in their efforts to reduce
transactions costs in 2007: The Netherlands is phasing out cooperation in health and social
protection; Sweden and the Netherlands are acting as silent partners in education; and Germany,
the Education for All Fast Track Initiative and the Netherlands are beginning to disburse sector
budget support. However, development assistance remains highly fragmented with some
Development Partners active in 5 (of 15) sectors and each sector hosting an average of 9
Development Partners. The health sector, for example, hosts 16 Development Partners and
receives 12% of ODA, while infrastructure has 11 Development Partners (across energy,
transport, and water) but also 12% of ODA. Education, on the other hand, only receives 5% of
ODA and hosts 15 Development Partners, not including silent partners. (Willium, 2001)
The present Rwanda government seems to be committed to the reform process, and the
government would by this criterion be a good candidate for aid, (SIDA, 2005). As the
Government?s development priorities evolve it will be important to have an even distribution of
donor activity across sectors and to take full advantage of donor comparative advantage.
Comparative advantage refers to those areas in which a particular Development is activated.
Partner is considered to be most effective in relation to other areas where that Development
Partner is engaged. All these, because there is a need to accompany the 2008 Paris Declaration
Monitoring Survey, as a first-step to determine where Development Partners are, or could be,
most effective. (MINECOFIN, 2007)
2.3.2 The Politics of Official Development Assistance on Rwanda
The OECD?s general definition of official development assistance (ODA) applies here: aid as
grants and loans with at least a 25% grant element, provided by OECD and OPEC member
countries and multilateral agencies, and which are administered with the aim of supporting
development and welfare in the recipient country. It is important to stress that the OECD
definition of ODA does not include military assistance although Donors view aid as having a
positive effect on both economic development and the political level. Economically, in particular
the Bretton Woods Institutions argue that a structural adjustment programme, including a
slimming of the public administration, privatization of public companies and a reduction in
military spending, will benefit the economy as a whole and thereby also the poor people in
Rwanda. Politically, donors argue that the economic reforms are an essential element to stabilize
the socio-political environment in Rwanda and the Great Lakes Region. (OECD, 2000).

In other words, aid is seen as a means to bring lasting peace to the region. The EU has followed
the line set out by the Bretton Woods institutions and is a major donor of development aid,
despite official protests against the continued war in the Congo. For instance, the European
Commission in June 1999 issued a communication to the EU Council of Ministers and the EU
Parliament reviewing the EU's economic cooperation with countries at war in the Congo. The
report was intended to avoid the misuse of development funds provided by the EU for military
purposes. (Andr, Catherine, and Tierens, Michel, 1999).
Rwanda is generally highly dependent on aid in virtually all sectors. For instance, the country
received US$ 372.9 million in Official Development Assistance (ODA) during 1999, most of
which (287.4 mil US$) comprised grants provided by bilateral donors. However, net foreign
assistance has been declining and is unlikely to exceed US$ 180 million in 2001 and US$ 170
million in 2002 (Economist Intelligence Unit, 2001). Donors appear to have decided to refrain
from investigating whether conditions are being respected, instead quietly ?believing? in the
good intentions of the Rwandan government? all because the local leaders pander to the whims
of the unofficial agenda of the West. This explains why the Bretton Woods institutions have
steadfastly backed questionable statistics put forward by the Government of Rwanda? and even
continued to publish manipulated and incompatible figures by the Government of Rwanda?.
2.3.3 The World Bank and UNDP Poverty Indicators-Indices
According to the World Bank (2006), since 1990 extreme poverty in developing countries has
fallen from 28% to 21%. However, over the same period the population grew by 15% to 5
billion, leaving 1.1 billion people in extreme poverty. The World Bank also estimates that if
economic growth rates are sustained, global poverty will fall to 10%, but millions of people will
still be trapped in poverty especially Sub-Saharan Africa due to: lack of employment, depletion
of environmental resources, corruption, conflict and mis-governance (waste of public resources).
The UNDP on its hand has characterized poverty in a similar way but measures the various
dimensions of deprivation using a series of composite measures. It has produced the Human
Development Index (HDI) and a number of variants. The basic HDI is an average of indices of
what the UNDP considers to be uppermost aspects of human development: health as measured
by life expectancy at birth and maternal mortality, educational attainment as measured by adult
literacy, material standard of living measured by GDP per capita (in dollars), unemployment,
crime (to some extent), and freedom and human rights. WB Poverty Reduction Handbook
(1983), notes that poverty is conventionally measured by the income or expenditure level that
can sustain a bare minimum standard of living. Poverty can be measured in relative or absolute
terms. However, poverty is not just measured by income and consumption above: Health, life
expectancy, access to clean water, and education are central dimensions of welfare.
On the other dimension, the World Bank Report of 1991 focuses on income and social indicators.
The World Bank indicators are identified from a general analysis of country characteristics
combined with the poverty profiles. One may suggest that they show incomes and living
standards of the poor. They are based on the income-earning opportunities of the poor as
producers and employees and the availability and prices of pertinent consumption goods.

Smallholder farmers are the major targeted poverty group. Their main source of income is the
sale of agricultural produce. Their incomes depend on the prices of the crops compared with the
prices of the goods they consume. Social sector expenditures, broken down to show expenditures
on services used by the poor are deemed important poverty indicators. The assumption is that
there is an overall positive relationship between levels of social indicators and social
expenditure shares. However, the problem with this analysis is that it is teleological expenditure in developing countries particularly in Rwanda is not necessarily an objective
response to an objectively observed need to alleviate poverty. For this reason to assume that
government expenditure on social amenities is in relation or response to an objectively assessed
need for poverty alleviation is to be nave. In reality government expenditure has more to do with
its own affordability rather than a reaction to a well-researched poverty need.
The World Bank values children?s health and nutritional status as a key indicator. It uses three
leading indicators: the under-five mortality, immunization, and malnutrition. The under-five
mortality rate is seen as the best indicator of changes in health status; more so because it is not
susceptible to cultural biases. However, there is a problem of the availability of such data. Some
communities hardly visit hospitals due to religious beliefs and others do not have any community
health officers who would record such deaths. Lastly, the World Bank focuses on the critical role
women play in the survival strategies of the poor. Their status and access to services are
important indicators of family well- being. Priority indicators include: female/male life
expectancy at birth, totality fertility rate, and maternal mortality rate. The first category is based
on the assumption that normally women outlive men (Ibid p.26). The second category
represents the number of children a woman would bear if she were to reach the end of her child
bearing years. The assumption here is that there is a correlation between fertility and poverty.
This assumption requires more scientific evidence to prove. The last category, though, seems
quite obvious - that maternal mortality is an indication of poor women?s access to basic health
services. In patriarchal societies female literacy could also be a measure for it is directly linked
with welfare benefits. One may say that the World Bank indicators of poverty can therefore be
summarized as follows: income and consumption, employment, health and nutrition, life
expectancy, mortality rate and literacy. All these can be further collapsed into income, health and
social indicators. In the final analysis Mkandawire (1999) defines poverty in more embracing
terms than Chambers and Kurien, and his definition can thus be used as a standard definition for
this research. For his perspective, poverty is a condition characterized by serious deprivation of
basic needs in terms of food, water, health, shelter, education; and a lack of means and
opportunities to fulfil these basic needs.
In his study of rural poverty in Malawi in 1993, he identified the following as the indicators of
poverty: low income levels, unequal distribution of incomes, high unemployment rate, household
food insecurity, high mortality rate, poor water and sanitary facilities, low literacy rate and
environmental degradation Mkandawire?s study is a basic needs approach to the understanding
of poverty which clearly combines the UNDP and World Bank indicators of poverty.
These Organizations? list of indicators serves as a convenient point of entry into the discussion
of foreign aid and impact on poverty alleviation in Sub-Saharan Africa; but before such a

detailed discussion there is need first to analyze various theories attempting to explain the
motivations and nature of foreign.
2.4 Foreign Aid and Economic Development in LDCs
2.4.1 General Global Trends
Foreign aid is usually associated with official trend development assistance, which in turn is a
subset of the official development finance, and normally targeted to the poorest countries (World
Bank, 1998). One may present a question then: How does foreign aid affect the economic growth
of developing countries? This is a question which has always drawn the attention of many
scholars over time may not be answered to universal satisfaction. Papanek (1972) finds a positive
correlation between aid and growth. Fayissa and El-Kaissy (1999) show that aid positively
affects economic growth in developing countries. Singh (1985) also finds evidence that foreign
aid has positive and strong effects on growth when state intervention is not included. One may
suggest that foreign aid has an effect in eradicating poverty in general.
Snyder (1993) shows a positive relation between aid and growth when taking country size into
account. Burnside and Dollar (2000) claim that aid works well in the good-policy environment,
which has important policy implications for donors community, multilateral aid agencies and
policymakers in recipient countries. Developing countries with sound policies and high-quality
public institutions have grown faster than those without them, 2.7% per capita GDP and 0.5%
per capita GDP respectively (World Bank, 1998).
By contrast, other people find foreign aid has negative impact on growth. Knack, (2000) argues
that high level of aid erodes institutional quality, increases rent-seeking and corruption,
therefore, negatively affects growth. Easterly, Levine and Roodman, (2003), using a larger
sample size to re-examine the works of Burnside and Dollar, find that the results are not as
robust as before. Gong and Zou, (2001) show a negative relation between aid and growth.
Pedersen, (1996) argues that it is not possible to conclude that the foreign aid has a positive
impact on growth. Morrisey, (2001) claims that aid works well conditional on other variables in
the growth regression; while other authors find no evidence that aid affects growth in developing
countries. By and large, the relation between aid and economic growth remains inconclusive and
is worth being studied further.
According to the Modernization theory, aid is found to have a positive impact on economic
growth through several mechanisms in that, aid increases investment , aid increases the capacity
to import capital goods or technology , aid does not have an adverse impact on investment and
savings, aid increases the capital productivity and promotes endogenous technical change
(Morrissey, 2001). Papanek (1973), in a cross-country regression analysis of 34 countries in the
1950s and 51 countries in the1960s, treating foreign aid, foreign investment, other flows and
domestic savings as explanatory variables, finds that foreign aid has a substantially greater effect
on growth than the other variables. He explains that aid, unlike domestic savings, can fill the
foreign exchange gap as well as the savings gap. Unlike foreign private investment and other

foreign inflows, aid is supposed to be specifically designed to foster growth and, more
importantly, is biased toward countries with a balance-of-payment constraint. He also finds a
strong negative correlation between foreign aid and domestic savings, which he believes cocontribute to the growth performance.
Fayissa and El-Kaissy, (1999) in a study of 77 countries over sub-periods 1971-1980, 1981-1990
and 1971-1990, show that foreign aid positively affects economic growth in developing
countries. Using modern economic growth theories, they point out that foreign aid, domestic
savings, human capital and export are positively correlated with economic growth in the studied
countries. This is consistent with the economic theory of foreign aid, which asserted that
overseas development assistance accelerates economic growth by supplementing domestic
capital formation (Chenery and Strout, 1966). Between 1980 and 1989, the World Bank and the
IMF gave an average of six adjustment loans to each country in Sub-Saharan Africa, and almost
as many to the countries of Latin America, Asia, Eastern Europe, North Africa and the Middle
East. A similar strategy would be tried again in the 1990s during the second Mexican debt crisis
of 1994-1995 and then again two years later, after the East Asia crisis of 1997-98. The operations
were successful for everyone except the patient. There was much lending, little adjustment, little
growth and little poverty reduction in the 1980s and 1990s. As the World Bank President Barber
B. Conable noted in his Foreword? to the World Development Report of 1990?253
(WDR1990): ...for the poor in the poor countries the 1980s was a lost decade. Easterly
(2001). In this respect it follows that foreign aid can be subjectively construed and this confirms
the interactionist view.
Snyder, (1993), taking country size into account, finds a positive and significant relationship
between aid and economic growth. He emphasizes that previous econometric analysis has not
made allowance for the fact that larger countries grow faster, but receive less aid. He also
claims that donors favour small countries for a number of reasons.
First, donors who are seeking support from recipient countries find it better to provide aid to
many small countries than to focus on just few large countries. With the same amount of aid, the
proportion of aid over GDP will be bigger in small countries compared to that of larger countries
and as a result, give them more credits. Second, there is pressure on multilateral donors to deliver
aid to all member countries and due to their feasible project size, small countries tend to receive
more aid than they expected. Third, small countries tend to have historical colonial relations with
donor countries, which are somewhat influential to donors? aid giving decisions. The last reason
is that trade normally has larger fraction of GDP in small countries than in big ones and
therefore, these countries may be gaining more weight in donors? assessment.
On the other hand, persuaded by the Dependency Theory, Knack (2000), in a cross-country
analysis, indicates that higher aid levels erode the quality of governance indexes, i.e.
bureaucracy, corruption and the rule of law. He argues that aid dependence can potentially
undermine institutional quality, encouraging rent seeking and corruption, fomenting conflict over
control of aid funds, siphoning off scarce talent from bureaucracy, and alleviating pressures to
reform inefficient policies and institutions. Large aid inflows do not necessarily result in
general welfare gains and high expectation of aid may increase rent-seeking and reduce the
expected public goods quality. Moreover, there is no evidence that donors take corruption into

