Inequality: peaked at 0.52 in 2005/6, then down to hat trick of rapid growth, sharp poverty reduction and reduced inequality

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2 Source: WDI, 2013

3 1995: 70%, 1999/2000: 59%, 2005/6: 57%, 2010/11: 45% Inequality: peaked at 0.52 in 2005/6, then down to 0.49 hat trick of rapid growth, sharp poverty reduction and reduced inequality

4 World Bank (2013): fertilizer etc., nonfarm employment, social protection of poorest, fertility decline Booth and Golooba-Mutebi (2012): a set of arrangements for managing economic rents in a centralized way and deploying them with a view to the long term Serneels & Verpoorten (2013), Andrea & Verpoorten (2013): post-war catch-up

5 Guariso et al. (2012); Ayalew et al. (2011) Basinga et al. (2010) Nkurunziza et al. (2012) Westoff (2013); Kabano et al. (2013) ; Muhoza et al. (2013) genocide & civil war new inheritance law new constitution introduction 1994 with equal rights with gender quota PBF a, Imihigo b (counter)insurgency for girls increase & free and family mandatory refugee crisis health budget mandatory planning health insurance primary campaign education

6 Does the recent poverty and inequality reduction represent a true reversal of a trend? How can the data be reconciled with contrasting findings from qualitative fieldwork at the local level? Can economic growth continue to outpace population growth? Can development in Rwanda be sustained if the country continues to score very low on voice and accountability?

7 Does the recent poverty and inequality reduction represent a true reversal of a trend? total annual rainfall in 2010 was 50% higher than in 2005; post-war base was very low cosmetic upgrading of rural life

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9 Housing / Durables Has electricity (%) Radio (%) Health Delivery at health care facility (%) c Maternal mortality rate d n.a n.a. 476 Infant mortality Under-5 mortality All vaccinations (% children months) Households owns mosquito net (any type, %) n.a Education Mean years of education, men Mean years of education, women NAR Primary school, total NAR Secondary school, total

10 Housing / Durables Has electricity (%) Radio (%) Health Delivery at health care facility (%) c Maternal mortality rate d n.a n.a. 476 Infant mortality Under-5 mortality All vaccinations (% children months) Households owns mosquito net (any type, %) n.a Education Mean years of education, men Mean years of education, women NAR Primary school, total NAR Secondary school, total

11 Housing / Durables Has electricity (%) Radio (%) Health Delivery at health care facility (%) c Maternal mortality rate d n.a n.a. 476 Infant mortality Under-5 mortality All vaccinations (% children months) Households owns mosquito net (any type, %) n.a Education Mean years of education, men Mean years of education, women NAR Primary school, total NAR Secondary school, total

12 Housing / Durables Has electricity (%) Radio (%) Health Delivery at health care facility (%) c Maternal mortality rate d n.a n.a. 476 Infant mortality Under-5 mortality All vaccinations (% children months) Households owns mosquito net (any type, %) n.a Education Mean years of education, men Mean years of education, women NAR Primary school, total NAR Secondary school, total

13 DHS survey round Use of contraception a Any method (%) Any modern method (%) Ratio of Delivery at health care facility (%) b indicator between Assistance of trained personnel (%) top and All vaccinations (% children months) bottom Households owns mosquito net (any type, %) wealth n.a Net attendance ratio c Primary school, total quintile n.a Secondary school, total n.a Notes: Own calculation on the basis of DHS data. a Among married women. b Of life births in the last three years preceding the survey. c The NAR for primary school is the percentage of the primary-school-age (7-12 years) population that is attending primary school. The NAR for secondary school is the percentage of the secondary-school age (13-18 years) population that is attending secondary school.

14 DHS survey round Use of contraception a Any method (%) Any modern method (%) Ratio of Delivery at health care facility (%) b indicator Assistance of trained personnel (%) between top and All vaccinations (% children months) bottom Households owns mosquito net (any type, %) wealth n.a quintile Net attendance ratio c Primary school, total n.a Secondary school, total n.a. 4.74

15 DHS survey round Use of contraception a Any method (%) Any modern method (%) Ratio of Delivery at health care facility (%) b indicator Assistance of trained personnel (%) between top and All vaccinations (% children months) bottom Households owns mosquito net (any type, %) wealth n.a quintile Net attendance ratio c Primary school, total n.a Secondary school, total n.a. 4.74

16 Use of contraception a DHS survey round Any method (%) Any modern method (%) Ratio of Delivery at health care facility (%) b indicator Assistance of trained personnel (%) between top and All vaccinations (% children months) bottom Households owns mosquito net (any type, %) wealth n.a quintile Net attendance ratio c Primary school, total n.a Secondary school, total n.a. 4.74

17 In sum: DHS data indicates improvements in health and education, And, in general, a pattern of convergence across wealth quintiles in line with the poverty and inequality decline recorded in EICV3

18 Social engeneering, cosmetic changes while these measures are designed to make a significant portion of rural dwellers look less poor, they are likely to be and feel as poor, or even poorer, than before (Ingelaere, 2011) Health Delivery at health care facility (%) c Maternal mortality rate d n.a n.a. 476

19 Public versus hidden transcript?

20 In sum: DHS data indicates improvements in health and education, And, in general, a pattern of convergence across wealth quintiles in line with the poverty and inequality decline recorded in EICV3 While some changes may be cosmetic, there is also evidence for real improvements in quality-of-life measures.

