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
Poverty, president kagame says, contributed to the genocide. "If that past is never going to happen again, we must grow our economy."
Aid, which still provides nearly half of the budget, is not the answer. The West has spent $1 trillion on aid to Africa over the past four decades. "But no nation has ever attained economic development by aid," says former Goldman Sachs banker Dambisa Moyo, author of the new book Dead Aid. "It's just not productive." Worse, it can be destructive. Corrupt leaders siphon off money; merely inefficient ones squander it. Millions of people end up hooked on handouts.
"No country can depend on development aid forever," Kagame told Fast Company. "Such dependency dehumanizes us and robs us of our dignity." It may also, of course, make him accountable to people outside Rwanda. Last December, following a United Nations report that Rwanda was supporting Tutsi rebels in Congo, the Netherlands and Sweden suspended $20 million in aid. Kagame slammed what he called the donors' "arrogance" -- then arrested the rebel leader and made a deal with the Congolese president.
Businesspeople are seen as less likely to focus on geopolitics, so long as the commercial environment stays secure. "In the future, the engine has to be the private sector," says commerce minister Monique Nsanzabaganwa, who notes that since more than half the populace is under 18, "we need to create jobs to absorb all those young people." The government surely doesn't have the money to hire them all. As Francis Gatare, CEO of the Rwanda Investment and Export Promotion Agency, says, "If you don't have development through investment, you won't have economic growth."
So Kagame sends fact-finding missions to Asia. He pursues the Rwandan diaspora. He speaks at Google and meets American entrepreneurs. He recruits more friends. And it's beginning to look as if his personal strategy -- selling people on Rwanda's story and its promise, telling them that this is a place where they can make a difference as well as profits -- just might work.
Another bunch of crooks. That was what Clet Niyikiza thought in 1994 as he read about Rwanda's new regime. Half-Hutu and half-Tutsi, he had left in 1983, seeing no future for himself, no matter who was in power. Most of his family "thought I was crazy nuts," he recalls, but he immigrated with his wife and children to America, where he built a career as a distinguished drug researcher. (He helped create Aleve.) He became a Hoosiers fan. (His PhD is from Indiana.) He didn't go home. ("Especially after 1994 -- I lost too many people. It was too much pain.")
Then, in 2006, the Rwandan ambassador to the United States introduced him to Kagame. "He put on the table his belief in self-reliance: If you're not prepared to take it in your own hands and move forward, you don't deserve to make any progress," says Niyikiza, a VP of medicine development at GlaxoSmithKline. "I thought, This guy could really change the country."
The following year, Niyikiza visited Rwanda for the first time in nearly a quarter-century. At the end of the trip, Kagame, headed to the U.S., offered Niyikiza a ride home in the presidential jet. On board, Kagame handed Niyikiza a proposal for a presidential commission -- and asked him to join. "He wanted advocates for the country to the rest of the world so Rwanda could effectively bypass the traditional development model," Niyikiza says. "The idea was to do that through relationships."
Since its launch in September 2007, the Presidential Advisory Council has become a high-level, low-profile dispatch team and brain trust. All 16 members -- 10 are non-Rwandan -- are stars in their sectors, from life sciences to telecom to economic-development consulting. They meet twice yearly, once in Kigali and once in New York, for strategy sessions. One member observes wryly that "it's the consultants" -- Monitor Group cofounder Michael Porter, Aslan Global founder Kaia Miller, and OTF Group cofounder Michael Fairbanks -- "who do the most talking."
It isn't just talk; the council has delivered visible results. Tony Blair established a program that sends civil servants from Whitehall to work in Kagame's office. Arkansas investment banker Dale Dawson created a scholarship for Rwandans to study in the United States. McGill's Ubalijoro helped broker a multimillion-dollar deal with Canada's Ecosystem Restoration Associates and Germany's Ecolutions to reforest denuded land and develop alternative energy; the plan is to sell credits on the global carbon markets and split the profits with the Rwandan landowners. Christian Angermayer's Frankfurt-based financial-services company launched an East Africa private-equity fund that has invested in a Kigali bank and a Rwandan banking-IT company. "Rwanda is a place [where] we can make money and also make a huge difference," says Angermayer, the only council member who has significant investments in Rwanda. "The best thing we can do is not to give charity, but to treat it as a normal economy."
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Recent Comments | 34 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
November 6, 2009 at 5:42am by salvage car salvage car
Good if they have started to build the environment again. Rwanda can be an exotic tourist destination. Good luck! Salvage Auto
November 10, 2009 at 12:24am by Diamond Diamond
I hope the government will really support the program, not just in the beginning but also through the development process. fake diamond
November 12, 2009 at 2:08am by Michael Grieco
People helping people, when I see it it is awe inspiring.I am a firm believer that people are what you let them be and this is proof. I can only hope as a defender of my country that we can learn from this miraculous nation and be humbled by the site of thier ascent from despair. we a country who seemingly have everything except the desire and passion of the Rwandan people. I am truly proud to witness this spark of light in such grim times.