account seriously while providing aid (Svensson, 1998). The aid conditionality is not sufficient
and the penalties are not hard enough when recipient countries deviate from their commitments.
In fact, there are incentives for aid donating agencies to disburse as much aid as possible. This
hinders the motivation of recipient countries and raises the aid dependency, which in turn distorts
their development. Other scholars believe that different types of aid have different impacts on
growth.
In a country analysis of Cote d?Ivoire from 1975 to 1999, Ouattara (2003) categorizes foreign
aid into project aid, program aid, technical assistance and food aid. Using a disaggregation
approach with auto regressive techniques, he finds that (i) project aid displaces public savings,
impact of program aid is almost neutral while technical assistance and food aid increase public
savings and project aid and (ii) to a lesser extent, program aid, worsen the foreign dependence of
Cote d?Ivoire while technical assistance and food aid reduce the gap. However, the region is still
facing economic and social problems, among which the most serious one is the unemployment,
estimated at about 15% of the workforce.
There are twice as many jobless young people as in some countries compared with regional
average, requiring the creation of 4 million jobs a year in the next few years in order to
accommodate new entrants into the labor market. The Iraq war and the ongoing Palestine-Israel
conflict also had a negative impact on the economic performance of the region in 2002. As a
result, regional economic growth fell from 3.2% in 2001 to 3.1% in 2002 with continuing
declines of investors? confidence, exports and tourism.
2.4.2 Foreign Aid and Economic Development in Sub-Saharan Africa
World Bank records (2000), show that Africa has continued to make progress in many areas.
Sixteen out of 47 countries achieved on average more than 4% growth over the last decade.
Investment and trade trends have been steady. Net foreign direct investment (FDI) to Africa rose
to $6.8 billion in 2001 but was heavily concentrated in oil-exporting countries and South Africa.
Africa had the highest returns on FDI, in the world, and the flow of workers? remittances back to
the continent doubled in only two years, reaching $4 billion in 2002. Nevertheless, the continent
continues to face enormous development challenges. Half the population lives on less than $1 a
day. The share of poor population remains unchanged over the period 1987-1998. This is the
region with lowest income per capita and highest population growth. Lack of safe water, HIV
and AIDS and political conflicts are the burning issues of the region. Overall GDP growth is
roughly 3%, almost equalling to the population growth. Even though the donor community has
been providing huge aid amount to this region, its economic performance is still very poor.
As the matter of fact, the aftermath of colonialism is more serious in Africa than anywhere else.
Sub-Sahara Africa is especially hindered by its tropical location, high prevalence of malaria,
small portion of people living near the coast, and low coastal population density (Gallup, Sachs
and Mellinger, 1999). Weak institutions, poor economic endowment, widespread corruption and
various ethnic, political and religious conflicts are holding up this region for long time.
Africa is especially vulnerable to terms of trade shocks, famines, political conflicts, drought and
floods (Morrisey, 2001). It is found that African nations have aid-to-GNP ratios more than ten

times that of Latin America or East Asia, but still suffer inferior economic performance.
Ironically, within Africa, countries with poor economic policies have received more aid per
capita than those with responsible policies (Graham and O?Hanlon, 2001). In a distorted
environment of Africa, if donors just simply provide aid with the same uniformed conditionality
like elsewhere, the failure is inevitable. Zambia has received such a huge amount of aid, yet the
income per capita is only around US$600, not US$20,000 as expected (World Bank, 1998).
Nigeria, Tanzania may also be examples of failures. Even though there some success stories,
namely Botswana, Mauritius, Ghana, Ethiopia, Rwanda, Mali and Uganda, they account for such
a small number out of aid recipient countries in the continent. The major cause is that donors do
not favour good policy countries and penalize the poor performers. Consequently, the aid
dependency is getting more and more serious. Widespread corruption and fungible aid also make
the situation worse. Obviously, the question lies not in the quantity of aid but in its effectiveness,
which remains ambiguous. As Mushi (1982:09) says about aid in Tanzania, that aid is true
developmental only if it lays the foundation for its future rejection?, aid in Sub-Saharan Africa
can hardly be called so given the myriad politics around aid which invite greater concern than
arouse interest in the positive claims that donors heap on aid. The Arusha Declaration sums up
the Tanzanian experience with aid. The Declaration unequivocally warns that it is stupid for
Tanzanians to imagine that they would rid themselves of their poverty through foreign financial
assistance rather than their own resources?. (ibid: 13).
The message is loud and clear: that foreign aid does not lead to sustainable development as it
serves the interests of the donor more than the recipient. However, this does not mean that NGOs
and other donor institutions cannot bring anything positive. Many governments acknowledge the
significance of donor assistance. For instance the Ethiopian economy is a typical donor economy,
so is the economy of Lesotho, Botswana and to some extent Rwanda. The poverty reduction
strategies of Lesotho and Botswana (2000, 2000) acknowledge the role that NGOs can play in
the entire process; but the point perhaps needs emphasis is that Africa, being the richest continent
in terms of resources should eventually desist from aid dependency and that if donors are really
modest in their help, they must provide sustainable skills for future self-reliance
otherwise it will be difficult to dispel the conspiracy surrounding donor assistance, more so when
Africa is still smarting from colonial oppression by the same samaritans?. A closer look at
Rwanda should illustrate the impact of foreign aid in Africa.
2.4.3 Challenges Experienced by Government in Making External Aid Effective
The post genocide government was new with little experience and resources; the coordination
office lacked enough staff, funds, logistics and all resources necessary to perform all the
coordination duties. The Regional Director of IRC suggests that NGOs did not respond promptly
to support government directly, because most of them received funds from donors and could not
spend the funds as they wished. For example, the American Office Foreign Disaster Assistance
(OFDA) was the biggest donor but because it is not a development agency, it does not deal with
government directly. Funds from OFDA to NGOs were not supposed to be used to support
government (Keys, 1999). Donors were not supporting government directly, and their policy did
not allow NGOs or other boundary partners to support government directly. Unlike areas like

Somalia where agencies supported activities in a kind of vacuum, with no authority, Rwanda was
different because the RPF had defeated the criminals, halted the genocide and installed a new
government. It was still new with few resources but it was present with very dedicated people
eager to make things work and to put Rwanda back on the road to development (ibid).
After the war and genocide when a new Government was set up there was competition among
different government ministries each wanting to co-ordinate. In fact there was no clear
coordination authority. Procedures in the department were long and bureaucratic, ministries took
long to provide policy guidelines and they delayed to show needs, and priority concerns to
partners. In this regard, this lack of clear government policies and guidelines resulted in a
situation where some important areas were not well covered e.g. agriculture (food production
and food security) and education sectors. Local community leaders were not trained in project
planning, management, and sustainability. Therefore they were not able to direct development
partners sufficiently. This delayed work and led Donor Community to work on their own because
they had their own deadlines.
There was little of coordination between line ministries and between local and national levels.
Provinces and Districts co-ordination committees that include representatives of NGOs did not
operate well in a number of areas or tended to be slow. This made NGO work difficult. NGOs
complained that they were not consulted during the evaluations, and suggested that the basic
agreement should be reviewed and updated to improve relations with the different partners
(Report of the Workshop on NGO/Government Collaboration, 1996). Since both sides (GoR and
its Development Partners) agreed on increasing the effectiveness of aid in November 2006,
successful development, in terms of broad-based economic growth and sustained poverty
reduction, is best achieved within an enabling environment, characterised by peace and security,
good governance, effective rule of law, respect for human rights and full participation of civil
society and the private sector as stakeholders in the country?s development. Aid effectiveness is
also built on these sure foundations. (MINECOFIN, 2007). But currently, different findings
dramatically illustrate the bigger problem that Rwanda faces today, namely the low quality of
aid. Rwanda is already one of the most aid dependent countries in the world at US$55 per capita
per year in ODA. Yet, we see mitigated impact on economic growth and disappointing results in
terms of poverty reduction.
This is because much of the US$497.6 of aid reaching Rwanda today is neither on budget, nor on
plan, let alone being aligned with the MDGs. (HDR-UNDP, 2007). The United Nations
Development Programme 2005, Baseline Survey estimated that more than two-thirds of all aid
coming in to Rwanda comes in the form of projects and is, for the most part, neither on budget
nor on plan. There is a real risk that a rapid scaling up of aid flows could lead to a further
deterioration in the quality of aid and, hence, to an increase in wastage, duplication and
inefficiency. Basing on these government and donors different publications, one may argue that
aid may have a little bearing or impact on eradicating the so-called domesticated poverty at
family level; hence this affects development, since Seers, (1980) views development as
eradication of inequality and poverty. Thus the change in poverty is a function of growth, initial
distribution, and change in this distribution which also will depend on policy?s pursuance.

2.5 Implications of Literature Review

The negative relation between aid and growth dominates aid. Nonetheless, it remains paradoxical
that aid is still highly significant across regressions. This prompts researchers us to continue
thinking about how to improve the effectiveness of aid. Reforms are certainly necessary, not only
for recipients but also for donors, especially multilateral aid agencies.
It is widely accepted that aid works well in good-policy environment and in reality there are
many good examples of success, for instance Ethiopia, Uganda, Viet Nam, India etc (World
Bank, 1998).
The implications are therefore obvious: Aid is more effective when it is used to facilitate timely
and efficiently the reforms initiated by the local governments, not to condition the reforms. Put it
another way, the reform should be internalized, not imposed by outsiders. What aid does is to
help good governments to survive long enough to solve the problems (World Bank, 1998).
Countries may learn from the successful experiences of others, but need to tailor appropriately
their own action plans. Aid is more effective and viable if it finances government bureaucrats
training or policymakers? overseas education and then nurture the reforms initiated by them.
In reality, the World Bank structural adjustment programs and IMF stabilization programs failed
in many cases due to the lack of appropriateness and strict penalty upon bad performance.
Conditionality is unlikely to bring about lasting reform if there is no strong domestic movement
for change (World Bank, 1998). Therefore, conditionality should work in the way that ensures
the effectiveness of loan where the reforms are in place. Rewarding good performers in aid
allocation is a good way to encourage other recipient countries to learn from them. More
importantly, the penalty should be implemented strictly upon the violation of conditional terms.
Loans should be postponed or even terminated unless further positive evidence is accorded. The
current patterns of channelling aid through centralized governments in recipient countries may
reduce the timeliness and efficiency of aid. It is found that the aid is more effective if it is
delivered directly to the working level local authorities. Hence, the emerging role of NGO
community is widely attracting attention (World Bank, 1998). The present coordination and
cooperation among donors is problematic. Most of donors and aid agencies have their own
objectives and different plans in providing aid. Raising flag is a common phenomenon among
donors and aid agencies.
Therefore, instead of cooperating, they are normally stepping on each other?s toes by
undertaking different approaches. As a result, the overall aid effectiveness on the growth of the
nation most of the time fails to succeed, even though many aid projects are assessed effectively.
In the final analysis most of the literature on the impact of foreign aid is highly generalized and
guided by the statistical interpretations of World Bank and other Bretton Woods institutions.
There is hardly any literature based on the local representations of the impact of aid on economic

and social development. This study is situated in this niche, with special focus on the responses
of the actors in the aid matrix in Gasabo District, Rwanda.
2.6 Chapter summary
This chapter has presented a detailed analysis of the issue under investigation against
he review fight poverty. The next chapter presents a detailed description of the methodology.

