Publication: Future Drivers of Growth in Rwanda: Innovation, Integration, Agglomeration, and Competition
Loading...
Date
2020
ISSN
Published
2020
Author(s)
Editor(s)
Abstract
A strong and widely acknowledged record of economic success—including a three-and-ahalf- fold increase in per capita income since 1994—places Rwanda among the world’s fastest-growing economies. Traumatic memories of the 1994 genocide are gradually fading, as associations begin to take a more positive form—of a nation on the rise, powered by human resilience, a sense of common purpose, and a purposeful government. Past successes and a sense of frailty have fueled aspirations for a secure, prosperous, and modern future. Sustaining high rates of economic growth is at the heart of these ambitions. Recent formulations of the nation’s Vision 2050 set a target of achieving upper-middleincome status by 2035 and high-income status by 2050. Future Drivers of Growth in Rwanda: Innovation, Integration, Agglomeration, and Competition, a joint undertaking by experts from Rwanda and the World Bank Group, evaluates the country’s possibilities and options in this endeavor. The report identifies four essential drivers of growth—innovation, integration, agglomeration, and competition—and reforms in six priority areas: human capital development, export dynamism and regional integration, well-managed urbanization, competitive domestic enterprises, agricultural modernization, and capable and accountable public institutions.
Link to Data Set
Citation
“World Bank Group; Government of Rwanda. 2020. Future Drivers of Growth in Rwanda: Innovation, Integration, Agglomeration, and Competition. © World Bank. http://hdl.handle.net/10986/30732 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Unleashing Prosperity : Productivity Growth in Eastern Europe and the Former Soviet Union(Washington, DC : World Bank, 2008)The analysis presented in this report assembles, for the first time, evidence from a variety of sources in the countries of Eastern Europe and the former Soviet Union to show that policy and institutional reforms are important in achieving higher productivity growth. However, significant challenges remain in sustaining that growth. Many countries that started the reform process early, such as the new member states of the European Union, have come to resemble advanced market economies and face challenges in competing successfully in the global economy that are similar to the challenges faced by other European countries. For these new European Union members, the report argues, policies that facilitate innovation and firm expansion will be a key. But for other countries that started the reform process later, such as the countries of Southeastern Europe and the former Soviet Union, there is still a need to address the legacy of transition. For these countries, policies that accelerate restructuring and ease the entry and exit of firms will continue to be essential. This report - part of a series of regional studies of the World Bank's Europe and Central Asia region that has already covered poverty and inequality, the enhancement of job opportunities, trade and integration, migration and remittances, and the challenges posed by aging populations is intended as a contribution to the author thinking about how the World Bank may work more effectively with client states and other partners in the region to promote growth and foster higher living standards in a rapidly changing World.Publication Cambodia - A Better Investment Climate to Sustain Growth : Second Investment Climate Assessment(World Bank, 2009-04-01)The objectives of this Investment Climate Assessment (ICA) are to: (i) provide an up-to-date, fact-based analysis of the business environment for policy-makers in the Royal Government of Cambodia (RGC), the private sector, civil society, and development partners; and (ii) outline priorities for improving the business environment and suggest policy options. The body of this report is comprised of three chapters. Chapter one gives a picture of the private sector in Cambodia in early 2008, including its structure, main features, and overall performance across key sectors and nationwide. The sectors featured are: garments, food packaging, telecoms, and finance. Chapter two reviews the business environment, starting with existing firms' perceptions of the business environment, and then goes into more depth on each dimension. The chapter concludes by discussing which of these challenges are truly binding constraints on growth. Chapter three, after taking stock of on-going reform efforts, concludes with some key directions for reform and a few concrete policy options for the short and medium term.Publication Lao Development Report 2014 : Expanding Productive Empoloyment for Broad-Based Growth(Washington, DC, 2014-10)Recent media reports of a perceived skills problem in Lao PDR have spurred an intense focus on skills development initiatives. Alarming media coverage of rising wages and complaints among firms of a shortage of skilled workers has raised concerns over whether Lao workers are equipped with the skills sought by firms. The Government and other partners have responded by channeling more resources to skills development, for example with investments in vocational training facilities to train more workers. This report argues that the workforce problems which Lao PDR faces do not only stem from problems in the education sector. Looking only to skills development as a solution would not address the