Abstract
This paper discusses the applicability of the concept of a developmental state in Africa through a case study of Rwanda. It analyzes the country’s unconventional institutional framework that enables the acceleration of ‘primitive accumulation,’ a leap from pre-capitalism to capitalism, which is an important step for facilitating entrepreneurship in the country. The developmental state can be defined as one that attempts to deploy its administrative and political resources for economic development. The Rwandan state has several attributes of the classic developmental state: a transformative leadership with a developmental vision, closely intertwined business, and political sectors to build an entrepreneurial society and a highly effective public bureaucracy. What makes Rwanda different from states with similar developmental ambitions is its unique post-genocidal setting and special homegrown solutions. The 1994 genocide was a shock that moved Rwanda out of the high-corruption equilibrium and opened a window of opportunity for deep-seated reforms. Homegrown solutions combine classic developmental tools with indigenous knowledge and mobilize people to take part in the long-term development of their country. Rwandan innovative ideas prove that private enterprise, rather than charity, might be a sustainable solution for poverty in Africa. Ordinary Rwandans feel part of Rwanda Inc. and society’s extensive involvement ensures exceptionally wide support for the regime: The government and military are backed by 80–90 % of the population in most of their endeavors.
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Notes
- 1.
The basic features of true bureaucracies as defined by Max Weber are whether recruitments for public positions involve impersonal meritocratic criteria and whether those recruited might look forward to long-term career rewards approximating those of the private sector.
- 2.
Collier and Gunning (2008) have identified a so-called African intertemporal syndrome, when the government transfers resources from the future to the present, sacrificing future incomes for present gains. Burundi is a classic example of this syndrome between 1960 and 2000. Adam and O’Connell (1999) emphasize that these predatory systems are sustainable if members of the governing elite get enough income to ignore long-term negative effects of their strategy on the country’s economy (since it is not in their interest to take those effects into account).
- 3.
Businesses needed ‘godfathers’ working in the civil service or in the military to be lucrative. In return for their godfathers’ services, these businesses financed the Rwandan political elite.
- 4.
‘Corrupt officials usually cannot steal cash directly, as that would be easily detected; instead, they need to go through a variety of more convoluted procedures to extract rents. These convoluted procedures themselves may induce inefficiencies…’ (Pande and Olken 2012: 16).
- 5.
Some researchers are skeptical and point out that mentioning corruption charges is an exceptionally effective and swift method for ‘removing personnel who are out of line politically’ (Bertelsmann Foundation 2012: 26).
- 6.
This subject will be discussed in more detail later in Sect. 9.4.5.
- 7.
Published in the book In the River They Swim: Essays from Around the World on Enterprise Solutions to Poverty.
- 8.
‘Top officials tend to be politically appointed, as is customary in most countries…’ (Bozzini 2014: 18).
- 9.
In 2013, Rwanda raised US$400 million from the Eurobond it issued and in 2014, the Rwf15 billion treasury bond was oversubscribed by 232 %. By May 2015, the Rwandan government had issued its fifth treasury bond.
- 10.
The program is based on the premise that providing a dairy cow to a poor household helps to improve its livelihood. Since its introduction in 2006, more than 203,000 families have received cows. The target is to reach 350,000 Rwandese families by 2017 (Ministry of Agriculture and Animal Resources 2015).
- 11.
Together with Ubudehe (a participatory problem-solving mechanism reintroduced in 2001, based on the long-standing Rwandan practice and culture of collective action and mutual support to solve problems within a community), Umuganda (monthly community work based on the tradition that members of the community will call upon their family, friends, and neighbors to help them complete a difficult task), or Gacaca (in 2002, Gacaca courts were revived to process criminal cases related to the 1994 genocide. Contemporary Gacaca draws inspiration from the traditional model by replicating a local community-based justice system with the aim of restoring the social fabric of society), etc. (Source Rwandapedia.rw).
- 12.
The government, especially the President of Rwanda Paul Kagame, is often criticized abroad for narrowing the political space. The political settlement in Rwanda indeed excludes elite groups that do not accept a ban on ethnic politics as well as genocide perpetrators or ideologists of the genocide. Thus, power is shared among political groups that agree with the government’s boycott of ethnic sectarianism.
- 13.
Using business processes and resources to produce higher margin (highly profitable) products.
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Biedermann, Z. (2016). The Case of Rwanda as a Developmental State. In: Achtenhagen, L., Brundin, E. (eds) Entrepreneurship and SME Management Across Africa. Frontiers in African Business Research. Springer, Singapore. https://doi.org/10.1007/978-981-10-1727-8_9
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