Fishing Lure: To help Rwanda draw tourists, a Dubai company is investing millions in hotels, and a U.S. group has plans to build an eco-lodge at this site on Lake Rweru. | Photograph by Marcus Bleasdale
Francis Gatare, chief of Rwanda's export and invesment promotion agency, is helping to map his nation's future | Photograph by Marcus Bleasdale
Nobody likes to say "No, Mr. President." So three years ago, when Costco CEO Jim Sinegal got a call from shareholder Dan Cooper, a partner in Chicago's Fox River Financial Resources, asking if he'd have lunch with Rwandan president Paul Kagame, he agreed. That meeting in New York led to a presidential stop at Costco HQ near Seattle. Which led to Sinegal's promise to visit Rwanda. "I made it in a moment of weakness," he says, "before I realized how long it takes to get there." He ended up taking his whole family, and today Costco is one of the two biggest buyers of Rwandan coffee beans -- about 25% of the country's premium crop, by Sinegal's estimation. Without Cooper's introduction, "no way would this have happened. I knew the Rwanda story, but I wasn't intimately involved," Sinegal says. "It took more elbow grease to get this started up, but it has been very profitable. Good for us and good for them."
Very good for Rwanda, in fact. Sinegal introduced Kagame to Howard Schultz, the CEO of Starbucks, now the other top buyer of the country's coffee. On Kagame's last swing through Washington, Sinegal and Schultz cohosted a dinner with Seattle-area execs from companies including Microsoft. And last fall, Sinegal started an internship program for Rwandans at Costco.
The courtship of Sinegal is a clarion example of Rwanda's strategy for development. The country doesn't have much going for it. It's landlocked, largely deforested, and ridiculously packed: About the size of Vermont, it has 16 times more people. Fifteen years after the genocide that killed an eighth of the population, its name still brings to mind death. Nine of every 10 adults are subsistence farmers, and per capita income is less than a dollar a day. Rwanda has no oil and few minerals. But it does have one abundant asset: well-placed friends.
Sinegal. Schultz. Former British prime minister Tony Blair. "Purpose-driven" pastor Rick Warren. RealNetworks founder and CEO Rob Glaser. Google CEO Eric Schmidt. All are part of Rwanda's ever-expanding network of influential supporters. President Kagame's goals are ambitious: to boost GDP sevenfold, find paying jobs for half of Rwanda's subsistence farmers, nearly quadruple per capita income to $900, and turn his country into an African center for technology, all by 2020. The government is doing what it can -- it has, for instance, committed to investing annually 5% of its GDP in science and technology by 2012 -- but to reach those goals, it's going to need outside assistance.
Kagame's strategy relies on wealthy and powerful friends to lure private investment, train a new generation of managers, build a globally competitive economy, and wean the country off foreign aid. Even as troubling questions remain about Kagame's involvement in the region's ongoing conflicts, this unpaid, business-savvy team is marketing the brand called Rwanda.
Just as the Asian Tigers arose as export-led, middle-income economies in the 20th century, Rwanda wants to become the African Gorilla in the 21st. It seems crazily audacious -- and Rwanda's leaders know it. "We're trying to create a new model for fighting poverty. Nobody believes that it's possible," says éliane Ubalijoro, a researcher at Montreal's McGill University who serves as a Kagame adviser. "How do you take a country that's been through hell and bring it to security and prosperity? This is about healing, and this is about hope. We think it can be done."
On a good day, Rwanda sparkles like an emerald. One warm December Saturday, I drove the road from Kigali northwest toward the Congolese border, the tourist route to the country's famed gorillas. The sunshine darted across the steep mountainsides. Even the dull gray-green eucalyptus shone in the late-afternoon light.
Ahead of me, lumbering up the hill, was a big blue truck. On the back, someone had painted happiness is forward. You just have to hope that's right, especially since reminders of the 1994 genocide are omnipresent -- roadside memorials, signs pointing to churches -- turned -- massacre sites, work crews of jailed genocidaires in their shockingly pink prison clothes.
Hutu-versus-Tutsi violence did not begin in 1994: There was 1959. 1962. 1964. 1973. 1992. But 1994 was the worst. In 100 days, 1 million people died, 90% of them Tutsi. Shot in their beds. Bludgeoned in the streets. Smashed against brick walls. Dismembered by grenades ... in their churches. And the world? It did nothing. It left Rwanda to the killers, who turned out to be neighbors, classmates, even relatives.