fundamental problems constraining economic growth, employment creation, and poverty reduction. Creating an environment conducive for farm and non-farm businesses to make investments and grow remains an essential first step for skills development. As World Bank (2004) states, Training does not create jobs. Skills are a derived demand and that demand depends on policies for growth and employment creation.Publication From Technological Catch-up to Innovation : The Future of China’s GDP Growth(World Bank, Washington, DC, 2012-01-02)This report stats that income gaps among countries are largely explained by differences in productivity. By raising the capital/labor ratio and rapidly assimilating technologies across a wide range of activities, China has increased factor productivity manifold since 1980 and joined the ranks of middle income countries. With the launch of the 12th FYP, China has set its sights on becoming a high income country by 2030 through a strategy combining high levels of investment with rapid advances in technology comparable to that of Japan from the 1960s through the 1970s, and Korea s from the 1980s through the end of the century. The report concludes that the best bet is an innovation system anchored to and drawing its energy from a competitive national economy. Technological progress and the flourishing of innovation in China will be the function of a competitive, globally networked ecosystem constructed in two stages during 2011- 2030. Government technology cum competition policies will provide impetus in the first stage, but success will hinge on the quality of the workforce, the initiative and policies of firms, the emergence of supporting services.Publication Hashemite Kingdom of Jordan - Development Policy Review : Improving Institutions, Fiscal Policies and Structural Reforms for Greater Growth Resilience and Sustained Job Creation (Vol. 2 of 2)(Washington, DC, 2012-06)Jordan's quest for long-term, inclusive and sustainable growth has remained largely elusive. By the Growth and Development Commission's measure of success, namely, an average growth rate of 7 percent over 30 years, Jordan's growth record cannot be dubbed 'successful'. This Development Policy Review (DPR) shows that sustaining growth and reducing unemployment is possible: Jordan has a strong human capital base, a large endowment in engineers, doctors, accountants, Information Technology (IT) specialists and a substantial highly-skilled diaspora (500,000 educated Jordanians abroad, 8 percent of the population). Furthermore, the market-oriented reforms of the early 2000s have made Jordan one of the most open economies in the Middle East and North Africa Region and have led to the emergence of dynamic non-traditional sectors (e.g., information and communication technologies, health tourism and business services). What is missing are: (i) an adequate and stable institutional framework for policymaking and long-term business development; (ii) good fiscal policies to manage shocks and maintain macroeconomic stability; good institutions and macroeconomic stability were identified by the growth commission as two of the five common characteristics of successful growth experiences; and (iii) further growth-enhancing structural reforms.
Users also downloaded
Showing related downloaded files
Publication Global Economic Prospects, January 2025(Washington, DC: World Bank, 2025-01-16)Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.Publication Applying the Degree of Urbanisation(European Union/FAO/UN-Habitat/OECD/The World Bank, 2025-01-31)This manual develops a harmonised methodology to facilitate international statistical comparisons and to classify the entire territory of a country along an urban-rural continuum. The degree of urbanisation classification defines cities, towns and semi-dense areas, and rural areas. This first level of the classification may be complemented by a range of more detailed concepts, such as: metropolitan areas, commuting zones, dense towns, semi-dense towns, suburban or peri-urban areas, villages, dispersed rural areas and mostly uninhabited areas. The manual is intended to complement and not replace the definitions used by national statistical offices (NSOs) and ministries. It has been designed principally as a guide for data producers, suppliers and statisticians so that they have the necessary information to implement the methodology and ensure coherency within their data collections. It may also be of interest to users of subnational statistics so they may better understand, interpret and use official subnational statistics for taking informed decisions and policymaking. This report has been produced in close collaboration by six organisations, the European Commission, the Food and Agriculture Organization of the United Nations (FAO), the United Nations Human Settlements Programme (UNHabitat), the International Labour Organization (ILO), the Organisation for Economic Co-operation and Development (OECD) and The World Bank.Publication Inequalities in Sub-Saharan Africa(Washington, DC: World Bank, 2025-01-17)The growing disparity between the rich and poor remains a critical challenge, affecting countries across all continents, irrespective of their per capita gross domestic product. This widening gap not only impedes efforts to eradicate extreme poverty but also hinders progress toward social justice and resilience-building. Rising inequalities pose substantial barriers to sustainable development, and it is within this context that this