Coordinating China? Managing external cooperation in Rwanda Dr. Sven Grimm (DIE) Rising Powers Workshop 2, London 23 September 2010
Overview 1. Why coordinate aid at all? 2. Is Chinese cooperation with Rwanda aid? 3. Rwandan aid management 4. Obstacle for coordinating Chinese aid
Why coordinate aid rather than have a thousand flowers blossom? Evidence suggests negative effects of uncoordinated aid on governance Small administrations clogged up with reporting Agendas differ rivalling concepts or piecemeal approaches Based on this discussion: Paris Declaration and Accra Agenda Ownership, alignment, harmonisation, mutual accountability, results-orientation Including for South-South cooperation?! (Accra?)
Is Chinese cooperation with Rwanda aid? I Problem with definition/distinction Elements of ODA definition: State-to-state Grant element of at least 25% and aimed at the development of the partner country i.e. we explicitly searched for activities that were likely to qualify for ODA had the definition been applied.
Is Chinese cooperation with Rwanda aid? II Chinese engagement in Rwanda Agriculture Agricultural Demonstration Centre (FOCAC) Joint Agricultural Project Bamboo Aid Project Health Team of doctors in Kibungo (since the 1980s) New construction of a hospital with malaria research (FOCAC) Education 2 rural schools (FOCAC) Scholarships (around 30, last year: 8) Infrastructure (roads) Concessional loan for road maintenance in Kigali (3-5% interest) with 35% grant element of an overall USD 36m
The Rwandan context Least developed country Few if any natural resources, land extremely scarce National market as outlet: tiny Strategic location (near East Congo)? Highly aid dependent country (ca 50% of budget is aid) Donor darling, i.e. high number of donors (29 bilaterals) But also: Clear development strategies (overall vision, sector strategies ) Clear leadership for development (rather too much than too little)
Development partners in Rwanda by sectors Agriculture: 11 development partners AfDB, Belgium, Canada, UK, EU, Japan, US, World Bank, China, Egypt, Netherlands Education: 11 (or 13) development partners AfDB, Belgium (silent partner with UK), Canada, UK, Japan, Netherlands (silent partner with UK), Sweden, World Bank, Korea, China, India, South Africa, Egypt Health and Population: 12 development partners Belgium, Germany, UK, US, World Bank, Switzerland, China, Global Fund, South Africa, Nigeria, Cuba, Egypt
The Rwandan aid coordination system
The Rwandan aid management II Including China? Invitations to annual Development Partners Meeting Request to report on Division of Labour exercise Statements about China among the Asian donors And Western donors start asking questions (BSHG) Yet: political level statements of China being different (Kagame) Grab what you can attitude in some govt. Departments i.e. some mixed signals towards Chinese actors
Obstacles to Chinese inclusion Chinese representation in the country Embassy and Economic Councilors physically separate What is the range of manoeuvre for the embassy? Implementation usually through companies, no state agency Linguistic difficulties Differences within the govt. of Rwanda? China as investor or aid provider? Channel for Chinese aid different from other donors (except Japan) Civil society? Very limited debate in Rwanda Western donors: serious engagement with China?
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