CHAPTER TRHEE: RESEARCH METHODOLOGY

3.0 Introduction
This chapter deals with the research methodologies that were employed in this study. Initially,
the general research designs shall be briefly discussed and thereafter the selection of research
methods applicable to this study shall also be explained. The major thrust of the study shall focus
on upholding principles of validity and reliability/credibility and trustworthiness.
3.1 Research Design
3.1.1 Research Design - An overview
A research design lays the foundation for conducting the research in an effective and efficient
manner. Like a good plan, it provides the specific details that guide the researcher. Bryman and
Bell (2007) define a research design as a framework for the collection and analysis of data.
Coolican (1994:4) refers to research design as a method for gathering empirical data with which
to test a hypothesis or develop a theory. Bless and Higson-Smith (1995:63) say that a research
design specifies the most adequate operations to be performed to test specific hypothesis under
given conditions?. In another dimension Monetle, Sullivan and Dejong (1990) maintain that a
research design is a detailed plan utilizing how observations will be made. In other words it says
who is to be studied and how the subject/object of study is to be studied; for example it spells out
the methods of data collection, instruments by which data is collected and how that data are to be
analyzed as well as the techniques of data analysis.
The process of designing a research study involves many interrelated decisions and it is an
inherently iterative process in which earlier decisions are constantly being considered in the light
of subsequent decisions (Aaker, Kumar and Day 2004: 73). The choice of the approach depends
on the type of the research that one intends to carry out. In light of this, this study adopted the
case study approach in view of its advantages.

3.1.2 Exploratory and Descriptive Phases of the Research Project

One important decision that needs to be made when developing a primary research plan is
whether to conduct a qualitative or a quantitative survey (Palmer 1994: 108). The research
approach selected in this instance a case study of Gasabo Distict of Rwanda. The approach
acknowledges the argument put forward by Malhotra (1996: 164) that it is a sound principle to
view qualitative and quantitative research as complimentary, rather than in competition. Bryman
and Bell (2003: 15) define a case study design as the detailed and intensive analysis of a single
case. They further argue that case study research is concerned with complexity and particular
nature of the case in question.
Coolican (1999: 27) concurs that case studies are in-depth investigations of one person or group
of persons usually over a long time. A great deal of qualitative and quantitative data is gathered
to illuminate a particular, perhaps unique set of conditions or experiences. This research project
sets out to explore the impact of foreign aid on the socio-economic development of Rwanda in
Gasabo district. In the process it seeks to assess the reactions of various parties in the aid
development nexus.
Chisaka and Vakalisa (2003) credit the case study strategy with the chief advantage of being
applicable to both qualitative and quantitative research paradigms. In this respect a research
technique that includes questionnaires, interviews, documentary analysis and observations were
used in this study. Case studies give the researcher an opportunity, to contextually study a given
situation thereby adopting principles of both ethno-methodological and phenomenological
paradigms. Findings are reported through in-depth reporting and description of data
(Nyawaranda 2004). In this respect a case study offers the researcher an opportunity to view
issues from the perspective of an insider (emic perspective) as well as an outsider (etic
perspective).
3.1.3 An overview of the existing situation of the Gasabo District as the case study
The Gasabo District presents opportunities for economic development which have not yet been
exploited. Its geographical location between the Kigali City and Lake river of Muhazi and the
Gasabo plateau offers abundant investment opportunities in agriculture, hotel and tourism sector
and has high potentiality for investment. Historical sites which form the cradle of ancient
Rwanda such as the four goddesses of Bumbogo, the foot imprints of the legendary king
Ruganzu at Jali, the vestiges of the royal palace on the hill of Gasabo, the burial sites of princes
are some of the unparalleled touristic potentialities for investment. There is also the panoramic
view of the plateau overlooking Lake Muhazi. The District has trading centres scattered all over
Sectors and intermediary Centres which constitute points of attraction for economic activities,
small industries and crafts. Some mobile traders, retailers and wholesalers need training and
mobilisation to kick-start economic development in the Sectors. To this effect, the role of foreign
aid in enhancing socio-economic development can not be underestimated with a view to harness
the potential growth development that may seem inherent. The level of industrialisation remains
low with only four factories: UTEXRWA, RWACOM, Kabuye Sugar Works and SORWATOM

operating in the District. The development of this Sector shall move along with the development
of the industrial park which fulfils the environmental norms. (PDD, Gasabo 2007)
Below is the new administrative map of Gasabo District, showing all the 15 sectors from which
data were gathered for the purpose of this study.
Figure 3.1: New administrative Map of Gasabo District

In terms of demographic data the District has a population of approximately 410 485 people. The
study population was therefore extracted from this approximate gross/total population of entire
district.
3.1.4 Sources of Data
This study is principally guided by two major sources of data. According to Howard and Sharp
(1983) primary data refers to data which the researcher gathers while secondary data is that data
which is gathered by others. In this regard the researcher will use information gathered from
interviews, questionnaires and focus group discussions as primary data. In turn the secondary
sources include written organizational literature and published books and journal articles on
foreign-aid-development and MDGs nexus.
3.1.5 Types of data
The study relies on two types of data namely quantitative and qualitative data. Dooley, (1995)
argues that qualitative research refers to sound research based on field observations analyzed
without statistics. Similarly, Nyawaranda (2004) maintains that qualitative research seeks indepth insights rather than statistical analysis. Interviews and focus group discussions will provide
the bulk of qualitative data. Sheila and Mwiria (1995:42) say that quantitative research involves
a research in which the researchers assume that behavior of humans like that of matter can be

objectively measured through the construction of appropriate research instruments. In this

respect, questionnaires are designed to generate objective responses from respondents. The bulk
of calculable data will come from questionnaires and statistical records from the organizations
under study.
3.1.6 Target Population, Sampling and Sampling Procedures
Moonie, (2000) defines population as the entire group of persons having the same characteristics
that are of interest to the researcher. Ringrose (1986) postulates that population denotes all the
potential participants from which the sample is drawn. This study targets a population of four
hundred and fifty (450) respondents. According to Best and Khan (1993:13) a sample refers to a
small proportion of a population selected for observation and analysis. In this study the
researcher will sample 150 participants for detailed study.
In this research study, the sampling processes will be carried out at two levels. Firstly, the
identification of Gasabo District, Donor organizations and boundary partners will be done
purposively. In Gasabo participants will come from 30 beneficiary cooperatives and
15 imirenge (sectors) coordinators representing the 15 sectors in the district. Selected donor
communities include UNDP, USAID, DFID, Belgian Technical Cooperation (BTC) and WORLD
VISION. Boundary partners purposively selected will include His Excellency the President of
the Republic of Rwanda or his spokesperson, and officials (preferably permanent secretaries)
from the Infrastructure, Education, Health, Commerce and Trade, Finance and Economic
Development, Local Government, Gender and Foreign Affairs Ministries. All these are selected
purposively as key informants. Sullivan et al., (1990) say that purposive or judgmental sampling
specifically excludes certain types of people because their presence might confuse the research
findings. Bailey, (1987) credits this technique with the advantage of being more representative
and has the ability to be generalized over a larger population. However, because this technique
does not give equal opportunity for all elements to be included (being non-probability sampling
technique) other sampling techniques need to be employed to cater for the limitation.
Simple random sampling (SRS) technique is the natural alternative. Aldridge and Levine (2001)
define it as a design in which the cases that will make up the sample are chosen in a single
process of selection from the sampling frame that covers the entire target population. In this
regard each element has an equal chance of being chosen. The questionnaire will be administered
on randomly selected members of the target community. The total number of members of the
target community will constitute the sampling frame. Systematic random sampling will then be
employed to ensure that all the 15 sectors of the Gasabo district will be represented. Sullivan et
al. (1990) credits this technique with the exceptional advantage of treating the target population
as a unitary whole. In this regard, its attempt to guarantee an equal opportunity may in a way
minimize bias and prejudice. Nonetheless some of the key district officials will be purposively
chosen for in-depth interviews. Below is a summary of sampling frame, subgroups and the final
sample size.
Table 3.1: Sampling systems

STRATUM

SUB-GROUP SIZE

SAMPLE
SIZE

Rwandan
Population

1 representative (head of state), 8

officials from 8 ministries

Donor
Community

2 officials from the 5 chosen

10

organizations

Gasabo District 2 district officials (mayor & town clerk),

15 imirenge Coordinators, 10 members from each of the 15
cooperatives or associations

131

TOTAL

150

(Source: own design)

Below is an overview of sample size in relation to the study population and data gathering tool
used.

Data collection method

Questionnaires

Interviews

Focus group discussion

Study population No. of respondents

120 40

27

180 60 (5 sessions of 12 each)

Observational

123 41 (4 sessions of 10 each)

Total

450 150

N.B The researcher took heed of recommendations by Frankel and Wallen (1996) that a
representative sample should be at least a third of the entire study population.
3.2 Data gathering instruments
3.2.1 An Overview
Denscombe (2000:85) advocates the use of two or more methods of data collection to enhance
the validation and reliability of data, arguing that the use of multi method approach allows
findings to be corroborated or questioned by comparing data produced by different methods.
Determining the impact of the results of any research work is dependent upon two concepts:
validity and reliability (Last 2001). Essentially, validity entails the question, Does your
measurement process, assessment, or project actually measure what you intend to measure?
Best (1989) defines validity as that quality of data gathering instrument that may enable it to
measure what it is supposed to measure. Aldridge and Levine (2001; 183) define validity
as whether a measuring instrument indicates success in measuring what it is designed for.
Content validity is defined as an approval to establish the validity measurements including
assessing the logical relationship between the proposed measure and the theoretical definition of
the variable (Sullivan et al.1989). Reliability, on the other hand, addresses whether repeated
measurements or assessments provide a consistent result given the same initial circumstances
(NATCO, The
Organisation for Transplant Professionals: 2009). Sullivan et al. (2000:218) say reliability refers
to the ability of a measure to yield consistent results each time it is used?. Similarly Aldridge and
Levine (2001) define it as a measure of the extent to which the results of an indicator or test are
consistent over time. Internal validity encompasses whether the results of the study are legitimate
because of the way the groups were selected, the data was recorded or the analysis was
performed. External validity, often called generalizability?, involves whether the results given by
the study are transferable to other groups (i.e. populations of interest) as postulated by Handley
(2009:1). This research intends to achieve both internal and external validity of results through
following a proper study design and strict protocol execution.
A common threat to internal validity is reliability. Russ - Eft (1980: 37) defined reliability as the
degree to which the results are attributable to sources of variance. This research tries to
overcome the risks associated with reliability by reviewing and thoroughly checking the research
instruments and employing consistency checks. The instruments of data collection to be used are

interviews, focus group discussions, questionnaires documentary analysis and observational

schedules.
3.2.2 Structured in-depth Interviews
Bryman and Bell (2003: 115) define an interview as the soliciting of information by the
interviewer from the interviewee. Saunders et al. (1997) citing Kahn and Cannell (1957) describe
an interview as a purposeful discussion between two or more people. Interviews are meant to
elicit primary data responses through direct questioning, (Wegner, 1993).
It is the most common form of data collection in any social survey such as elicit different people?
s opinions on a subject such as the socio-economic impact of foreign aid on development.
According to Fraenkel and Wallen (1996), the advantages of using the interview technique
approach are that the respondents can expand on areas of interest and can use non-verbal cues
such as expression to emphasize their responses. In this study, several respondents were lined for
interviews. These include: the Head of State (or his spokesperson), donor representatives,
relevant ministry officials, sector coordinators and community leaders.