21 Determinants: public health expenditure (%) almost doubled since : introduction free and mandatory primary education. aid flows increased since 2004 to 2* prior to the war the worst forms of corruption are kept in check government technically capable to manage programs performance-based financing (PBF) in health care performance contracts (imihigo) obligatory mutual health insurance (2008) economic growth was broad-based

22 How can the data be reconciled with contrasting findings from qualitative fieldwork at the local level? land consolidation, crop specialization, imidugugu (villagization)

23 How can the data be reconciled with contrasting findings from qualitative fieldwork at the local level? land consolidation, crop specialization, villagization One may still feel more poor because of coercive measures, and rapid social transformation which leads to winners and losers (in absolute or relative terms).

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26 Material welfare: income Annual household net income /ae (2011 prices, RWF) panel, N= ,614 60,725 Income composition Farm wage 7.0% 6.2% Non-farm wage 7.2% 7.6% Non-farm self 9.4% 10.1% Farm self 60.0% 56.7% Beer 7.2% 6.6% Livestock 10.5% 12.6% Material welfare: assets Land size (ares) TLU a Household composition Household size Female headed (%) 49.6% 46.5% Household member imprisoned (%) 7.4% 6.6% Inequality Gini of net income /ae Gini of land size Gini of TLU

27 Income quintile s in 2002 Income quintiles in

28 Social categories Nr % Cum % Income / ae 08 Land 08 (ares) Livestock 08 (TLU) Female head 08 Income change Umutindi nyakujya Those in abject poverty , Umutindi The very poor , Umukene The poor , Umukene wifashije The resourceful poor , Umukungu The food rich , Umukire The money rich ,

29 Categories in 2002 Umutindi nyakujya Categories in 2008 Umutindi Umukene Umukene wifashije Umukungu Umukire Umutindi nyakujya Umutindi Umukene Umukene wifashije Umukungu Umukire

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31 Have you recently been feeling reasonably happy all things considered? Hari ubwo mu minsi ishize ya vuba aha, wumvaga wishimye bihagije muri rusange? Nr % Cum % Income / ae 08 Land 08 (ares) Livestock 08 (TLU) Female head 08 Income change strongly disagree disagree agree strongly agree

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33 In sum: Lots of upward and downward mobility through income distribution Much less social mobility Self-reported poverty about 50%; unhappiness about 30% Relative income changes rather than levels important for happiness Land crucially important for income, income mobility, social categories, social mobility and happiness

34 Key message: there may be a mismatch between subjective measures of wellbeing and static measures of material welfare, especially in a context of rapid transformative changes that lead to winners and losers (in relative terms) and affect the traditional land-based livelihoods.

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36 Rapid economic transformation: transform agriculture into a productive, high value, market oriented sector, with forward linkages to other sectors ok but

37 Rapid economic transformation: transform agriculture into a productive, high value, market oriented sector, with forward linkages to other sectors ok but unlikely that the pace of transformation will slow down; even in a scenario with low fertility 20 million by 2050, 800 inhabitants per square km, 3* as on the eve of the genocide.

38 Grievances may be higher if: coercive measures top-down design and implementation Achilles heel of the Rwandan success story: voice and accountability. severe and hardly concealed political and societal repression in Rwanda (fuelling of violence across the border with Congo)

39 authoritarian approach instrumental in bringing about transformative changes without much overt protest danger that any positive achievement this may yield will be undone certainly if relative winners and losers align with a group identity

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41 Rigorous impact evaluations of the different policies and events that may account for the progress in health and schooling A careful study of various subjective measures of well-being and their determinants A thorough analysis of the different agricultural policies, and how they affect land and income inequality, and subjective well-being Research aimed at increasing agricultural productivity of very small landholdings Research on the capacity of the non-farm sector to absorb more labor, skilled and unskilled

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43 panel, N= Material welfare: income Annual household net income /ae (2011 prices, RWF) 47,268 48,223 60,985 Income composition Farm wage 7.7% 8.7% 7.2% Non-farm wage 2.0% 8.1% 6.8% Non-farm self 6.9% 7.9% 10.2% Farm self 69.9% 59.3% 55.0% Beer 6.3% 8.1% 6.9% Livestock 7.2% 9.3% 12.1% Assets Land size (ares) TLU a Household composition Household size Female headed (%) 17.0% 41.5% 40.3% Household member imprisoned (%) 7.4% 6.3% Inequality Gini of net income /ae Gini of land size Gini of TLU ,61 in EICV3; 0,57 in Southern region 0,55 in EICV3; 0,58 in Southern region

44 panel, N= Material welfare: income Annual household net income /ae (2011 prices, RWF) 47,268 48,223 60,985 Income composition Farm wage 7.7% 8.7% 7.2% Non-farm wage 2.0% 8.1% 6.8% Non-farm self 6.9% 7.9% 10.2% Farm self 69.9% 59.3% 55.0% Beer 6.3% 8.1% 6.9% Livestock 7.2% 9.3% 12.1% Assets Land size (ares) TLU a Household composition Household size Female headed (%) 17.0% 41.5% 40.3% Household member imprisoned (%) 7.4% 6.3% Inequality Gini of net income /ae Gini of land size Gini of TLU panel, N= Material welfare: income Annual household net income /ae (2011 prices, RWF) 54,614 60,725 Income composition Farm wage 7.0% 6.2% Non-farm wage 7.2% 7.6% Non-farm self 9.4% 10.1% Farm self 60.0% 56.7% Beer 7.2% 6.6% Livestock 10.5% 12.6% Material welfare: assets Land size (ares) TLU a Household composition Household size Female headed (%) 49.6% 46.5% Household member imprisoned (%) 7.4% 6.6% Inequality Gini of net income /ae Gini of land size Gini of TLU

45 if poverty and inequality can be further reduced in the country s growth process, and relative winners and losers do not align with a group identity, economic grievances may be kept in check, perhaps sufficiently so to counterbalance political grievances. This is however a dangerous bet, and the first-best would probably be to aim at an improvement of economic as well as governance indicators.

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