Publication: Reshaping Urbanization in Rwanda: Urbanization, Job Creation, and Poverty Reduction in Rwanda
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2017-12
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2017-12-28
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This note analyzes whether and how the country’s rising urbanization levels (measured primarily by population density) are associated with nonfarm job creation and poverty reduction. By focusing on Rwanda’s 416 geographic sectors for the decade from 2002 and 2012, the analysis shows that, overall, a 10 percent increase in population density at the geographic sector level was associated with a 1.2 percent lower multidimensional poverty index and 1.4 point higher share of nonfarm employment. These linkages are estimated to be stronger in the areas with higher population density as of 2002, were closer to Kigali, and/or had better market access. Although increasing population density was profoundly associated with poverty reduction and job creation in secondary cities and areas within a five‐kilometer radius, those linkages are less clear in areas beyond five kilometers from the city cores. The finding highlights the importance of extending economic opportunities to the poor living in the outer areas of secondary cities, which accounts for a third of the country’s poor population. This Note also finds that fewer farmers are poor where fewer nonfarm workers are in poverty in the same areas or surrounding areas, and the latter points to spillover effects.
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“World Bank Group. 2017. Reshaping Urbanization in Rwanda: Urbanization, Job Creation, and Poverty Reduction in Rwanda. © World Bank. http://hdl.handle.net/10986/29084 License: CC BY 3.0 IGO.”
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Publication Reshaping Urbanization in Rwanda(World Bank, Washington, DC, 2017-12-01)Rwanda has demonstrated a remarkable performance in economic growth and poverty reduction in the past decade and a half. With urbanization as an explicit developmental strategy, the government has indeed made significant efforts to prepare a solid foundation on which urban development can take off. The objective of this report is to inform the government’s policies and strategies on urbanization as a driver of economic development, job creation, and poverty reduction, through the following four stand‐alone but closely related notes. Note 1 examines Rwanda’s urbanization process since 2002 by analyzing satellite images and various other sources. Note 2 analyzes internal migration patterns of Rwandan households, mainly based on the last two household surveys, and discusses the main drivers or reasons for migration. Note 3 explores whether and to what extent urbanization, in the sense of increased density and enhanced connectivity has resulted in job creation and poverty reduction in Rwanda. Note 4 provides a detailed analysis of the core secondary cities of the country, discussing their expansion in terms of urban area and population, economic profiles and potential, access to services, and urban development plans. A separate note has been prepared to provide an alternative definition of urbanization in Rwanda, addressing the on the constraints associated with the current definition of urbanization. This Synthesis Note presents the key findings, messages, and recommendations of the overall work.Publication Reshaping Urbanization in Rwanda(World Bank, Washington, DC, 2017-12)Reshaping Urbanization in Rwanda: Economic and Spatial Trends and Proposals is an Advisory Services and Analytics (ASA), jointly provided by the Poverty and Equity Global Practice and the Social, Urban, Rural and Resilience Global Practice at the World Bank. The objective of this report is to inform the Government’s policies and strategies on urbanization as a driver of economic development, job creation, and poverty reduction, through the following four stand‐alone but closely related notes. Stimulating urban economic development, particularly outside the capital city of Kigali, is critical to helping Rwanda to achieve its strategic objective of a 35 percent urban population share by 2020. This note looks at the current growth rates and characteristics of secondary cities1 and other fast‐growing towns outside of Kigali, and assesses the opportunities and prospects for, as well as constraints upon, future economic growth and development. It also sets out key actions required from the Government of Rwanda (GoR) tohelp stimulate growth in these cities and towns. There are multiple population estimates for secondary cities and fast‐growing towns due to the inconsistencies in defining which areas are urban and in defining city boundaries, and thus which sectors to include in estimates of city populations. According to the 2002 and 2012 censuses, the six secondary cities grew at an average rate of 3.3 percent over this period, slower than the national rate of urban growth of 4.1 percent and the rate for Kigali of 4.2 percent. In comparison, the three fast‐growing towns are estimated to have grown at a rate of 5.3 percent, albeit from a lower starting base, between 2002 and 2012. Of the secondary cities, Musanze, Rubavu and Nyagatare are growing most rapidly. The Musanze to Rubavu corridor benefits from (i) the rich agricultural resources along this corridor, and (ii) Rubavu’s proximity to the large market of Goma in DRC. Nyagatare has absorbed significant investment in recent years, and has also benefitted from the high levels of migration to the East of the country witnessed by the most recent inter‐censual period. This is reflected in the findings of Note 2 which identifies internal migration toward the Eastern Province.Publication Reshaping Urbanization in Rwanda(World Bank, Washington, DC, 2017-12-07)The objective of this report is to inform the government’s policies and strategies on urbanization as a driver of economic development, job creation, and poverty reduction. 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