3.2.3 The Questionnaire method

Questionnaires are used to investigate attitudes, beliefs, feelings, opinions, knowledge and some
aspects
of
behavior
(British
Educational
Research
Association,
2006
2009 http://www.bera.ac.uk/questionnaire/#use). This method, if expertly designed, can give the
researcher reliable data. Denscombe (1998: 88) argues that the questionnaire works on the
premise that if you want to find out something about people and their attitudes you simply go
and ask them what you want to know, and get the information straight from the horses mouth?.
Using questionnaires to collect data is a relatively quick way of gathering such information with
relatively good response rates, in addition to preserving respondent confidentiality. It consists of
open-ended and closed-questions. According to Harzadon (1981) open-ended questions are
advantageous because they give the respondents the opportunity to answer adequately applying
the detail they like to qualify and clarify issues as well as giving them an opportunity for selfexpression.
Labovitz and Hargedon (1988) highlight that the serves time and financial resources since it can
be locally administered. Frankel and Wallen (1996) maintain that the questionnaire can cover a
large sample and also ensures anonymity and greater detail in as far as the handling sensitive
issues is concerned. In view of the delicate nature and controversy of the subject, the
questionnaire is deemed to be an effective instrument. In this context, objective responses will be
obtained through closed questions while subjective responses will be obtained through openended questions. The attempt by the instrument to combine some aspects of quantitative and
qualitative data makes it an effective instrument (Sheila and Mwiria 1996). However, the
research takes note of some of the limitations of the questionnaire. For instance according to
Frankel and Wallen (1996) the distance between the researcher and the respondents\researched

leads to lack of rapport. Probing is not possible with closed questions hence there is no room to
attach meanings in such questions (Dooley 1995).
The questionnaire is a rigid form hence rephrasing questions may not be possible (Haralambos
and Holborn 1995). In this respect the questionnaire only relies on intellectual and literacy
competence of the respondents as opposed to the interview method. The researcher will not post
any questions but will physically be distributed them with the help of research assistants. A total
of forty (40) questionnaires were administered to various categories of respondents.
3.2.4 Focussed Group Discussions
According to Shumba and Kaziboni (2005), the Focused Group Discussion (FGD) is a new
approach / technique in which some discussion schedules are used to interview 5 to 10
respondents simultaneously. It is an effective tool for gathering public opinion. Against this
background issues that are considered sensitive, controversial and delicate can be effectively
debated. In applying this technique, the researcher categorically placed respondents into groups.
Any four (4) communities were selected randomly for the aid impact assessment debate. The
focused group discussion falls in the realm of qualitative research paradigm (Lincoln and Guba
1985). This method is credited with the principal advantage of saving time as well as the ability
to discuss issues democratically on an open debate forum (Shumba and Kaziboni 2005). It allows
the in-depth-study of issues and enhances cross-pollination of ideas and views (Ngoepe, 2006).
Focused group discussions usually stimulate interest among respondents through debates
(Ngulube, 2006). For it to yield valid results, the following limitations need to be guarded
against: Such discussions only generate qualitative data hence there is over reliance on subjective
rather than objective conclusions. As observed by AVERT (2007) that other respondents may be
dominated by others in the debate and if not guided and controlled, the focus and objective may
be defeated.
3.2.5 Documentary analysis/content analysis procedures
Content analysis is a systematic research technique that focuses on the analysis of both
quantitative and qualitative manifest or latent meanings of words, ideas, phrases, postures,
objectives and artefacts (Achola 1995). Against this backdrop it follows that documentary
analysis procedure will generate natural data for analysis. It is further assumed that it saves both
money and time. Shumba and Kaziboni (2005) credit this method, an advantage to the researcher
that she/he interacts with printed materials which are non-human in nature. To this end, attempts
by respondents to deliberately lie or seek refuge behind secretaries in the case of questionnaire
are well catered for.
In view of the merits, textual data and all forms of materials related to the foreign aid, MDGs and
poverty alleviation, the context of socio-economic development programmes were scholarly
scrutinized in an effort to see whether they have a bearing to the topic under study. As such this
particular study made reference to registers of NGOs and some policies on Government
development assistance at ministerial levels.

3.2.6 Observational schedules (Participant and non-participant

observation)
The study also used some principles of Observational schedules in gathering data for analysis.
Observation is hailed by Dooley (1995) as a key qualitative data gathering tool because of its
ability to generate first hand data. In this regard it follows that there is need to use a method that
appeals to the needs and interest of respondents/informants. Haralambos and Holborn (2006)
credit this approach for its ability to involve the researcher as a key participant particularly
through participant observation. However the method may have a limitation that there is a
possibility of the researcher to fail to bracket his or her own experience hence leading to ultimate
bias. Non-participant observation may make researcher all off and may make the informants
become suspicious and behave artificially. In this case, the researcher intertwined both the
principles of non-participant and participant observation to suit different situations and overcome
the constraints and limitations she was coming across.
3.3 Data presentation and analysis
Borgdan and Biklen (1992) define data analysis as a process of systematically searching and
arranging the interview transcripts and other materials that the researcher accumulates to increase
his/ her understanding of them and enable him/her to present what he/she would have discovered
to them. The data collected using questionnaires will be analysed using a statistical computer
package. For sorting purposes, questionnaires will be coded by way of giving each completed
one a unique code on receipt from the respondents. All responses will thus be considered precoded since the computer package (SPSS) has the capability to assign codes and values to each
response entry. Frequencies, cross-tabulations, means and analysis of variances (ANOVA)
obtained from the results will be analysed and summarised into tables and graphs that reflect
patterns and relationships. The qualitative aspects of the questionnaires and other qualitative data
from interviews and focus group discussions will be analysed using thematic content analysis.
Details of the analysis will be presented in Chapter 4 in the form of graphs, tables and descriptive
comments.
3.4 Chapter summary
This chapter has outlined the research design adopted in this study and has further justified the
methodologies used. The research instruments that were employed have been exposed and efforts
have been made to explain how the data was collected. The next chapter deals with the
categorization, presentation, interpretation and analysis of findings.

CHAPTER FOUR: DATA PRESENTATION, INTERPRETATION AND ANALYSIS

4.0 Introduction
This chapter presents, categorizes, interprets and analyses the data that was gathered using the
questionnaire, interview, focus group discussions, documentary analysis and observation
schedules.
Data obtained from the questionnaires were analysed first using SPSS version 17.0 and presented
in the form of frequency tables and graphs. Some aspects of the data obtained from open-ended
questionnaires were thematically analysed and supported by information obtained through the
focussed group discussion. The second and third sections constitute the bulk of the findings from
interviews, document analysis procedures and observational schedules, and like the second
aspect of the questionnaire were thematically analysed. In all cases the research themes were
addressed. The recommendations by Aldridge and Levine (2001), were taken into account in the
formulation of the emerging themes that are going to inform the discussion. The themes were
formulated in order to categorize the data.
This chapter begins with, the findings from the questionnaire followed by a discussion of
findings from interviews and documents analysis procedures and the overview of the existing
situation of Gasabo District. The last part is a summary of findings merging all the findings from
the different data sources, and demonstrating emerging trends here described as key findings.
4.1 Discussion of questionnaire findings
4.1.1 Questionnaire Administration

Total questionnaires administered:

40

Total questions on questionnaire:

20

Total responses:

32

Percentage responses:

80%

Generally the response rate was quite good (80%) and there was evidence that both women and
men were quite comfortable with interacting with the questionnaire though in some instances
blank responses could not be ruled out for one reason or the other.

4.1.2 Quali-Quantitative Analysis of Questionnaire Data

Below is a quali-quantitative analysis of questionnaire data. It is quali-quanti in the sense that
both qualitative and quantitative data are analysed given that the questionnaire itself comprised
both objective and subjective sections. As such objective responses are analysed quantitatively
while descriptive (subjectively) data are analysed thematically. Note, however, that both types of
data, because they are corroborative in that they are responding to the same question, are
therefore treated simultaneously.

4.1.2.1 Gendered perceptions on poverty as Rwanda's threat to socio-economic

development
Figure 4.1:
Research findings reveal that 85% of all male respondents supported the idea that Rwanda?s
socio-economic development was being threatened by poverty. Even more female respondents
(100%) believe that poverty is a key threat to Rwanda?s prosperity, a negligible average
percentage of about 5% thinking otherwise.
Some of their typical responses were:
The issue of poverty reduction is of great concern for Rwanda, as Rwanda has its own policies
and efforts made by technocrats.
Poverty impacts negatively on the quality of living standards of Rwandan.
Poverty lowers production of the productive sector, in particular small scale enterprises with no
savings in the banks hence there is no bargaining power to get credits from the banks.
Based on the findings, it can be noted that the overall poverty affects the living standards of
citizens and all their aspects towards economic development. Since the genocide Rwanda has
been struggling with fiscal deficit and her efforts have always been directed towards servicing
national debt which has been accumulating exponentially in spite of foreign aid (Ministry of
Finance
statistics
Department,
2004:134).
MeIZITQEEEEE
EaQdEIIIE,
E5
ZEQAVESRYHWEIDe decreased from 60.2% to 56.9% of the population (UNDP, 2007).

This trend has continued despite her macro-economic strategy to decrease excessive dependence
on foreign assistance (ibid). On the other hand the government of Rwanda has directed most of
its resources towards helping people survive instead of investing in developmental activities
which recapitalize the productive sector of the economy (ibid: 135). The recapitalization of the
productive sector enhances employment opportunities for the citizens, reducing poverty thereby
enhancing socio-economic growth which is key to the attainment of MDGs.
4.1.2.2 Views on whether poverty is a threat to Rwanda's socio-economic development by
organizations
Table 4.1:

Organization

Frequency (%)

Yes No

Government

14 4

NGO

5 0

NA

9 0

Total

28

(87.5%) 4

(12.5%)

The study reveals that the majority of the participants (88%) felt that poverty was a cause for
concern to Rwanda?s socio-economic development. The government position on the contribution
of poverty to economic retardation is overwhelming, with about 88% of government officials
concurring that poverty is a key threat; while about 12% objecting, most probably because they
think that other variables than poverty are more key, yet even this does not lessen the enormity of
poverty as a grave danger to economic development.
On the other hand the NGOs? reticence on the question speaks louder than words. One would
have expected all donor organizations to overwhelmingly vote that poverty is indeed a threat,
which would have bolstered their donating efforts; but their silence raises the suspicion that they
have more to hide than give. This point will come to a head when we come to their responses to
interview questions. Nonetheless, the 12% government officials who indicated that poverty had

no bearing on the socio-economic of Rwanda may be understood in the context of them not
entirely dismissing poverty as a variable to reckon with but that its impact on economic
development is perhaps less key than their other perceived determinants. Otherwise all the
participants who were neither NGO nor Government officials (88%) agree that poverty is a
major threat to the economic well being of Rwanda. Based on the above findings it can be argued
that poverty is a threat to Rwanda?s socio-economic development. This confirms findings by
World Bank (1993) that as long as we have poverty in third world countries, developmental
trends will remain crippled. However, the perceptions of poverty by different people differ with
ages as the table below illustrates.
4.1.2.3 Views on whether Poverty has functional benefits to society
Table 4.2:

Organization

Frequency (%)

Yes

No

Government

17

NGO

NA

Total

2 (6.15%)

30 (93.75%)

It emerged from the survey that poverty is generally perceived in the negative sense. All
government officials dismiss it with the contempt it deserves. Below are the views that were
echoed:
Poverty have never benefits the society, it destroy their standard of living, social welfare, creates
malnutrition, conflict and disaster;
There are no benefits at all but becomes a social problem instead. Many people become beggars,
thieves, prostitutes and idleness;

