Job creation as a factor to poverty reduction

INTRODUCTION

Rwanda has developed astonishingly since 1994 with its economic growth remaining constant since 2001 (i.e 6.3%). Its economic growth also gained Rwanda anonymity as one of the top economic performers in Sub-Saharan Africa and as a model of postconflict reconstruction. Despite these accomplishments, the country is still marred by a high poverty rate (56.9% of the total population), an escalating population density and a high demographic growth. This, combined with a recent wave of population migration, has contributed to Rwanda‟s current problems of: deforestation, soil erosion, insufficient and crop production. These problems have in turn led to food insecurity (28% of the total population) and a persisting cycle of extreme poverty (37% of the total population).

To address these challenges, the Government of Rwanda (GoR) has adopted a global “Vision 2020”, which focuses on a 7% annual economic growth in order to reduce poverty. It also focuses on private sector development and the modernization of the agricultural sector. In accordance with its mission, Vision 2020 aims for Rwanda to become a regional center of excellence in providing quality services to the Central and Eastern countries in Africa. To achieve these objectives of Vision 2020, the Government has worked out a short-term development plan called the Economic Development Poverty Reduction Strategy (EDPRS 2008–2012), by focusing on certain achievements in basic infrastructure.