book, 'Inequalities in Sub-Saharan Africa: Multidimensional Perspectives and Future Challenges', contributes to ongoing debates, offering a comprehensive analysis of the current challenges and future perspectives of inequality on the African continent. Despite the intensification of calls for wealth taxation and inequality reduction, progress has been slow. A key challenge lies in creating a viable political path for implementing progressive taxation policies. Resistance from those benefiting from the current system often stalls efforts, making progress difficult. Moreover, reducing inequality requires mechanisms that address inequality at its roots. Policies targeting education, competition, financial market regulation, and industrial development all hold the potential to create equitable economic opportunities, ensuring access to credit, job creation, and more-balanced economic growth. Despite facing unique, profound challenges, Africa is often overlooked in these global discussions. This book seeks to place the continent’s issues of income inequality, unequal access to education and health care, climate vulnerability, and inclusive growth at the center of the conversation. The book further advocates for innovative policies, including competition reforms and bargaining frameworks that shift the balance between capital and labor. Given that inequality in Africa is deeply rooted in historical, economic, and institutional factors, a stronger focus on pre-distribution policies is necessary. These systemic changes can help reshape the conditions under which inequality emerges and persists. In addition to policy reforms, it is vital to strengthen the research and academic infrastructure that underpins the understanding of inequality. Equity concerns must be addressed within the scientific field, and African research capabilities must be bolstered. This volume, written in collaboration with the African Center of Excellence for Inequality Research, calls for a greater focus on empowering African researchers as part of a broader development strategy. By doing so, it aligns with the World Bank’s and the Agence Française de Développement’s commitment to supporting research as a critical tool for sustainable development.Publication Greater Heights(Washington, DC: World Bank, 2025-03-12)Twenty-seven countries have reached high-income status since 1990. Ten of these are in the Europe and Central Asia region and have joined the European Union. Another 20 in the region have become more prosperous since the 1990s. However, their transition to high-income status has been delayed. These middle-income countries have found that the prospects for growth to high-income status have become even more difficult since the 2007–09 global financial crisis. This reflects partly a slowdown in structural reforms at home and partly the challenges associated with a deterioration in the global environment. The concern has emerged that many countries in the region may be caught in the middle-income trap, a phase in development characterized by a recurring deceleration in growth and by per capita incomes that are systematically below the high-income threshold. To ensure that these countries overcome the obstacles to growth and achieve progress toward high-income status, policy makers need to make the transition from a strategy driven largely by investment to a strategy that is supported by the importation and diffusion of global capital, knowledge, and technology and then to a strategy that complements these with innovation. The report Greater Heights: Growing to High Income in Europe and Central Asia relies on the 3i strategy described in World Development Report 2024—investment, infusion, and innovation—to propose policy options to assist middle-income countries in Europe and Central Asia in the effort to reach high-income status. Drawing on comprehensive empirical analysis, the report offers actionable recommendations that will enable policy makers to advance stronger economic growth across the region. Such a transition will require continued and sustained foundational reform to maximize the drivers of economic growth while pivoting to new transformative reforms to promote the development of more complex economic structures and institutions. These involve the need to discipline incumbents, boost the role of the private sector, strengthen the competitive environment, and reward merit. The emphasis on a strategy driven by innovation is also critically important for those countries that have already attained high-income status.Publication Services Unbound(Washington, DC: World Bank, 2024-12-09)Services are a new force for innovation, trade, and growth in East Asia and Pacific. The dramatic diffusion of digital technologies and partial policy reforms in services--from finance, communication, and transport to retail, health, and education--is transforming these economies. The result is higher productivity and changing jobs in the services sector, as well as in the manufacturing sectors that use these services. A region that has thrived through openness to trade and investment in manufacturing still maintains innovation-inhibiting barriers to entry and competition in key services sectors. 'Services Unbound: Digital Technologies and Policy Reform in East Asia and Pacific' makes the case for deeper domestic reforms and greater international cooperation to unleash a virtuous cycle of increased economic opportunity and enhanced human capacity that would power development in the region.