Essentially it does not but to poor leadership when using for pro-poor project to promote self
interest.
This was supported by information obtained using the focused group discussion where one
respondent remarked that,
Poverty makes us afraid of talk, taking position in a meeting, we cannot even give our opinion,
we think it will not be taken seriously. No confidence
Although findings pointed to the fact that poverty has some detrimental effects, on the other
angle the functionalists would view it as a functional phenomenon in society. (O?ddInell,IDDI)
NGOs are more eloquent by their reticence; perhaps their mere presence justifies their complete
negation of poverty; logically they would not be here to support or promote poverty. The only
significant response worth some explanation is 6% of participants who suggest that poverty is
not entirely dysfunctional. It may be guessed that they view poverty as providing an impetus for
community and intergovernmental cooperation, a reason that justifies the need for governance.
Although somewhat far-fetched, this reason is compelling in that if all people were self-sufficient
there would not be any need for government. The general feeling however is that poverty is a
menace that requires the cooperation of all stakeholders (aid agencies included) to eradicate, but
the other question that arises is: is foreign aid itself wholly functional?
4.1.2.4 Perceptions of the impact of foreign aid on the Rwandan economy
Figure 4.2:
It was established that (90%) of the respondents indicated that Foreign Aid contributed
significantly to the socio-economic development of Rwanda indicated so. Foreign Aid helps in
the development of the proposed projects and their implementation.
Some of their typical responses were:
It does, because Rwanda engages itself on partnership platform not patronage. Many economic
growth sectors have been remarkably developed like infrastructures.
economic development because they bring projects, create job for us and develop Rwandan with
those projects
Although the macro-economic strategy of Rwanda aims in the long run to decrease excessive
dependence on foreign aid, at present all indications point in one direction: that she cannot do
without assistance. Findings reveal that there is a program in place called VUP - Vision 2020
Umurenge programme. It is the second flagship of EDPRS, it accelerates the rate of poverty
reduction by promoting pro-poor components of the national growth agenda. This will be
achieved by releasing the productive capacity of the poor in rural areas through a combination of
public works, promotion of cooperatives, credit packages and direct support. In the end, these
people graduate and move from one category of poverty to another, that is most poor to poor and
then to rich-to-be. The idea is eventually eradicate poverty among the people. EDPRS, (2006)

This is part of the Paris Declaration on Aid Effectiveness to which the GoR and its development
partners are signatories (Rwanda Aid Policy: 2006: 6). The overall objectives identified by the
parties to the Declaration include aligning donor programs to government, strengthening country
reporting systems and strengthening local capacities (ibid). But the question that remains is: is
poverty itself viewed as entirely negative?
4.1.2.5 Views on whether Foreign Aid creates Dependency on Rwanda by Organization
Table 4.3:

Organization

Frequency (%)

Yes

No

Government

10

NGO

NA

Total

14(43.75%)

18(56.15)

It emerged from the study that (44%) of the respondents have negative perceptions about foreign
aid. According to some of them it creates dependency syndrome on the people of Rwanda by
providing them with products (consumables) rather than giving them skills to produce
sustainably for themselves. Naturally spoon-feeding dulls creativity and innovation while
promoting laziness and dependency. This was supported by information obtained using the
focused group discussion where one respondent remarked:

Iby'ubuntu bitera ubwenge buke this means free things make you brainless in
English. So if the Aid we get is to help us to improve our lives and get out of poverty yes,
otherwise we don?t need aid which is not prosper

The findings may seem to suggest that a wave of dependency can negatively impact on people if
aid is not accompanied by some strategies that can eventually wean the recipients, much as the
wise adage would say, give a man a fish, teach him/her how to catch the fish so that tomorrow,
he/she will eat them forever. The GoR seems to be aware of this reality as shown by the

significant 44% in the affirmative. The other participants, though more in number (56%) who
argued in the contrary do not necessarily diminish the impact of their counterparts? observation.
If anything it may be further observed that participants who say aid does not create dependency
betray their levels of literacy and analytical sophistication. Surely the Rwandan Government
would not put a policy in place for monitoring and evaluating the aid and how it is channelled.
According to the Government?s Aid Policy (2006), all assistance is preferred to be delivered
through Rwanda?s Public Financial Management (PFM) and procurement systems to ensure that
it is controlled and regulated. The graph below further illustrates the gendered perception on the
issue of dependency syndrome.
4.1.2.6 Gendered Perceptions of Foreign aid and dependency
Figure 4.3:
The study findings reveal that a majority of respondents (52%) indicated that Foreign Aid leads
to dependency syndrome on the part of the Rwanda Government. The remainder 48% felt people
use the Aid for sustainable development activities. These positions reflect earlier perceptions
which have been attributed to varying levels of literacy and cognitive sophistication. However,
there were more females (56%) compared to 50% males who indicated that there is no
correlation between donor aid and consumer dependency and this again buttresses the earlier
observation as more women are generally less literate than their male counterparts, especially in
third world countries such as Rwanda. These varying levels of literacy were again reflected in
the participants? awareness of Millennium Development Goals (MDGs). This corroborates
findings by UNDP (2007) who assert that the issue of poverty has some multiple interpretations;
hence the so-called gendered nature or feminisation of poverty and aid too.
4.1.2.7 Knowledge of the existence of MDGs in Rwanda
Figure 4.4:

The survey results show that the majority of the respondents (96%) were aware of the MDGs in
Rwanda and nearly all of them had learnt from the Government?s sensitization and mobilization
programs (publications) and open public discussions on the country?s Vision 2020. On the other
hand, a very strong link (85%) between the Rwanda?s ruling class political ideology and MDGs
exists. The ruling class political ideology of Rwanda has programs and strategies such as
Economic Development and Poverty Reduction Strategy (EDPRS) and Vision 2020 to address
MDGs. It was therefore necessary to find out more about the participants? awareness of MDGs
by asking them to rank them according to their own priorities. It can therefore be concluded that
the instrumental role of MDGs as a weapon to fight poverty is overlooked hence the need to
acquaint people with critical issues regarding this concept.
4.1.2.8 Ranking of MDGs according to priority
Figure 4.5:

The study findings indicate that of all the MDGs Rwanda is prioritizing the eradication of
extreme poverty and hunger most with a number one ranking. A lot of effort is also being put in
trying to improve maternal health and combating HIV/AIDS, malaria and other diseases in order
of priority, respectively. Findings also revealed that the Rwandan Government is trying to
achieve universal primary education for all its citizens as its fourth priority. However issues of
gender equality, empowerment of women and global partnership still need greater articulation.
This was supported by data from FGD were one respondent echoed:
Global Parnership Combat HIV/AIDS The issue of eradication poverty and extreme hunger has
become a universal priority across all d t nations in Third world.
Based on this, it can be interpreted that the issue of prioritising MDG 1 may seem to go along the
assumptions of modernisation theorists who insist in order to develop, third world nations must
copy western models of development (Sanderson, 1991)
4.1.2.9 Rating of Poverty Eradication Strategies

Figure 4.6:
The study findings of the above pie-chart reveal fact that EDPRS is mostly used in Rwanda as a
strategy to eradicate poverty. Based on the findings, it can be argued that strategies as means to
an end are always critical in as far as eradicating of poverty is concerned, thus without user-8%
friendly strategies poverty cannot be ameliorated. The Economic Development and Poverty
Reduction Strategy (EDPRS), adopted in 2007 together with Rwanda?s Vision 2020 and
Constitution, provides a clear statement of the government?s high level priorities and a consistent
set of principles. The EDPRS grew out of the Rwanda?s first Poverty Reduction Strategy Paper
(PRSP), adopted in 2002 and agreed with donor partners as a necessary step towards receiving
PRSP EDPRS N debt relief under the Heavily Indebted Poor Countries initiative. ODI, (1999)
4.1.2.10 Sustainability of Foreign Aid in Rwanda's Socio-economic development
Table 4.4:

Sex

Frequency %

Yes

No

Male

12

10

Female

Total

20

(62.5%

12

(37.5%)

The study findings show that foreign aid could be sustainable in Rwanda?s Socio-economic
development from the males? point of view. The point of concern is the perceptions of females
whose majority, 80% tended to differ. Aid is not sustainable because the Rwandans feel that they
are self-sufficient in spirit and are hard-working to produce enough for themselves and for
export, rather than depending on Foreign Aid. This is supported by one male participant?s
proverb in Kinyarwanda akimuhana kaza imvura ihise. This translates to something from out
comes after the rains in English. In addition Rwanda has an abundance of resources to sustain
itself as almost 60% of its budget is not supported by Foreign Aid.

The subjectivity impact of foreign aid in Rwanda may seem to confirm findings from a regional
survey by Baker et al (2003) who concluded that the relativity nature of foreign aid and its
impact has generated heated debates across the development spectrum, hence the assertions by
interractionist scholars who maintain that subjective meanings are attached to social happenings
(Palen, 2000).
4.1.2.11 Perceptions of Beneficiaries of Foreign Aid in Rwanda
Figure 4.7:

Current findings show that the majority of the participants (96%) appreciated the impact foreign
aid has had in their country. 6RP MsIjd 310I31V310e AID provided directly benefits the FRP P )
1j3jes? projects and hence improve their lives and accelerates development in their area. As
explained by Todaro (1981) foreign aid is understood as a means to improve the conditions of
life in underdeveloped nations, is couched within modernist thought.
4.1.2.12 Relations of the Government of Rwanda and the Donor Community Figure 4.8

The study findings of figure 4.8 above indicate that Rwandan Government has good relations
with the international donor community since 2000-2009, as supported by the 0% bad to
extremely bad response rate. Development Partners have played a fundamental role in the
recovery of the Rwandan economy, and their continued support as Rwanda?s GDP exceed
prewar levels will be integral for the achievement of the Millennium Development Goals and
national strategies, such as the EDPRS and Vision 2020. (MINECOFIN 2007). This is also
supported by the answer of one Government authority who said that In general I can say even
in 10 years ago that our relations with the Development Partners are good. They are involved in
different forums for dialogue on aid coordination at different levels where we plan together, we
implement together, and where we Monitor and evaluate together
4.1.2.13 Beneficiaries of Donor Community from 2000-2009 Figure 4.9:
The survey results indicate that the Health Sector was the greatest recipient of Donor community
support in the years 2000 to 2009. The educational sector (62%) and agricultural sector (54%)
were the second and third beneficiaries respectively. However local government was least health
sector funded (38%).
Strategies and policies in place in Rwanda such as EDPRS and Vision 2020 focus on human
development at all cost. For their implementation the GoR emphasis on the partnership with the
donors and establish priorities assuming responsibility for aid coordination in different sectors.
Like the Strategic Partnership with Africa notes, budget support instruments can be a particularly
effective way of promoting African ownership and development in countries with well-designed
poverty reduction strategies and reasonable levels of fiscal accountability.... (SPA 2002a: 13).
4.1.2.14 Availability of Technical Challenges with regards to Implementation of MDGs
Table 4.5:

Response

Frequency

Percentage (%)

Yes

24

75.0

No

25.0

Total

32

100.0

The study reveals that it is the view of the majority, 75% of the participants that the Donor
Community could be facing technical challenges with regards to the implementation of MDGs.
These include attitudinal constraints and other socio-economic constraints. The specific
challenges are further shown by the diagram below.