The tragedy was, as tragedies often are, both formative and transformative. This one brought to power a rebel army composed largely of fighters who had long been exiled; Kagame, its chief, grew up in Uganda. During the 15 years that he has effectively run Rwanda, Kagame has stabilized the country, but he hasn't yet been able to bring prosperity. Despite annual economic growth of about 6%, Rwanda still ranks 194th out of 208 countries on the World Bank's most recent per capita income table. The ramifications of poverty are more than economic: Kagame's desire to transform the economy is rooted in the belief that poverty exacerbated the tensions that erupted into 1994's genocide. "We know that if that past is never going to happen again," the president told Fast Company in an email, "we must grow our economy, create opportunities for higher wages, so that we create the conditions for tolerance, trust, and optimism."
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Recent Comments | 72 Total
March 20, 2009 at 6:31pm by Foreign Affairs Policy Guru
Thank you for sending me this informative article. I did not realize that Rwanda has made such great strides in such a short time. Keep up the good work!
-- Foreign Policy Guru
http://www.forumforforeignaffairs.blogspot.com
March 21, 2009 at 2:48pm by Randall Gordon
Hearing about people doing such work is truly inspiring. Seeing evidence of the people who understand why it is more important to teach a man to fish than to give him a fish, is refreshing.
What really hits it home is President Kagame's comment, "No country can depend on development aid forever. Such dependency dehumanizes us and robs us of our dignity." Don't just send your money—which eventually runs out—send your mind and create a future!
March 22, 2009 at 8:49pm by John Karanja
Rwanda's President has recently advocated for Africa to stop its dependency on Economic Aid from Rich countries. This is in line with Dambisa Moyo's thesis that Aid is bad for Africa because it replaces Entrepreneurship with complacency and dependency. I largely agree with this notion.
March 23, 2009 at 7:04pm by Mugisha Alex
I am proud to be Rwandan."All successful people men and women are big dreamers. They imagine what their future could be, ideal in every respect, and then they work every day toward their distant vision, that goal or purpose." - Brian Tracy. Long live our visionary government whose main man is our president, H.E Kagame Paul. I have ideally admired 2020....
March 24, 2009 at 5:10pm by a scrantonian
NOT JUST A HEART FOR THE POOR, BUT A MIND FOR THE POOR
Congratulations on writing an article that matters. Whilst other prestigious American business magazines are retrenching, closing up offices abroad, letting go of journalists who speak languages and know the world; you have produced an article about a nation that has broken the existing paradigm of economic development:paternalism, charity, and sentimentality. If Rwanda continues on its current trajectory: healing wounds, growing its economy, and setting the bar higher for other post-conflict nations, this article may well be regarded as having depicted that point of inflection in history, where small nations began to place the locus of responsibility for peace and prosperity on their own shoulders, using business as a force for positive change, turning mere sympathizers into friends and benign donors into effective partners. WHAT IS NEXT FOR FAST COMPANY AND JEFF CHU?
March 28, 2009 at 8:05pm by Libby Alton
After half a century and billions in AID that has done little to eradicate poverty, thank you for showing an example of a country taking on these issues on its own terms. With a clear vision and strong leadership, the willingness to live their principles, take risks, learn through failure, and ultimately take control of their own economic destiny, Rwanda is an important story of a new model of development that needs to be told. Thank you for taking the time to write this article.
March 29, 2009 at 6:43pm by Colin Kabiswa
Brilliant article that clearly sets out to explain that having a vision,good leadership, networking and partnerships are the best models that African states have left to deal with poverty.The use of Business methodologies in creating the adage of teach a man/woman how to fish is better than giving the man/woman the fish. Thank you
March 30, 2009 at 10:48am by Stephen Horowitz
What's remarkable about our popular interest in the plight of underdeveloped countries of Africa is our almost total lack of interest in the undeveloped regions of our own country, namely the Indian Reservations scattered throught the United States. The Reservations face the identical problems of high unemployment, poverty and little hope for many of the young people who live there. After years of assorted forms of failed assistance, the best news is that a new generation of inspired Native Americans, often those who have left the "rez" and returned are trying to transform their status as aid clients to bringing about change from within their own ranks. What's needed now is to sort out the confusing issue of Sovereignty and to get the Federal Government to release the funds owed the tribal governments for oil and grazing leases. It's a travesty that this issue is still in the courts and the Federal govt still resists making an honest settlement.
