Economics Pa

  Most often we economists are very often studying the poorest countries in the world not simply to analyze grimy statistics but to find ways by which these countries could embark on paths toward transformation. Think about it for a second: Burundi, South Sudan, Somalia, Central African Republic, Niger, Chad, Mali, Yemen, Burkina Faso, and Sierra Leone-all have held the title of "poorest," though with so much potential and resources lying under their feet. They stand at the threshold of transformation, notwithstanding that heavy burden of poverty, political instability, and infrastructure deficits. By reinventing their economies and leveraging even modest strengths, these countries can break free from the chains of poverty. What helps knit them together is their shared heritage of turmoil: political turbulence, continuing conflict, and economic precariousness have been nothing short of traveling companions. The resulting turbulence discourages foreign investment, disrupts e

  The "Business Ready 2024" report reveals the business climate of different economies, analysing those economies across three key components: the Regulatory Framework, Public Services, and Operational Efficiency. In East Africa, in this case, Rwanda, Kenya, Tanzania, and Uganda all differ one from another, each with its unique business climate that has different attractions for investors. Rwanda: First in Public Services and Operational Efficiency It is distinguished within the region for being highly efficient in business operation, with policies that put much emphasis on e-government and simplified procedures. Also, with heavy investment in digital infrastructure that allows businesses to easily access government services, it scores exceptionally in Public Services. This effort towards reducing bureaucratic red tape is what, altogether, makes Rwanda create a vibrant and easily accessible business environment, especially for its small and medium enterprises. The opera

  I sat down to review Gabon's latest economic report, and within no time, a volley of impressions was made upon my mind. Again, a country gifted with an abundance of natural resources-especially oil-finds itself critically positioned economically. The government is passing through high borrowing costs due to the high spreads Gabon faces as a sovereign. The May 2024 report by the IMF on Gabon presented a sobering picture: despite high oil prices, Gabon's sovereign spreads have been alarmingly high, pushing the country's debt deeper into distress. This is no ordinary financial hiccup; it is, as a matter of fact, a symptom of deeper structural problems. The narrative surrounding Gabon's economy is that of addiction. Oil has fueled the nation's growth for decades, and this dependency is now exacting a heavy toll. About 40 percent of the country's GDP and two-thirds of its exports come from oil. But oil is a fickle friend. When prices are high, as they have been lat

  The industrial output for Rwanda has been marking noticeable changes, and fresh statistics reveal growth amidst key sectors presenting challenges. The National Institute of Statistics of Rwanda just released the Index of Industrial Production for August 2024, giving a necessary snapshot of the country's industrial performance. Being one of the key indicators of economic performance, the IIP monitors the short-term changes in the volume of industrial production. It therefore gives a clean picture of the health of Rwanda's formal sector. This important composite measure is an aggregate of mining, manufacturing, electricity, and water & waste management sectors, which all are very crucial to the nation's economy. The output of the industry in Rwanda increased 4.8% this year from August 2023, which is impressive and a fall from the annual average of 6.3%. While these figures add up to general growth, a closer look shows that there are important differences between sectors

  Banknotes are something very important to the health of an economy, symbolizing a level of confidence and national identity in economic stability. Due to several factors and aspects, central banks from time to time update and redesign banknotes to ensure that their respective currency remains secure, functional, and representative of the values of a nation. While these changes do take place, they may be regarded by the general public as cosmetic changes; quite contrary, as they more often than not come with deep economic and security implications. One of the major causes for replacing banknotes is counterfeiting. The better technology gets, the closer to reality counterfeiters can get in terms of making money. Outsmarting them, central banks issue new notes with holograms, watermarks, and microprinting as state-of-the-art security features. This renewal will avoid corruption of the currency and give confidence to the public about this means, thus avoiding mass economic fraud. The oth

Rwanda, like many economies, faced significant challenges during the COVID-19 pandemic and the subsequent cost of living crisis in 2022-2023. This article examines the monetary and fiscal policy responses implemented by Rwanda's authorities during these periods, focusing on their effectiveness, coordination, and implications for economic stability and recovery. Monetary Policy Responses Covid-19 Pandemic (2020-2021) During the COVID-19 pandemic, Rwanda's National Bank (NBR) adopted accommodative monetary policies to support economic recovery and ensure financial stability. Key measures included reducing the Central Bank Rate (CBR) from 5% to 4.5% and lowering the reserve requirement ratio from 5% to 4%. These actions aimed to stimulate credit growth, provide liquidity to financial markets, and alleviate financial pressures on businesses and households (National Bank of Rwanda, 2021). Cost of Living Crisis (2022-2023) In stark contrast, the cost-of-living crisis in

  In the world of economics, debt plays a pivotal role in shaping the development trajectory of nations. However, not all debts are created equal. A glaring contrast exists between the debt burdens of developed nations like the United States and those of the Global South. This contrast not only reflects economic inequality but also serves as a significant factor contributing to underdevelopment in many regions. In this article, we delve into the disparities between the United States' debt and that of the Global South, exploring why it perpetuates underdevelopment and the role of international financial institutions like the World Bank and the International Monetary Fund (IMF) in perpetuating this cycle. The United States Debt: A Different League The United States boasts one of the highest national debt levels globally, currently exceeding USD 28 trillion [1]. However, the nature and implications of this debt significantly differ from those faced by countries in the Global South. Th

Rwanda's Wholesale and Retail Trade sector stands as a pillar of economic activity, employing a substantial portion of the nation's working-age population. This article delves into the intricacies of the sector's workforce, offering insights gleaned from the 2022 report by the Rwanda Development Board (RDB). Join us as we explore key facets such as employment distribution, educational backgrounds, gender dynamics, enterprise statuses, and the future outlook within this vital sector. Workforce Composition: A Snapshot of Diversity In 2022, the Wholesale and Retail Trade sector boasted a workforce of 372,408 individuals, with a balanced gender representation. The sector's youthfulness is evident, with the average working age pegged at 36 years. This demographic trend highlights the sector's appeal to the younger workforce. Source: overview of the wholesale and retail trade; repair of motor vehicles and motorcycles Sector- 2022 published by RDB.   Educationa

  Unemployment remains a pressing concern globally, impacting communities and economies alike. In Rwanda's Eastern Province, particularly in Nyagatare District, addressing unemployment is a multifaceted challenge with varied opportunities for improvement. This article delves into the comprehensive data from the 5th Rwanda Population and Housing Census (5RPHC) in 2022, shedding light on the intricacies of the employed population, gender disparities, youth unemployment, and the underlying causes of unemployment. Additionally, it explores strategic responses to mitigate this issue, providing a roadmap for policymakers and stakeholders.   In Nyagatare District, the employment-to-population ratio (EPR) stands at 51.5%, revealing significant labor force participation among individuals aged 16 and above. However, urban-rural disparities are evident, with urban areas boasting a higher EPR of 54.0% compared to 47.9% in rural regions. This data emphasizes the need for nuanced regional st