Figure 4.10: Challenges with regards to Implementation of MDGs

According to ECA (2005) provided development partners appropriately harness existing

resources, most of the MDGs are achievable. Part of the challenge is making sure that
programmes are interconnected, so that when addressing primary education, for example, a

comprehensive development strategy would also incorporate natural resource management and
health education.
4.1.2.15 Ranking Rwanda's main Resources in order of importance
Figure 4.11:
It emerged from the survey that agriculture is the backbone of the people and government?s
needs, 96% of the participants indicated so. Mining, services and industry in that order are
important to a lesser extent. Koster (2008), shows that in July 2006, the population was estimated
at 8,648,248, of which the large majority (93.4 percent) lives in the rural areas and that large
majority of people (over 90 percent) depends on agricultural subsistence production.
4.1.3 Overall synthesis of findings from the questionnaire
The results obtained from then open-ended questionnaire concur with the focus group
discussion/interview results. All of them showed that poverty was a phenomenon so real that its
negative impact on the national economy cannot be contested. This picture was shown more
vividly at village level. The case of Kimironko Sector deserves special mention. It is one of the 3
urban sectors of the District and accommodatesCentre Cesar which takes care of Genocide
survivors to develop themselves socially and economically. According to the results from the
discussions with the villagers, poverty is all about failing to avail the basic necessities of life to
oneself or the family. This group was partially aware of MDGs but as captured earlier, none of
them really bothered about poverty at national level.
4.2 Qualitative Analysis of Findings
In-depth structured Interviews Observational schedules
Documentary analysis procedures
This part presents a synthesis of major findings from interviews, documentary analysis and
researcher observation. It begins with an overview of aid coordination background followed by
responses from the three major respondents: non-governmental organisations, government
officials and the public representing the target beneficiaries of donor aid.
4.2.1 Interview data from administrators
Several respondents were for interviewed. These include: the donor representatives, relevant
ministry officials, sector coordinators and community leaders. Following recommendations by
Chisaka and Vakalisa (2003), the findings from the interview method are presented thematically
with emerging or recurring themes identified. Substantiating evidence in form of people?s real
words are also given since it is a qualitative inquiry (Frankel and Wallen 1996).
Table 4.6 below presents data that was gathered using the interview method

EMERGING
THEME

SUBSTANTIATING EVIDENCE

How have been the In general I can say even in 10 years ago that our
Relations between

Government of
Rwanda and the
Donor

relations with the Development Partners were good.

Community since
2000-2009?

(Donors are no longer called Donor Community but

Development Partners because they are helping us to build our country.) I

was saying our relationship is fine in terms of development issues. They
are involved in committees where we plan together, we implement together
and we Monitor and evaluate together

(MINECOFIN).

In general our relationship with the donor community is good. In our 15

sectors, 7 in town and 8 in rural area, we have NGOs and working closely
with the community of these sectors in their different development
activities.

Here I am talking about their socio-economic

development activities, as you can see it on this chart, (refer to table 4.11),
Mayor of Gasabo.

Which sector(s)
benefited from
foreign

aid from 20002009?

In 2000 our economy was worse than in 1990s because

of Genocide. This was the time of reconstruction and

Rehabilitation, the PRSP was the guidance as poverty strategy. From

2003-2005 things changed: socio life, enrolment of students, gender
equality also quite good but with a bit need of change in economic
empowerment.

Service sector was also high, but we realize that all of these are not propoor programs. The poverty remains.

From 2006, the agriculture was the one to be focused in

to contribute to the growth; the industry, investment...
were too slightly contribute to the economy

(MINECOFIN).

MDGs are
No. If you know well the history, MDGs come later after
principles that only
serve a

political ideology
and are serving

our Vision 2020, which means that when we saw or

cosmetic and
window dressing
purposes.

heard about the September 2000 UN declarations on

Do you agree?

MDGs, we said excellent, we are in a right way and

From your own point of view what other effects can you highlight which are caused by poverty
and hunger on 5 Zanda?\1\RFiR-economic development?

also high in our district; it is another effect of poverty. (Mayor Gasabo

District)

Does Rwanda face

technical challenges

Yes we account some challenges here and there with

with regard to
implementation of
MDGs?

What about your

Organization?

regard to the implementation of MDGs. Rwanda have a

good Political will even good programs and plans, but we have also the
challenge in Monitoring and Evaluation of these to attain MDGs targets...
( MINECOFIN)

There is a general
consensus that
poverty

is a threat to
Rwanda?s socioeconomic

Yes it is, but if I have first to start by explaining what

poverty is:

development. What
- first, there is poverty or being poor in mind;
is your reaction?

- second to be poor by lack of means of production

(financial material).

Rwanda had to change its population mind, because since the time we
have got foreign aid with a new way of thinking, educated, empowered
mentally, economically and financially we could be developed. The tied
aid was there but we could not see or understand those conditionalities
because of our extreme poverty; or even if we knew that this Aid is going
back to their country somehow, we could not accept that in these past
decades.

Poverty is a threat to Rwanda?s socio-economic

development; let even go through our history, people
killed each other, Rwandans to Rwandans this was a lack

of development, instead of developing ourselves we killed each other, so we really need a new
mindset and look at our future, plan for poverty alleviation, not for poverty stagnation.
(MINALOC)
Yes, poverty is a threat to Rwanda?s socio economic development. You can not be developed
economically or socially, when you lack of the living necessities. Poverty for me is in our mind
and in the lack of means. We need our population being educated and empowered with means of
productions. Education will change our mind and with those means we will use them properly to
develop ourselves socially and economically. (Mayor GASABO).

Do you agree that instead of promoting 5 ZEndE?hThRFiR-economic development, foreign aid

creates a dependency syndrome?

This can happen in some countries but not generally. For example our country is Independent
hundred per cent in education area, we are injecting our own money, the basic education in for
free 9 years education and in Health, there is "Mutuelle the Sante" medical insurance where a
person is only contributing 1000RwF/almost 2$ per year for medication, and the rest is the
Government's subsides. (MINALOC)
So if you can see, we need aid in economic development and sustainable one, not something we
do today and not

having it tomorrow. In general I can say we still need Aid

today. ...( MINECOFIN)

Some Schools of thought argue

that poverty and hunger are
functional. Do you agree in
relation to Rwanda?s socioeconomic development?

Yes I agree, these are function in our society. This is a

retroactivity of poverty. It changes from a place to another. If
we knew that we are poor, we could take care and plan for
tomorrow. ...( MINECOFIN)

What are Rwanda?s main

resources in terms of
importance? Do any of these
contribute to Rwanda?s GDP?

The main resources of the district are different taxes from our
taxpayers and services offered by the district. (Mayor of
Gasabo District).
Yes, especially taxes contribute to Rwanda's GDP.
Mining, Agriculture, Industry and Manufacturing,
services...( MINECOFIN, MINALOC)

Can Rwanda do without

Vision
Umurenge Programme in its
attempt to fight poverty and
hunger?

The Vision Umurenge Program is very effective; its content is

the population will. The results are clear, positive... We can do
without it if something new emerges in a positive way.
( MINECOFIN)

How sustainable is foreign aid Foreign Aid is not sustainable at all. For now, we can say we
in the mainstream of Rwanda?s need Aid in technology (ICT sector). Technical assistance yes,
socio-economic development? because we don?t have the capacity, but we need them to teach
us when they are in mission for developmental projects so that
our development sector could sustain. We need aid on
Infrastructure sector and

ICT and good Management of what we have

settled... (MINECOFIN)

We need Aid and we steel need Aid and I can see in 10 years of

driving. Why do I say so? Because when you look at our low
growth economy, if you look in terms of our population
income, we will get our own capacity

(domestic resources) in those 10 years. I am not seeing

Foreign Aid after that time. We are planning for

employment creation, creating SMEs and our priorities
are in rural area where we plan for rural transformation.

All of these are the pillars of our mid and long human
development strategies, EDPRS and Vision 2020

MINALOC.

Are you aware that Rwanda has Yes we have MDGs. I can not name them but we have a
MDGs?

If yes can you name them?

baseline, where we mark our achievement concerning

MDGs data. ...( Mayor of Gasabo)

Yes, I am aware of MDGs as one of Government?

planners (MINECOFIN, MINALOC)

4.2.1.1 Interpretation and Analysis

Based on the above views, it can be noted that poverty is a threat to Rwanda?s socio economic
development. Rwanda?s economy is facing some challenges including low agricultural
productivity; famine and cyclical droughts; low human resource development; limited
employment opportunities; high population density and growth; high transport costs and

environmental degradation. These microeconomic problems give rise to the following

macroeconomic difficulties: structural trade deficit; high vulnerability to terms of trade shocks
due to heavy dependence on two export crops - coffee and tea; structural imbalance between
Government revenues and expenditures; negative savings; and low level of private investment.
As it has been explained by one GoR?s planner, a lot has been done to eradicate poverty and
increase socio economic development. He said:Rwanda?s needs must be accompanied by a
change in the way in which both the Government and its development partners conceptualize
aid, so that together we ensure that assistance to Rwanda has maximum impact on the lives of
the Rwandan citizen. The rest of the officials (interviewees and questionnaire respondents) were
indeed aware of MDGs and were able to think of poverty and foreign aid at macro-level. They
gave the overall impression that poverty was indeed a threat to the socio-economic development
of Rwanda; and that indeed foreign aid was an indispensable facility.
However, others felt that much as foreign aid was vital, there was need to couple aid with
training programs which would leave the beneficiaries self-reliant in the end so as to avoid
dependency syndromes. Government officials actually hammered that donors need fall in line
with development priorities of Government rather than pursue own agendas. The findings may
seem to be consistent with what was obtained through the questionnaire method. However, it can
be concluded that a number of challenges that affect the effectiveness of Aid lies directly or
indirectly with the negative attitudes held by different partners. These include the donor, the
boundary partners in the middle and the recipient at the end of the continuum.
The fact that the community appreciates the impact of foreign aid in a positive manner is worthy.
However confirms the functionalist?s view that society has interdependent parts that must work
together and meet the societal basic needs or functional prerequisites (Meena 1992).
4.2.2 Data from Observational schedules
The target group/s were Donor Community and beneficiaries as depicted in the pictures below
that were taken at Kimironko and Rutunga sectors respectively.

Source: photo by the Researcher

In light of the limitations that were experienced in order to gain entry into some specific groups
of respondents, the researcher resorted to using the observational method which is hailed by
Dooley (1995), for its ability to generate first hand data. Several Donors were approached in
advance to avail time for an interview on the effectiveness of their operations and they accepted
in principle (Please see annex). However, when the time came for them to be interviewed they
were almost conspiratorially mum? about. They all kept their cards close to their chests, citing
one reason or the other as excuses. Some Donor officials referred all matters to higher officials
who would in turn refer the researcher to other higher officials until it became impossible; thus
politely denying the researcher access to their operations. Upon further pressing for access, the
researcher was then advised by some officials who vowed to remain anonymous as a condition
for disclosure that all Development Partners officials were made to sign an oath of secrecy upon
entry as a critical precondition for employment. It would seem therefore, judging from their
unprecedented reservations that this oath of secrecy is stronger than the Official Secrecy Act.
On second analysis it would seem that this reticence is deliberate: to shut off the public from the
internal operations of the organisations. Some of the government officials who work with the
Donors pointed out that the organizations declared their intentions and were helped by
Government to channel their aid to particular areas but they never really disclosed the sources of
their finance, the amounts and how those amounts were broken down among the organisations
employees, the boundary partners and the intended beneficiaries. Because of this information
blackout it becomes difficult to dismiss some of the arguments by pessimists? who claim that
some of the NGOs are created to ease unemployment in their homelands so that the bulk of the
monies disbursed benefit directors (who are almost always citizens of guest countries), and also
that the intended beneficiaries receive only but a trickle, thus making aid merely a faade hiding
ulterior motives which are never disclosed to host governments.
Some critics take the argument even further, stressing that the majority of such NGOs are
essentially political institutions working to effect regime changes in host countries in line with
foreign policies of guest countries to keep subordinate countries under perpetual dependency,
thus sustaining the horse-rider relationships between them.
If the above observations are anything to go by, NGOs then cease to angels of mercy; rather they
become messengers of doom. It then explains why their activities are shrouded in secrecy, thus
also buttressing reservations by some government officials that foreign aid does not in the long
run improve the socio-economic development of Rwanda, but that, rather it encourages
dependency. A brief analysis of the responses of target beneficiaries may prove the contrary.
Kimironko Sector is one on the Sectors constituting the District of Gasabo which forms a part of
the urban Section of Kigali City. This Sector hasCentre Cesar; a women cooperative involved in
various economic activities that include tailoring, handcrafts as well as an internet caf. The
artisans, about 86 in total, create key chains, pen, USB key and cell phone holders from
beadwork. During the school vacation, they are joined by around 70 secondary students to
continue their work. There are another 12 artisans who embroider various motifs for greeting
cards and wall hangings, and more than 14 tailors who produce dresses, shirts, pants, school
uniforms and a really nice line of sleep wear for sale in Canada and Rwanda. The school aged