March 31, 2009 at 8:04am by Michael Brennan
For Stephen, I don't think that our interest in Africa supersedes the interest of those in the U.S., be it in the Indian communities, Appalachia or the inner cities. What's interesting about this story is the self-determination of the leaders and their moving away from aid in order to create prosperity. It is refreshing to read about leadership from an impoverished region that uses an innovative approach to develop its economy. I am not alone in hoping this model will work. After years of a trillion dollars in ineffective aid, stabilizations and structural adjustments, things have not gotten better - but are in fact worse in many recipient countries. It is time for a change. The change in the approach and the thinking behind this approach requires that those who are poor believe that they, not someone else, can improve their situation. I thank the author for showing the inner-workings of a group that can set an example for the poor in America. Let's hope this breeds success for everyone.
April 3, 2009 at 5:34am by Richard Gakuba
How nice it feels to be part of this revolution!! Thanks for the brief but very informative article. The comments are also satisfying. The investment opportunities here in Rwanda are so fascinating...the local people just need serious partnerships to set the ball rolling...Thumbs up Jeff Chu.
National e-Health coordinator: richard.gakuba@moh.gov.rw
April 6, 2009 at 1:05pm by Jeff Chu
Thanks, all, for your comments. One of the things that I loved about working on this story is the counterintuitiveness of it: This isn't what people expect to read about Africa. Let me add, though, that the risk is enormous. As anyone in business knows, there are never guarantees of success. Let's just hope this works.
April 7, 2009 at 2:59am by Paul Nantulya
A wonderful article. I have always said that the New Rwanda is a viable model for Africa and should make every African on this continent and in the diaspora tremendously proud. I have interacted with Rwanda's leaders and its people. They are truly exceptional.
April 13, 2009 at 5:11pm by Mike Doherty
I just returned from Rwanda a few weeks ago and found this article to be very representative of what we experienced. Thank you for your article as it helps with what they need most and that is to change the global public perception of this wonderful place.
April 14, 2009 at 2:18pm by Jean Manirarora
To get the latest update on the Rwandan Economy, please read the recent report, entitled “Rwanda Today: When Foreign Aid Hurts More Than It Helps” which is an economic analysis of the situation in Rwanda today prepared by the Hotel Rwanda Rusesabagina Foundation in collaboration with Emmanuel Hakizimana, Ph.D., Université du Québec à Montréal and Brian Endless, Ph.D., Loyola University Chicago.
Some of the key findings include:
1) Members of one minority tribe (the Tutsis) have seven times more representation in the government, per-capita, than members of the majority tribe (the Hutus).
2) In a discriminatory measure, the government recently banned the use of the French language in teaching and administration, despite the fact that the vast majority of Rwandans speak French in addition to Kinyarwanda. French has been used for decades as the language of commerce, education and law in Rwanda. French speaking Rwandans now find their entire careers and livelihoods at risk.
3) Rwanda has gone from being a “low-inequality” country in the 1980’s to being in the world’s bottom 15% in terms of inequality today.
4) One-third of Rwanda’s population now suffers from nutritional deficiencies, and life expectancy is among the 20 lowest in the world at only 44 years.
5) Wealth and power are concentrated in the cities, the government’s stronghold, leaving 92% of the poor in underrepresented rural areas.
The full report is available in English at the following linnk:
http://www.hrrfoundation.org/files/file/RwandaTodayForeignAid.pdf
Thanks.