children of the widows receive sponsorship from Canadians to continue their primary and
secondary educations, infants come to the center with their mothers during the day, and toddlers
too
young
to
attend
school
go
to
the
daycare
built
by
the
center (http://www.in2eastafrica.net). One may observe that after 1994, Rwanda? socioeconomic development was to be taken into account by all stakeholders.
One of the group member described poverty as something bad which happen to people whereby
one is in a situation where you have No clothes, no food, no body oil, where he/she is afraid of
others, hopeless and no confident of yourself. Poverty destroys our welfare, one cannot sit and
chat with others comfortably; you feel empty when you are poor even if you have been to school.
You cannot even talk in public, leave a life without future, without objectives; with poverty you
don?t even think, no constructive ideas.
More information given by one respondent aptly was that poverty for a Rwandan especially the
genocide widow is the strength you got to work and do whatever possible to get something for
your family (mean to get food and other living necessities in need). Even if I am poor, I want to
work hard and change the welfare of my family, all my household for the better, she
said. Another went further to claim, Poverty creates bad things, bad habits, I think even
genocide was caused by poverty; people were poor somehow, financially, economically, and
mentally. Poverty can make people work tirelessly, trying to get something even if is not
enough. The poor always have to think of something to do, even the cheapest job, which some
are shamed to do for example the prostitution.
Given this background, the Sector of Rutunga occupies the rural section of Gasabo District. The
villagers generally agreed that any aid including foreign aid is welcome. Notably, all of them
never seemed to think of aid in terms of development at national level. They conceived aid only
in terms of their local poverty, leaving this impression to the researcher that only those who are
well up have the indulgence of analysing whether aid came with strings, the nature of the strings
etc; the real poor did not. Such an impression leaves a feeling of guilt even on the researcher:
Perhaps government needs to do more to raise the standards of living of its people so that they
can be able to see things in a broader light than the castles of their skins.
4.2.3 Documentary Analysis Procedures
As observed by Lincoln and Guba (1985) that qualitative evidence is quite critical, it follows
that, in this current study a number of official documents were scrutinized and a particular focus
was placed on the milestones registered so far. This constituted the bulk evidence of desk
research.
Table 4.7: Documentary Analysis Procedures

Official Document Link with MDGs

Substantiating evidence

and
Foreign aid

Annual reports on
progress of MDGs

1. Rwanda Development

The documents?
preambles and

It is reported that institutional

Indicators

introduction and
forewords are

reforms were instrumental in

targeting the
eradication of

SrRPRWQ I .5 ZEQ3Ir sREIR-

poverty in the
context of

economic development hence the

MDGs as well as

high rise in production levels.

acknowledging the
role of the

Donor community

2. Annual report of the

The 2008 Annual report reports

Government of Rwanda

that 2008 has been a rewarding

and Development
partners.

year and saw implementation of

economic development and poverty

Reduction Strategy (EDPRS)

getting underway. Through aid, Rwanda is no
longer a country burdened by shadows of the
past.

Documentary evidence
on
foreign aid (material
and
financial)

1. Official Development

This is a viable
weapon to

ODA acknowledges the receipt of

assistance (ODA) report fight poverty

food aid from UNWFP.

2. Donor division of
labour in

The adoption of a donor

Rwanda

performance assessment

Framework (DPAF) was a major milestone in

fighting poverty.

Inter-ministerial
reports on conduct of

donors

This is GoR?s
instruments in

1. Rwanda Vision

poverty reduction

The Vision 2020 is backed by the

Presidential Decree powers; this evidence

makes researchers conclude that the foreign aid
and its link to socio-economic
development cannot be
overstressed.

2. Rwanda Aid Policy

The fact that the policy is endorsed by the

Cabinet makes it a powerful instrument.

4.2.3.1 Registers of Donors

A register of foreign aid providers was also seen an indication that Rwanda?s socio-economic
development is being aided. Furthermore some development assistance databases for quality
assessment were also scrutinized.
Table 4.8: NGOs / 2010 registered in Gasabo District

Name

Action for
Health&
Integreted
development

ACCESS/JHPIE
GO RWANDA

Area of
intervention

Kinyinya

Domain Statu
d'intervention ts

Health

ING
Os

Health

ING
Os

Tel

E-mail

788301311 bishamara@vahoo.fr

ADRARWANDA

Jabana,
Jali,GIrmro,N
duba
Education

AFRICA
ANCHOR OF
ICamatamu
HOPE INC: AOH Gatabal7

AFRICA
MUSLIMS
AGENCY

NDERA

AFRICAN
RELIEF FOR
DEVELOPMEN
T
Remera

ING
snemanager@adra.or
Os
0788309281 g.rw

ING
rugira moses@yahoo.
Education,Health Os
0788517715 fr

Education

ING
kigali000ama@gmail.
Os
0788641984 com

ING
Education,Health Os
0788683270 mjabush@gmail.com

Rusorr,
AFRICARE
Glcmro,Nder Health,Education( ING
africarerwavahoo.co
Rwanda Program a
OVC)
Os
0788531699 m

AKILAH
INSTITUTE FOR Kimironko/H
WOMEN
osp
Education

ING
Monique@Akilahlnst
Os
0785525881 itue.org

Capacity
building,

ING
Os

AQUADEV
CENTER
AFRICA

Business& micri
finances

ING
Os

AVOCATS SANS Remera

Training

ING 0788306719 rwa-cm@asf.be

ARDIF

ICacyiru

FRONTIERES:A
SF

BETWEEN
FOUR EYES

Os

ICacyiru,Giso TOT,Health,
zi
Education

ING
irepashiu,@gmail.00
Os
0783005900 m

BREAST
CANCER

Health

ING
Os

Catholic agency
for Overseas
development,:CA
FOD

Social,

ING
Os

CATHOLIC
RELIEF
SERVICES
RWANDA

Gasabo

ING
Education ,social Os

CDI-AFRICA

Gasabo

ING
Training,research Os

CHABHA(Chiklr
en affected by
HIV/AIDS)
ICacyiru

CHF
INTERNATION
AL RWANDA

Health

Gisozi/FAWE Health, nutrition

788301378

snzayisenga@rw.caro
.crs.org

ING
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KacyiruGisozi TOT,Health, ducatio INGOs 0783005900 irepashizo@gma.com
of them are there for long-time and have to reregister every year) must assist the District in the
Ovrse pCAO G 7 as Tninar INGOs
technical and financial domains. (PDD, Gasabo District, 2007)
The anticipated interventions in the District of Gasabo have a value estimated at 132 M US
dollars which are equivalent to approximately 72.7 billion Frw which shall be raised as follows:
Table 4.9: Estimates of different budgetary sources (ibid.)

Potential Source

In Millions of dollars

Block transfer from MINECOFIN for development projects

Earmarked annual transfers

4,

Mobilisation of District resources

Different donors (partners grouped in JAF)

10, 700

832

Based on the content of this table 4.12 shF IIIQGEQJNIKRZ sNds IRIFIJQ dIGEiQ GdsdER
BsrWs?s development activities is prime need and present almost 50% of the development
budget. At the country level development partners are, as a collective, increasingly providing
funds through budget support mechanisms as illustrates by the figure below:
Figure 4.12 Composition of External resources

In 2006, total Official Development Assistance (ODA) to Rwanda reached $603 million,
equivalent to roughly 27 per cent of Gross Domestic Product (GDP), with a very substantial
share provided by multilaterals and global programmes (MINECOFIN, 2007). In 2006, 26 per
cent of external grants took the form of budget support, increasing to about 30 per cent in 2007
as new partners joined Rwanda?s Budget Support Harmonisation Group (BSHG).
4.2.3.2 Interpretation and analysis
Based on the findings from official documents scrutinised, it can be interpreted that MDGs in
Rwanda are complemented by various strategies hence the issue of foreign aid cannot be
underestimated at all cost .To this effect it stands to reason that foreign aid is important. Finally,
while good cooperation is characterised by mutual exchange of ideas about methods and
solutions, development partners too frequently continue to promote their own objectives and
methods at the expense of the beneficiary?s ownership. Much of the cooperation is still
offRwanda?s socio economic development and therefore not aligned with Government?s
Strategic Plan and administrative systems. In order to make the cooperation more effective,
modalities must be designed to reform and simplify donor policies and procedures to encourage
collaborative behaviour and progressive alignment with Government?s priorities, systems and
procedures. In the final analysis it was felt that aid was still inevitable but that aid programs must
be accompanied by national productive programs which will eventually sustain the economy
without aid.
4.3 Chapter summary
The Chapter has focused on data presentation, interpretation and analysis. It has further explored
and exposed the perceptions and attitudes of society with regard to the impact of foreign aid on 5
ZEndE?\,\RFiR-economic development as guided by MDG1, basing on the qualitative and
quantitative evidence from respondents and re\0ErFh011\ Rb\0rvEtiRn. The next chapter presents
a summary of major findings, conclusion of the entire study as well as elaborate
recommendations for future attention and study respectively.

CHAPTER FIVE: SUMMARIES, CONCLUSIONS AND RECOMMENDATIONS

5.0 Introduction
This chapter presents a summary of the research findings. It further makes conclusions and gives
recommendations for the study on the basis of the findings of this study in relation to the major
research questions and objectives set in chapter one of this particular study. The study principally
focussed on the impact of foreign aid on Rwanda?s socio-economic development as guided by
Millennium Development Goal 1 (MDG1). The samples used were also representative in nature
taking into account the principles of generalizability as observed by Lincoln and Guba (1985).
The study was confined to both males and females from Gasabo District of Kigali City. The
study was also conducted through the use of both qualitative and quantitative research
methodologies.
The findings however are generalizable to other District settings not studied in Rwanda and other
developing nations particularly because of the combination of both quantitative and qualitative
research methods that were employed. The principles of validity and reliability (credibility and
trustworthy) were taken care of in the study. The thrust of the study revolved around providing
answers to the key question: 3What impact does Foreign Aid have on Rwanda?s socio-economic
development as guided by Millennium Development Goal (MDG)1 Eradication of extreme
poverty and hunger?
5.1 Summary of the major findings
Following recommendations by Borgdan and Biklen (1992), themes formulated from the
research questions shall guide the summary of major findings. As such, the major findings in this
section are presented in the order of the research questions set out in chapter one of this study as:
What is the effect of poverty and hunger on Rwanda?s socio-economic development? Does
foreign aid enhance Rwanda?s socio-economic development?
Do citizens of Rwanda appreciate the introduction of MDGs as guiding principles for poverty
alleviation?
How effective are Rwanda?s strategic policies on poverty reduction?
How sustainable is foreign donor assistance towards the reduction of poverty and hunger; and
how do the beneficiaries evaluate the impact ofsuch foreign aid on the local and national socioeconomic development?
It was established that the foreign has an instrumental role in the promotion of sustainable
socioeconomic development in the country. The results of the investigations comprehensively
affirmed this. Although other respondents had certain perceptions, the general consensus was that