April 18, 2009 at 10:28pm by Tom Austin
It seems like there are two Rwandas. There is the Rwanda described in this article: a country rising from the ashes of genocide, an emerging market, the Switzerland of Africa, the darling of corporate America, guided by an entrepreneurial president and influenced by the purpose-driven values of pastor Rick Warren. Then there's the Rwanda described in detailed U.N. reports: the country that has invaded neighboring Democratic Republic of Congo twice, a significant factor in two wars that have involved the armies of several African countries and resulted in more than 5 million deaths, hundreds of thousands of refugees, and roving bands of well-armed militias that have committed massive rapes and other atrocities as a way to traumatize and uproot villagers. This other Rwanda, according to U.N experts, has operated a very sophisticated racket to exploit Congo’s mineral wealth while occupying the eastern part of the country either directly or through proxies, which is contributing to Rwanda's economic success (A May 2008 article in Fast Company mentioned the UN reports that suggest Rwanda is among numerous entities "systematically exploiting" Congolese resources). Moreover, Human Rights Watch recently asserted that the Rwanda government is basically a one-party state that “displays a marked intolerance of the most basic forms of dissent.” I hope for Rwanda that the description and aspirations of the country described in Jeff Chu's article will prosper, but not at the expense of its mineral rich but war traumatized neighbor, the Democratic Republic of the Congo.
April 24, 2009 at 5:28pm by a scrantonian
I am surprised that so many of my fellow commentators quote U. N. documents with regard to Rwanda. The U.N. writers possess none of the standards of a journalist; they don't name sources; don't have to use multiple sources; and therefore cannot be viewed critically.
In addition, it was the U.N. that stood by as Rwanda degenerated into chaos in 1994; and the U.N., today, has 17,000 "peace keeping" troops in Congo, the largest force of its kind in history. Isn't it about time that we turn the full force of our critical attention toward examining the competence of the U.N. ? Wouldn't it be fair to question its bias since France, the main supporter of the genocide, and the Americans, who stood blithely by during it, control almost half of the voting rights of the security council at any one time.
Also, another writer has the facts wrong. The Rwanda constitution makes it law that the Rwanda cabinet have proportionate representation of ethnic groups, that the president and P.M. are always different ethnicities, and that 30% of the cabinet, parliament and all mayoral positions go to women. And in fact more than 50% go to women. It may be a fact, that the Rwandan constitution may be the most progressive in the world, a model for France and the USA.
April 25, 2009 at 2:30pm by Jean Manirarora
The Rwanda constitution prohibits the use of ethnic groups in Rwanda.
As Stephen Kinzer pointed it out "Human rights advocates also reject Kagame's view that Rwandans must view themselves only as Rwandans and stop using the words "Hutu" and "Tutsi." [For instance]He allows people to complain, for example, that the country is ruled by a small clique, but not that it is ruled by a small clique of Tutsi. A reporter may assert that Rwandans are miserable, but not that Hutu are miserable". In 2007, a journalist was sentenced to a year in prison for writing that "those who killed Hutu are free" because national leaders "think the Hutu who perished are not human beings." (http://www.latimes.com/news/opinion/commentary/la-op-kinzer22-2008jun22,...)
In addition, Kenneth Roth the Executive Director of Human Rights Watch, from his recent visit to Rwanda wrote: "As many Rwandans have discovered, disagreeing with the government or making unpopular statements can easily be portrayed as genocide ideology, punishable by sentences of 10 to 25 years..."
(http://www.hrw.org/en/news/2009/04/11/power-horror-rwanda).
Maybe a scrantonian is not aware that Rwanda has an new Constitution (50 articles have been recently amended) to include an article that grants ex-presidents immunity,and another one that says that the constitution will now refer to the 1994 genocide as a "genocide committed on Tutsis" instead of "Rwandan genocide" nor "genocide of Tutsis and moderate Hutus" as previously stated....(http://news.bbc.co.uk/2/hi/africa/7511094.stm)
May 11, 2009 at 5:46pm by Bea Spadacini
I really enjoyed reading this incredibly comprehensive article. Thank you. I have done quite a bit of work on Rwanda for a story on reconciliation and healing and know some of the people you interviewed and metioned in your story. I did not however know how well connected the Advisory Council to the President is. your writing is excellent and your research fabulous. Again, thank you for a very informative piece. I worked wiht photojournalist Sarah Bones on a similar feature that focused on healing www.socialdocumentary.com Kindest, Bea
June 27, 2009 at 11:10pm by John Tull
Jean Manirarora (April 25) uses a quote from Stephen Kinzer to argue against the restraints imposed by the Kagame government.
But selective quoting is always double-edged: Kinzer also says in that same article, and in his book, that "It is not surprising, therefore, that most Rwandans today are more eager for security, food, jobs and medicine than for a political system that would guarantee unfettered freedom and fully competitive elections. Only that kind of system, however, meets the one-size-fits-all standard of some human rights groups."
Having lived in East Asia for many years, I have observed the progress that is possible in living standards, economic prospects, etc, across a whole population, through what appears an unacceptably unequal, one-sided political system.
Is it where we in the privileged world would want to be? Generally, no.
But of course we are the beneficiaries of a century or two of slavery, followed by lengthy colonial exploits, that gave us the economic platform for our current incredible wealth.
But given a radically different starting point, which would you choose: a Singapore, which grew out of a war-devastated swamp through iron-fisted resolve to create the society Kagame dreams of? Or a Burma, mired in that swamp by elites with no interest in any such societal development?
July 16, 2009 at 3:13am by Smith William
this article may well be regarded as having depicted that point of inflection in history, where small nations began to place the locus of responsibility for peace and prosperity on their own shoulders.Accelerated degree | Music degree | get degree
July 16, 2009 at 3:14am by Smith William
The Rwanda constitution makes it law that the Rwanda cabinet have proportionate representation of ethnic groups, that the president and P.M. are always different ethnicities, and that 30% of the cabinet, parliament and all mayoral positions go to women. And in fact more than 50% go to women. It may be a fact, that the Rwandan constitution may be the most progressive in the world, a model for France and the USA.doctoral degree | health science school
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August 26, 2009 at 10:16am by andrei mihnea
Much of the success in recent years can be attributed to the International Finance Corporation (IFC), which funds the Rwanda chapter of the Alliance for a Green Revolution. In January, in response to successes like those in Rwanda, the IFC announced that it would double African agricultural investment in 2010, from $189 million (2009) to $468 million.
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August 27, 2009 at 12:18pm by steve houston
I agree, Rwanda is making big strides, despite the fact that it still struggles with extreme poverty. But it has decided to take a different approach to economic growth - private enterprise. Rwanda president Paul Kagame has said dependence on foreign aid is dehumanizing, does not empower the people, and is not a long term fix for digital frames. But by growing economy through trade, the country can become self sufficient d not to mention it also doesn't have to be held accountable to certain standards in the game of geo-politics .
September 4, 2009 at 3:10am by Obianuju Onwuneme
Well-articulated research!--
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September 26, 2009 at 9:35am by Junior Sabex
Oh, what an inspiring article! As a Rwandan this makes me very proud to finally know that the rest of the world believes in us. Like my president says; we dont have much, but the little we have must be used efficiently. Rwanda's main asset is Networking, as Jeff mentioned earlier. And with Networking, one needs a bunch of dedicated, educated and corrupt-free minds. I'm assured Rwanda has won that first-half!
P.S I can't wait to complete graduate school and head home to be a part of this adventure!
October 8, 2009 at 4:33am by Xihann Juez
It's good to know that Rwanda is developing as a nation. I think this is a new beginning for all its citizens. Way to go.
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October 8, 2009 at 7:57pm by elvis tang
Thanks , good idea.
As a Rwandan this makes me very proud to finally know that the rest of the world believes in us. Like my president says; we dont have much, but the little we have must be used efficiently. Rwanda's main asset is Networking, as Jeff mentioned earlier.
October 8, 2009 at 8:04pm by elvis tang
Have a good day, everybody.
Having lived in East Asia for many years, I have observed the progress that is possible in living standards, economic prospects, etc, across a whole population, through what appears an unacceptably unequal, one-sided political system. Digital Photo Frame
I agree with you, john.
October 12, 2009 at 1:09am by apikongzad zadman
I am proud to be Rwandan."All successful people men and women are big dreamers. They imagine what their future could be, ideal in every respect, Thank you
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October 26, 2009 at 7:11am by beobow beobow
I agree, Rwanda is making big strides, despite the fact that it still struggles with extreme poverty.โปรโมทเว็บ apikongzad
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Good if they have started to build the environment again. Rwanda can be an exotic tourist destination. Good luck! Salvage Auto
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Maybe private investment alone is not enough. They also need to focus on foreign direct investment to enhance bigger capital. Icon-Software.net provides visitors with informative articles relating to icon tools, icon resource, icon design teams and other icon related things