the foreign aid acts as a panacea to the problems that developing countries face and particularly
those that affect their social, economic and political development respectively. Foreign aid was
also hailed for its attempt to cover critical issues with regard to alleviation of poverty and hunger
which are main focus of MDG1.
The study came out with findings similar to those by Gruinseit et al. (1997) in which foreign aid
was described as having an instrumental role and standing as a "powerful bullet" for the
combating of poverty. Respondents felt that some cultures segregate women?s active
participation in developmental programmes hence they are not beneficiaries some programmes
meant to eradicate poverty through donor /foreign aid intervention. The findings corroborate
Ezewu?s (1983) observations that culture as an index of social identity has an impact on the day
to day live experiences of a people. In this respect, it varies from place to place hence may
dictate the way people may view and interpret certain issues in society.
The study established that there are a myriad of constraints associated with the issues of foreign
aid and poverty alleviation and this has ripple effects on socio-economic development. These
range from social, economic, technological and political challenges. However, the findings
pointed to the fact that there are vast prospects with regard addressing the challenges. Of late,
global partnership have as stressed in MDGs Progress Report for Zimbabwe (2004) been at the
core of addressing the challenges. The global packages and other internationally initiated
programs for developing nations that are associated with globalization are by no means regarded
as prospects in the context of positively promoting socio-economic development in the context
of foreign aid through eradicating extreme poverty and hunger. Through globalization other
practices that were viewed as alien to customary conventions are increasingly getting accepted.
5.2 Conclusion of the study
The study concludes that citizens of Rwanda studied appreciate the fundamental role played by
foreign aid in enhancing socio-economic development as guided by MDG1. They further
acknowledge its positive impact in combating poverty among the general populace. The results
show that the socio-economic development and eradication of poverty has been negatively
affecting both social and economic problems at both the district and national levels. If these
challenges are addressed, the results show that there may be evidence to suggest that
socioeconomic development and eradication of poverty would thus be effective.
The study further concludes that the socio-economic development and eradication of poverty
remains the fulcrum upon which efforts to promote sustainable development rests upon. The
results indicated that challenges faced by developing nations with regard to perceptions on
foreign aid and poverty eradication ultimately require a prescription in the form of collaborative
engagement by various key stakeholders. Existing policies and literature relating to foreign aid
that systematically excludes females require rigorous reviews and constant editing to meet the
ever changing socio-cultural lives of the citizens. By and large, the study concludes that the
effective administration of foreign aid and implementation of poverty alleviation programmes
and MDGs require a collective engagement among Government, private and public organisations

and civil society to refine the citizens? perceptions in an attempt to combat the high prevalence
of poverty and promote sustainable development.
5.3 Recommendations for this study
The following are recommendations offered with respect to the effective administration of
foreign aid and implementation of poverty alleviation programmes in developing nations in an
attempt to improve its effectiveness in combating poverty and promoting all-encompassing
development through MDGs.
There is need for a collaborative approach where various stakeholders would actively
disseminate information on the effective administration of foreign aid and implementation of
poverty alleviation programmes in developing nations.
Aid to be effective on poverty eradication, must be given on a flexible basis and not tied to a
rigid criteria. The move to sustainable growth requires a shift of international financial support
from humanitarian assistance to a long term, flexible and sustainable support for development.
Policy makers and Citizens must be staff-developed, trained or exposed to some effective
administration of foreign aid and implementation of poverty alleviation programmes in
developing nations as key stakeholders so as to share their expectations in order to put
constructive input in the mainstream of socio-economic development.
The Governments of developing nations have to adopt a human rights approach to development
that pays special attention to equality and non-discrimination; this to avoid wars and violent
conflict which continue to disrupt livelihoods, destroy infrastructure, reverse gains and damage
the investment climate.
Principal administrators must effectively monitor and evaluate the effective administration of
foreign aid and implementation of poverty alleviation programmes in developing nations.
The strong partnership between Government and Developement Partners in many areas such as
micro-credit, non formal education and assistance with social mobilization is required to
contributed effectively to the successful socio-economic performance and poverty reduction of
the country.

This study principally recommends the need for a wider research on a wider scope to establish if
some of the findings raised in this study can be generalized.

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Association http://www.bera.ac.uk/questionnaire/#use Development Partners
Website:http://www.developmentpartners.rw/index.php Government of
Rwanda: http://www.gov.rw/
IRIN News: http://www.irinnews.org/
MDGs: www.developmentgoals.org

Ministry of Finance and Economic Planning: http://www.minecofin.gov.rw/

Poverty in Rwanda: http://www.uk.oneworld.nt/guides/Rwanda/poverty
Quality of Life Index. Economist Intelligence Unit. Retrieved
from http://www.economist.com World Bank: www.worldbank.org
World Bank: http://www.iresearch.worldbank.org

APPENDICES
Appendix 1 : Map of Rwanda

Appendix 2: Approval letter from WUA, BRD and letter from DFID

130

Appendix 3: Rwanda Development Partners by Sector

Appendix 4: Coordination Questionnaires, Interview and FGDs

QUESTIONNAIRE ON FOREIGN AID, RWANDA'S SOCIO ECONOMIC
DEVELOPEMT AND MILLENNIUM DEVELOPMENT GOALS (MDGs)
A. PRELIMINARIES
My name is MUKARUTESI Claire Marie Michele; I am a student with the Women?s University
in Africa Zimbabwe pursuing a Master of Science Degree in Development Studies I am carrying
out a study on the Impact of Foreign Aid on Rwanda?s socio-Economic Development as guided
by Millennium Development Goal I (MDG1). Your response will be accorded the due respect
B. BACKROUND INFORMATION
1. Organization:

GO

N/A

Government
2. Sex: Male Female
3. Age
4. Qualifications
C. QUESTIONS
5 Is poverty a threat to Rwanda?s socio-economic development?How
6. Does poverty have functional benefits on society? YesNo
Inwhat respect .............................................................................
Does Foreign Aid help or assist in Rwanda?s socio-economic development?
Yes
No
Explain......................................................................................................
Does foreign aid create a dependency syndrome on Rwanda?
Yes No How......................................................................................................
9. Do you know that Rwanda has MDG
I dont I do
How did you get to know
10. Is there any link between MDGs and Rwanda?s ruling class political ideology?
11. Can you rank the MDGs in order of priority? (1-8) Indicate rank position in the box. Exam
Improve maternal health
Ensure environmental sustainability

Develop a global partnership for development Combat HIV/AIDS, malaria, and other diseases
Achieve universal primary education
Eradicate extreme poverty and hunger
Promote gender equality and empower women Reduce child mortality
Which poverty eradication strategy is the best in Rwanda?
PRSP EDPRS None
Why do you say so?
13. Is foreign aid sustainable in purely Rwanda?s socio-economic development?
Yes
No
Inwhat sense?.................................................................................
14. Do the beneficiaries appreciate the impact of foreign aid in Rwanda? Yes
No
Why.........................................................................................................
15. How have been the relations between Government of Rwanda and the Donor Community
since 2000-2009?
a. Fair
b. Bad
c. Good
d. Extremely good
e. Extremely bad
16. Which sector(s) benefited from Donor community from 2000-2009?
a.
Health Sector

b. Local government
c. Education sector
d. Agricultural sector
e. Others
17. Does Rwanda face technical challenges with regard to implementation of MDGs? Yes
No Explain
18. Do Donor Community experience attitudinal challenges in their efforts to assist those in
needy?
Yes No
19. What are Rwanda?s main resources in terms of importance?
a.
Mining
b. Agriculture
c. Industry - Manufacturing
d. Services
20. Do any of these contribute to Rwanda?s GDP?
Yes
Not
Explain.................................................................................................
..
THE END !
THANK YOU.
INTERVIEW GUIDE FOR DONOR ORGANIZATIONS AND GOVERNMENT
OFFICIALS
BACKGROUND INFORMATION

1. Name of Organization (Pseudonym)

2. Respondent/Representative
3. Experience
4. Qualifications
5. Age
Introductory Remarks
This interview is prepared to collect data and essential information relevant to socio-economic
impact of foreign aid on development in Gasabo - Rwanda. Your participation in this interview
will help to achieve the objectives of the study. The information which you provide will be kept
strictly confidential. Thus; you are kindly requested to give your honest response. Thank you!
Interview Questions
1. How have been the relations between Government of Rwanda and the Donor Community
since 2000-2009?
2. Which sector(s) benefited from foreign aid from 2000-2009?
3. What are Rwanda?s main resources in terms of importance? Do any of these contribute to
Rwanda?s GDP? (Mining, Agriculture, Industry and Manufacturing, services).
4. There is a general consensus that poverty is a threat to Rwanda?s socio-economic
development. What is your reaction?
5. From your own point of view what other effects can you highlight which are caused by
poverty and hunger on Rwanda?s socio-economic development?
6. Some Schools of thought argue that poverty and hunger are functional. Do you agree in
relation to Rwanda?s socio-economic development?
7. Some say without foreign Aid, Rwanda?s socio-economic development would be null and
void. Do you affiliate to this view?
8. Do you agree that instead of promoting Rwanda?s socio-economic development, foreign aid
creates a dependency syndrome?
9. Are you aware that Rwanda has MDGs? If yes can you name them?
10. MDGs are principles that only serve a political ideology and are serving cosmetic and
window dressing purposes. Do you agree?

11. Which MDG would you prioritize if you where among political planners and why?
12. ,Is Rwanda?s Vision 2020 effective in the process of poverty amelioration? If yes or not
how?
13. Some argue that Rwanda?s EDPRS is not effective in as far as poverty eradication is
concerned? Do you affiliate to this motion?
14. Can Rwanda do without Vision Umurenge Programme in its attempt to fight poverty and
hunger?
15. How sustainable is foreign aid in the mainstream of Rwanda?s socio-economic development?
In other words, is Rwanda socio-economic development sustainable through aid?
16. Do the beneficiaries appreciate the impact of such aid on local and national socioeconomic
development?
17. Does Rwanda face technical challenges with regard to implementation of MDGs? What
about your Organization?
FOCUSED GROUP DISCUSSION: SCHEDULE (FOR COMMUNITY)
GUIDING QUESTIONS
1. What is your understanding of poverty? Is it functional in society? Mwumva mute ubukene?
Ubukene ni iki? Ese hari icyo buhindura mu muryango nyarwanda?
2. Do you think that Rwanda?s socio-economic development will prosper without foreign
aid? Muratekereza ko Iterambere ry'ubukungu n'imibereho myiza y'abaturage ryabaho hatari
imfashanyo y'amahanga?
3. Are you aware of the existence of Rwanda?s MDGs? If yes, how did you get to know? Ese
muzi ko u Rwanda rufite intego z'Ikinyagihumbi? Ni zihe? Niba ari yego wazimenye ute?
4. Do MDGs meet or address the needs of citizens, socially, economically and politically? Ese
intego z'ikinyagihumbi zaba zivuga ku bibazo abanyarwanda bafite mu mibereho myiza yabo,
mu bukungu ndetse no muri politiki?
5. If you were among policy planners, which MDG would you prioritize? Can you rank
them? Iyo uza kuba mu bafata ibyemezo mu gihugu, ni iyihe ntego y'ikinyagihumbi wari
kugira iya mbere? Ngaho zitondekanye.
Improve maternal health
Guteza imebere ubuzima bw'ababyeyi

Ensure environmental sustainability

Kubungabunga ibidukikije ku buryo burambye
Develop a global partnership for development
Kubaka ubufatanyabikorwa mw'iterambere ku rwego rw'isi Combat HIV/AIDS, malaria, and
other diseases
Kurwanya virusi itera SIDA na SIDA ubwayo
Achieve universal primary education
Gushyiraho uburezi bw'ibanze kuri bose
Eradicate extreme poverty and hunger
Kurwanya ubukene bukabije n'inzara
Promote gender equality and empower women
Guteza imbere ubwuzuzanye n'uburinganire no guha abagore ubushobozi Reduce child
mortality
6. Can you defend the following strategies used by Rwanda in eradication of poverty?Ese hari
Ingamba zo kurwanya ubukene u Rwanda rwaba rwarafashe? Ni izihe? Mwazivugaho iki?
7. Can you comment on the sustainability of foreign aid on Rwanda?s socio-economic
development? Wavuga iki ku burambe bw'imfashanyo y'amahanga mu iterambere
ry'ubukungu n'imibereho myiza by'u Rwanda?
8. Does foreign aid change your livelihoods for the better? Ese imfashanyo y'amahanga hari
icyo ihindura mu mibereho yanyu? Hari icyo ibungura, sobanura neza